HSBC cancelled my card !!!!

angryofsussex

HSBC cancelled my credit card without any warning. The thing that really annoyed me was that they waited until I'd paid it all off then immediately cancleed it without a reason. Tried calling them for a explanation and was given some rubbish about reviewing accounts and customers ability to repay. I didn't always pay the full amount each month but always paid at least the minimum. I mentioned this to a friend who said it may have had something to do with taking out cash on the card from time to time.
anyone else been treated like this?

byebyedebt

You are considered to be higher risk if you regularly withdraw cash on a credit card.

beaujolais-nouveau

angryofsussex wrote: »

it may have had something to do with taking out cash on the card from time to time.anyone else been treated like this?

I think that what you did "wrong" was to pay it all off. I know that sounds mad but, from the experience of others (about which I have read on MSE), that seems the most likely reason. (I am assuming that your credit record is OK.) Others have had their limit reduced suddenly and without notice, after paying off a large amount of the balance outstanding, ie reduced to what the balance is (after the paying off of a large part of it).

In future, perhaps, the way to pay off the balance - without getting your card then cancelled - would be to do a balance transfer to another card, and then pay it off after it arrives on that other card.

Commiserations.

Moggles_2

I mentioned this to a friend, who said it may have had something to do with taking out cash on the card from time to time.

Yes, this is like jumping up and down, waving a flag to any lender, saying you are in financial difficulty.

Cheetah

Moggles wrote: »

Yes, this is like jumping up and down, waving a flag to any lender, saying you are in financial difficulty.

Really? Didn't know that - thanks.

udydudy

Cash withdrawal on credit cards is an absolute no no!!! as it shows that you are desperate to borrow at any cost. taking into account that you are paying a cash withdrawal fee as well as the higher interest rate on your cash withdrawal. and this is especialy true when you have other balances on the card which are being carried forward which means until you pay off in full you are paying a high interest on the cash balance.

Moggles_2

beaujolais-nouveau wrote: »

I think that what you did "wrong" was to pay it all off... (I am assuming that your credit record is OK.) Others have had their limit reduced suddenly and without notice, after paying off a large amount of the balance outstanding. In future, perhaps, the way to pay off the balance, without getting your card then cancelled, would be to do a balance transfer to another card and then pay it off after it arrives on that other card.

Personally, I doubt whether lenders can distinguish BACS payments made by other card companies from those of their customers.

freeoffers

So drawing out cash on a cc = desparation?

I guess thats because of the higher interest rates on cash withdrawals

RobertoMoir

freeoffers wrote: »

So drawing out cash on a cc = desparation?

I guess thats because of the higher interest rates on cash withdrawals

Well they assume people understand the higher cost of withdrawing money.
Which is not very far away from asking the question:
Why would you repeatedly choose to pay a high cost for borrowing... unless you had no choice?

chattychappy

udydudy wrote: »

Cash withdrawal on credit cards is an absolute no no!!! as it shows that you are desperate to borrow at any cost.

Or just stuck the wrong card in the hole as I have done!

It's a funny old world - they do well out of cash advances, but the suggestion is that this makes them very nervous. Seems odd unless the OP did it very often (he said "time-to-time") or has other problems with his credit history.

freeoffers

Very bizarre. Must admit ive only used my card once for cash withdrawals, the interest you pay on them makes me very nervous!