- Inactivity fees on credit cards are not a common practice in the credit card business. Most banks in the United States, including Bank of America and Citi Bank, do not use or enforce inactivity fees. The best way to find out whether your bank or credit card company has card inactivity fees is to search its list of fees on the Internet or on the contract you signed, on which all fees and terms are set forth. Companies are required by law to disclose any fees they charge. If you've already been issued a credit card, you can call the bank's customer support and ask about inactivity fees or penalties.
- The typical rules for inactivity set the inactivity fee to begin after 12 to 13 months of non-use of the credit card. The fees charged for inactivity are different depending on the credit card company. Gift cards issued by credit card companies tend to have the same non-use time limit. time. Federal law does not allow credit card companies to charge for inactivity before 12 months. So as long as you use your card once a year, you should never be charged an inactivity fee or penalty.
- Typically the inactivity fee is as low as $1.50 per month. If your card has been inactive for 12 months, you will be charged $18, which is the typical $1.50 inactivity fee accumulated over the 12 months of non-use. Your balance will continue to be charged for every subsequent month your card remains inactive. Gift cards generally subtract these fees from the card value. So a $100 gift card will lose value for every month it is inactive past the usual limit of 12 to 13 months.
- An inactivity fee cannot cause your account balance to become negative. Once the credit card's account balance reaches zero, the inactivity fee is no longer charged. The same holds true for gift cards as well. Regardless, it is a good idea to cancel a credit card you don't plan to use anymore in order to avoid inactivity fees and penalties.
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