Question : Can credit card companies close your accounts without warning? How does it affect your credit score?
I received a letter in the mail from Juniper (iTunes Rewards) stating that they have closed my credit card account due to inactivity. I opened the account about 18 months ago and have never actually used it. Can they close my account just like that without any warning? How should I handle the situation? (Is there anything I can even do?)Also, I know that closing credit card accounts lowers your credit score. Does anyone know how much mine will be affected?
- asked by Sara
All Answers:
Answer #1
You can talk to the credit card company Howeverconsidering the current times I don't know if itwill get you the answer you want. The answer tothe first question is yes they can
- answered by Steve L
Answer #2
yes they can, read your terms and agreement youreceived when you applied and accepted the creditcard. All credit card usually work different. Orcontact them at their 1-800 #.
- answered by Ms. Angel..
Answer #3
Canceling a credit card can ding your creditbecause part of your credit score is based onsomething called a debt-to-credit ratio. When youcancel a credit card, you lower the amount ofcredit available to you, making that ratio lookbigger (and more risky) to creditors..15 percentLength of Credit History: "In general, a creditreport containing a list of accounts opened for along time will help your credit score. The scoreconsiders your oldest account and the average ageof all accounts."35 percent Payment History:"Having a long history making of payments on timeand no missed payments on all credit accounts isone of the most important items lenders look for
- answered by Stealth
Answer #4
Yes they can close your account "just like that." To keep an account open, you need to use it onceor twice a year, minimum.
- answered by bud68
Answer #5
Each account is a potential borrower that theyhave to worry about funding. If you don't useyour account, they will close it and give yourslot to someone else.
- answered by wildbirdie
Answer #6
Yes, they can close your account. In fact, I'msurprised it stayed open 18 months if you neverused it.Closing the account will only afffect yourscore if you are carrying balances on other creditcards. About a third of your score is based onthe ratio of credit card debt to limit. When youclose an account, you lower the limit. Thusmaking the debt percentage larger. Carryingbalances of more than 30% will hurt your score.
- answered by bdancer222
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