Dormant Credit Card Accounts

jet01

On checking my Experian credit file yesterday via MSE I noticed that my Nationwide CC account was showing has being dormant from last month. I had used the card only two months before this and then paid the balance in full at the end of the month, which was showing correctly on the credit file. Therefore, it appears that Nationwide had changed the status of the card to dormant after just two months of inactivity. This seems rather odd to me because in the past I’ve gone much longer without using certain credit cards and they were not changed to dormant and continued to show as active accounts on the Experian report. For example I went over a year without using my Barclaycard and it continued to show as an active account throughout, similar period for a Halifax card in the past too I think. 

My question is therefore, does anyone know why Nationwide would change the status of the account to dormant so quickly? Is this standard practice with Nationwide or have they targeted me as as an individual due to some kind of flag on my account or as part of a sub-set of customers who they perceive to be higher risk? If this is just normal practice for Nationwide does anyone know why they change the status to dormant so quickly compared to other lenders?

born_again

Zero balance and no spend in the last statement period maybe.

jet01

born_again said:

Zero balance and no spend in the last statement period maybe.

Yes that is true but it doesn’t explain why Nationwide change the status so quickly compared to other companies. Other accounts have had zero balance and no activity for several months but the status remained active throughout. 

jonesMUFCforever

Mine does this as well - nothing to worry about - as others have posted if you have not used it in the last month they quote it as dormant. It does not stop you using the card as normal.

born_again

jet01 said:

born_again said:

Zero balance and no spend in the last statement period maybe.

Yes that is true but it doesn’t explain why Nationwide change the status so quickly compared to other companies. Other accounts have had zero balance and no activity for several months but the status remained active throughout. 

Nationwide being Nationwide. No harm in the way they are reporting it.

If you are looking for further credit. It is outstanding debt against income that is one of the main factors a lender will look at, not if you have any dormant cards.

jet01

I’m not looking to apply for any new credit cards at the moment and I understand I can still use the card. I was really just curious as to why Nationwide had done this so quickly when other issuers haven’t. 

Chino

jet01 said:

does anyone know why they change the status to dormant so quickly compared to other lenders?

Why don't you pick up the telephone, ask Nationwide this question and report back on this thread?

Thrugelmir

jet01 said:

My question is therefore, does anyone know why Nationwide would change the status of the account to dormant so quickly? 

Because it's factual. There's been no activity on the account. The flag may be for internal purposes as well. Reduce credit limits/ close accounts after given period of dormancy. 

Doesn't impact you in any event. 

jet01

Chino said:

jet01 said:

does anyone know why they change the status to dormant so quickly compared to other lenders?

Why don't you pick up the telephone, ask Nationwide this question and report back on this thread?

I doubt the call centre staff would be able to answer this question. Also, I would have thought they choose not to disclose publicly why or how they make these decisions. Given it was a question asked purely for curiosity purposes I don’t fancy hanging on the phone for ages in the middle of a pandemic to ask the question either.