Credit Cards are cards that are common in everyone’s wallet. Credit card companies can cut some cardholders who aren’t making them money. Your credit card issuer has the right to cancel your credit card at any time. Sometimes the credit card holder may not even get a warning when his or credit card is cancelled. When you try to swipe it somewhere only, you learn that your card has been cancelled.
Here are some specific reasons why the credit card company could cancel your credit card.
Non use: This is the prime reason why your card will be canceled. Charge something to the card every few months and pay it off to avoid this. You can use your credit cards every three or four months to keep them active. Some credit card issuers charge an annual fee that can be waived if you use your credit card.
Credit score: Credit card companies always have a keen observation on your credit card scores. If your credit score has taken a hit, your credit card account could be flagged. If your credit score starts slipping, the credit card issuers start closing your credit cards.
Increase in debt: The problem of overspending is associated with credit cards. If you just took on a large amount of debt the company will start monitoring your account details. If the credit utilization ratio is teetering, the credit card company may cancel your card.
Closing of banks: Some credit card issuers are forced to shut down operations due to market conditions and loss. When they are no longer profitable, they may start selling their credit card accounts to a new credit card issuer. The new card issuer may close the credit card sometimes, or they will ask you to apply for a new account if you want to do business with them.
Credit Increased: Increase in credit can be a reason also. If you just applied for a credit vehicle or credit lines and that increases the overall credit available to you beyond the limit set by the credit company, they might cancel your credit cards.
Other reasons: Dropping in-house value, unemployment, increase in personal loans, etc. can affect your ability to keep the credit card.Sometimes the credit card companies won’t always reveal the true reason why they are canceling your credit card.