I'm going to stop using my Visa and apply for an AMEX.
I want the Visa account to remain open to keep my revolving credit usage % low. While I understand opening a new card will temporarily reduce my score, it will pay off in the long run.
If I don't use the Visa for a long enough period will they close my account?
Edit: This is not because I'm concerned that I'm using the card and paying in full, rather I will not be using the card at all.
Please realize that your issuer can close the account for any number of reasons.
Inactivity is one, as having a credit line open costs them money and if you never charge anything, the company doesn't get any transaction fees from vendors nor does the company get to charge you any interest. An occasional charge is likely to keep your card from being closed automatically, but it is not a guarantee.
Another reason they may close the account is that you have other bad marks show up on your credit score, or their criteria for offering you the card change so you no longer match their target demographic.
I have a credit card issued by my credit union that I have not used for a couple of years. They will not close the card account because my other accounts are still very profitable for them. If I were not an otherwise profitable customer, I wouldn't be surprised if they closed my credit card account.
If you are serious about keeping the account open, you should probably have more than a trivial amount of usage.
There is no universal answer here. Some card issuers will. Some that will close the account will warn you first. For my "sock drawer" cards I'll try to take each out semi-annually to make a single transaction, then put it back in the drawer.
I've heard you should charge something quarterly, I've never had one closed with semi-annual charges.
The answer is maybe. I had a Chase card without a purchase in over 4 years get canceled out of the blue, without so much as a notification telling me it was at risk for cancelation. They told me they typically close accounts after 24 months of inactivity (not including card fees) but let mine go for longer because I have several other credit cards, savings and checking accounts with them. I would recommend spending at least once per year on the card.
Assuming the question is "will they close it for inactivity (alone)".. the answer is "Nope"
... unequivocally.
Update: < My answer is geared to credit Cards issues by companies that deal in credit, not merchandise (i.e. store cards, retailer cards, etc). Retailers (like Amazon, etc), want to sell goods and are in the credit card business to generate sales. Banks and credit companies (about whom I am referring) make their money primarily on interest and secondarily on service charges (either point of use charged to the vendor that accepts payment, or fees charged to the user).>
The only major issuer I will say that it might be possible is Discover, because I never kept a Discover card. I also don't keep department store cards, which might possibly do this; but I do doubt it in either of those cases too. My answer is based on Having 2 AMEX cards (Optima and Blue) and multiple other Visa/MC's that I NEVER use... and most of these I have not for over 10+ years.
Since I am also presuming that you are also not talking about an account that charges a yearly or other maintenance fee..
Why would they keep the account open with the overhead (statements and other mailings,etc)?
Because you MIGHT use it. You MIGHT not be able to pay it off each month. Because you MIGHT end up paying thousands in interest over many years. The pennies they pay for maintaining your account and sending you new cards with chip technology, etc.. are all worth the gamble of getting recouped from you! This is why sales people waste their time with lots of people who will not buy their product, even though it costs them time and money to prospect.. because they MIGHT buy.
Naturally, there are a multitude of reasons for canceling a card; but inactivity is not one. I have no less than 10+ "inactive" cards, one that has a balance, and two I use "infrequently". I really would not mind if they closed all those accounts.. but they won't ;)
So enjoy your AMEX knowing that your Visa will be there when you need/want it.. The bank that issues your Visa is banking on it! (presuming you don't foul up financially)
Cheers!
The workaround solution is to simply avoid having an exactly zero balance on your account. Thus for inactive credit cards that I want to keep around for emergency use, I always leave a small positive balance on the card.
The credit card company reserves the right to cancel my card at any time, but a positive balance would force them to send me a check for the privilege of doing so. A positive balance avoids making the account appear inactive and makes it cheaper for them to simply leave the account open.
