Inactive Credit Card Closed

Posted On: February 2, 2005

Author: Martin
Guest
Posted: Fri Jun 20, 2003 2:00 pm
Post subject: Card Canceled for Non-use

I had a Mastercard which I didn’t use for over a year. Then, when renewal came, the issuer (Citibank) chose not to renew it. They said that the card was not used in over a year. Fine. As I’ve said, I didn’t use it. The question is: even though I did nothing “derogatory”, does this hurt my FICO with the credit bureaus? Will my credit report show “canceled by issuer” or “closed by consumer”? Or what will it show when the issuer cancels for non-use, instead of another reason? Do I need to do anything further?

Author: sisflomi
Credit Expert (100+ Posts)
Joined: 07 Nov 2003
Posts: 134
Posted: Tue Nov 11, 2003 1:48 am

It won’t hurt your fico as far as we have learned. It should state inactive, and closed by credit grantor. Where it does hurt is when lenders see it on the report. You can explain why you didn’t use it and it should not be too big a problem.

Sis
Letters Here

Author: tink
Joined: 25 Nov 2004
Posts: 1
Posted: Thu Nov 25, 2004 1:07 am
Post subject: But can I close it first?

I have the same issue, with a card I had for years…it’s going to be cancelled at the end of the month due to inactivity. Since it isn’t such good news for lenders (and that annoys me–I’d always paid on time, just haven’t used it in a year) can I just overnight a return receipt letter to the credit department stating that *I* want to cancel this card, effective immediatly and request that it be reported to the three credit reporting agencies as canceled by consumer (instead of by credit grantor)? I also used the card online as soon as I got the “we don’t want you anymore letter,” (it didn’t change their minds–they could not stop the process) so maybe it helps me that I can overnight a check to the payment department (and a copy to the credit department) that says “payment in full–consumer requests account closed upon receipt.” Before I go to all this overnighting, certifying, letterwriting, trouble and expense, can it be done?

Thanks.

Tink

Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2373
Location: Illinois
Posted: Thu Nov 25, 2004 9:12 am

I think it is worth a try, creditors are not so up in arms on who closes the account and how that is reported, not like you where a bad customer, with bad history between both of you… Just be sure to keep a copy of your letter, so that if it does get updated with the CRA as closed by credit grantor, you can forward what you have pointing out that you closed the account yourself.

Author: cabledude
Joined: 14 Aug 2004
Posts: 36
Location: East
Posted: Thu Nov 25, 2004 10:03 am

The only thing I may see that may hurt is what kind of CL you have with them. If let’s say it was a 10K CL and you only have $20K overall a 10K hit will hurt on utilization. If it was 1K and you have $20K the overall affect may be minimal. In any case if you have a good credit score you can just apply for another card and replace the one that is closing.

Author: guessindigo
Joined: 19 Sep 2004
Posts: 51
Posted: Mon Nov 29, 2004 8:21 pm

Nothing to stop card issuers from closing inactive accounts, in fact, it happens all the time to people who put their cards in the sockdrawer for years and then only to find out it has been closed by creditor when they go to use it or when they pull their credit reports.