Use It or Lose It Letter From Credit Card

[Route246]

Why not just use it once a month to buy a jar of peanut butter or some other innocuous purchase on Amazon and be done with the threat? Amazon is trustworthy and not going to steal the card ID. I cycle through a few of mine and use them to make micro-purchases on my Amazon account. I just used one last week to order a box of bandaids.

 

[kgtest]

I think I had one that sent a use it or lose it letter, DW has had a couple. Plenty of CC options around, that's for sure.

 

[OldShooter]

I agree that paying the bills on time is the most important aspect, but I don't think getting a card then ignoring it is a good idea. I did the same thing years ago with the Home Depot card (as well as Lowes and many other "store" cards). But with my Home Depot card, a few months after I used it to score the discount somebody stole the number from somewhere (certainly not from me, as I had also shredded the card after a single use). I happened to sign onto the card site to check something with my purchase and saw a ton of fairly large purchases that I hadn't made. I found it before they sent me the paper bill, although that would have notified me of the problem too. I was able to clear it up and get the card canceled, but it was a PITA. So now after I open a card, I check it monthly by just signing on, making sure the balance is still zero, then signing off. I do this every month for all of our cards until they drop a card for lack of use. It's not very time consuming, and saves me the annoyance of cleaning up after a theft situation.

Sorry to hear that, but your future probability of debit card problems and my future probability of problems remain the same: very low. It's a risk I am very comfortable taking, particularly with Schwab backing me up.

 

[Koolau]

Sorry to hear that, but your future probability of debit card problems and my future probability of problems remain the same: very low. It's a risk I am very comfortable taking, particularly with Schwab backing me up.

I've had perhaps a dozen fraudulent charges on my "deck" of CCs. So, while the probability of fraud within any given month is relatively small, the continuing probability of card fraud is (arguably) near 100% if you live long enough. Just the nature of the beast (and fraudulent people.) YMMV

 

[OldShooter]

I've had perhaps a dozen fraudulent charges on my "deck" of CCs. So, while the probability of fraud within any given month is relatively small, the continuing probability of card fraud is (arguably) near 100% if you live long enough. Just the nature of the beast (and fraudulent people.) YMMV

I dunno. I have always carried just one credit card and really do not remember any fraud issues, but of course that is only somewhat over 50 years. For lots of reasons I have never had anything like a "deck," but certainly the more cards you have the higher the probability of issues. I'm still comfortable with the small risk I see.

 

[GenXguy]

I've had one bill showing fraudulent credit card use in my life. IIRC, there were four charges related to long distance phone service to India a decade or so ago, through some company I hadn't dealt with. But I also received emails from this same company after that, so both my CC and email address had been compromised together. The CC company sent me a new card/number, and I was not liable for the charges.

 

[Zona]

We play the points game and often cancel and sign up for new cards for points. (DH has a spreadsheet and it's a whole "thing" but has given us some great value over the years).

But... I have kept my oldest credit card for over 20 years. It was one of my first cards that I applied for just out of college and although it earns no points it also has no fee. My balance is usually 0 but every year I have a reminder on my calendar to make sure to use it to buy something and pay it off. Length of credit history helps keep your credit score high.

 

[Koolau]

I dunno. I have always carried just one credit card and really do not remember any fraud issues, but of course that is only somewhat over 50 years. For lots of reasons I have never had anything like a "deck," but certainly the more cards you have the higher the probability of issues. I'm still comfortable with the small risk I see.

Yeah, I'm okay with the risk as well, but it's definitely not zero. It's very likely to happen and it's difficult to avoid, though some risks are controllable (don't hand your card to a food server) and use the touch-screen instead of the regular card reader, etc. Limit your on-line purchases. Try not to give your card number over the phone, etc. YMMV

 

[mailbagman]

In early March I received a letter from my Citi Sears Mastercard saying that they were going to reduce my limit from 10K to 2K if I didn't use it in two months. Said I hadn't used it in two years. Backstory before you start laughing about a Sears branded card...I was offered this about 20 years ago when I bought my first flatscreen TV. If I got the card I would get a certain percentage off the TV so I said ok. It's a regular Mastercard that I can use anywhere.

So whenever I get the letter I buy something small and put it away until next time.

Well this time I got another letter (figuring they were going to completely shut it down). No, they made me an offer I couldn't refuse--if I spend $500 on it by the end of April, I would get a $300 credit! So that was an easy $500 spend. I thought they would wait a couple of months to make sure I didn't return anything (it was all food, non-returnable things anyway) but I received the $300 credit just a few days later!

I did the same thing recently with a Capital One card. Spend $500 in 3 months and get $200 back.

 

[rayvt]

Years ago I got a Home Depot card because they were offering 10% (IIRC) off on a lawn tractor I was buying. When the physical card arrived I shredded it and have paid no attention since. Probably I have received direct mail offers but I don't recall. I assume the card is long since dead.

Bad assumption for a store brand card. I had a Lowes card that I used once, about 12 years ago. I assumed it was closed long ago, but when we recently bought lawn furniture he told us that the card was still active. So my wife opened a card in her name for the 10% off and 0% interest for 12 months.

 

[Dean56]

Years ago, I received one of those letters saying I hadn't used my Sears card.
We all know what happened to Sears.

 

[martyp]

I received a letter from one of my credit card companies saying my card hasn't been used for about 32 months and if not used by June, it will be terminated.

Think I'll use the card for 1 transaction before June. That will hold me over for another 32 months.

I like to keep my options open .

I wish I had gotten a similar notice. I lost my Credit Union Credit card a couple of years ago for the same reason. The crisis was that I am living overseas. I suddenly realized that I should have two active credit cards in case I lose one for some reason. In my case, having two credit cards is an emergency money backup in case my US bank stops allowing wire transfers. So last year I made a visit to the US, my first in 4 years, and personally went into the bank to order a new card. I had to have that card sent to my sister's house and then she sent it to me.

To keep them active I have now split my recurring credit card charges between the two cards.

 

[Elizrogers]

I have cards I've had since the 70s, but I really only use two regularly because I get 2% and 5% rewards back. I pay them off every month, but depending whether banks report to credit bureau before or after payment, my score will go up or down 3-4 points, which doesn't change my excellent rating. I got many cards back when every department store had their own card. I had 13 cards several years ago, so started cancelling the ones I didn't need. My score dropped drastically, so I learned not to let any of them go. A couple months ago, I got one of those letters, so charged $160 and split payments to carry a balance over two months (it had a 0 interest). I got a notice that my credit score increased by 32 points. Two days later I paid off the balance and my score dropped by 35 points. In just 2 days it went up and down by over 30 points. Makes no sense. Credit bureau can't explain. I don't think they should have so much arbitrary control over our credit rating, which can affect any financial deals we might want to pursue.

 

[swakyaby]

I recently received a notice from Capitol One that they were going to lower my credit limit unless I started charging more. I regularly use it at the grocery stores (3% cash back), so the monthly bill is only $100- $200. Still, I’ve never received that kind of warning for a card I use monthly. I haven’t changed my purchasing habits as a result of this, bah!

 

[Chuckanut]

I recently received a notice from Capitol One that they were going to lower my credit limit unless I started charging more. I regularly use it at the grocery stores (3% cash back), so the monthly bill is only $100- $200. Still, I’ve never received that kind of warning for a card I use monthly. I haven’t changed my purchasing habits as a result of this, bah!

Capital One did that me several years ago. So what? The 1.5% cash back is inferior to my other credit cards.

I use Capital One mainly for its ENO service which lets me use a unique virtual credit card number for online purchased and auto payment bills. If some crook gets one of those number, no big deal. They can't use it for anything else.

 

[ychuck46]

I have a number of CCs all paying me cashback for various transactions. Also received a similar notice recently for a card I haven't used in years, particularly since it had nothing to warrant me using it anymore over my other cards. Normally I would make a charge and keep it, but in this case I will let a card go for the first time. I have a credit score in the 800s and any ding I take will only last a month or two, and I don't plan on opening any credit lines or loans in that timeframe.

 

[Koolau]

Yeah, I got one of those use-it-or-lose-it letters for a card I almost never use (just a back-up.) It was no trick to use if for one purchase and keep it gong (I assume for another 2 years or so.)

 

[imnontrad]

If you have more than one CC with that same company, ALL may be cancelled. See if you have a recurring charge that you can put on the card(s) you do not carry,