Here are the 7 reasons why your credit card may get cancelled

Here are the 7 reasons why your credit card may get cancelled

Unlike earlier, today it’s not difficult to get a credit card. People with monthly salary as low as Rs. 15000 can also easily apply for credit cards and use it. But, unless and until you really need it, credit cards should not be used. If you have a credit card with you then there a few rules you should abide by, unless you don’t there is a chance for the credit card to get cancelled by the bank.

Keep using the credit card in every 3-4 months

If you have a credit card then keep using it at an interval of 3-4 months. Different banks have different rules, some could levy an annual charge whereas some may not. In order to avoid the annual fee, it is better to use it every 3 to 4 months. While some banks can also cancel your card in case it remains inactive for a longer duration. So, go by the rules and use it in every 3 to 4 months.

Keep paying the minimum balance

When your statement comes, don’t forget to pay the minimum at least, if not the entire amount. Banks will not cancel your card if you miss your payment, but if you stop paying your repayment then there will be forced stop on your card. In any case, for a situation when the non-reimbursement period surpasses a half year or when the sum adjusted by the cardholder is not exactly the amount of the credit supplier, then the card is charged-off or shut.

A credit card is dropped in the event that you deny the increase in financing cost

Credit card provider before expanding interest rate or yearly fee on the card, informs the cardholder 45 days ahead of time, amid which the cardholder can choose with respect to whether the new terms of higher financing costs are adequate to him or not. In the event that the cardholder rejects the proposed terms, leaser will close the account and the cardholder then needs to satisfy the record on past terms.

When the credit card approaches the lapse period

Every credit card accompanies an expiry date that implies the card stays substantial just until that period. In this way, to keep utilizing the card you have to trade your old terminated card with a new one.

Your old card gets replaced by a new one

Another reason why your present card can get cancelled is when the issuer cancels it after reviewing the current card’s portfolio and may cancel your current card. However, the bank should inform the cardholder about such a case if it happens.

The credit card may get cancelled if your credit score is poor

Make sure to pay all your credit card bills on time. The more you miss it, the more your credit card scores go down. If you keep on defaulting your payment and the interest charge, you are going to damage your credit score like anything. If such cases occur, then your credit card will be cancelled.

If Credit card issuing organization closes their operation

For a situation when the lender closes all its operation because of loss of profit, it might drop the credit card accounts with them. There are also instances when the credit card company sells their credit card account to another company.

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