Why would American Express cancel my wife’s credit card (who has good credit)?

So in May we found out that she had a credit score that was in the 720s when we were purchasing our house (can’t remember the # exactly). And since then we’ve bought a house and got our $ 8000 credit. With this money we paid off her American Express card and 2 weeks later they canceled it. In the letter they stated stuff like “too many accounts with balances,” “proportions to balances to credit limits on banks/national or other revolving accounts is too high,” “length of time accounts have been established.”
But here’s the deal, she’s had her job as a teacher for over a year, and the only things she’s in debt too are student loans, car payment, and a mortgage. She doesn’t owe anything to any other credit cards and such. Oh, and she has never been late on any payments on any accounts.
I just find it awkward that they’d cancel her card after we pay it off. Shouldn’t her credit score be around the 720s or higher still? So can you think of any other reason they would do this, other than the crap they told us?
Steve D, I didn’t think about the mortgage debt to income. Our monthly payment on our mortgage is only $ 50 more than when we were renting (since we got a townhouse and didn’t go over our heads buying a really nice place right now). I don’t know if this is the case or not, but shouldn’t it be considered a good thing that we are building equity and not renting anymore? But again, I don’t know how the creditors work and such, so that’s why I’m here asking these questions. And if the debt to income issue is the case, they took a few months after we got our mortgage to cancel it; and waited til we paid it off.
Thanks for the answers everyone. I guess it makes sense about the mortgage being a debt. But to me other things should be taken into consideration; like the fact that it is a debt, but we’re not throwing away our money like we would be if we were renting. So, to me, that shows responsibility on our part; just like the responsibility we have been showing by paying everything on time (and recently paid in full). But yeah, we’re new to this stuff so we’re learning as we go…. Thanks again.

Register New Account
Reset Password