I got another letter last week from Barclay’s bank telling me they were closing down one of my credit card.  It’s the only credit card I have with that particular bank.  This is the second credit card company that has decided to the shut down my account.   Three weeks ago, it was Washington Mutual.  The credit card closing are widespread, or so it seems.  I only agree somewhat with the CNN article.  I think the credit card companies are only minimally motivated by the desire to reduce cost.  The bigger issue is risk.   These unused credit cards represent looming and potentially risky liabilities.   Credit card companies spend much money marketing balance transfer offers, and insurance protection.   The cost of maintaining a credit card that gets no mail pales in comparison.

In the end, I’m not all that upset some of my credit cards are getting canceled.  I have too many, and many of them serve no real purpose.  I don’t need the credit, and have been thinking about canceling some of the cards on my own.    The critical factor of course is not allow my oldest credit card to fall by the wayside.    Luckily my oldest credit card has a balance from a balance transfer offer that I will continue to payoff for the next few years.   There are other credit cards that you shouldn’t close or allowed to be closed.