Points That Can Cause Credit Card Suspension
Among the rights of credit companies like kredittkortguide.no is the suspension of a credit card, and they could do this anytime they would like. There are also some reported situations in which the credit card owner won’t get any notification and just be surprised that their cards have been suspended already. For you to know the reasons that can cause card suspension, read further this article.
As stated in the new CARD Act of 2009, credit card companies shouldn't practice giving charges to those card holders who aren't utilizing their cards for a certain time period anymore. Consequently, it basically implies that the credit card company should make it a point to keep the status of the account active. Therefore, your card will likely to be suspended if it's not utilized for several months. To avoid the termination of your account, make use of the card even just once in 3 months.
Another thing that can lead to suspension of an account is failing to repay your debts for a long period. Credit provider can also terminate your account because of this. Additionally, your card will not be automatically terminated and you're given 60-90 days to pay your outstanding debt. Nonetheless, you will not be able to make use of it because it will be placed on hold. Therefore, your only option is settle not only your remaining balance but also the charges and interest linked to it.
Remember that not all credit providers achieve success in their business venture. When this occurs a company would be forced to stop all operations and shut down. And since you're a card holder, you are not also safe with this thing. With this, you will lose your credit card account. But, there’s still a likelihood to reopen your card if the company opts to sell their account to a new credit card issuer.
If your account has suspicious actions, this may also result in suspension of your credit account. This is actually an excellent way of safeguarding you from identity theft. Yet, the company will do initial assessment of your recent activities. Suspension of credit card can happen if you missed their call. Merely by confirming the transactions you’ve done, your card can be used again.
In case your card will be cancelled, then this will affect your credit rating. It just shows that these things is a must for you to consider to keep your credit history and your account thus, will leave you the hassles of reinstating it.
As your credit card is suspended, your credit score will also be affected particularly if the outstanding debts is big. This is because your credit utilization ratio rises because you have bigger amounts owed than your available credit. And in order for you to repair the damage done to your credit score, you should gradually pay up your outstanding balance.