Why credit card issuers close inactive accounts and why you should care:
or credit card) if there has been no activity for a certain amount of time. The standard is 12 months, although some credit card issuers allow a longer term of inactivity before making a move.
All this can come out of the blue, since credit card companies don’t necessarily have to notify you when they are about to close your account. Some banks will give you 30-days notice and others might not give you any notice.at all. Your terms and conditions agreement will have information on how your bank handles inactive accounts and cancellations.
When you’re not using a credit card, the bank has no revenue coming in from you to offset those costs. Banks make money on credit cards in two ways. One is from the interest cardholders who don’t pay off their balances every month pay. The other is from interchange fees—-the fees the merchant pays the banks and processors every time you swipe your card.
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