Hi all,
I have several credit card accounts with a big bank and they reduced my credit lines from 5 figure to only a thousand or even less. I never missed a payment in more than a decade for any loan or credit card accounts.
However, the excuse is that I have too many accounts with balances. I asked why they are lowering my credit lines to basically nothing and a rep said that I am abusing credit, so they are taking it away.
Now it appears they blocked all my accounts with them. I got "Account unauthorized" message when I tried to use one of the cards. Fine. I don't need to use these cards. I intend to pay them off over the next year and close these accounts. What I would like to know is if they can close the accounts immediately and demand payment in full for all cards? And if they close the accounts would that negatively affect my credit score?
Please advice.
cant use credit cards
Hi Rab,
I think you need to check out the terms of the agreement with the bank. Whether or not the bank can stop you from using the accounts because of high balance on your cards will depend on the terms and conditions. However, if you tend to carry high balances on your credit cards banks generally charge you high interests or as in your case it is, lowers the credit limit.
It is always good to keep low balance on your cards. Otherwise this can also hurt your credit score.
Thanks,
Aaron
credit score will be affected
Hi Rab,
What I would like to know is if they can close the accounts immediately and demand payment in full for all cards?
Yes, your bank can do so.
And if they close the accounts would that negatively affect my credit score?
Yes, if these accounts are closed down, it will be reported as "Accounts closed by credit granter" and this can hurt your credit score.
Thanks.