Don't forget to keep your credit card active

sb44

I have a LLoyds TSB credit card which I only have for emergencies or buying electrical goods online.

My last purchase was a fridge in June 2011 which I paid off the following month leaving me with a zero balance.

I probably have only used it for one purchase a year for the last few.

I received a letter from them this morning basically saying that my c/c account is dormant as I haven't used it, therefore my credit limit has been reduced from £4,700 to £500 and the card will be cancelled 2 months from the date of the letter.

It's a good job I wasn't planning on using it for a large purchase.

So, if you have a c/c stuck in the drawer for emergencies, make sure you use it for something every few months to keep it active.

jonesMUFCforever

You also have to see it from their side - you potentially have a £5000 facility which they have to fund should you decide to use it.

arcon5

jonesMUFCforever wrote: »

You also have to see it from their side - you potentially have a £5000 facility which they have to fund should you decide to use it.

Erm.. yes.. isn't that the point of credit cards and credit in general?

jonesMUFCforever

arcon5 wrote: »

Erm.. yes.. isn't that the point of credit cards and credit in general?

It is but if you are not using it regularly it is £5000 they have to fund when not necessary.

MABLE

I had a letter from Tesco bank a few days ago advising my card was up for renewal but were not going to renew it because the account had not been used for a while and would be cancelled upon expiry of the old card but if I wanted to keep it give them a ring.

I phoned them and without any problems they will now be sending me a new card.

Penelopa.Pitstop

I had the same letter from Tesco but I was going to close the account anyway. So they saved me a phone call to them.

I had similar letter from Lloyds a few years ago. They cut my credit limit but left my account open. My OH has credit card with them which he hasn't used since 2006 or 2007. It has quite large credit limit and they never contacted him about not using the card or stating they will close the account.

jonesMUFCforever

Penelopa.Pitstop wrote: »

I had the same letter from Tesco but I was going to close the account anyway. So they saved me a phone call to them.

I had similar letter from Lloyds a few years ago. They cut my credit limit but left my account open. My OH has credit card with them which he hasn't used since 2006 or 2007. It has quite large credit limit and they never contacted him about not using the card or stating they will close the account.

Don't rely on this in an emergency. I would respectfully suggest that that card won't work after such a long time being dormant.

ihateyes

also if it is lost there is a large liability on the card.
even if you have a £5k card, and only spend small amounts, they will still most likely reduce the limit.

sb44

I rang them and asked if it was because I no longer have an earned income, just working tax credit and child tax credit.

I don't have any outstanding debts, never had any bad debts etc.

She said it is something the bank was doing with lots of unused accounts.

Also, if they cancelled it as it said in the letter I would have to wait 12 months to reapply for a new card, if I cancelled it myself I could reapply in 6 months.

My husband also got the same letter, he is working, also has no bad debts and an excellent credit history. I think his credit limit was about 11k, he also had a zero balance and hadn't used it for a while.

Luckily he has another card that he used for petrol to keep it active.

His opinion is they are making their money from people who are repaying their cc bills via the interest, why give someone the option to borrow money that they may not need when they are tightening their belts.

fozmcfc

I've 3 cards which I haven't used in over a year, 2 years in one case.

Not too fussed if they do close them down in fact save me the bother of ringing them.

I've another 3 anyway, which I use now and then, but generally only use cards if

1/ They have 0% offer on them

2/ If I'm going to pay it off in full each month.

3/ I get cashback from using them.

Far too long, I was a slave to a permanent credit card balance, never again if I can help it.