For those who have an Advanta credit card, you might want to switch to a new card after
June 10th, 2009 . Apparently they’re shutting their credit card business. According to their press release:
Since the securitizations will not be permitted to fund new receivables after June 10, the Company will shut down all credit card accounts to future use at that time. Neither Advanta Bank Corp. nor any other Advanta-related entity will fund activity on its balance sheet from the accounts. Therefore, the Company will not take any off-balance sheet receivables onto its balance sheet. Shutting down the accounts will not accelerate payments required from cardholders on existing balances.
Here’s a few other articles/threads that may interest you:
- Advanta faces having to reinvent itself – The Philadelphia Inquirer
- Advanta Shuts Down Small Business Credit Card Accounts – Consumerist
- Advanta to close all cards after Jun 10 – FatWallet
To my understanding, you won’t be able to make any new charges after
6/10 , but you do NOT have to pay off your existing balance. Whatever terms/rates still apply for those who do carry a balance on the card.
If you’re looking for a replacement card for your business, I suggest the American Express SimplyCash Card (which I’ve blogged about here). Unfortunately, the cash back have since decreased a bit.
If you’re looking for a Visa/MasterCard, you may want to check out the Chase Freedom For Business. You get 3% back on the top 5 categories you purchase in and you even get a $50 sign up bonus. However, I believe there’s an annual cap on how many points you can accrue. Hope this helps!
: Looks like they bumped up the close date to 5/30. Here’s the copy of the email I just received:
Your Advanta Business Card account is funded by an independent trust which owns the balances you owe on your account and provides funding for new transactions. We expect the trust to stop funding activity on our accounts. The trust also restricts our flexibility to fund activity on your account. Unfortunately, as a result, effective May 30th all Advanta Business Credit Card accounts, including your account, will be closed.
This means that you will not be able to use your card or account for new transactions, including purchases, checks and balance transfers beginning on May 30th. We understand that you may have written checks on your account before May 30th and we will make every effort to honor those checks that are presented to us for payment by June 3rd. If you use your Advanta card to make automatic recurring bill payments, you will need to make alternative arrangements for those payments promptly.
It is important to understand that you are not required to pay your entire balance at this time. You may continue to pay down your account balance over time, as allowed under your Advanta Business Card Agreement.
You will not lose the rewards that you have earned. If you participate in a Cash Back program, you will receive a check for the amount of any accrued rewards more than $1.00 as long as you make the required minimum payments and your account remains in good standing. If you participate in a Business Rewards program, you will have at least 60 days to redeem your points as long as you make the required minimum payments and your account remains in good standing.
We deeply regret the impact this action will have on your business and very much wish it was not necessary.
We are committed to assist you through this process. Additional information will be available at www.advanta.com/notice. If you have any other questions or concerns, or if we can assist you in any other way, please feel free to contact our Customer Service Center. You can email us your questions 24 hours a day at www.advanta.com/secure or call us toll free at (800) 705-7255, Monday – Friday 8:00 am to 8:00 pm and Saturday 8:00 am to 5:00 pm Eastern Time.
John F. Moore
President, Advanta Bank Corp.
5 Replies to “Advanta Shutting Down Credit Card”
Based on your suggestion, I contacted Chase about applying for a business card. They are not accepting any new applications for business credit cards at this time.
I see… that sucks.
Have you tried applying online?
I just got a solicitation from Chase and sent it in. No place to apply on line.
What about the link I provided above: Chase Credit Card Application?