My credit account in good standing is being closed. Why? - NJMoneyHelp.com

My credit account in good standing is being closed. Why?

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Q. I just got a notice from my credit card company that it’s closing my account. I have a zero balance and I’ve never been late. Why are they closing it? Will it show on my credit report?
— Good customer

A. We’ve seen this happen before.

It’s common for credit card companies to close accounts that aren’t used for a year or longer. You didn’t say how often you use your card, but this could be the reason.

It would show on your credit report that the account was closed, and it will be a ding on your credit score for a little while.

That’s because losing the card will lower your total available credit balances, and that could have a negative impact on your credit utilization ratio, which shows how much credit you have compared to your outstanding balances.

Now to your credit score.

We recommend you contact the credit card company and ask it to reconsider, and if you have a good history, it probably will. Then you could put a recurring charge — like a cell phone bill — on the card to keep it active.

Let us know what happens.

Email your questions to Ask@NJMoneyHelp.com.

This story was originally published in May 2025.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.

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