4 Common Reasons Why Your Credit Card Bank Cancels

The issuing bank has the right to cancel your credit card at any time. You may not get a warning when the credit card will be canceled. The worst way to find out that your credit card has been canceled is when rejected when transactions / declined. Here are some reasons to cancel the issuing bank of your credit card:

1. You stop using your credit card.
Credit card issuers are not allowed to charge a dormancy fee to the credit card holder who does not use it for several months. While some other card issuers charge an annual fee that can be waived if you use a credit card. Use all your credit cards every three or four months to keep them active.

2. You stop making payments.
The minimum payment is one of the terms of your credit card agreement. Not many banks publisher canceling your credit card if only one payment late. Some banks will suspend your privileges after 60 to 90 days. But the bank issuing your credit card will close completely after 180 days or six months without payment.

3. Banks no longer in operation.
Unfortunately, some credit card issuers forced to stop when they no longer make a profit. Credit card issuers will sell credit card accounts to the new credit card issuer. New card issuer may close your credit card and ask you to apply for a new credit card application if you want to do business with them.

4. You reject a rate increase or change in cost and more.
Before the credit card issuers can increase interest rates or annual fees, they must give notice early in the period of 45 days. During this period, you can reject the rules and choose to pay your credit card with the old provisions. But usually the credit card issuing bank will close your account if you decide to reject the new requirements.

Impact of Cancellation of Credit Card:
Cancellation of a credit card rarely have good results, your credit score will be affected by a canceled credit card, especially if they have a credit card bill. Credit cards are covered often affect credit utilization, even if the credit card balance to zero due to decrease the amount of credit available to you. The good news is that the credit score can improve over time as you reduce your credit card usage.

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