How to Avoid Getting Your Credit Card Canceled

A credit card company has many reasons to cancel a card, in-fact Nonpayment is not the only reason for the cancelation of your credit card there are other reasons such as including non-use, excess debt,  low credit score. Some people like to have their credit card available for emergencies. If you are in an emergency such as need gas or a hotel room on short notice or while traveling abroad then a cancelled credit card may cause considerable problems. So be careful, as that card might not be available to you, just when you need it the most.

First in this article we will explore the various reasons of cancellation of a credit card and also explain some tips to help avoid having your own credit card canceled.

Here are some specific reasons why the credit card company could cancel your credit card:

• Non-Use: If your card will be canceled then “Non-Use” is the most prevalent of reasons for that.

• Your Credit Score Dropped: If your credit score drops then the company cancels your credit card.

• Your Debt Increased: Canceling your card and eliminating the chance if your amount increased such that your credit utilization ratio is teetering.

• Your Credit Increased: Main reason of a company to cancel your credit card is crossing the limit of credit available to you.

How to Prevent Cancelation:

1.  Avoid cancelation due to inactivity by Use it or lose it. It means that you can use the card every couple of months. If you are purchase something then you can pay it off immediately too. 
2. Pay Attention to Ratios, if you want to keep you credit score then maintaining a credit utilization ratio below 25%. 
3.  If you have multiple credit cards then focus on Longevity. Pay special attention to the ones you have had for a long time.

What to do if you’re Credit Card is canceled:

Check Your Credit Report: If your credit card canceled then report your company and also copy of your credit report submit from one of the big three credit bureaus. After this you can also use a free service like Credit Karma.

Maintain your credit score: If your credit score goes down company may cancel your existing account. So make at least your minimum monthly payment on time and to contact your creditor if you have financial difficulties.

Use your credit card: Use your credit card at least once every 60 days. If you purchase something then you should pay it off immediately. So it regularly informs the company that your card is still being used.

Pay your bills on time: More people neglect to pay their monthly statement and make chance to get their credit cards canceled. So pay your bill on time.

Call Them: If you don’t know what your card is cancelled make a call to the company and ask them the reason.