creditcard taken away and no idea why

miaboo

Hi
me and my husband have had a credit card since 2004, we mainly pay the minimum payment with the odd bigger payment, we receantly made a large payment and bought the balance right down, we have never defaulted on payments, been good customers etc
I noticed we needed new cards issuing at the end of march and emailed them asking them for new ones I received a reply saying that they were no longer renewing the account and that we couldnt use the account anymore other than to pay the remaining balance off and after that the account would be closed, does anyone know why this could of happened and is there anyway of geeting them to change there minds?
Thanks

ehlo

Welcome to MSE

Paying only the minimum payment can often be seen as a sign of financial instability.

What other financial commitments do you have? How do your debts compare to your salary?

miaboo

We are fine with repayments and just receantly paid £4000 and then a payment of £400 on the card, the balance owing is only £500 and the credit limit is £5000 so we are puzzled as to why they done this

ChopperST

miaboo wrote: »

Hi
me and my husband have had a credit card since 2004, we mainly pay the minimum payment

I would imagine that having only been paying the minimum payment on your debt for 8 years is a red flag to them and they are concerned you may be struggling to repay the whole debt and hence don't want you to increase the debt?

Stopping you borrowing any more funds seems like a responsible lender. Who is the card with?

In days gone back you were an ideal customer - always in debt and paying a regular minimum. However the bank will invetibly be borrowing the funds they have lent you from someone else and this costs more since the credit crunch and hence you are a less attractive proposition in the "new era" quite simply it looks like they want their capital back...

Edit - Just seen your post above - with that taken in mind does seem quite strange?

ILW

Give them a call.

Hazzinho

Have you taken on any additional credit recently like a big loan or racked up debt on an additional credit card? If not then you obviously don't fit their new criteria for their customers. Lenders are far more picky now.

tomsco

Have you still been using it to purchase things? If you've only been paying the debt off for a while it may be that they're cancelling due to lack of use.

rising_from_the_ashes

I would also think that having paid the min (with the odd bit extra) and had a large outstanding balance for so long and then paying a whacking big amount to it may have made them think you've taken out a loan to clear it which may make them more inclined to close the account.