If you have experienced the cancellation of a credit card.. what should you do?
It may well come as a shock to you to learn that a credit card issuer has closed your account. As far as you’re concerned, you’ve conducted yourself responsibly as a cardholder and never expected anything like this. So what’s going on?
First of all, you need to realize that you’re not alone in experiencing the cancellation of a credit card. It’s happening more and more, but there are some things you can try to put the situation right.
How to Deal With Cancellation of a Credit Card – Keep Calm:
If you feel you’ve been responsible as a cardholder, the chances are that the cancellation of a credit card is not connected to the way in which you’ve used it. Even when you’ve made all the payments on time, it’s still possible that the account could be closed.
Have you been making other applications for credit lately? Each of these will have led to separate inquiries on your credit file, and this sends a warning signal to your existing credit card providers. Many issuers are very jumpy about what they see as a potential increased credit risk, and this could be the reason for the cancellation of your credit card.
If Your Credit Card Has Been Cancelled – Communication is Key:
You don’t have to take the cancellation of your credit card lying down. Get on the phone and talk to your provider. You may need to speak to several people before you get the right one, but be persistent. emain calm and continue to be polite at all times, and ask for their reasons for the cancellation.
Tell them about your situation, and inquire whether there’s some way that your account could be reopened. Once they know the full facts, they might just consider this. However, if you get the feeling they’re not going to budge, then it’s time to give up gracefully and look for another provider.
Always Be on Your Best Behavior:
Because your account has been closed, the total amount of credit to which you now have access has dropped. You may have another credit card, but the closure of the first means you’ll be using the second more heavily.
This doesn’t look so good to potential new credit providers when they run a credit check on your file, so take steps immediately to minimize any damage.
Be sure you make timely payments on any other sources of credit, and make the payments as big as you can afford. Do not miss a payment on any account. And, for the time being, don’t apply for any new loans or credit cards.
Handling the Cancellation of a Credit Card – Tighten Your Belt:
This might not come as welcome advice, but if you want to preserve your credit rating you really need to cut back on spending for a couple of months. Show that you’re managing your finances well and are not over using your other sources of credit. Pretty soon, your credit score will recover.
Take a Long Hard Look at Your Finances:
Perhaps the fact that your credit card account got cancelled is actually a symptom of something more seriously wrong with your finances. Use this opportunity to face up to reality, and consider whether you’ve been getting further and further into debt.
Are you spending more even though your income has remained the same? Is there a pattern of increased spending that’s been developing for some time? Be honest with yourself about this. The cancellation of your card might be the nudge you need to admit your finances need to be properly sorted out.