Even Sub Prime Credit Card Issuers Are Closing Accounts!

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Just when you thought the likes of Chase, BOA or any of the big boys in the credit card world were jacking up rates, cutting credit lines and forcing many cardholders to turn to apply for sub prime cards (cos their credit have become subprime), here’s some emails to me demonstrating that even the sub prime issuers have gotten into the act. Here’s a few emails we got from our readers.

i had a tribute card for a year never late /i would like card like that if i can/they clse down is it any way i can get a card from delware bank

mrs rubye amos

I had a credit card from First Bank of Delaware (Imagine Card). They transferred my card to thier Tribute card because of “my good payment and usage history”. I just got a letter from Tribute card that the FBoD has closed my account. When I called the number on the letter, FBoD has decided to terminate their credit card program but “it has no reflection of my account, credidt or history”. Now it shows on my credit as “closed by bank”. What do I do now?? I am still responsible for my balance, which admittedly is low but it puts a black mark on my credit…any advice??

Dana Madera

tribute credit card or first bank of deleware has cancelled all of their customers accounts. Are they allowed to do this? not everyone was giving notice of the cancellation, some of us received credit increases just days before this happened. they did not give any notice that this was going to happen at all.

Is a class action lawsuit the way to go for the customers?

t smith

I had a Tribute Bank credit card with $850.00 credit limit. They gave me an increase and about 2 months late I went to purchase something with it and was told the card was declined. I then called Tribute and they told me that the account was closed because they were no longer doing Master Card. What do u suggest I do. I also want to know what it means when it says you have a 25 day grace period. Grace period for what? I don’t understand that.

Ms Cheryl Horn

I had a tribute master card and the limit was $600.00 This took three year to come up to this I was never late in any payment. After I payed off my balance they drop my limit to $225.00 You pay the off the fees and have as you state $180.00 credit limit remaining I had this card almost three years and they close the account on me why. Could you please explain what happen to me.

Rick Stewart

My thoughts – What can I say? Even Compucredit, the firm behind Tribute and Imagine credit card have gotten into the act. I guess their credit card default rate must be creeping up and that all the extra layer of fees they charge is not enough to compensate for that. What can you do if your card was canceled by them? Well, I would make sure all the fees and interest are paid off. If you have this card, chances are that you did not have great credit to begin with. If your credit is still poor, I would suggest getting a secured credit card instead because it is cheaper that all these cards and you almost face no risk in getting your credit lines declined because it is a secured card.

If your credit has improved, you could certainly try to apply for a regular unsecured credit card. I would not worry too much about the impact on your credit score if these accounts are closed because most will not have high limits or a lengthy credit history with these cards.

Please share your story if your account has been closed by one of these issuers.

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One Response to “Even Sub Prime Credit Card Issuers Are Closing Accounts!”

  1. Kim Says:

    November 10, 2009-In may of 2009 I was issued a cabela’s credit card with a credit limit of $4000, I thought it was great as I used it for all my gas and grocery purchases to accumulate points to use towards purchases in their store for christmas. On Sat Nov 6, I went to use my card at a retail store for a large purchase for my daughters birthday and the card was declined, I thought this was rather odd as I pay my balance in full every month whether it is $1 or $4ooo didn’t matter, so I called the customer service number in a panic thinking someone had obtained my information and used my credit card as I knew I had only charged a few hundred dollars on it. Called again and found out they had lowered my credit amount to $500. and of course lied about the reason so I planned on paying my bill in full as normal when it arrived and not utilizing this credit card anymore. Then this AM I received a phone call from one of their customer service reps stating that I was over my limit and that they were afraid that an overlimit would show up on my credit report. How is this possible that they can do this to people, I was informed by my own search on Sat nov 6 that my limit had been lowered not even in writing by the company and then to receive a phone call from the company stating I was over my limit and will suffer the consequences. As far as I am concerned cabela’s is allowing this to happen and I will no longer patronize their store and I will suggest to anyone I know to do the same, I know they are bigger than me, however I think a little human decency is in order and there is a much better way to inform people of changes rather than the embarassment they have caused myself and who knows how many others. Thanks for listening Gander mountain here I come…..

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