Keep an eye on your available credit!

Everyone needs access to credit now and again.  Remember the days when you got a letter that gave you an increased limit on your credit card, or a pre-approved line of credit offer?  Those days are pretty much gone.  Now, bank are doing an about face, and cancelling lines of credits and credit cards, often without notice. 

For example, one of my day gig clients got a letter from their bank, closing their line of credit because they hadn’t used it recently. The bank letter said “we believe the account may no longer meet your financial needs and as result the account has been closed.” They would need to re-apply.  And they may not qualify now.

A woman in Pickering recently had her Walmart MasterCard closed.  She has had the card for 10 years, was in good standing and had $586 in Rewards Dollars, which also disappeared.  It had only been about 8 months since she last used the card.  Enter Pat Foran, Consumer Alert Videojournalist with CTV News.  It took media pressure for Walmart to reinstate her card and give her back her $586 rewards dollars.  A credit card company may tell you in advance they’re going to cancel your card but likely won’t.

A good rule of thumb is to use your credit lines and credit cards, at least once every 6 months.  Make a small purchase or withdrawal and then pay it off right away.  Don’t let them go dormant.  If they do, they could be closed without notice, and that may be when you need it the most.  Check with your credit card and line of credit provider to see exactly what their policy is for usage.