Bad news for consumers: credit card companies are closing cards and raising interest rates. The latest is Advanta announcing that they are closing accounts. From the press release: “the Company will shut down all credit card accounts to future use at that time.”
In addition, Capital One has announced that it is reviewing all accounts and raising interest rates. Bank of America is also raising interest rates and closing accounts, in addition to cutting credit limits. American Express has been doing this for some time.
Your credit card company is entitled to do this. The credit card agreement states that the company can change the terms with 30 days notice. This includes closing your account, raising your interest rate and lowering your credit limit. Now is the time to shop around for a credit card, but do not voluntarily close your oldest card, as that will affect your FICO score.