Banks and credit card issuers usually cancel credit cards due to missed payments, defaults, and inactivity.
Policies regarding cancellation vary, and there may be other reasons besides these.
Payment status
Missed payments and defaults
Cancellation will occur if you fail to make payments and do not take measures to contact the card issuer to negotiate payment terms.
Banks generally write to customers who have missed several payments or defaulted, warning them that their account is at risk of cancellation.
It is generally not possible to reopen a credit card that has been cancelled for missed payments or defaults.
Not using it
Inactivity
Banks can cancel dormant credit card accounts. The exact timeframe in which this may occur varies depending on the issuer. If you have unused credit cards, you can check their terms and conditions for their policy on cancellation or contact their customer services.
An unused credit card can be a problem if it has an annual fee, which can come as an unwelcome and unexpected expense. Closing a credit card you have used for years and remains in good standing can also impact your credit score and lower your credit score.
Already cancelled?
What to do if your card has been cancelled
There are options available to you if your card has been cancelled. Depending on why it was cancelled and by who, you may be able to reopen your credit card account or apply for a new credit card.
