dormant

memberme

Apart from risking that a bank may close a credit card account, does it actually matter if a credit card shows as dormant. I have a couple I keep for backup abroad etc and they both show dormant as I haven't used them for a while....does it matter?

[Deleted User]

Not unless your income is low and your overall limits are high. A lender could consider you have have enough available credit.

But dormancy in itself isn't a negative.

StopIt

Remember, especially with dormant cards that if you needed to use them aboard to tell your bank before you travel, just in case.


The last thing you want to do is rely on a back-up card, only for the bank to flag up a potential fraudulent transaction because the first usage in ages is abroad!


Aside from that, the effect of these on your credit files is low.

dresdendave

If you haven't used a card for a long time it's possible a DD set up to make your repayment may have become inactive. If you do use the card make sure the statement specifically says the DD will take the payment, if in doubt make a manual payment in plenty of time.

jonesMUFCforever

If the account is marked as dormant it is highly unlikely that you would be able to use the card at all - in an emergency no use whatsoever.
IMO close any dormant cards - you then become a new customer if you choose to re-apply.

nickcc

dresdendave wrote: »

If you haven't used a card for a long time it's possible a DD set up to make your repayment may have become inactive. If you do use the card make sure the statement specifically says the DD will take the payment, if in doubt make a manual payment in plenty of time.

I hadn't used my Post Office, bank of Ireland, card for some time but I had used it to pay for Now tv when the twelve month credits I used expired. As you state my direct debit had been cancelled as no payments had been taken in the previous 12 months. I was charged a £12 late payment fee which was refunded as I was unaware that the DD had been cancelled.

Vortigern

dresdendave wrote: »

If you haven't used a card for a long time it's possible a DD set up to make your repayment may have become inactive. If you do use the card make sure the statement specifically says the DD will take the payment, if in doubt make a manual payment in plenty of time.

Rather than allowing a CC and its associated DD to become dormant/cancelled I would make a small purchase every 3 months and allow the DD to collect the full amount.

qsk

nickcc wrote: »

I hadn't used my Post Office, bank of Ireland, card for some time but I had used it to pay for Now tv when the twelve month credits I used expired.

I have a PO card as well and haven't used for years. I got an email recently saying they are closing the account. So it seems dormancy has stages...

chattychappy

Even though an account is dormant, you must still check it for fraudulent activity.

I had £6800 of fraudulent transactions go through on a dormant account a few years back.

ClaretHead

I have an HSBC Credit Card which I have used twice so far in 2017. It may be useful in the future, so I'd like to keep it open, but I'm not sure how often to use it - every 3 months, every 6 months, once a year? Does anyone know how often they review and mark as dormant?? Thanks

[Deleted User]

Every 6 months should be sufficient.

However, not only do practices vary across lenders, it varies within the same lender. Many will have an ad hoc tidy up of accounts when volumes hit a certain level.