Do credit unions cancel credit cards because of inactivity?

[FANOFJESUS]

Do credit unions cancel credit cards because of inactivity?

 

[OAG]

Actually, yes, sort of. A small CU in Florida at which I have several CD's and a very active checking account (mostly electronic ACH type payments made into and out of it - very few "paper" checks), "failed to renew" one. The sent me a letter and said since I had not used the VISA card for a "long time" they would not be renewing it. If I needed it in the future I could reapply. It was about 2 years ago that they did it, so it was not connected to the current financial situation.

 

[FANOFJESUS]

How long had it been since you used it?

 

[OAG]

How long had it been since you used it?

Probably 18 to 24 months!

 

[JohnDoe]

Yes,

There are a number of reasons. Usually they will just not reissue. Why would they if you're not using it.

Also, there is a lot of fraud going around right now. If there is a dormant card, it's better to close it.

 

[lazygood4nothinbum]

does it hurt credit scores to close'm?

i've two i never use & just one i use all the time. of the two i don't use, one is my old credit union and one i originally got through my local bank but then that card somehow went from a generic carrier to a bank i don't use so that i could no longer electronically pay the balance each month from my own checking account.

thus the third card from my bank which i use frequently for points but pay the balance to zero each month. there's not a lot of credit on the other two, i think $15k/each. should i just cancel them? or should i use them every so often to keep them active?

 

[REWahoo]

I just ran across this article on closing CC accounts and credit scores:

“My credit card was canceled!” - Money Helps

 

[lazygood4nothinbum]

thanx rew, sounds like i should use them. what a pain. does this mean i have to buy stamps and write checks? (just, um, checked: i've written all of 16 checks since 2005.)

 

[REWahoo]

does this mean i have to buy stamps and write checks? (just, um, checked: i've written all of 16 checks since 2005.)

No, if you have e-bill paying through your bank, you can pay your CC bills online like the rest of us techies...

 

[thefinancebuff]

All the articles say closing an account can hurt your score but nobody says it will hurt your score or by how much. For example is a 5-point drop even worth worrying about? If you have good scores to begin with, the effect is probably minimal. I closed my oldest card, which everybody else says is a no-no, but I still had good scores after that. Most of the rate decisions are done in brackets. As long as your score is above a cutoff score for the best rate, say 700, you don't get any better rate if your score is 790 versus 730. Google "oldest credit card" if you are interested in my experience.

 

[FANOFJESUS]

Probably 18 to 24 months!

Thanks, I think alot of them close at 24 months from what I have heard about banks. I guess it is the same for credit unions.

 

[jazz4cash]

thanx rew, sounds like i should use them. what a pain. does this mean i have to buy stamps and write checks? (just, um, checked: i've written all of 16 checks since 2005.)

I have two accounts at small CU's that I hardly ever use anymore. They both offer free billpay, option to xfer payment from a CU savings account automatically or by phone for free. You can also call and authorize payment from another institution checking account, but the started charging $3 for that service. I have them setup on BofA Online Banking.