Chase: "account has been closed"

[808 Vibes]

Can they do this? I haven't used ANY of my credit cards since before my '06 ReFi. I was hoping to hold on to them in case of emergencies (which more than likely, dog forbid, would be expensive vet bills)I got a letter from Chase regarding a credit card I have that says:"We're writing to you because we noticed that this account hasn't been used and has had a $0 balance for at least 24 months. We believe this may indicate that the account no longer meets your financial needs. With this in mind, the account has been closed. To protect your security and ensure that you don't inadvertently attempt to use the card(s) on this closed account, please destroy any cards or checks associated with the account. We will send an update to the credit bureaus within the next 60 days to advise that this account has been closed.We have appreciated the opportunity to serve your credit needs, and we hope to have the opportunity to serve you again at some point in the future." So with this account closed, does that affect my credit rating at all? Or is it still going to be the same? I'd like to keep my credit rating for buying another house someday.Thanks for any info!

[keithvibe]

yes they can. this will also effect your fico score because it's now closed.

[zionzr2]

A bank can cancel you credit card due to inactivity. This happened to my Circuit City card manged by Chase at the time. I never received a letter on that closure.It may not directly effect your score... especialy if your account was in good standing prior to its closure...it will effect your debt to credit ratio. which is used to determine your score.I would suggest that you call the bank using the number on the back of the card. This way you might be able to re-open the account if you so choose. I would not use the number listed on the letter in-case the letter is fraudulent.

[808 Vibes]

Quote, originally posted by keithvibe »yes they can. this will also effect your fico score because it's now closed.Awwww Quote, originally posted by zionzr2 »I would suggest that you call the bank using the number on the back of the card. This way you might be able to re-open the account if you so choose. I would not use the number listed on the letter in-case the letter is fraudulent. OK, I'll give them a call and see if it can be re-opened. There was no phone number/address or anything on the letter.Thank you Keith and Sille

[ColonelPanic]

I had a MasterCard from Apple where I bought a computer a few years back. I paid it off and didn't charge anything on it for a couple years, they closed it on me.Lots of CC companies are looking for non-usage and are closing the accounts, I guess they see us who don't use the credit cards as risky? Since then, on some of my older cards I try to charge up a few bucks every couple of months then immediately pay them off. Not sure if that will help since they'll still have a zero balance 99% of the time but at least they're getting some use.

[ehoff121]

Got the same letter yesterday.Open card accounts with no usage cost the bank money.Never mind that Chase got TARP funds...

[808 Vibes]

^ ^ Yeah, they're not making tons of money off of interest and fees on us, so they just DUMP us. I once had a Macy's bill and I don't make a habit of going to malls, so kept putting it off. I tried to pay before work but was running late and figured I'd get away with paying it the very next day. When I got another statement, for a $30 fee for paying it the very next day (that fee was more than the balance itself) the first thing I did was cut up that card into tiny pieces and never wanted a replacement.

[Kari]

The only way it will affect your FICO score is by reducing your available credit, and, thus increasing your percentage of credit usage, assuming you carry a balance on any of the cards. If you don't carry a balance on any of them, it shouldn't really affect your score at all. In order to maintain the "age" of your credit history, you will want to pick out 1 or 2 of your "oldest" cards (the ones you've had the longest) and make sure you make at least 1 purchase with them once a month, and pay it off at the end of the month. You can use it to buy groceries, gas, etc. so that way you aren't spending money you wouldn't have otherwise. Many CC companies are closing cards that haven't been used in a while, and if they close one of your oldest cards, that will affect your FICO score and it will take a long time to fix it, because you'll have to get the age back on your credit history.

[Houston]

Cutting it up obviously means that card will no longer be used, but doesn't close the account. To do that, contact the company.

[KNINE]

I suggest that you use tha card every now and then to keep it active. There's this Garmin GPS that I've had my eye on for a while... Hint, hint.

[808 Vibes]

^ ^ You get lost in the kayak named Mahu frequently, do ya?

[kostby]

If you want to see what your creditors have been reporting about you, and see what other accounts you might have that are now closed, you can get an annual credit report from the three credit reporting agencies by following this link --> http://www.annualcreditreport.comYou do have to provide some personal information to retrieve the report online, but again, there is no charge, and you don't have to subscribe to anything.You can only receive the reports once every 12 months.This is also NOT the same as your FICO score, although this information is part of what is used to determine your FICO score.

[808 Vibes]

Quote, originally posted by ehoff121 »Got the same letter yesterday.FYI, I did call Chase. I knew the outcome once I entered the last 4 account digits and the automated system said there was no such account, I then had to enter the full number and got the "this account has been closed. Last payment 2006..." I stayed on the line to speak to a real live person and asked to keep it open; they said there was no keeping it open once they decide to close it. They suggested reapplying. No thanks! I cut that card into tiny little shards. *sigh* I guess I'll go make a $5 purchase on my GM card before they dump me too for being a non-profitable cardholder.

[KNINE]

I'm still waiting for my GPS. Should I email you my address?

[renate]

I always use my credit cards at least once every few months.Usually for just one thing that I pay off within the following few days and make sure that it falls somewhere in the middle of the cycle so you don't get billed finance charges.That way I know all of my credit is there if I ever need it.

[jake75]

I have a Chase Rewards MC that gives me a 5% rebate on gasoline, grocery stores, and drugstores. They no longer offer that but so far have not altered the terms of existing accounts. I think there is a $600/year rebate limit - I have come close to reaching that . I never have paid a dime of interest so I would think they would cancel me. I also have a card that rebates 3% on office supplies (Staples etc) , home improvement stores (Lowes etc) and restaurants. For everything else I use my Schwab Visa card - has a 2% rebate.Unfortunately the new cc law just passed may cause banks to pare back these deals.

[psiu]

Just got the same letter from Chase. Will reduce our available credit a bit but otherwise no problem. Hopefully they close my Providian/Wamu/Chase card next.Stopped using the Chase card when they jacked up the APR to default rates after the holiday season a couple years ago. No late payments, nothing over the limit....just high balances. No notification. Finally noticed and called, they said it was an automated review and it determined we had high balances at the time. Having paid them all off within a few months I asked for another review, but "sorry that's all automated". Haven't used them since.I have not jolly happy feelings toward Chase.edit: they also took over the former Providian/Wamu card and promptly discontinued the monthly Fico score updates. edit2: credit score is around 800.

[Tubaryan12]

Over the last 3 years, I have watched my FICO score go from mid 700's to high 500's. How, you might ask? Because I stopped using credit cards that wanted to raise my interest rates. They would send me a lovely letter telling me that even though I had never missed a payment, there was something about me they just didn't like. They would say they are going to raise the rate and I would opt out to lock in the current agreed upon rate. Then the take back any open credit on the card. With no open credit, it looks like I was maxed out and kills my ratios. Note: I have not paid one bill late, have nothing in default, pay my mortgage and car notes on time in full every month. In fact, I pay everything on time and in full every month. This new legislation is too late to help me. Only time will pay down the debt and get my scores back to where they should be. Had they left me alone, I would have had plenty of open credit by now and my scores would have continued to climb. Thank god the banks can't do the same thing with my car loans and my mortgage.

[03VibeOttawa]

Quote, originally posted by Kari » In order to maintain the "age" of your credit history, you will want to pick out 1 or 2 of your "oldest" cards (the ones you've had the longest) and make sure you make at least 1 purchase with them once a month, and pay it off at the end of the month. Thanks for that post, and thanks to the others who contributed to this thread. Prior to reading this the other day, I hadn't used my (useless) TD GM Card in 8 months. Now, I'll use it from time to time for purchases as small as possible.