Why is Citibank canceling my credit card?
Here is some back ground:
I am 28
My income is $ 48,000/year
Technically a mortgage still has my name on it from a divorce (all in good standing, no late payments, 5 yrs of payments made about $ 75,000 left)
I have paid off two auto loans, both in great standing, paid on time and early.
I have 4 cards :Home depot, Citi, Amex, Best Buy.
Amex= $ 4,700 limit. Balance is $ 4,300. (all payments made on time)
Home Depot= $ 3,700 limit Balance is $ 0 (Also a “Citibank card”I make purchases and pay them off)
Best Buy= $ 2,100 limit Balance is $ 0 (I make purchases and pay them off)
My Citibank credit card is my oldest card. It was my first card and I got it back in 2000 when I was in college. In the last 10 years I have had it maxed out and then paid off 3 times. I have had a zero balances many times. Currently my limit is 3,700. My balance is 3,300 and has been for 2 years. I make all payments on time and over the minimum. Occasionally I make small purchases. (which is why my balance stays the same over time). They sent me a letter stating they “recently adjusted their standards and my account does not meet the new standards” It will be canceled due to:
*Proportion of balances to credit limit is too high
*Amount owed on accounts it too high
*Amount owed on revolving accounts is too high
Yes, those are all self explanatory reasons. But somehow I still need further clarification: do they want to cancel it because I have not paid it down in a long time—-that it’s basically “stagnant”
So with all this info and you see the big picture do you think this has anything to do with my Home Depot card and it’s zero balance?
Do you agree they are canceling my card because it is “stagnant”
Do you think they would agree to keep it open if I agree to bring the balance down soon?
I plan on calling of course, on all of these issues, but for now they are closed and I need to get your opinion.