Account activity on credit card

HeCh

I have read that credit card accounts may be closed or their limits reduced if they are inactive over a period of time (6-12 months).
What constitutes activity? Is it any activity on the account (only payments against a balance transfer, for example) or are regular purchases/further transfers required?
Also, I had a Halifax credit card account that had a £5 credit balance without any activity for 3-4 years that was never closed by the provider. Are the inactivity time limits for each credit cardetails provider collated and available online anywhere?
Many thanks.

[Deleted User]

It varies by provider.

The criteria aren't published.

HeCh

Thanks zx81.

Do you mean the time limits or the definition of activity (or both)?

stevenhp1987

HeCh wrote: »

Thanks zx81.

Do you mean the time limits or the definition of activity (or both)?

He means Both.

Superscrooge

I've a couple of credit cards that haven't been used for five years.

Neither company has closed them.

TheShape

I haven't used my Barclaycard in at least 7 years. I phoned to get them to close it today and they seemed desperate for me to keep it.

HeCh

Hmm - maybe it's not that common. Perhaps just when some perceived reason for concern appears on credit reference agency files.

[Deleted User]

Dormancy closures are invariably driven by costs. There are residency costs, systems, annual statements, migration costs and so on that vary across providers.

Most will have a clean up at some point to get rid of the dead wood.

The better ones will more quickly identify dormancy, try to reactivate them and then close if they stay inactive.

agrinnall

I would say that a card on which repayments are being made is not going to be regarded as dormant. However, that doesn't mean to say that the issuer's own criteria won't say that there have to be credit transactions made within a certain period, so it could be closed anyway.

eddddy

I have CCs which have remained unused for many years without the accounts being closed.

But a couple of banks also told me that they would close my accounts, unless I used the CCs.

One bank explained that it was to manage their asset/liability ratios.

i.e. They have to keep a bit of money aside, just in case people with high credit limits on dormant cards decide to start using them again. So they'd rather close those accounts (or reduce their credit limits), and use that money for something more profitable.

HeCh

Makes sense eddddy.

I wonder if any scoozers on here have had their limits reduced at any point? If not, it would suggest that any regular activity (eg min monthly payment) constitutes sufficient activity to prevent any account becoming dormant in the eyes of the lender.