How To Stop Subscription Auto-Renews
May 12, 2009 by VideoCreditScore-Andy
Filed under Episodes
Today, I was cleaning out my emails and I saw an email notice that I was getting canceled from an annual service I signed up for to do web site directory listing because my credit card was not working.
What had happened has probably already happened to you. My card was compromised earlier in the year and I got a new card with a new card number. To no surprise, I didn’t update services that I don’t really use, so when they try to auto-renew me, it didn’t work.
Light bulb goes off. My idea is for an annual credit card cleanse. The idea is that by having all these services on your old card numbers, you will be forced to go through them to figure out if you really want to renew them. But, wait. This is a drag to do for every card in your wallet – when the average American has four credit cards.
Light bulb goes off again. When you sign up for auto-renews, classify your auto-renew in one of two ways. First, for utilities and must haves use your primary card(s). Next, use your secondary cards for nice to haves. For me, these are Consumer Reports, Zagat, and Pandora just to name a few of my non-essential annual subscriptions. On these, use your secondary credit card(s). Now, for your secondary card, you can do this credit-cleanse once a year. That way, these services will make you really take note on whether you are really using them. If you don’t use them, you simply take no action – ignore the emails you get begging you to change your credit card info.
Since April 15th is tax day, let’s make May 15th, credit cleanse day. On this day, call in your credit card as lost or stolen and have them issue a new card with a new card number. Once you get it, use the card for all your non-essential subscription purchases. Then, put this date in your electronic calendar for next year and report that card lost again. Rinse and repeat. Make sense?
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Doesn’t calling and reporting a lost credit card bring down your credit score?
It doesn’t lower your score because you aren’t closing an account. To the bank, you are simply changing account numbers. Your record remains intact.
I could have sworn I’ve seen that when you report cards as lost/stolen banks report your card as closed to the bureau and open up a new tradeline on the credit report for the replacement card.
Not the case. If they reported it closed, you’d lose your credit history on that account and that would be too damaging, considering the event was not your fault. Imagine if someone with a 15 year credit history had that wiped away. The credit reporting system accounts for this.
Andy,
I wish what your saying was the case but I believe you are mistaken here.
Check it out:
http://creditboards.com/forums/index.php?showtopic=392892
http://creditboards.com/forums/index.php?showtopic=387608
Reporting card as lost/stolen, accounts reported to CRA’s as closed lost/stolen and new tradeline was created.
I think we are both correct. New tradelines did get opened, but the way the credit bureaus backdate the new tradeline ensures that the score is not impacted — once the old tradeline is closed and the new one reflects the old backdated open date. So, I guess a 2 month up-down in score is possible. Your first link shows the user had a score drop from an inquiry at the end of the day. The second link person likely had a score drop that returned quite quickly. I love how the second link advisor says to lose your oldest card as they think the multiple old card tradelines will help average age. That won’t work as average age is calculated on open accounts not closed accounts.
Do you know if getting a new card number also works with a business check card?
Doesn’t calling and reporting a lost credit card bring down your credit score?
It should work exactly the same. A company debiting your account can’t get access to your new card number without your approval.