Card Cancellations on the high…
Filed Under (Credit Cards Blog) by creditblogger on 09-12-2008
I never thought it would happen to me. I have paid my credit card bills on time and have never had any negative item on my credit. But that still didn’t keep a few credit card companies from cancelling a few of my credit cards (worth $25,000 in limits). The truth is that is happening to many consumers and business owners around the nation. Credit companies are not making as much these days as they used to, and as a result they have decided to pull the trigger on their unprofitable customers.
There are two ways to be unprofitable to your card issuer. You can either pay all your bills on time, or you can put your cards away until you have money to spend. Either way, you are making card issuers upset. Card issuers don’t like folks who avoid fees. That’s their business model. I know why my cards were cancelled. I wasn’t using my cards as much as I used to. Before, I used to get a warning before having my cards cancelled. This time, however, the credit company took it upon itself to cancel 2 of my cards without letting me know. They were kind enough to send me a letter to give me a heads up not to use my card again, but I wish they had let me known they were planning to cut me off.
Credit companies are hurting these days but they are still making money. That still doesn’t keep them from being more greedy. So, don’t be surprised if you find your limits slashed in half or your account cancelled after years of paying your bills on time. That’s what credit card companies do…
Your take: Is it fair for credit card issuers to cancel your credit card without giving you a warning beforehand?
