Arbitrary Closing of Credit Card Accounts?

Question

One of my credit cards sent me a letter stating that due to "inactivity", the account was going to be closed. Period. No opportunity to re-initiate account use or anything. Its being closed and nothing can be done about it. Problems:

1) can't find jack about this in the account terms and conditions,
2) can't even get access to account terms and conditions on account's website,
3) the closing of the account will damage my credit score, and
4) the closing of the account will deprive me of the available credit in the account.

3) and 4) are clearly injurious to me as a Consumer, through no fault or action of my own. The account is in good standing, zero balance, with no late payments ever made, and is about 6 years old.

How the F&^% is this legal?!

Answer 1

It actually is somewhat harmful to your credit score to close credit accounts, but I don't believe it is too bad. It can be worse if it is one of your accounts that has been opened the longest.

I can't imagine the company would proceed with closing your account if what you say about no late payments is true. You should let them know that you would like to keep your account open. They should do this because it is their only way to potentially make money off of you.

If they do allow you to keep your account open, just use it every couple of months to purchase something small that this doesn't happen again.

Answer 2

it really is in simple terms the way they do issues. I absolutely have had about 3 cost playing cards closed out for an similar element. it really is how they get your interest. they're no longer making any money off of you, so once you contact them about it, they wrestle to re-open the account with a larger line of credit to attempt to reel you decrease back in. they imagine that individuals will commence utilizing that card lower back in the journey that they up the credit line by a pair thousand extra money. regrettably, lots of the time they're proper.

Answer 3

it really doesn't affect your credit score. honest. if anything it might HELP your credit score because you have less potential to get yourself in trouble. and it IS legal because THEY are offerring YOU credit. it's a service, not a right. just like you can decide what pizza place to go to, they can decide to whom they give credit as long as there is no racial or religious bias to it. since you haven't used the card, they aren't making any money off you. period. you COST them money by keeping your account on the books and having computer time, human time, and energy time keeping it secure, checking the balance, etc.

dude, if your credit is good...just go get another card and chill.