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Original poster

credit card taken away and no idea why?

18 replies

miaboo · 06/03/2012 09:09

Hi
Me and my husband have had a credit card since 2004 and I emailed them on friday to say i have noticed that it expires at the end of march and could we have new cards sent as we havent received them yet, They emailed back yesterday saying that the card is not being renewed and after we have finished paying the balance the account will be closed?
I really dont understand why, we always pay on time and just receantly paid £4400 off it in one lump sum, never had had problem in 9 years and just dont get it?
Has anyone else had any experience of this and can the decision be changed?

OP posts:
SoupDragon · 06/03/2012 09:13

Er... perhaps phone and ask the credit card company?

ShatnersBassoon · 06/03/2012 09:14

Only the credit card company will know why they no longer want your business. Ring them and ask.

Original poster
miaboo · 06/03/2012 09:15

er was just asking for for friendly advice before I did, thank you

OP posts:
CogitoErgoSometimes · 06/03/2012 09:28

I would ask why they're the closing the account in case there has been some kind of identity fraud. Have you run a credit check on yourself recently? If there's no good reason, treat yourself to a new credit card with a different company

AgentProvocateur · 06/03/2012 09:32

If you pay it off in full every month, you're not making them any money. You are being penalised for being financially prudent. Personally, I'd take it further. They are being arses

olibollen · 06/03/2012 09:42

I would be interested to know if you get any real information when you do phone them. Chances are you'll get someone in a call centre saying "Computer says no" or some other meaningless phrase they have been told to trot out.

I expect the card provider has to cut their lending and they aren't making enough money out of you so they are cancelling the card. It may be difficult to get to the bottom of exactly why though.

Original poster
miaboo · 06/03/2012 09:43

Thank you, I thought it was strange we came into some money so it made sense to pay some off that we still have some on there and now are back to paying the minimum payments each month again, I've looked at our credit file and cannot see any cause or concern on there either, so just puzzled and angry that if i hadent asked for new cards when where they actually going to tell us?!

OP posts:
FrillyMilly · 06/03/2012 09:46

This happened to me. Also happened with my next account. They both said they periodically credit check existing customers and I hadn't met the criteria. I paid both off in full a couple of weeks after I used them most of the time

iCANdothisiCAN · 06/03/2012 09:47

Unfortunately they don't have to give you a reason. It's shitty but it's their perogative i'm afraid.

The main reason is likely to be that you have a relatively high balance which has been there a while.

All credit card providers have different perameters around what is a "desired" customer.

I'd be wary of applying elsewhere for now even if you do have a good credit score as most credit card companies judge on "affordability" and if your balance on this one is quite high they may refuse you on that basis alone. A declined application can affect your credit history quite badly so not something to take lightly.

My advice would be to do a credit check just to make sure everything is ok then just concentrate on getting it paid off as quickly as possible.

Crappy I know but not much else you can do.

iCANdothisiCAN · 06/03/2012 09:57

Sorry, x posted a bit there.

Unfortunately you have answered your own question.

Most credit card providers don't want lenders who only pay the minimum payment every month. Contrary to popular opinion they actually much prefer to have "full balance payers".

It's a long boring explanation so I won't go into it but it basically all comes down to their risk exposure and balance sheet. Every provider will at least annually conduct a sort of inventory and adjust peoples lending criteria via what they call risk based pricing. It can involve raising/lowering credit limits, raising/lowering Apr and sometimes unfortunately the non renew of some accounts.

I know that doesn't help you op, just thought it would be useful for you to have the facts.

It's a shitty thing to do but unfortunately it's a shitty business!

Original poster
miaboo · 06/03/2012 10:05

Right thank you, The limit was around £5000 and we only have a balance of £500 on it now, just was a little lifeline incase something went wrong with the car, washing machine etc! makes me panic alittle incase something does go wrong now!

OP posts:
ebbandflow · 06/03/2012 10:13

My mum had a credit card that she hardly used and always paid the balance in full if she ever did, the credit card company didn't send her a renewal. She rang them up and the person she spoke to stroppily said they would send her a card if she started to use it.

iCANdothisiCAN · 06/03/2012 10:20

I know exactly how you feel, trust me!

If your balance is that low now it may well be worth applying elsewhere, dependant what other debts you have really.

As I said with unsecured lending such as credit cards etc the ability to re-pay is their main concern. In simple terms it's about how much debt "commitment" you have in relation to your incomes rather than just your payment histories.

Sorry if i'm not helping or boring you, it really is a dull subject I know!

iCANdothisiCAN · 06/03/2012 10:24

ebbandflow there is absolutely no excuse for them to be stroppy you are absolutely right.

However unfortunately inactive accounts also don't look good on a bank's balance sheet either so it would be the same situation as the op, albeit for different reasons.

As I said, it's a shitty business!

RhiRhi123 · 06/03/2012 13:39

Hi,

I recently changed to a capital one card for people with an 'average' credit rating. It has a 0% rate on balance transfers until september. The max limit is £1200 so might be worth applying, transfering your £500 over and paying as much as you can until September which would be interest free (woohoo!) but depending on the limit they allow it might still leave you with a few hundred for emergencies! IME it's good to have maybe £500 for emergencies but any more and it becomes a viscious cycle taking out more debt at a 'better' rate to pay off what you borrowed and the 'emergency' ends up costing 10 times the amount and about 8 years to pay off before you know it! im experiencing it at the moment! it's not fun!

:)

PigletJohn · 07/03/2012 23:31

if anything unexpected happens, and you can't get an adequate expanation from the credit card company, get a report from the credit reference agencies.

You don't have to sign up to their annual scheme, they are obliged to send you a single copy of your record for a one-off fee. I forget, but it might be about £10.

Ask the credit card co to tell you which credit reference company(s) they use.

Fluffycloudland77 · 08/03/2012 12:12

My DH hasnt used his Santandar card for about 3 months or so.

They have just upped his limit by another £1000.

Bit naughty isnt it? of course they dont want us to get into debt do they?

PigletJohn · 08/03/2012 12:41

I like to use one for a bit, then put it aside while I pay it off, and use another.

That keeps them live, so I can use them e.g. when I go on hols (like to put a spare one in DP's case in case I lose my wallet or something) and I have no need to reapply.

Occasionally they make a special offer of low or zero interest e.g. for balance transfers, so I take advantage.

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