Advanta sent me a letter today telling me that they were closing my account with a 10K limit and zero balance. The reason they gave (bs) was for lack of activity and too many inquiries in the past 12 months ?!?!. The wrote that they had pulled a credit report on me from Experian to "help" determine their decision. I had payed off this cc about a year ago. Not that I wanted to keep this slimy card. I know they are a very predatory lender. I'm just wondering if I should dispute a possible "account closed by lender" negative legend on my CR. I've been out of the loop for some time here and don't know what these CC companies (jerks) have been up to in the last couple or three years since I last visited Creditnet. Any comments or advise?
One - and only one reason they cancelled you: They didn't make any money off of you. You don't charge - they don't get anything in merchant fees. even if you charge but pay your balance off when you get the bill they'll cancel you - you don't keep an open balance they can't charge/rob you of interest. Don't think that the comment "closed by lender" should have a negative impact on your score. These days banks are going belly-up left and right especially banks who didn't beg hard enough for bailout money.
That's why I always tell people to use the card every couple of months for something small and pay it off. It keeps the card active. They don't like carrying the liability on the balance sheet for cards that aren't being used.
