What to Do If Your Credit Card Issuer Cancels Your Credit Card

Your credit card issuer has just as much right to close your credit card as you do. If you find out your credit card issuer has cancelled your credit card, here's what you should do next.

Call to find out why.

Your credit card issuer won’t always warn you before cancelling your credit card. So, if you’re curious to find out the reason your credit card has been cancelled, call your credit card issuer to find out why. The reason could related to how you’ve used or misused your credit card or it could be a business decision the credit card issuer had to make.

Ask if you can reopen the account.

Depending on the reason your credit card issuer cancelled your account, you may have the option to reopen it. Otherwise, to replace the credit card means applying for another account with the same credit card issuer or a new one. This may be an opportunity to open a better credit card, for example, one with better rewards or an introductory rate.

Have a backup source of funding.

Your credit card issuer can cancel your credit card without notice or warning. You don’t want to be in a situation where you can’t make a purchase because your credit card has been closed and you don’t have another way to pay. Always carry at least two forms of payment with you so you have an alternative in case one method fails.

Pay off your balance quickly.

Having a closed credit card that still has a balance can hurt your credit score. Because the credit card no longer has a credit limit, it raises your credit utilization and can lower your credit score. Paying off the balance as soon as possible will improve your credit utilization and help you recoup any credit score points you’ve lost.

Even if you can’t pay off your balance right away, you should continue making the minimum monthly payment on time each month. Having your credit card cancelled doesn’t let you off the hook for abiding by your credit card agreement.