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There are a lot of people who put off using their credit cards for the purpose of having something to use in the unlikely event of emergencies. However, some people who found the need to use their credit cards in certain situations found it surprising that their credit cards have resulted to be unhelpful due to the cancellation that happened when they were not being in use. Inconveniently, credit card cancellations happen without any form of notice or whatsoever to inform you. Banks have the authority to terminate your credit card if they are not making any money from you. To make sure that your card will be available to you when you need it the most, listed below are some of the tips that could effectively help in avoiding credit card cancellation.

1. Not using your credit card- When one of your credit cards have been cancelled, the main reason behind the cancellation would be is its non-use. Banks issue credit cards because they earn money from the interest. If you do not use your card, then the purpose is defeated. Some people often inform bank representatives of their reasons why they do not regularly use their cards. These representatives often put notes in their clients’ files stating that these cards would be used for emergencies only. However, since cancellations are usually done by automated systems, you would have to go through the hassle of having them activated when you eventually find out that they have been cancelled. To avoid this from happening, purchase something using your card every few months, regardless of the price and pay it off right away.

2. Your credit score decreased- If your credit score dropped, you card account might be nominated to be cancelled. Therefore, it is important that you check your credit reports regularly so you can keep track of your score. If you notice it dropping, make sure that you respond to it immediately so you can avoid having your credit card cancelled.

3. Your debt increased- If you just took on a significant amount of debt and you exceeded your credit utilization ratio, the credit card company may cancel your card for fear of going beyond your credit limit.

4. Your credit increased- If you apply for new credit and have been provided a higher credit limit, your overall credit can increase. If one of your banks in which you have credit is not comfortable with your increased available credit, they would most likely cancel your account with them.

5. Market conditions- When the economy gets tough, the banks get tough as well. So if house values are dropping and unemployment rates are increasing, they would cancel out the cards which do not earn them money and offer them to other people who would use their cards.

6. Credit card companies’ rules and regulations- There are also instances when banks cancel their clients’ cards without giving them sufficient reason. There are some people who have spotless records and good credit score but still have their cards cancelled. When they ask why, companies just give a vague, general reason but nothing specific.

7. Increase in credit utilization ratio- When you decide to close some of your credit card accounts, make sure that you do not have debt elsewhere. If you do, the debt you have will make up for the majority of the overall credit available to you which would then make you exceed your allowable credit utilization ratio. If you exceed it, it could negatively affect your score, giving the banks and other credit card companies a reason to cancel your cards with them.

When you have your card cancelled on you without notice, you might think that it is illegal and that it cannot be done. However, cancellation of cards without notice is really allowable and is a right given to banks and credit card companies. Therefore, instead of reasoning with banks, you can simply follow the steps listed above to make sure that your credit card will never be cancelled and will always be available to you whenever you need it the most.