Money Matters Series 1: The case of a cancelled credit card: What to do

What happens to you if your credit card has been cancelled?

What do you do? First, try to pay off your debt as soon as possible—and get out of it! The lower your balance, the lower you’ll have to worry. It will ultimately do you a lot of good if don’t have any credit card debts at all.

There are two scenarios that you are most likely to encounter with a cancelled credit card. First, how will it affect your credit-to-limit ratio and, second, what happens to the interest rate of your unpaid balance.

In most cases, with revoked credit cards with unpaid balance, the credit card company will automatically increase your interest rate by up to 30 percent. If you pay only the monthly minimum, you’ll never get out of the debt on that card.