6 Ways You Can Cancel Your Credit Cards

Unlike loans, apartment rentals, and many other contracts, lease agreements Credit cards they are not that hard to break. You can decide to cancel a credit card at any time for any reason, and the credit card company has the same right.

In general, it is much more common for consumers to cancel their cards. The companies of Credit cards they generally focus on adding and keeping cardholders, not getting rid of them. However, there are several reasons why a credit card company might decide to close your card.

1. Inactivity
If you never use your card, the card company Credit cards they may eventually shut it down. There is no set timeframe for when this occurs, as every card issuer is different. I've had cards that were closed for inactivity after a year, but I've also had cards that I haven't used in over five years that are still open.

To avoid this, be sure to use the Credit cards that you want to keep every three to six months. Another option is to set up a card as the payment method for a small recurring bill, so you have at least one transaction each month. If you're worried you'll forget to sign in and pay your credit card, you can set up automatic payments.

 2. Missed payments
Although the companies Credit cards they will give you some leeway if you don't pay on time, this patience only lasts for a while.

When your minimum payment is 90 days or more late, you're in the danger zone where your card could be cancelled. Your card can stay open longer, but 180 days past due is the limit where almost any credit card company Credit cards will cancel the card.

Your card could also be canceled if you regularly do not pay, even if you are never 90 days late. This not only puts you at risk of having your card cancelled, it also costs you money in late fees and can hurt your credit score.

3. Bankruptcy
Most of the companies Credit cards They have a policy of automatically canceling the cards if the cardholder files for bankruptcy.

This policy applies even if the card had no balance and was not part of the bankruptcy filing. From the card issuer's perspective, filing for bankruptcy makes you more vulnerable as a cardholder.

If you need to file for bankruptcy, assume that all of your Credit cards they will be cancelled, because that is the most likely scenario.

 4. Misuse of the Card Rewards Program
Card issuers have cracked down on consumers suspected of gambling their rewards programs. If a credit card company thinks you're using underhanded methods to earn more rewards, they might cancel any cards you have with them.

What could be considered a misuse of a rewards program? Here are some examples that could lead to problems:

High spending on gift cards or other cash equivalents, particularly at stores where your card earns bonus rewards

5. A drop in your credit score
If your credit score drops by a significant amount, credit card companies Credit cards They might reevaluate keeping you as a customer. Your credit score is one way creditors determine the risk of lending you money. A drop in your credit score means you are at greater risk than before.

Read More: Banco Azteca Guardadito Go Credit Card

You don't have to worry if your credit score drops by a small amount. But if it drops by 50 points or more, that could be a problem.

6. The card is no longer offered
A card issuer might decide to stop offering a credit card you have. In most cases, card issuers will close applications but allow previous cardholders to continue using the card.

However, there is also the possibility that a security company Credit cards close the requests and cancel the card entirely. When that happens, card issuers often give customers the option to transition to a similar card.