Q: I just received a note from my credit card company saying they won't renew my cards when they expire.
I will go talk to my local credit union, but I assume the reason is that I have been paying the bill off completely every month for several years now.
I use a credit card regularly for my everyday purchases, so it is not a dormant account. I always pay my bills on time, as is reflected in my great credit score (830-plus).
I would like to keep an active credit card, in case of an emergency. Would you suggest I start not paying it off at least once in a while, so they make some money in finance fees from me? Is there another option? Are the costs that I will pay in finance fees worth it to me to keep my good credit score?
BJ
A: What a pain. I don't know why your card got canceled. Cancellations were more common several years ago during the financial meltdown.
I guess you could fight it, but why reward the issuer with your business? You've done everything right with your credit card. You use it. You have kept a healthy gap between your balance and your credit limit. You paid the bill off on time and in full. I don't think you'll have difficulty getting another credit card with your financial history, especially if you go to a credit union or community bank.
By the way, I would look at your credit reports to make sure everything is on the up-and-up. By federal law, you can get a copy of your credit report from each of the three main credit bureaus for free once a year. There is only one authorized provider of the service, www.annualcreditreport.com.
