What happens if you dont use it?

YORKSHIRELASS

Hi everyone

I have had a Barclaycard for about 10 years and have managed to clear the balance, mainly through a balance transfer. If I dont cancel the card what happens? I have other debts and I am throwing every penny towards clearing them but I would like to keep a card that I can use in case of absolutely dire emergencies. I have a £9300 limit on the card but if I didnt use it would I still have this limit in say 2 years time?

My credit rating is very good if this makes any difference.

Tixy

They may write to you to cancel the card or to reduce your limit. Especially after a period of inactivity.
A lot more cards are now introducing annual dormany fees - not sure if barclaycard have.

CLAPTON

as tixy says, it's likely to be cancelled

why not use is regularly for something you buy anyway (maybe petrol) and pay in full each month

izools

Barclaycard used to close accounts that were dormant for two years or more.

They will give you notice however if they are going to close the account and all you need to do is use the card for a small purchase and they will revoke the account closure.

As Clapton suggests, just use it for groceries / petrol instead of your debit card, and pay it off in full each month.

chattychappy

Money Laundering regs encourage institutions to close dormant accounts or at least carry out some kind of verification process. The reason is they are perceived as a risk - they could be used without the account holder noticing. Then there are traditional fraud risks too.

Most of my CCs seem to have provision for a dormancy fee - but I've never had one applied even when my account has gone dormant. YMMV!

After a year or two, they always write to say they will close the account. Typically this happens when a card is due for replacement. But so far I've always been offered the opportunity to phone them and request they keep it open - without any obligation to spend. No company has told me they are closing an account without giving me a chance to keep it open.

YORKSHIRELASS

Thanks for the good advice, I had been thinking along those lines myself. I know I need to let go of my credit card security blanket but I dont feel able to do this until I have cleared my debts and built up some savings!

chattychappy

Once you close an account with a good limit, it can be difficult to get it back. Lending has toughened up over recent years. I would certainly keep accounts open until you are sure you won't need them.

Also I wouldn't throw "every penny" at clearing the balances. I would build up a buffer of cashflow - say equivalent to 3 months minimum repayments - just in case something "goes wrong".