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The end of the sock drawer?


J_Snow
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So I got a letter from Chase on Friday telling me that one of my card accounts had not been used for 24 months or more, so it they closed the account. The end. *(&@ers!

Now-this account is almost 15 years old and has never been late so it really is a good account to have. Since this will have a negative impact on my scores I wrote a letter to Chase asking that they reopen the account. I'll let you know what happens.

:twisted:

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Every dollar of credit extended, whether actually utilized or not, is a liability on the books. Unused credit, if I'm not mistaken, is a contingent liability which ties up capital that might otherwise be used for profitable purposes.

That being said, I can't really blame creditors for closing under-utilized accounts.

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You said it better than I could have, Nascar. That is exactly the issue. They don't want big fat lines of unused credit out there because it makes their books look bad. But you explained it succinctly.

I advise everyone to use all of their cards every three months. I just broke out some cards that had only "finance charge, payment" over and over for the last six months. I used them for small purchases. I'm keeping a revolving list of cards I should dust off and use now and then because I don't want credit limits lowered or cards closed.

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As I pointed out in my letter to them-they are within their rights to close any account for any reason. I also have another account with them that I regularly use that has a 40K credit line. What I don't appreciate is the lack of notice that they were going to close the account. I would have started using it if that was the case. This is a customer service issue as far as I'm concerned. That is what my letter addressed in my attempt to get them to reopen the account.

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