Credit card withdrawn due to lack of use.

demonted

Just received a letter from my credit card Co stating that my credit card with 0 balance will be withdrawn due to lack of use.
It also states I must pay any outstanding balance before November 16.

However, I currently have a 2nd credit card with a different provider, with a large interest free balance still outstanding of which I pay off each month and plan to clear within 3 years.

Other than the fixed monthly repayments I don't make any addition purchases/transactions and haven't done so for at least 12 months and don't plan to either.

Therefore, has anyone with an outstanding credit card balance, who makes regular monthly repayment, no additional purchases had their credit card withdrawn due to lack of use ?

[Deleted User]

Yes, it happens occasionally, as lenders look to tidy up their portfolios and save costs on card reissues. Most likely when a portfolio changes hands.

However, it's not as common as on fully dormant accounts with no balance.

EarthBoy

demonted wrote: »

..has anyone with an outstanding credit card balance, who makes regular monthly repayment, no additional purchases had their credit card withdrawn due to lack of use ?

They're not withdrawing the card with an outstanding balance, are they? A different provider is withdrawing another card, with a zero balance, because you don't use it. This won't affect the card you do use, so you can carry on using it.

It's quite common for banks to withdrawn/not renew unused cards. It's happened to me with HSBC, Halifax and Yorkshire Bank.

giblet10

Which card company is it, just out of interest?

I've had some cards not replaced due to lack of use (Tesco and Aqua) and one that will be withdrawn at end of October if I don't use it (Cashplus).

But in all cases they've given me the opportunity to request a new card be issued or in the case of Cashplus, use it or lose it.

demonted

Yeah, I understand the CC thats been withdrawn won't affect my 2nd CC from a different provider.

I was wondering whether anyone has ever had a CC with an outstanding balance withdrawn for lack of use and told to clear the balance within 2 or 3 months ?

I currently make regular fix monthly repayment but have not made any transaction/purchases with my 2nd CC for at least 12 months and don't plan to make any additional card purchases until my outstanding 0% balance has cleared.

My plan was to use the CC that's now been withdrawn for emergency purchases and just pay it off when the bill arrived.

chattychappy

Whenever a provider has wanted to withdraw a card I have, I've always had a chance to ask them to keep the account open.

(Mine have always been zero balance.)

demonted

I've not enquired with CC yet but letter just stated it's being withdrawn, with no mention of "start using it and I can keep it."

For me this is unusual, I've had CC cards for 20 years or more and I've often used one CC more than the other.

The withdrawal of the CC I can live with, may concern is in regard to my 2nd CC, with a large outstanding 0% balance; can just making regular fix monthly repayments, with no additional card transactions be regarded as inactivity ?

If my 2nd CC was withdrawn and told to clear the outstanding balance within 2 - 3 months, I'd be......... well you can guess.

If I have to start making regular purchases on my 2nd CC to prevent it being withdrawn, it will ruin my current repayment strategy, as any additional card purchase will incur interest.

My 2nd CC statement states that the most expensive balance will be cleared first, meaning any balance that's incurring interest.

[Deleted User]

A card with a current promo balance on is highly unlikely to be withdrawn.

chattychappy

demonted wrote: »

The withdrawal of the CC I can live with, may concern is in regard to my 2nd CC, with a large outstanding 0% balance; can just making regular fix monthly repayments, with no additional card transactions be regarded as inactivity ?

I have done this so many times and never had a card withdrawn, even after a few subsequent months of zero balance and zero activity. The situation you describe has never happened to me. All that has ever happened to me is that after a year or so of zero balance, I've had a letter saying they plan to close the account or don't intend to replace my card when it expires. There has always been an option to phone up to keep the card going. I've had card for almost 30 years.

molerat

demonted wrote: »

I've not enquired with CC yet but letter just stated it's being withdrawn, with no mention of "start using it and I can keep it."

For me this is unusual, I've had CC cards for 20 years or more and I've often used one CC more than the other.

The withdrawal of the CC I can live with, may concern is in regard to my 2nd CC, with a large outstanding 0% balance; can just making regular fix monthly repayments, with no additional card transactions be regarded as inactivity ?

If my 2nd CC was withdrawn and told to clear the outstanding balance within 2 - 3 months, I'd be......... well you can guess.

If I have to start making regular purchases on my 2nd CC to prevent it being withdrawn, it will ruin my current repayment strategy, as any additional card purchase will incur interest.

My 2nd CC statement states that the most expensive balance will be cleared first, meaning any balance that's incurring interest.

They can close the card to further use but, unless you are in breach of the T&Cs, they cannot force you to pay more than you have contractually agreed to ie the minimum payments in those T&Cs. Plus they cannot increase the interest rate (outside of promo rates) without your consent.

CLAPTON

really easy to spend say £5 every 6 months or so and still manage ones financial strategy