You’ve been waiting online for fifteen minutes to pay for that last minute gift for your Uncle Ed and are eager to make the long trek home so that you can finally begin to enjoy the holiday with your 
family. Your turn to pay comes, you hand the cashier your item and a credit card, fully expecting to be out of the store within minutes.
The cashier keys in your card, makes a frown, keys it in again and gives you a funny look – your credit card has been rejected. You ask her why, she says that she doesn’t know, but hands the card back to you and asks for an alternate method of payment. Fortunately, you have another card you can use which she quickly validates, places your purchase in a bag, and you’re on your way.
What just happened here? Your credit card was rejected. In fact, when you call the credit card company you learn that they sent you a cancellation notice earlier in the month, something you ignored. Speaking with the card issuer’s representative you learn that your account was closed because you hadn’t used the card in the past six months, a move you never expected.
Thus, the question is: can your credit card issuer close your account? Absolutely.
In fact, if you read your credit card user’s agreement – I know, I know…whoever does? — you’d see a number of reasons for why your account could be closed. From abuse to lack of use and everything in between.
Credit card accounts cost companies money to operate and they lose money when cards are not being used. As you might guess, with banks feeling the heat of the current economic crisis, many issuers are reviewing their accounts and closing those which are dormant.
If a credit card issuer cancels your account, you can expect that your credit score will take a slight hit, perhaps enough of a whack to push your score down by several points. For consumers with new credit, this move by the issuer can be disastrous particularly if it is the only card that they have. A canceled account could spell the difference between whether you have any credit or not.
If your card is canceled and you would like to keep the account open, contact the issuer and ask for them to reconsider opening your account. In most cases you should have your account restored, but make sure that you use it at least once every three months to keep it active.
Of course, pay off your balances completely each month to avoid finance charges – your bank will still be able to make money off of your account thanks to credit card transaction fees charged to merchants.
end of post idea for home improvement
view and analyze home improvement ideas at our LetsRenovate center
Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.
