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If I pay off my credit cards will the issuers close them?
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Last Updated
22nd of April, 2009

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No, as a general rule a credit card issuer will not close a credit card account that is active, so if you’ve used your card recently for purchases, you should be fine. However, these days, credit card issuers are sometimes closing accounts that are inactive, meaning they haven’t been used for a period of months.

Even if you pay off your debt in full at the end of the month (congratulations if you do so every month!), your account is still active. On the other hand, not using your card for about six months or more could be red flag up to the card issuer and it could close your account without warning. The reasoning behind this is that even with a zero balance you pose a risk, even if it’s minimal, to the card issuer. On top of that, you’re not making them any money to cover the cost of maintaining your account, not even through the merchant fees that vendors pay every time you use your card. So in this turbulent economic environment, some card issuers prefer to close your inactive account than have you as a risk on their books.

So, to keep your account open and healthy, use your card at least once every few months (using it every few months will also keep a positive, steady credit history on the account, which helps your credit scores). If you’re worried about excessive spending with the card, limit yourself to only small purchases like grocery items or gas.

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