I just got a letter from one of my credit card companies lowering my limit due to inactivity!  Yes - I do NOT use the card that much so am I going to be punished??  I always understood that it was not a good idea to cancel cards as THAT looked negative on a credit report.  Which end is up??  

Capital One out of nowhere closed my account saying it was suspended for 60 days and the only think i could do in those 60 days was get my reward points but was impossible to reactivate the card. BS!!!!! They did tell me that it wouldnt be reported to creditors and would not hurt my credit score. I am almost 100% sure they lied and it will hurt me. Very Bad business and i know i havent used my card in a year but like others have said a letter with an update or warning or anything to appreciate the thousands of dollars of buisnees i have given them.

I paid off two big credit cards last year...both which I had had and used for several years. I did not close them but thought I would keep them in case of an emergency. Well both card holders cancelled me for not using them. That is insane. If they want to keep people's business, they need to lower their darn interest rates and penalties.  They'd still be making plenty which is better then nothing in my opinion. On my remaining cards, now I pay the balance except for $50 each month, so at least they'll stay activated. Never know when you might truly need one of them for something.

I agree with lacroixDog - Raising interest rates and fees is only compounding the problem!  What does the credit company gain by slapping folks who miss a payment with increased interest and exorbatant late fees, etc which only puts the consumer in a deeper hole.  Seems to me they would profit more from helping folks pay off their debts.  They are receiving government funds are they not??  So they are making out on both ends while we the consumers are suffering.  and what really gets me is the nasty notes that are put on monthly statements now - threats of all sorts of bad things for missing a payment - and these are going to people who have yet to even miss a payment!!  i wish I had the means to pay off all my cards right now and tell them all to shove it!  Credit is never going to loosen up and the economy get going again with things like this happening!!

Uh, why don't we be honest here and tell the REAL reason Chase and other banks are cancelling credit...it makes their balance sheets look better and lowers their reserve ratio (the amount of money they must keep on hand to cover their outstanding loans in case they default). So, cancel a $10,000 credit balance, save the money the bank would have had to set aside to cover that amount in case I defaulted. I just love banks...take billions of tax dollars and yet cancel my account (that I kept for emergancies).

Looks like the old adage of  " if you don´t use it, you lose it "  applies to credit cards as well.   If the reason you are not using the credit card is because it has a high interest rate, then consider transferring the balance to a lower rate card.  There are many low rate options out there.  It just requires a little research.

-  http://www.VISACardReviews.com  

Dave Ramsey would never tell anyone to keep a credit card for emergencies or suggest you keep it open. The EF covers anything Murphy tries to throw at you and you can cancel the account and still pay any balance you have so there is no need to keep the account open. If you have an EF in place I guarantee Murphy will not come knocking on your door.

NOW THEY THE CREDIT CARD COMPANYS ARE SENDING YOUR BILLS LATE SO THEY CAN UP YOUR FEES CHECK THE ENVLOPE DATE WHEN IT WAS SCANNED AT THE PO. KEEP ENVLOPE AS PROOF WHEN IT WAS SENT.

Oh, and for those of you with Chase cards that were cancelled...take note, the bank is not in as great of shape as they claim. I suspected Citibank was having trouble a year and a half ago because they offered me $50 to open a savings account. Why? They needed my money. Now, if Chase is cancelling credit accounts to lift their reserve ratio...watch out. Just my two cents.

I had the same thing happen last month with my Target Visa.  I pulled my credit report and noticed that the credit limit was reduced a little and the next month I went online to see my account and it was closed.  I called and emailed the company and they said that since I didn't use the card in the past 12 months it is automatically canceled.

I then asked why I wasn't notified.  They said they don't notify anyone since they don't know if they have a correct address or not.  I'm thinking even an email would work since I can see my account info online and get my statements that way.  

This is just a way to make people use their cards so they can get some interest off you.