Credit Card Inactivity Fee…..Lost But Not Forgotten

As things have changed and Americans now carry fewer credit cards, there is no doubt that credit card issuers are now looking for ways to reduce the amount of revenue lost by charge-offs and consumers simply closing their accounts. Now after reading an article entitled "New Credit Card Fee Could Hurt FICO Score", it looks like issuers could be on their way to imposing the once forgotten “inactivity fee” to make up that lost revenue.

For those that use their cards for everyday purchases, an inactivity fee simply does not mean anything. However as interest rates have risen dramatically and new fees being thrown on cardholders, many people have decided to reconsider what garners the attention of being paid for with plastic. With this in mind, many more people have joined the millions who solely have a credit card to use in an emergency, which hopefully should not occur very often.

While at the moment there are not many issuers utilizing this fee, we all know that it just takes one good report showing this method generates sufficient revenue for other to start implementing it on their cardholders. As this fee will more than likely be picked by more credit card issuers during the duration of the year, the question becomes, would it be better to simply close the account?