Anyone else had their Creation credit card cancelled without explanation?

jameswyper

For the past 8-10 years I've been the happy user of a Creation credit card which I took out because, at the time, it offered foreign currency transactions without the usual 2.75-3% exchange fee (and thank you again Martin & team for alerting me to it way back then).

I've always paid the card off in full every month, and to be fair I've almost always only used it when abroad, but as I travel for work it does get used roughly every other month and they've been pocketing the interchange fees from that.

Today I got an email saying that they are exercising their right to close the account with 2 months notice.  No explanation (I've contacted them to ask).  No apology.

Just wondering (a) if anyone else has had this, and (b) whether their decision to close is likely to affect my credit record (which is immaculate) at all?  Thanks.

spacem

The very same. Today. Had it for years, since started as Asda card provided by Creation. Then changed to just Creation when they parted ways with Asda. Always paid in full. Credit limit has grown over the years to over 4k but never use anywhere near that these days. Bit odd really.

Nasqueron

a) It's a business decision by them, whether someone else is affected doesn't really matter - it's likely yes
b) It will simply show the account is closed and paid off, nothing else really. The fake score might change but that doesn't matter

Griklot

Same here. I signed up for the IHG credit card about six years ago for my work expenses, then they parted ways with IHG about a year ago.  I've always paid the balance in full, then of out the blue today I get a notification that they're serving me two months notice, as is their right under credit agreement clause 14.

jackjones01

If you pay off your card in full every month you’re not making them money. Also if you don’t use your card in X amount of time they’ll close it. 

jameswyper

jackjones01 said:

If you pay off your card in full every month you’re not making them money. Also if you don’t use your card in X amount of time they’ll close it. 

They make money from interchange fees (what they charge the merchant) whether or not you pay the card off in full.  They may make more money if I carried a debt, but plenty of people pay off in full each month - I've done so on my John Lewis card for two decades - so it must be profitable enough. I've spent about £3000 on the card this year, which is not nothing.  And I last used it a month ago (the agreement says they can close it if it's unused for a year).

etienneg

jameswyper said:

...  And I last used it a month ago (the agreement says they can close it if it's unused for a year).

What clause 14 of the agreement actually says:

14 Our right to end this Agreement

Without affecting our rights under clause 12, we may end this Agreement at any time: (a) by giving you at least two

month’s written notice; or (b) if you have not used the Account for a period of 12 months and there is a nil balance on the Account.

Missus_Hyde

jameswyper said:

For the past 8-10 years I've been the happy user of a Creation credit card which I took out because, at the time, it offered foreign currency transactions without the usual 2.75-3% exchange fee (and thank you again Martin & team for alerting me to it way back then).

I've always paid the card off in full every month, and to be fair I've almost always only used it when abroad, but as I travel for work it does get used roughly every other month and they've been pocketing the interchange fees from that.

Today I got an email saying that they are exercising their right to close the account with 2 months notice.  No explanation (I've contacted them to ask).  No apology.

Just wondering (a) if anyone else has had this, and (b) whether their decision to close is likely to affect my credit record (which is immaculate) at all?  Thanks.

Same here and I always pay my cards off in full every month.

Frankly, I couldn't care less; I have plenty of other cards ( although Creation have never been a problem and I can't recall ever having had any little spats with them.)

Good riddance, I say.😉

ClaretHead

Me too. Mine was originally an IHG card - I pay one subscription a month from it by recurring card payment and then it's cleared by a direct debit - I imagine they are not making any money from me

Gandalf644

It wouldn't surprise me if Creation are exiting the credit card market totally.

After they lost ASDA and IHG as affinity partners a few years ago, there cannot still be many Creration credit cards knocking about (in proportion to other card providers). You haven't been able to take out a new credit card account with them for some time now.

The costs to service a relatively small number of credit card holders (many none or barely profitable as posted above) must be quite high.

They will probably concentrate on providing shop finance such as their tie up with Curry's etc.

Kim2003is

Exactly the same also referencing Clause 14! As lo g as I get my cashback I've built up over the last year I'll be happy! I'm sure there are plenty of other cards out there, or Asda may even introduce another?