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"Having a dormant credit card could prove dodgy"

By admin | October 15th, 2008 | Credit Cards, Featured

There are many consumers in the UK that have one or more credit cards, and in many cases some people decide to put their credit card aside to use in emergencies only. If emergencies don’t arise then the credit card account remains dormant even though the account is still open and running. Whilst some people may think that this is a good way to control their credit card spending and ensure that they have fallback in the event of an emergency there are also some risks associated with leaving your credit card account lying dormant, and consumers need to be careful.

One of the more minor risks that you take when you leave a credit card account open but lying dormant is the risk of being charged by the credit card company. Some providers feel that because they actually still have to administer the account even though the customer is not using it they are entitled to make a charge for the work that they have to do, so you could find yourself paying a fee for a card that you rarely if ever use.

However, there is a far greater risk that comes with leaving your credit card account dormant, and this is the risk of becoming a victim of identity theft. Many fraudsters that engage in identity and credit card fraud prey on accounts that are hardly ever used, as they know that it will most likely take far longer for the fraud to be picked up simply because the cardholder rarely uses or checks the account. This makes things far easier for the fraudster, and could result in your card being used for a series of purchases and fraudulent transactions before you even realise that anything is amiss.

There is no point cutting up your credit card in the hope that this will stop you from becoming the victim of card fraud, as in this day and age fraudsters do not need to have actual possession of your card in order to carry out the fraud. In fact most credit card crime these days involves Card Not Present crimes, which is where the card is used for online or telephone transactions where physical possession of the card is not necessary. In order to ensure that you do not fall victim to this crime you need to actually close your credit card account altogether.

If you do want to keep your account open then industry officials suggest that you try and use your card at least once a month, even if you repay it right away to ensure that you do not get charged interest. By using your card once a month you will ensure that you receive a statement from the credit card company, which you can then check to ensure that there have been no suspicious transactions.

Tags: unused credit cards, Credit Cards

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