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

They have millions of "goobs" out there that will use the card....get them money off of interest....and not repay so they can write it off as bad debt.. How dare you NOT use their card. j/k But that is how they think...."Apparently he isn't going to use it....he has a very low interest rate on this card (not good for business), we could be issuing this card to someone at a higher rate....he has an excellent credit score...We're wasting our time sending him paper statements, postage.....Send the card to Joe Blow....He'll chargechargecharge, then get behind and we'll be making TONS O'CASH" That is really how they think....they don't care about your credit.

Answer 2

It's just the way they do things. I have had about 3 charge cards closed out for the same thing. It's how they get your attention. They're not making any money off of you, so when you contact them about it, they try to re-open the account with a higher line of credit to try and reel you back in. They think that people will start using that card again if they up the credit line by a couple thousand more dollars. Sadly, most of the time they are right.

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.

Answer 4

3 and 4 are NOT true. Try actually reading the information on myfico.com. 90% of what you hear about FICO scores from other sources is taken out of context and misinterpreted. BTW, failure to use the card for 6 years IS your fault.