Comments on: What Happens When A Credit Card Company Closes Your Account?

By: Pattie

Pattie — Wed, 03 Mar 2010 03:40:30 +0000

I just found out today that one of my credit card accounts was closed due to inactivity. I only had discovered this when I was looking at another credit card account I have with the same company, and saw that I was missing an account on a view of all of my accounts. When I called the company, they told me it was closed due to inactivity. I stated that I never even received notification in the mail, and they said something was sent out about 5 weeks ago. I am totally upset about this, since this was the first credit card I have ever received. I have now lost all of that history, and now my FICO score is going to be taking a hit from this. Is there anything you can suggest to rectify this situation, and possibly get that account re-opened. I also have my mortgage with them, and another credit card account I use daily. I thought I was a good customer, and truly disappointed in this company.

Thank You,
Pattie

By: Cathie G

Cathie G — Sat, 30 Jan 2010 04:59:19 +0000

A credit card account was closed by the company even though I was paying on time. I understand this will negatively affect my credit score. My question is, if I don’t pay the balance, how much worse will this affect my score now?

By: Elaine

Elaine — Wed, 16 Dec 2009 19:43:32 +0000

I have a visa and mc from a bank that closed and my bank took ownership. I also had one visa card with my bank. All of the cards carried balances. I called my bank to find out why I had not received a new card for the mc that expired in August and was told that the account was closed in July along with the visa. Reasons being: too many open bankcards with high balances, total available credit on bank cards is too low and past due history on accounts opened within 3 years. I did have a balance due of over 1/2 of my limit on the visa and owed only about 1/3 of my limit on the mc. My card’s balance with them was approximately 2/3 of my limit. None of the cards were paid late or overlimit.I never paid less than the amount due on any of them. I still receive monyhly statements that do not show these accounts closed and that I still have available credit on them. This is one of the reasons why I did not know they were closed and of course not having received a letter to advise me of the closings. I had to request a copy of the letters that they said were sent in July. When I did get the letters they came about 6 weeks later and were dated November 2009. Therefore, it was not a copy of the letters that they claimed were sent in July. I don’t believe that I have any recourse, but if you think that I can do anything about this please advise me. The bank increased the interest rate on both accounts before closing them. Since I receive a monthly statement(does not show closed)for both that show a balance due, payment amount due, credit limit and amount of available credit that changes each time I make a payment, should I just pay what I can on them and put the majority on the open visa account, to pay it off. WHAT SHOULD A CLOSED ACCOUNT STATEMENT CONSIST OF IF IT IS CLOSED?

By: carmen peralta

carmen peralta — Fri, 20 Nov 2009 23:58:33 +0000

Is it possible that a cc company would close a credit card even if you have great credit and do not use it much? This is ridiculous that a person with good credit and history have their cards taken away. Where is the loyalty to good paying customers such as myself.Will this affect my credit?

By: Joanne

Joanne — Fri, 29 May 2009 17:55:23 +0000

We just received a letter from one of our credit card companies and they have closed our account due to non use in over 24 months. The question is how does the credit card company closing affect our credit score? We did not request this.

By: Teddy Saverz

Teddy Saverz — Tue, 07 Apr 2009 17:38:34 +0000

What can we do if the credit card company just lowered our amount to borrow, from 40,000 to 20,000?
Will that hurt our credit score?

By: Kate

Kate — Thu, 02 Apr 2009 14:34:31 +0000

Thanks for such a wonderfully informative post. I’m on the flip side of this situation– I hardly ever use my credit cards because I want to stay debt free, but I have been hearing a lot of reports recently about credit card companies closing accounts that are inactive for several months. I never realized that not using my credit card and keeping a zero balance could hurt my credit score, but it seems that it might, so should I make small purchases once a month and just pay it off at the end of each month? Also, does it matter if I purchase something as small as a pack of gum or does the credit card company want you to spend a specific dollar amount each month? It looks like that in today’s credit situation, The Power of Small reigns supreme– that it’s the little things we do that really matter. Correct?

By: Tiffini

Tiffini — Thu, 02 Apr 2009 12:55:36 +0000

This is not your everyday question. At least I don’t think it is, because I’ve searched the web and not come up with an answer. I’ve paid off all but $700 of my credit card debt using my tax refund and my company incentive pay. Here are the current credit cards I have left

Card #1 Limit $700, balance $678, Interest rate 30% (not negotiable, trust me I’ve tried)
Card #2 Limit $1000, balance $0, Interest rate 24% on balance transfers, 18% on purchases

Can I pay off (not balance transfer) the $700 with the $1000 card, and just pay on it from there as a purchase? I’m assuming the worst that could happen is that the holder of the $1000 card will consider it a balance transfer and charge me the 24% interest, which is still lower than the 30% I’m paying. Thanks!