Credit card closed by credit card company while I am always in good standing?

I have borrowings from 2 credit cards. Not that I really need the money, I just take advantage of the promotional 0% APR and deposit the borrowed money to earn some interest. I always make the minimum payments on time and meet all requirements. Today I suddenly got a letter from the credit company which I have less outstanding with, saying that they have closed my card because the proportion of balances to credit limits is too high. Do they have the right to do this? I've done nothing wrong. How does this affect my credit report? Is it the same impact as closing the card by myself? If not, what should I do?|||Credit card companies do that at times.





The same thing happened with my B of A card, I was in perfect standing with them, but they closed me out due to a change in my credit score. The change was because I bought a house!





There was nothing I could do about it. So I paid them off and canceled the card.





It's a good thing that you take advantage of the 0% interest. You save a LOT of money that way. I do the same thing with balance transfers.|||You can visit http://www.debteraserzone.com and find very useful tips and several articles on credit card related matters.

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|||They can cancel your card for any reason. It is in your contract. The percent to debt ratio is also a good reason to cancel before you can't make the payments. You probably could---but a majority of ppl wont is what they go on.





Or maybe they found your game out. They can't allow you to make money on there dollar. God forbid someone find a way to earn on a credit card Those points deals are sorta bogus.|||Yes they can, and yes it affects your credit score - in two ways. As to why - see the end of this.





As to the hits - first - a consumer closed account is paid to zero, then closed. That's OK - does not affect the score either way. It's a normal end to an account.





So a closed with a balance sets of alarm bells. And your debt to available credit just went ballistic.





As an example, you previously owed $800 with two cards of $500 each, total of $1000. You were at 80% debt to available credit - and yup - that would have triggered a clause in your credit card to allow them to close it - they could have ignored it - but did not. Why - see the end.





Now, with the closed account, you still owe $800, but your available credit is $500, and you are over your credit limits. Bam - your score drops - 30 points or more.





You need to pay off the closed card - fast - and then also drop the debt on the other ones.





As to why they closed it - did you really, truly, think anyone is going to lend you money at 0% - heck no. They did it for a promo - and with you not paying any interest, why should they keep loosing interest on the money they lend you, when they can loan it to someone who will be paying 18% or more ?





Since you deposited the money you borrowed, you simply need to unwind this fast before it causes you real credit problems - and triggers defaults on various accounts - simply because your credit score drops or you have a forced closed account.





Nice try ! But as you can see, the banks don't like being beaten at their own game.|||Not sure if they can do it or not....most likely they can.





What bothers me is how it will be reported to your credit reports. You do not want it to show "closed at credit holders request". I would dispute such a listing if they did.