How to Avoid Getting Your Credit Card Cancelled

A credit card company may cancel a card for many reasons, including non-use, excess debt, a lowered credit score and even an increase in credit that exceeds the amount the company is comfortable with. A cancelled credit card can cause considerable problems, especially in an emergency such as needing gas or a hotel room on short notice. A few easy steps, applied on a regular basis, can help avoid an unnecessary cancellation.

Instructions

1

Use your credit card at least once every 60 days. You don't need to make a large purchase -- just a cup of coffee will do -- and you should pay it off immediately if you're concerned about debt. Regular use informs the company that your card is still being used.

2

Maintain a low credit utilization ratio, which is the percent of the total limit on the card that you have used. For example, if you have a credit limit of $1,000 and you have $530 on the card, your credit utilization ratio would be 53 percent (530/1000). Ideally, you want your credit utilization ratio to be 25 percent or lower.

3

Pay your bills on time. The Wall Street Journal cites a high delinquency rate -- with more people neglecting to pay their monthly statement -- as a cause of concern among credit card issuers. You can avoid that by keeping up with your monthly bills, and not giving the company reason to fret.

4

Keep careful track of your overall credit rating. The higher your rating, the less likely a credit card company is to cancel your card. Three major agencies -- Equifax, Experian and Transunion -- keep track of credit scores. You are entitled to a free credit report every 12 months. AnnualCreditReport.com allows you to request a free credit report online.