Keep the Bank From Closing Your Card

In the wake of the credit crunch, rising delinquencies, and (possibly) tighter rules, credit card companies are closing out some customers' credit cards in an attempt to save money, according to a recent SmartMoney.com article. This is a move you don't want to happen, especially if you plan to apply for credit or loan in the future.

Closing a credit card is never good, and often bad, for your credit score. It doesn't matter if you close it or the bank closes it. The effect is still the same. (See How Closing a Credit Card Affects Your Score.

There may be some things you can do to keep your card open. For one, make your payments on time. Delinquencies cost banks. With regulators seeking to end some interest rate hikes, the creditor won't be able to make extra money by hiking your interest rate. Also, sure you're using the card. If you're not making money for the bank, they have no reason to keep you as a customer. Heed warnings about pending closures. Your creditor might write to give you a chance to keep your card. If you get the chance, take it.