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Credit Cards

WildCat

NWO Master Conspirator
WildCat
Joined
Mar 23, 2003
Messages
59,856
So I was at Home Depot a few weeks ago to rent a jackhammer, and I had to give my credit card for a deposit. They said my credit card was no good, and sure enough Amazon-Chase had cancelled it because I never use it. In fact, I only used it once in order to get a big discount on a purchase made when I applied for it and paid it off right away.

And I noticed that I haven't been getting new cards in the mail to replace those that have expired, presumably for much the same reason. I have been quietly dropped from all my credit cards. In fact, it occurs to me that for the first time in my adult life I don't have a valid credit card! Not including my Visa debit card of course, which Home Depot took instead (last time I rented a tool there they wouldn't accept a debit card for deposit, which is why I gave them the credit card in the first place).

What's unusual is that this was never an issue before, Discover sent me renewed cards for 15 years after I last used one for example. So what, exactly, has changed? I assume it has to do with the economy and credit crunch.

Anyone else here notice this?
 
I do not know for certain but I think this is a change that happened before the current economic crash. Something about creating a dissincentive for non-use. The companies want to make money, and a card holder who never uses the card does not generate revenue. If card holders are encouraged to make even a minor purchase over the course of a few years it creates some level of revenue.
 
I've had some credit card companys tell me my card is cancelled due to non-use.
I have only two now, one too many.
 
WildCat said:
What's unusual is that this was never an issue before, Discover sent me renewed cards for 15 years after I last used one for example. So what, exactly, has changed? I assume it has to do with the economy and credit crunch.

Anyone else here notice this?
Click to expand...

I've had 2 cards canceled in the past year, not for anything I did, but because the 2 companies decided to get out of the credit card business.
 
This isn't really all that new. It's generally related to the fact that most credit card issuers use 3rd party vendors for data processing and keeping your account open costs them money. So, if you're not generating revenue then they will actually be losing money by retaining your account.
 
WildCat said:
So I was at Home Depot a few weeks ago to rent a jackhammer, and I had to give my credit card for a deposit. They said my credit card was no good, and sure enough Amazon-Chase had cancelled it because I never use it. In fact, I only used it once in order to get a big discount on a purchase made when I applied for it and paid it off right away.

And I noticed that I haven't been getting new cards in the mail to replace those that have expired, presumably for much the same reason. I have been quietly dropped from all my credit cards. In fact, it occurs to me that for the first time in my adult life I don't have a valid credit card! Not including my Visa debit card of course, which Home Depot took instead (last time I rented a tool there they wouldn't accept a debit card for deposit, which is why I gave them the credit card in the first place).

What's unusual is that this was never an issue before, Discover sent me renewed cards for 15 years after I last used one for example. So what, exactly, has changed? I assume it has to do with the economy and credit crunch.

Anyone else here notice this?
Click to expand...

So basically your credit cards never made a penny of profit off you, did they?
But it does cost them money to issue cards and send you mail, etc.

My guess is that they decided that you and people like you aren't worth having as customers.
 
Zero-spenders are a waste of money for credit card companies so most of them will cancel your card after a several years of no use.
Also, have you moved in the last few years? When mail is returned to the company and they have no means of reaching you by telephone, the may also cancel your account.
Yes, they have become stricter with this since the recession.
 
I have an AmEx card I haven't used in over a year that has not been canceled, though they did drop my "spending limit" on it to like 500 bucks. I don't keep stats but it seems to me I'm getting less offers in the mail for new cards, and the ones I get are usually from companies I have some sort of relationship with, like REI or an airline.
 
I got a diners but prefer using my debit card, there are nasty stories about diners card and how bills can be delayed for months depending on the currency exchange rates.

My diners is great for airport lounges, I have used it only for one purchase in a place that did not take visa. The yearly fee should prevent it from being canceled.
 
Toke said:
I got a diners but prefer using my debit card, there are nasty stories about diners card and how bills can be delayed for months depending on the currency exchange rates.

My diners is great for airport lounges, I have used it only for one purchase in a place that did not take visa. The yearly fee should prevent it from being canceled.
Click to expand...

Wow, in my entire life (50 years), I don't think I've ever known anyone who had a Diners Club card. And I bet it's been 30 years since I've seen one used.
 
The Central Scrutinizer said:
Wow, in my entire life (50 years), I don't think I've ever known anyone who had a Diners Club card. And I bet it's been 30 years since I've seen one used.
Click to expand...

Amazing.
I had a job involving going through Kastrup Airport every 5-6 weeks, that made a diners card a really good investment, as the lounge have not only assorted free refreshments but also the only smokers room in the whole airport. :)
 
I needed a quick $40 from an ATM. I was willing to pay the ATM fee of $3 for its convenience. What I wasn't informed of (at the time) was that there is a minimum $15 "cash advance fee". Had I known (or remembered) at the time I would have just borrowed it.

I have had this card for over 25 years, with a very high credit limit, and always paid in full. But with this, and considering I have rarely used it recently, I am cancelling it tomorrow.
 
This doesn't apply only to non-use. It also applied to people who use the card but don't carry a balance past a month and hence never have to pay interest.

I recently read an article about how this was happening to many people. Credit card companies decided to do some housecleaning and get rid of customers that weren't benefitital to the company. Further canceling card holders that always pay off their cards frees up capital to loan to someone who doesn't and will therefor have to pay interest.
 
WildCat said:
What's unusual is that this was never an issue before, Discover sent me renewed cards for 15 years after I last used one for example. So what, exactly, has changed? I assume it has to do with the economy and credit crunch.
Click to expand...

Banks have to hold capital against both credit card debt AND unused credit card facilities. If you have a card that you don't use, not only do they make no cash from you and have the cost of mailing etc., it also uses up some of their lending capacity meaning their is an opportunity cost as well.

Banks are now a lot tighter for capital than they were in the past, therefore they are cutting credit limits / cancelling unused cards.
 
I had quite the shock a couple of months ago when we went in for a line of credit against our house. We have paid off the mortgage so decided to use the house as collateral for a line of credit for investment purposes. Here I thought all those years that I was included on paying off the credit cards, phone bills, etc. NOPE. My husband gets all the credit. I had zero credit. The banker advised me to quickly apply for a Capital One credit card (which will take anyone) to reestablish my credit rating (I had one before I got married). I had credit cards before I was married, but, because I used our "joint" one, those were canceled. And it was my family money that paid for the frigging mortgage - yet I get no credit. So, now I am building up my credit (again - thought I had it) so that I will not be destitute(sp) should he drop dead. (and for some reason he wants to cancel the life insurance policy I have on him).
 
I had a Lowes credit card that got dropped after 6 months of no uses. (I was paying off the balance). They said I could re-instate the account though.

So basically this means that if I am to keep my Lowes account active I have to buy something every 6 months.

Extortion is the word I'd use.

How much money does it cost them to keep your information active in a database?
 
LTC8K6 said:
Dropping long held credit cards can drop your credit score.
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That is exactly why the system is a sham.. Its destined to make people fail and its designed to force people into bad habits/choices.

We need to distinguish the credit markets from loan markets so the 2 can't cross paths and people who just want to borrow cash as a loan installment to buy a house or a car or to start a business aren't tempted into thinking "Credit" is a viable solution when "credit" is about the worst concept ever.

Love my debit card, but credit cards can go.
 
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