I've been hearing that because of new credit card laws, credit card companies are using different tactics and are now canceling cards when balances are paid off, or lowering the available credit. Is this really true? I wanted to pay the total balance but now I'm afraid to.|||Not that I have heard of.
Actually I have 3 cards that I use every month for every day things that I would normally pay cash for and pay them off in full every month before the due date and they have raised my limits over the years.
Have done this for the last 6-years and made several hundred dollars in cash back rewards and never paid a penny in interest or annual fees.|||I actually haven't heard that, what I did hear is that if you pay off a balance and do not use the card for 24mths they become inactive but I believe even that depends on the card itself. There are so many different cards that not all of them will have the same answers. You should probably call customer service on each card and ask specifically. I do not believe a credit card company can lower a limit ever, they can decline to increase it or increase your apr but not lower the limit.|||They are more likely to lower your limit or close the account if you carry large balances for extended periods of time.
Pay off the cards. Then use them on a regular basis for small purchases and pay the balance in full every month. That will keep the account active, build your credit, and avoid interest.|||Not true. Pay the card off you don't have to carry a balance. You do have to USE the card. If you don't they will cancel the card.|||YES it is true!
But, it isn't a hard and fast rule or event that will happen if you pay off your balances.
Just don't be surprised if they do it to you though.|||Only when, having paid off the balance, you stop using the card for a year or more|||No
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