Hi all, my first card was a Providian Visa where I had to pay interest on every purchase (no grace period). After I built a good history with Providian I got a Citi Plat. Select, Discover Platinum, and an AMEX Blue. I got the Providian card almost 2 years ago, but have not used it for about a year and a half because I don't want to pay the interest so I was wondering will this account automatically be cancelled due to inactivity after some time or do I have to do it? If the account does get closed will my FICO go down a lot since this is my oldest account or not at all since my next oldest account (Discover) is still active? I opened the Discover account 6 months after the Providian. Thanks.
SOme creditors will close accounts due to inactivity while others will keep your accounts open forever it seems, I would call them and if is not closed then close and tell them you wanted reported closed at consumers's request. As for affecting your scores you may want to place it safe, if your not using this card and it isn't costing you anything then keep it open it being your oldest it does help your score. According to Fair Issac, it states once accounts reach 12 months then begin to add points, once they reach 36 months you get the max. amount of points for that account.
Call providian and request an APR reduction and a grace period. If you have been a customer for over 2 years they will not refuse. Call the retention dept at 1-800-215-7318 and tell them that you are thinking about closing your account because you have better benefits with citi and discover. I am sure they will not hesitate to increase your credit and give you a better APR. It is worth to keep your older tradeline in your report. If the terms they offer you aren't comparable to your older cards, keep it anyway, use it once a year and pay it off, so you will have an old tradeline.
Steve, I understand you reasons for wanting to close the account. However, with your established credit history, Providian should be willing to give you a lower APR, and a grace period, and most likely an upgrade. All you have to do is call them and ask. If you don't call, you will never know!!! If they say no, ask for RETENTION! Good Luck, Reshod
