My Credit Card Company closed my account due to inactivity

There is an envelope in the mail from your credit card company, that states: "Your account has been closed due to inactivity". HUH? To the surprise of many consumers these letters of account closures are common occurrence there days. If you are not using your credit card the card issuer can quickly close up the account. In tough economic times credit card companies, just like many of us are trying to find ways to cut cost, and holding accounts open that are not being used, well, they cost the card issuers money.

One of the problems this can cause the consumer is a decline in credit scores. Typically the longer the account has been open and the higher the credit limit the larger the hit on your credit score. A percentage of your credit score is calculated based on how long you have had credit.

The issuer can close the account, whether the consumer objects or not. You have options as long as you act prior to a cancellation of a credit card due to non-use.

If you have a card and you are keeping it - just in case - but not using it, use it, just a little. You can use it for small, inexpensive items and pay off the purchases.

If you have several cards, check which one/s you have had the longest and keep that/them active. Also, keep in mind that even if a credit card is closed but you show a history of payments - on-time - it is still going to show up on your credit report.