The Dangers of Dormant Credit Cards

Many people in the UK have more than one creditHowever, much of the fraud carried out using credit
card, and in some cases people decide to use one ofcards is CNP or Card Not Present fraud, where the
their credit cards for regular use and another forfraudster does not need to actually have possession
emergencies only.of your credit card in order to conduct fraudulent
However, it is important to remember that having aactivity. You actually need to close the account
credit card account that lies mainly dormant canaltogether in order to stop the risk of becoming a
actually be something of a risk, and could result in youvictim of fraud.
being charged unnecessary fees by the credit cardIndustry officials recommend that those with a credit
providers or even becoming a victim of credit cardcard that is not used very often try to use the card at
fraud.least once per month in order to keep it active. This
Whilst some people think that having a credit card forcan help to ensure that you are not charged for
emergencies only is a good idea, credit cardnothing by the credit card firm. However, more
companies tend to take a dim view of this. Why?importantly it will ensure that you receive a statement
Because they have to still deal with the administrationfrom the credit card firm each month, which you can
of the account even though the customer is not reallythen check to ensure that no suspicious activity has
using the account. As a result of this some providersbeen carried out using your card.
have started applying fees on accounts that are rarelyIt's also important to know the level of credit card
or never used.security your issuer offers you, from fraud guarantees
However, this is not the main problem for people thatto active fraud monitoring and even identity theft
do not use their credit card accounts very often. Theprotection services.
main risk is becoming the victim of credit card fraud, asIt can also help to use free credit report services, such
many fraudsters target dormant credit card account,as Experian or Equifax. For a small monthly fee
safe in the knowledge that the fraudulent activity(usually less than £10) they will monitor your
probably won't be picked up for some time becauseentire credit file and alert you to any changes such as
of the fact that the account is rarely used.newly opened accounts, closed accounts, address
Some people even think that if they cut up the creditchanges and more. These services can help to
card on a dormant account this will stop them fromprevent credit card fraud and identity theft.
becoming victims of identity theft and credit card fraud.