No. The reason a credit issuer closes an account is because they no longer consider you an acceptable risk.
Yes. Creditors report to the credit reporting agencies the terms under which an account is closed. It looks bad and is a slightly more derogatory status when an account is closed by the lender vs. closed by the customer.
Penalties and fees are established by the card issuer and information can be found in the terms of the agreement made when the account was opened.
Unfortunately, it will reduce your credit score. What happens is that the original credit card account shows as closed, and you have a newly issued credit card account with a new number through the same credit card issuer. It will take at least 2 years before the newer credit card account is seen as a seasoned trade line.
No - in most cases. As long as the credit card issuer can determine your credit worthiness, it doesn't matter where your bank account is. There is one exception. If you apply for a secured credit card, you must keep a 'security deposit' of a certain amount in the institution chosen by the credit card issuer (usually their own bank).
The card issuer (usually a bank) creates a revolving account and grants a line of credit to the card holder, from which the card holder can borrow money for payment to a merchant or as a cash advance. A credit card is different from a charge card, where it requires the balance to be repaid in full each month.
You should contact your card issuer to report the incident.
Yes; however, the issuer is not required to continue to extent you credit (can close the account).
Yes. Read the issuer Terms & Conditions - for example, I have read Amex Gold Business Charge Card; it says there, that they may close the account for any reason within 2 months notice... I have seen o the net people saying that their account have been closed for this reason and I can assume it is a valid reason as card issuers don't need the accounting paperwork for a non-working account.
The United States had the first credit card issuer, Diner's Club.
When you authenticate a payment on a card, the merchant's payment system will send a request to the card issuer to ensure that funds are available either in the account or in credit. The card issuer will supply an authentication code to the merchant approving the transaction. The card issuer will then arrange for the transfer of funds to the merchant's bank.
A debit card is a card that is connected to your bank account. If you pay with your debit card, your purchases will be charged to your bank account. A visa card is usually an unsecured credit card. When you pay with a credit card, the issuer pays for your purchases and the issuer will bill you for the purchases with additional interest for using their services. In other words, your purchases are on credit.