mi_cam asked:
My credit card was canceled by the credit card company. I was paying them on time every month. I had the card for four years and every year they raised my limit. The account was in good standing when the closed it. How will they report this to the credit bureaus?
http://1mortgagecalculator.info
My credit card was canceled by the credit card company. I was paying them on time every month. I had the card for four years and every year they raised my limit. The account was in good standing when the closed it. How will they report this to the credit bureaus?
http://1mortgagecalculator.info
Cancelled accounts usually hurt credit ratings pretty bad, but the positive payment history still shows on your credit report. Lenders know that a lot of lenders are closing credit cards these days.
The main reason it effects your credit score is because all the available credit you had on that credit card is now gone. If you have other credit cards that have a lot of available credit, then you should be okay. But if they have a lot of debt on them, then it will hurt you more.
Do you know why they canceled your card? Most of the time, they cancel it because you haven’t used it in awhile. You should always use your credit cards every once in a while and pay it off in full! Normally they give you a warning a couple of months in advance so I would call them if you didn’t get any warning.