Our Sears Credit Card Was Dropped

[MIGrandma]

Can they really do that without warning?

DH was going through his wallet, and realized our Sears card expired in September. They never sent us new cards.

Granted we have not used the card in the past 3 years or so, but that doesn't mean we wouldn't in the future. We've had the card since 1978!!

I did e-mail them, got a response saying they couldn't do anything about it and gave me an e-mail address to go to them through citibank. Tried 3 times, it was invalid.

Just seems like it would have been nice had they sent us a letter or an e-mail letting us know we would be dropped as a charge card customer unless we started using the card again.

 

[Hannathy]

sears has done this for years. So does Penney's.

 

[creativeamanda]

Lots of credit card companies do this. JC Penney did this to us about 6 years ago. We had not used the card in over a year and had a zero balance. Apparently, the card had to be actively used to keep it open.

 

[phorsenuf]

That's why periodically I charge a little something to the cards I use infrequently. Just in case.

Hopefully they'll reinstate things for you OP.

Do you know for sure they canceled it? Did they tell you that on the phone? Maybe try signing in online and see what it says. Have you ever signed up online to view statements and such?

 

[LilyWDW]

I used to work for a store that had a credit card (through Chase). If the account was inactive for X period of time, the account was closed.

 

[LOVETHATMOUSE]

They just did this to us too. We had the card since 1989!!! We also never got a call or letter. I only use it for holiday shopping or if I need a craftsman too. When I asked why they cloased it they said it was due to inactivity for 4 month ( got something for my dad for his birthday in May) I asked to re-instate us and they couldn't. Once it is closed, they said we would have to put in a new application - I said no to that - don't want a needless hit on our credit reports. I told them no thanks I will be taking my business elsewhere from now on.

 

[FireDancer]

Can they really do that without warning?

Yes, just as you can drop them at any time without warning. We are allowed to pull our cards at any time provided it is not for a discriminatory reason (race, gender, etc).

If you read through your t&c's (which is a pain I know) I'm sure it will be stated.

 

[golfgal]

ALL credit card companies have been doing this. We hadn't used our Sear's card in YEARS but recently bought a new dishwasher and they had a deal if you used your card. We tried but it was no longer valid. They did offer to reinstate our card (this was in the store) but we said it wasn't worth it at the time. Maybe go to a store and try?

 

[disneyfans95]

Granted we have not used the card in the past 3 years or so, but that doesn't mean we wouldn't in the future. .

3 years where you are inactive and you are suprised???

Come on...

 

[Christine]

JC Penney has dropped me. I didn't even enter their store for years so I never got a new card when mine expired. I've been going there lately and they just reactivated my account.

 

[Planogirl]

A company can drop you at any time and they often do when the card is inactive. This is actually quite normal.

 

[tvguy]

ALL credit card companies have been doing this. We hadn't used our Sear's card in YEARS but recently bought a new dishwasher and they had a deal if you used your card. We tried but it was no longer valid. They did offer to reinstate our card (this was in the store) but we said it wasn't worth it at the time. Maybe go to a store and try?

Well, not all credit cards. DW and I have had a Neiman Marcus since 1982 and haven't used it in at least 10 years. Still get their catalogs, it's still listed as an open account on my credit report.
And I had to fight to close a Visa card that I hadn't used and didn't need. Bank didn't want to close it. I did it because I was about to borrow money for my kids college, and didn't want an unused open line of credit on my credit report. In hindsight, I am told that LOWERED by credit score, but it remained high enough to get the lowest loan rates.

 

[auntie]

I didn't even realize that a Sears card had an expiration date.

 

[arminnie]

Why would they spend the money to keep the account open when you never use it?

Now I just had a checking account closed because I hadn't written a check in a few months. I had made a deposit monthly! I wrote a check and they bounced it. I had thousands of dollars in that account. I don't write many checks - who does?

Now that was stupid. I closed the account and they wanted to give me a check. Yeah like I would have trusted them to honor that check. Crooks!!! I made them give me cash and moved to another bank.

Capital One is the pits. A long-time friend of mine is an EVP at headquarters for Capital One. Man is he hearing about this. They told me I was 4 days too late in writing the check. And denied that they had bounced it. It was to my contractor so my remodel is going to take at least another month because of this delay.

 

[tvguy]

Why would they spend the money to keep the account open when you never use it?

.

What money would they spend? They don't send out statements if you have a zero balance. Doesn't cost anything to you actually use it.

 

[FireDancer]

What money would they spend? They don't send out statements if you have a zero balance. Doesn't cost anything to you actually use it.

Administering any account whether it be a credit card or savings account has a related cost. We pay a fee to multiple parties based solely on plastic outstanding so those fees are the same on our end if you use your card every minute or once a year. Since we only make money when the card is used there is no incentive for us in many cases to keep a card open that incurs only cost and no revenue. The higher the limit the more it costs because we have to insure ourselves against a fraudulent loss on that card. A zero balance card with a high limit increases our exposure and, thus, our cost.

This has increased in the last year because there have been a lot of regulatory changes which we have to notify users of. Those notifications cost a lot of money to print, collate, and in some cases, track.

 

[bicker]

There's also a cost associated with the risk of having an open credit line extended to someone. That's the explanation my bank gave me for canceling my credit card with them (which they insisted on offering me in the first place). This is a bank within which I have rather significant savings and investments, but that's not enough to justify the various costs of extending me continued access to credit through a credit card that I never use.

 

[golfgal]

Well, not all credit cards. DW and I have had a Neiman Marcus since 1982 and haven't used it in at least 10 years. Still get their catalogs, it's still listed as an open account on my credit report.
And I had to fight to close a Visa card that I hadn't used and didn't need. Bank didn't want to close it. I did it because I was about to borrow money for my kids college, and didn't want an unused open line of credit on my credit report. In hindsight, I am told that LOWERED by credit score, but it remained high enough to get the lowest loan rates.

Just because they aren't doing it to your card doesn't mean they haven't done it to other people.

 

[LOVETHATMOUSE]

A company can drop you at any time and they often do when the card is inactive. This is actually quite normal.

I understand that, but inactivity for 4 or 5 months? That seems a little extreme doesn't it?

 

[Planogirl]

I understand that, but inactivity for 4 or 5 months? That seems a little extreme doesn't it?

That does seem awfully quick and I wonder if they were culling accounts and that's why yours was closed so soon? The OP didn't use her card for three years so her case doesn't surprise me.