Discover Closed My Account After 6 Months of No Use What Happened

Discover shut down my account without warning and there was no way to reverse their choice. This was my second credit card, which I got when I was 18, and it had a lot of history with a $10,000 limit.
It’s strange because they also reduced my credit limit to $500 right before closing it. I have zero missed payments on my credit history and no negative marks.
I called them for answers, but all they said was “this was a business decision we decided to make.” I repeatedly asked if there was a way to save my account and why they would act suddenly without a warning, but they just kept repeating the same thing.
I suspect they might have closed my account because I never paid any interest. This is my first time having an account closed like this, and it’s surprising that they just drop customers like that.

All card issuers will eventually close accounts due to inactivity. It doesn’t matter if you have ever paid interest or not. Barclays USA is notorious for closing accounts, and they often give you a heads-up, giving you 30 days to use the card before closing it. Wells Fargo did something similar to me, but since they sent a letter, I was able to respond in time.

Some issuers wait a long time before closing accounts for inactivity. It really depends on the issuer and your credit profile. If they see your account as risky, especially if there are no benefits in keeping it, they might close it.

Usually, issuers send a notice saying “use the account or we’re closing it.” Did Discover send you any notification about that? It’s rare for a closure to happen without a warning, but there could be exceptions for inactivity. Many issuers give you a chance to make a small charge, even if it’s just a low-cost item, to keep things active.

Discover cutting your credit line to $500 suggests they viewed you as a higher credit risk. Can you remember if you gave them updated income info since applying? If not, they might have looked at your overall credit and thought it was too high compared to the last income they had for you.

@JosephGeorges
No, they didn’t send me any notice to use the card. I specifically asked them why they didn’t at least give me a chance, and they repeated, “It was a business decision.”
When I applied for the card at 18, my income was $50,000, and I updated it once to $60,000, but not within the last few years. I wonder if that contributed to it.
Also, my credit utilization is very low. I have 20 other credit cards, and about 15 of them I haven’t used in a year, but those accounts haven’t been closed.

@Rohan
Reading through the comments, it looks like Discover views you as a potential credit risk. Their internal risk management probably decided to close your account to avoid future debt that could leave them in a tough spot. Here’s what I mean:

You had $10,000 credit with Discover, but you’ve also got around 20 credit cards now (even if they have lower limits). So, there’s a chance they think you could take on much more debt than you can handle with your reported income.

Issuers often check credit reports to see how much credit you have and how much you’re using. They might have seen that you could run up more debt than you could pay back within a year based on your income. It doesn’t make sense in their view to let you keep that credit if they feel the numbers won’t pan out.

If you want to try to salvage the account, consider updating your income with them or reducing the limits on your other cards. Maybe then you can ask them to reopen the account, though it sounds like a long shot.

Learn from this situation, keep your income information current, and use your accounts regularly. Ideally, spend at least 1% of your credit limit on each card every six months. Sure, some say they go longer without issue, but regularly using your cards will keep them active. Each company has its own guidelines on this.

@Aris
Yeah, this seems likely; I just need to use my cards more often. I guess I could just make a small purchase like a dollar refill on Amazon since I’m there a lot with Prime.

@Rohan
Are you certain you didn’t get any email or message from Discover? There’s usually something in your account’s secure messaging center if they intend to close it. They typically warn customers for inactivity a month or two ahead of time, saying something like:

>Dear [name]

>Due to our recent review of your Discover account, we will be closing your account because of inactivity.

>To keep your account open, please make a purchase by [date]. If you do not do this, your account will be closed on that date or soon after.

If they really didn’t let you know about this beforehand, they should be able to explain why they closed your account when you reached out.

@JosephGeorges
Thanks for the thorough response, but I searched all my emails, the message center, and for any lost physical mail. When I called, they told me they didn’t send a notice. When I pressed for an explanation, they stuck to saying it was a ‘business decision.’

The two representatives I spoke with kept repeating the same line and assured me there was no one higher to talk to.

@Rohan
If they won’t give you a clear reason, then something must have alarmed them in your account. It could have been something innocent on your part, but their system might have flagged you as a risk. Once they make a decision like this, that’s usually final. Companies like Chase tend to do this as well without revealing details.

Best to just move on. The effect on your credit will be minor. Your paid accounts will stay on your record for ten years, so it won’t hurt your credit history in the long haul.

@Rohan
How quickly were you opening the other accounts? If many accounts opened up fairly close together, Discover might have thought you were at risk for account fraud and took preventive action.

Orion said:
@Rohan
How quickly were you opening the other accounts? If many accounts opened up fairly close together, Discover might have thought you were at risk for account fraud and took preventive action.

They were spaced out over about 7 years, so about 3 or 4 cards a year.

@Rohan
Did you open some of them right before Discover decided to close yours?

Orion said:
@Rohan
Did you open some of them right before Discover decided to close yours?

Funny enough, I didn’t because I’ve been waiting for inquiries to clear since I’m planning to finance a car through Navy Federal.

@Rohan
Hmm, so it doesn’t seem to be a speed issue. That’s odd!

@JosephGeorges
Years ago, I had a Barclays card from financing with Apple, and they closed it two years after I paid it off.

Emma4 said:
@JosephGeorges
Years ago, I had a Barclays card from financing with Apple, and they closed it two years after I paid it off.

Store cards often stay open longer due to agreements with their retailers and a tendency for low usage.

@JosephGeorges
Barclay lowered my limit from $20,000 to $5,000 because I was spending around $300 a month. After I requested a limit increase, they restored the $20,000.

@JosephGeorges
This happened with my account at Barclays too. Went a year without use, got a warning letter, and meant to use it but forgot before they closed it.

The six months without use isn’t the main factor. Mine went over three years before they closed it. Lowering your limit to $500 right before closure likely means they lost trust in you. You should check your reports from annualcreditreport.com; there might be something off or a potential identity theft issue showing up.

@daniel
I check my reports almost daily; I see nothing suspicious.

@daniel
That’s not correct. I faced the same issue, and my report was clean. They didn’t reduce my limit, but the original limit given was $500.