Credit Card Closed for Non-Use

bargainbetty

I've just had this with MBNA, but to be honest it saved me the job of closing it myself, I can't stand their customer services.

Just use the card once a month and pay it off in full each time. Set up a direct debit so you don't forget. It really isn't a big deal, and the lender has every right to call in that line of credit if they do it within the terms of the agreement.

Herbalus

spydersweb wrote: »

Hi all
And of course to spend on it then defeats the purpose of saving on a bargain when the interest is added.

This rings alarm bells - do you think that it costs you to spend on a credit card? If you have a direct debit to pay it off in full (and the money in your bank account to pay for the item) then there is absolutely no cost and your bargain remains a bargain.

The only way you pay interest on a credit card is if you don't pay the full amount each month.

NiftyDigits

bargainbetty wrote: »

I've just had this with MBNA, but to be honest it saved me the job of closing it myself, I can't stand their customer services.

Just use the card once a month and pay it off in full each time. Set up a direct debit so you don't forget. It really isn't a big deal, and the lender has every right to call in that line of credit if they do it within the terms of the agreement.

Have to say that I've had the complete opposite experience.
Though that perhaps could have changed, as I've had no need to use them of late.
Perhaps biased as they gave me my first ever CC(with a limit of £500). Now they extend considerably more to me. Also, they were the only company who would accept reverse charge calls from abroad if you ever had a problem. Then there was the free travel and luggage insurance...

So I'm happy to keep my MBNA cards. Don't get to use them as often as before, as I travel a fair bit.

dalesrider

pqrdef wrote: »

FD had a different excuse - "unused cards are a security risk"

They are as people tend not to keep a check on them or even look at statements.
Add in there can be a card sat around in a drawer or such.

If you want a CC for emergency purposes only but not to run up huge debts on. And of course to spend on it then defeats the purpose.

Then just sue it once a month for shopping or such and set up a full DD.
Or use it all the time for waht you would with your debit card and pay in full each month.
Bonus of 50+ days interest free, and that money can be earning in a savings acc in the mean time.....

This is MONEY SAVING forum after all.

chattychappy

All this "responsible lender" nonsense again. Probably a script drafted by someone with a dodgy marketing degree. A bit like when you get a letter telling you they have listened to customer feedback and are going ahead with something you won't like!

Reality is, it's the regulatory costs/risks of keeping accounts open. Dormant accounts are a target for financial crime, particularly as such fraud might not be noticed as quickly as on an active account. ML regs do require institutions to identify dormant accounts, risk assess them and reverify details if necessary.

Given the accounts are not being used, it is cheaper to close them than write to the customer and go through the necessary checks.

In the OP's case, Halifax could do all this and re-activate/continue the account if they wanted to. But they've made a commercial decision to close the account (fair enough) but dressed it up as "being responsible".

molerat

I have an MBNA with a £7.5k limit which has had a statement balance no higher than £36 since Dec 2007 when I got my Cap1. I spend the odd £5 on it every 2-3 months now just to keep it going and they have renewed the card a couple of times without a whimper.

redpete

adindas wrote: »

It might be an advantage to have many credit as long as you do not pay the interest and/or fee. Here the advantage of having many credit card discussed with some arguments from others who put forward the disadvantages.

https://forums.moneysavingexpert.com/discussion/4594885

I've corrected the above for you, hope that helps.

planteria

i wonder if spydersweb has any other credit cards

AMG762

I have a Halifax clarity account which is being saved for spending abroad. I only intend to use it for a couple of weeks a year.

Martin Lewis advised keeping this in your 'holiday wallet' in a safe place until needed.

I'm a bit worried now that when I want to use the card around Europe later this year my limit could be reduced?

guesswho2000

AMG762 wrote: »

I have a Halifax clarity account which is being saved for spending abroad. I only intend to use it for a couple of weeks a year.

Martin Lewis advised keeping this in your 'holiday wallet' in a safe place until needed.

I'm a bit worried now that when I want to use the card around Europe later this year my limit could be reduced?

Just stick a random transaction on it (newspaper from Tesco or something) each month and clear it in full.