How to keep old credit cards active?

[ltf4ever]

i have some credit cards whose rewards have devalued so i dont use them anymore. but i want to keep them just for their lounge access and because they are LTF.

i remember reading in fine print that the bank has the right to close the credit card if inactive for a certain period of time. ideally, it requires the bank to send an advanced notice before closing the account, but i don't trust them.

what is the minimum transaction that needs to be done on a credit card in a time period so that it is considered 'active' and banks cannot close them at their will? @TechnoFino

 

[BankExpertIndia]

Use Every Card Once In 3 Months... Then There Will Be No Trouble...

 

[TechnoFinoTechnoFino is verified member.]

Add rs 1 to any wallet once every year.

 

[hashiro7hashiro7 is verified member.]

i have some credit cards whose rewards have devalued so i dont use them anymore. but i want to keep them just for their lounge access and because they are LTF.

i remember reading in fine print that the bank has the right to close the credit card if inactive for a certain period of time. ideally, it requires the bank to send an advanced notice before closing the account, but i don't trust them.

what is the minimum transaction that needs to be done on a credit card in a time period so that it is considered 'active' and banks cannot close them at their will? @TechnoFino

I would recommend adding INR 1 to your wallet every month so that your cc statement gets created which will boost your payment history.

 

[ashwinkashwink is verified member.]

According to New rbi guidelines wef: 01 July 2022 you will need to use your credit card atleast once in year to become it as active hence if failure your bank will send you an mail and sms one month prior to notify about please make any transactions within 30 days avoid closing of your credit card.

 

[ltf4ever]

According to New rbi guidelines wef: 01 July 2022 you will need to use your credit card atleast once in year to become it as active hence if failure your bank will send you an mail and sms one month prior to notify about please make any transactions within 30 days avoid closing of your credit card.

can the banks close the card without giving any reason (or claiming some 'internal policies') even if there is no delinquency and even after doing 1 transaction per year?
low spenders are of no use to the bank especially if the card is an ltf.

 

[ashwinkashwink is verified member.]

can the banks close the card without giving any reason (or claiming some 'internal policies') even if there is no delinquency and even after doing 1 transaction per year?
low spenders are of no use to the bank especially if the card is an ltf.

Yes bank frequently checks your credit report if something not right in your latest report they may close.

 

[ltf4ever]

Yes bank frequently checks your credit report if something not right in your latest report they may close.

no that's fine. i meant, just because the customer is no longer profitable because he makes just 1 transaction per year, despite a good score, can they abruptly close the card?
they won't be able to do it officially of course, but can cite some t&c just to support their decision .

 

[ashwinkashwink is verified member.]

no that's fine. i meant, just because the customer is no longer profitable because he makes just 1 transaction per year, despite a good score, can they abruptly close the card?
they won't be able to do it officially of course, but can cite some t&c just to support their decision .

Yeah they can't.

 

[helloworld]

Banks can do anything.

Atlast they're the one providing money to us to spend. If they're not satisfied with our performance they can say many things to leave us.

But since this lending game requires both parties to trust each other, they do thorough analysis with various metrics to decide whether that customer is worthy or not. Only then and if absolutely required they will close the card.

Based on past experience with my friends, usually they won't close your account unless you're completely ignoring payments, interest repayments, notices etc. They only reduce the credit limit and increase interest rate, reduce limit on purchases.

It's like our account still open but limited control for us.

 

[ashwinkashwink is verified member.]

Banks can do anything.

Atlast they're the one providing money to us to spend. If they're not satisfied with our performance they can say many things to leave us.

But since this lending game requires both parties to trust each other, they do thorough analysis with various metrics to decide whether that customer is worthy or not. Only then and if absolutely required they will close the card.

Based on past experience with my friends, usually they won't close your account unless you're completely ignoring payments, interest repayments, notices etc. They only reduce the credit limit and increase interest rate, reduce limit on purchases.

It's like our account still open but limited control for us.

Absolutely right even some of my friends sbi cc limit decreased do to non usage.

 

[ltf4ever]

According to New rbi guidelines wef: 01 July 2022 you will need to use your credit card atleast once in year to become it as active hence if failure your bank will send you an mail and sms one month prior to notify about please make any transactions within 30 days avoid closing of your credit card.

does this also apply to addon cards? if no transactions on addon cards in a year, would they be closed, or will some transactions the primary card would suffice to keep the addons active?

 

[ashwinkashwink is verified member.]

does this also apply to addon cards? if no transactions on addon cards in a year, would they be closed, or will some transactions the primary card would suffice to keep the addons active?

No it applies only for primary card holder.