After applying for and getting approved for a credit card, most account holders start using their cards for various purchases.
However, what will happen if a cardholder forgets about their credit card and doesn’t use it for six months or a year? Sometimes a bank or credit card issuer may close an account due to inactivity. Does Chase bank close cards due to inactivity?
Yes, Chase bank may close a card when you don’t use it regularly, so it’s helpful to know how long it might take before an inactive card is closed, as well as how to prevent the closure.
Chase Closed Card Due to Inactivity
Credit card companies and banks don’t use industrywide rules or standards when determining whether to close a card due to inactivity.
However, all banks will eventually close a card at one point or another when the cardholder doesn’t use it for an extended period.
Chase bank will close cards that aren’t used frequently, but it does take some time for the closure to occur.
The bank won’t close the card until it’s been at least six months since it was last used. In addition, Chase will send the cardholder a letter to prompt the cardholder to use the card before the bank closes it and renders the card unusable.
Does Chase Close Cards That Aren’t Being Used?
Chase does close credit cards that aren’t utilized for a period of at least six months. Purchases don’t need to occur frequently, either.
Simply using a credit card every few months to buy a cup of coffee or get lunch is enough to keep the card active.
However, there are other consequences to using a card too infrequently. Some card issuers may lower the credit line if the user isn’t charging a sufficient amount on the account.
For example, if a card has a $5,000 limit, but the user only routinely spends $20 or $40 a month on the card, the bank might lower the limit substantially.
How Long Before a Credit Card is Closed Due to Inactivity?
Citibank, on the other hand, will wait 15 months before closing an account. Like Chase, Citi usually sends out a letter before permanently closing the account.
Other credit card companies will wait even longer. Bank of America, for example, will wait 24 months to close an account.
Capital One will wait about 12 months before closing an account. Overall, Chase has one of the shortest timelines for closing a credit card. Most companies take at least a year or more to close an account. A Chase account may close after just six months.
Will Chase Reopen a Closed Credit Card Account?
Despite the fact that Chase will close an account after just six months of inactivity, they may reopen the account as long as you meet certain conditions.
However, the reopening of the account isn’t guaranteed, and Chase may deny the request at their discretion.
Cardholders should attempt to reopen their account no more than 30 days after it was closed.
Official Chase policy is that they may reopen accounts as long as the cardholder contacts the bank within 30 days. However, it never hurts to try to reopen an account, even if you’re outside that window.
How Do I Prevent Chase from Closing My Card?
All it takes to prevent the closure of a Chase credit card account due to inactivity is using the card at least once every six months. Technically, you can make a very small purchase on your Chase credit card, and it will count as activity on the account, which should prevent closure.
Bear in mind, however, that inactivity is just one reason a bank or credit card issuer might close an account.
Overspending, violations of the credit card agreement, and drastic changes to your credit score may cause the bank to close the card. Sometimes, a company may discontinue a card, too. In such cases, the company will often close the card but issue a new and different card as a replacement.
If you’re worried that one of your credit card accounts might close because you don’t regularly use the card, there are a few things you can do to try and prevent the unintentional closure.
Consider setting a reminder on your smartphone or on a calendar program to remind you to use the card once every six months.
Although regular usage can’t guarantee the card will remain open forever, using it every once in a while should prevent Chase from closing your card due to inactivity.