I hope everybody’s doing well.
I just found out my bmo mastercard just got cancelled with no reason. Yes, my balance was almost 95% of the credit, however I just paid the card 3.5k bank and was planning on making $500 monthly fixed payments. (10.8k limit with 22% interest rate)
What now?
Does my credit turn really bad now?
I realize that I have to pay down the outstanding debt as part of the cardholder agreement. All bill charges (phone, gym membership) were already charged to my debit card. The reason why my debt was really high was I had to take out large amounts in emergency situations (paying for a car maintenance and for school).
I also have another CC that has 5,972 balance on a 7000 limit (again, was only meant for use in emergency situations).
What is my next step? Continue paying the 10.8k card first with the fixed payments? How long does this stay on the credit report? Realistically, how much of a drastic effect does this have on my personal finances?
Sorry that you guys have to read some bad news.
For context: still unemployed, 23M, mining engineering graduate, Ontario.
BMO just closed my credit card (Canada)
byu/Competitive_Bar_43 inCreditCards
Posted by Competitive_Bar_43
2 Comments
Well it wasn’t for no reason. You were running a high balance for a while vs your limit and they don’t like that and fear that you might not be able to repay it. So better to cut you off now.
>I just found out my bmo mastercard just got cancelled with no reason.
Make no mistake, there was a reason.
They’re just not sharing it with you (at least not yet).
Sounds like you need to stop getting yourself into “emergency” situations and work harder at paying down and eventually paying off your debt.