Credit card cancelled due to lack of use?

orangebloss

Hello!

I've had a very strange letter from my card provider this morning informing me that they are closing my account as I haven't used it enough....

The letter simply states thet they've reduced my credit limit and are closing my account in 30 days... no option to use the card and keep the account open.

I've had the card 12 years and haven't come across this before, and to be fair we've cleared pretty much all of our card debt (this one has nothing on it). When I rang them they didn't want to talk to me really, and told me to apply for a new card - though surely if they're closing this account due to lack of use they're unlikely to grant me a new one??

Has anyone had this done to them? can they just cancel my card without fair warning?

they've assured me that this will actually improve my credit rating (I just checked it with Equifax and it's in the 'Excellent' range. But I'm just a bit concerned that it will have a negative impact and I'll have to declare the fact that I've had credit cancelled when I apply for new products.....

PNPSUKNET

yes & yes they can at anytime

bryanb

This happened to OH, she had 30 days to use it or write in saying she wanted to keep it. HSBC

orangebloss

bryanb wrote: »

This happened to OH, she had 30 days to use it or write in saying she wanted to keep it. HSBC

Sadly they haven't given me that option It's a Halifax card with a 9.9% so I've always used it for emergencies and holidays.

As long as it doesn't adversley affect my credit rating I'llaccept it but I'm moe narked at the way they've done it.:mad:

CLAPTON

becoming very common now to close unused cards

two cards of mine have been closed with no option
plus one allowed me to use it within 30 days or they would close it.

rhos123

hi, if i were you i would take the card , to your local branch, and tell them were to stick it !!:D. it wont affect your credit rating. the problem is they are not making any money out of you:money:

withnell

Not only that, they lose money - they have to pay visa/mastercard for the account

property.advert

You have to use cards. It is not that difficult to put some shopping on a different one each time is it ?

It will not improve your credit rating. I don't care what they say as they mostly talk our of their behinds.

DVardysShadow

orangebloss wrote: »

... But I'm just a bit concerned that it will have a negative impact and I'll have to declare the fact that I've had credit cancelled when I apply for new products.....

They are giving you 30 days notice. Write to them this week and cancel immedaitely

Moggles_2

They've assured me that this will actually improve my credit rating ...

It's not as black & white as that.

If you currently have an excess of available credit in relation to your income, closure of this account would improve your credit history. If not, it won't.

I'm just a bit concerned that it will have a negative impact ...

Presumably, you have other lines of credit. If so, I wouldn't worry.

... and I'll have to declare the fact that I've had credit cancelled when I apply for new products.

This is not a question that crops up on cc applications.

From feedback here, your Halifax account will be marked "settled" on credit files. A settled account is one which you have made all the necessary payments to and which has been closed, either at your request or by the provider.

Accounts that are closed down and marked "settled" stay on your credit file for six years and, provided that your payment history is good, indicate that you can handle credit well

Paulgonnabedebtfree

orangebloss wrote: »

Hello!

I've had a very strange letter from my card provider this morning informing me that they are closing my account as I haven't used it enough....

The letter simply states thet they've reduced my credit limit and are closing my account in 30 days... no option to use the card and keep the account open.

I've had the card 12 years and haven't come across this before, and to be fair we've cleared pretty much all of our card debt (this one has nothing on it). When I rang them they didn't want to talk to me really, and told me to apply for a new card - though surely if they're closing this account due to lack of use they're unlikely to grant me a new one??

Has anyone had this done to them? can they just cancel my card without fair warning?

they've assured me that this will actually improve my credit rating (I just checked it with Equifax and it's in the 'Excellent' range. But I'm just a bit concerned that it will have a negative impact and I'll have to declare the fact that I've had credit cancelled when I apply for new products.....

Abbey/MBNA did this to one of my accounts quite recently.
Quite funny really. When I had a zero balance they proudly announced draconian conditions on the account which included APR of 30%+ . Then they eventually close the account because I start to view them as a lender of last resort.
What the hell do they expect?
The daft thing is that if they had been prepared to offer a reasonable LOB deal, we could both have gained.