Advanta Bank Corp. has closed down their small business credit cards in an attempt to save itself from bankruptcy. Advanta serves nearly one million small businesses customers with their credit card services. All current credit cards will be frozen by June 1st, 2009.

Cardholders received e-mails from the bank notifying them that they would not be able to make new transactions as of Saturday. Those who carry a balance will be allowed to continue paying down that balance over time.

Advanta had been unable to collect on a large chunk of unpaid credit card debt which has caused them to close down their entire credit card branch. Advanta is the 11th largest credit card issuer in the United States.

The bank issued a public announcement on May 11 that it would shut down credit card accounts on June 10, but did not communicate that directly to cardholders until this week. Why Advanta has chosen an earlier closure date is unclear.

If you have any additional information on Advanta’s credit card closures feel free to drop a note below.