Chase and Citibank are canceling credit cards that have not been used for a six month period or longer. Chase bank sent a letter to card holders, explaining that the cards have been canceled, after the fact. Citibank cards are being canceled without notice to the cardholders. This could be very embarrassing to people that use a card and find out it has been canceled. I believe the companies are worried over the looming credit card debt as the unemployment numbers rise. I am sure Chase and Citibank are not alone in this new practice.
I advise clients to always have three to six months net (take home) pay available, via cash or CDs, life insurance cash value or a home equity line. Many clients keep a credit card unused for emergency purchases or cash advances. These are the very cards that are in danger of being canceled, without the client knowing. The quick fix: go charge a purchase on any dormant credit cards you have. The charge will keep the card active and buying something will help the economy!
Sandy