Credit card accounts with a balance generally are not closed if you continue to make at least the minimum monthly payment. Card companies sometimes send notices to customers whose accounts have a zero balance but have not been used in years. The card company wants the customer spending again, and sends a notice as a friendly nudge.
Finance Charges
Maintaining a balance on your credit card makes you a profitable customer---another reason the company has little reason to close your account if you are making regular monthly payments. Many people make charges on their cards but pay the entire balance when they receive their bill to avoid finance charges. Customers who carry a balance are important to the profitability of card companies.
Considerations
An account with a balance could be closed for reasons unrelated to use of the card. Negative information on your credit report, such as a foreclosure or multiple late payments on other accounts could suggest you are having credit problems. Your card company could fear that you will max out your credit line and default on the account. The credit card application you signed gives the company the right to regularly monitor your credit. Some card companies close accounts to limit further charges based on information on credit reports.
Credit Reports
Monitor your credit report by reviewing free copies provided by AnnualCreditReport.com. The site offers free reports as required by the Fair Credit Reporting Act. The report will display all negative information, along with other details about your payment history on various accounts.
Ask Questions
Your card company will tell you if your account can be closed for lack of use with a balance. Simply call the customer service number on the back of the card and ask. Another option is to begin using the card again. Make small charges for necessities and pay the balance in full each month. This won't add to your debt while providing more opportunities to keep the card active.
0 comments:
Post a Comment