Fifth Third Bank Charges Inactive Credit Card Fee

Some credit card issuers are closing credit cards for inactivity, but USAToday.com reports Fifth Third bank is charging a $19 fee on credit cards that have been dormant for more than a year. You must use your Fifth Third credit card at least once every 12 months to avoid the fee. The credit card disclosures for Fifth Third credit cards don't state whether the inactivity fee is monthly or annual. I'm guessing it's a monthly fee charged every month your credit card goes unused after the 12th month.

An inactivity fee could lead to more trouble since many people who haven't used their credit cards would simply throw their billing statements away without checking them. The fee would go unpaid, leading to late charges, interest rate increases, and credit score drops.

I can understand why banks want to impose a fee on inactive credit cards. They make absolutely nothing from a dormant account and are likely even losing money keeping the account open. When it comes to your credit score, a fee is better than having your credit card closed since a cancelled credit card could hurt your score.

You can avoid a credit card inactivity fee by using your credit card at least once every 12 months. Make a small purchase on the card and pay the balance in full when the statement comes.