Your credit card company may be cut at any time contact. But why?
Differ from loans, apartment rental, and many other contracts, the credit card contract is not difficult to break. You can decide to cancel the credit card for any reason at any time, and credit card companies have the same rights.
As a whole, it is more common for consumers to lift card. Credit card companies often focus on increasing and maintaining cardholder, rather than getting rid of them. There are, however, several reasons, the credit card company may decide to close your card.
1. Idle
If you never use your card, the credit card company may eventually close it. This occurs when there is right, because each different card issuers is no fixed timetable. I’ve Ç it was closed after a year of inactivity, but I also have no more than five years ARDS card use is still open.
In order to avoid this, just make sure you use any credit card, you want to keep every three to six months. Another option is a small set of recurring bill payment as a bank card, it has at least once a month deal. If you worry about forgetting to log in and pay off a credit card, you can set up automatic payments.
2. Missed payments
While the credit card companies will give you some leeway if you do not pay on time, which patience lasted only so long.
When your minimum payment is 90 days or more past due, you may be canceled in your card danger zone. Your card can stay open longer, a difference of a few 180 days past due as a dividing point, where almost all of the credit card company will cancel the card.
Your card has been canceled, if you miss a payment habit, even if you have never been 90 days late. This not only lets you risk your card has been canceled, late fees but also spend your money, and can damage your credit score.
3. Bankruptcy
Most credit card companies have a policy of automatic discharge card, if the cardholder filed for bankruptcy protection.
This policy applies even if the card is not part of the balance, no bankruptcy filing. From the point of view of the issuer, filed for bankruptcy protection allows you to greater risk, because cardholderspeople.
If you need to file for bankruptcy, assuming all your credit card will be canceled, because this is the most likely scenario.
4. The card’s reward program abuse
Issuers have hit consumers doubt their own game rewards program. If you think the credit card company with a despicable way to earn more returns, it can cancel any cards you have.
What can be considered an abuse of a rewards program? Here are some examples that may lead to trouble:
- Gift cards or other cash equivalents high consumption, especially in stores where your card to earn prize money
- High consumption relative to income enter your credit card application, such as monthly consumption reported $ 10,000 $ 50,000 annual income
- SA I open the card many times to get more sign-up bonus
There’s nothing wrong with a normal strategy to earn more rewards, such as multiple cards carry different prize categories, or make a purchase by credit card online shopping portal. It is obvious who bend or break the rules, the risk of people getting close.
5. Decline in your credit score
If your credit score dropped from a significant amount, credit card companies will let you re-evaluate as a client. Your credit score is a one-way risk creditors decide to lend you the money. In the mean giving up your credit score you represent a greater risk than ever before.
If you do not have to worry about your credit score by a small amount of bargain-hunting. However, if 50 points, or M ore is reduced, this could be a problem.
6. The card has not been provided
Issuers may decide to stop providing credit card you have. In most cases, issuers will close the application, but before let cardholders use the card to keep.
However, there is also a credit card company will close the application, and the possibility of the card completely abolished. When this happens, the card issuers typically transition to the customer’s choice to similar cards.
Closed to avoid credit card
There are many possible reasons for a credit card company to cancel the card, but it is still aRare phenomenon, it is easy enough to avoid. If you build and maintain a good credit score, you make payments on time, and did not do anything shady earn extra rewards, T hen credit card companies will want to make you as a client.