One thing to keep in mind is that retailers are charged a percentage or user fee for each purchase that you and me make with the banks card.  Even if you pay your balance at the end of the month, the bank still made 2-5 percent on every purchase on their card.  This is something the retailers must absorb or pass on the the consumer which is more common.  That is why there are cash discounts.  So it should not really matter what interest rate or annual fees you must pay to use the plastic, the banks are still getting their money.  I have no pity for the bank not being responsible enoungh to run their business on this 2-5 percent instead of counting on the 15-30 percent that is paid by the consumer on balances.  Maybe all of those big buildings with granite floors and walls that touch sky were not such a good idea after all.

I have one credit card that I activly use. I make $500.00 payments on it each month and then every three months I pay it off in full.  Everything goes on this card.  My Credit line is pretty high but I do not charge above a certain amount.

I used to have

Target

JCPENNY

WALMART

CHEVRON GAS

HOME DEPOT

CARPET GIANT CARPET ONE

AND AMERICAN GENERAL

I paid all those Cards and Loans off. I since put what I used to on the credit card into an Emergency Fund Savings Account. Since then I have aquired $12,000 in Savings and it is all earning interest. And I am continuing to build that up. Because I would like to have a years worth of income in savings making money for me.

The cards I mentioned above are all still open. But who knows how long it will take for the banks to close those accounts on me since I have not used them in ages.

The credit card companies are canceling unused cards, because when times get really tough, they do not want all these people using credit cards then not paying them back.  Credit card companies are protecting themselves from future loss against uncertain times.  Whether it fair is another question.

There are people that will charge large amounts and then file for bankruptcy which hurts all credit card users with higher rates and tighter credit policies.

The credit card companies are canceling unused cards, because when times get really tough, they do not want all these people using credit cards then not paying them back.  Credit card companies are protecting themselves from future loss against uncertain times.  Whether it fair is another question.

There are people that will charge large amounts and then file for bankruptcy which hurts all credit card users with higher rates and tighter credit policies.

Forget about FICO scores and other banking rules. The rules no longer apply the system is corrupt. The larger the banks the more corruption. Try smaller Credit Unions. Save cash and buy only when you need things. You will find by the time you save the cash you no longer want these things. You will accumulate cash , and in the case of emergency you will be able to pay for your necessities and not have to pay the predatory interest rates. If you need to buy a home, buy it ,get a good rate and you wont need to be concerned about FICO. If you have a home to sell, forget it your not going to sell unless you your willing to give it away, you might as well start canceling cards now!!!

Get a debit card with a M/C or Visa logo. It will be accepted and you can't  spend what you don't have. I agree with Mark's comment. Cash isn't accepted anywhere it seems, and if you don't have a credit card, you're screwed. Also go with credit unions instead of banks. At a bank, you are just a number, but at a CU, you are a CUSTOMER. Citi BANK and BofA are circling the drain right about now...

I work for a CC company, one of the top 5.  The reason we are closing accounts is call reducing exposures.  When we issue you a $5000.00 line of credit we have to have the much in the bank in case you may use the $5000.00, which we pay interest on.  When you are not using your card we are still paying interest.  Also, when we reduce exposure we look better to investors who buy lots of CC for investment purposes.

I have been working to pay off my debt for the last year and have found most CC companies unwilling to help.... I had a credit card with $4000.00 bal. I was making payment on. I was making monthly payments of apprx. $175.00 a month, I called the CC company and told them I would like to pay off my balance and would like to work a deal - if they suspend my interest rate, I would set up a $ 400.00 monthly schedule ( automatic withdrawal ) and have the balance paid in 10 months, they said no deal. I still went along with the $400.00 payment schedule just because I wanted to be done with them, and this is what they did - the original credit limit was $ 10,000, almost immediately they dropped the limit down to $ 5,000 credit limit. After making several $400.00 payments as I had scheduled the CC then dropped my limit down to $ 2,500 and indicated I was over the credit limit and would have to pay a monthly fine for being over the limit. These credit card companies are criminal all of them. These companies are predator's and will continue as long as the Feds bail them out. Suzie Ormond is wrong, if we all cut up our credit cards then maybe it will act as a wake up call to these companies. Believe me this country survives on credit, we do not produce anything anymore. We have turned from a country that produces goods to a credit heavy service economy

We just paid off 20,000.00 in credit card debt on 4 cards. The interest rate on them are fairly high. I want to try and negotiate a lower interest rate on them as I have heard you shouldn't cancel them once they are paid off. With the economy the way it is ,I am wondering if they wont budge on the rate should I cancel them? Does anyone have any thoughts on this?

I don't have a problem with them closing an account I haven't used for years as much as I do the Credit Reporting Agencies indiscriminately grading it negatively.  If the history of the account (which is part of their reporting) indicates no balance for a long period of time, why is it negative.  Good for you if you don't need to use 'the card'.  

I say you're a better risk for making your car payment, keeping it maintained and driving safely.  And, there is your insurance company's interest.  If you're credit numbers go down, just a little, your insurance will probably go up.

I had that conversation with Allstate and am convinced they've got a scam going on that can't be beat.  My rates went up almost 10% when my score dropped a point, one point, because I refinanced a mortage, to 15 from 30 years, lower payments and rate, and changed banks to do it.

Because of that, the probability of maintaining my car was less, the probablilty of having an accident was more, etc., etc.  In spite of 20 years of being insured (house and car), no accidents, minor glass claims on the house, and paid 4 months ahead on my car at GMAC.

We've let credit get hold of much more than our wallets.