Call me old fashioned, but isn't that fraud? Also, just because you cancel a CC, it does not mean you can't be charged for something you agreed to pay before you canceled. I got a bill five months after I cancelled my Amex because I had pre-authorized a yearly membership. I recall Amex telling me that they will honor charges for 6 months or a year. By the way, once you cancel, if you do carry a balance, the issuing bank probably will charge you the max interest rate. I think the credit card companies think of it as fraud too.