Can You Reopen a Closed Credit Card?

Introduction

You might have a credit card lying around that’s been closed for one reason or another. And now you have a few unexpected expenses keeping you up at night. That extra line of credit could come in handy, but is it possible to reopen it?

Yes, under the right circumstances, you can reopen a closed credit card account.

Of course, there are exceptions to every rule, and your chances for success depend on the policies of your card issuer and the reason the account was closed.

Understand Why the Credit Card Was Closed

If you didn’t close the account yourself, the card issuer might have done it. Several situations can cause this to happen.

• You didn’t use the card often enough, so the issuer closed your account due to inactivity.
• You missed payments for several months in a row, so your account was charged off.
• Your credit utilization ratio increased or you went over the limit, indicating possible financial difficulty.
• Your credit score went down so the issuer decided that you’ve become too risky.
• Your card was lost or stolen so the issuer canceled that account number.
• Your card was discontinued,  and the accounts were switched to another card from the same bank.
• You declined or neglected to acknowledge some important cardholder agreement updates to your account.

Regardless of the reason your account was closed, if you owe money on it, you still need to pay back the debt. That applies even if your account has been sent to collections and the original creditor no longer administers it.

Gather Your Information

Before you start the process of trying to reopen your closed credit card account, make sure you have all the necessary information on hand.

• Your credit card account number
• Your personally identifiable information, including:
  • Your name as it appears on the card
  • Your billing address for the card
  • Your date of birth
  • Your Social Security number

Contact the Credit Card Company

The card issuer’s customer service phone number will be listed on the back of the card. If you don’t have the old card, you can look up this information on the creditor’s website as well.

Call the number and explain to the customer service rep that you’d like to reopen your closed account. Describe your situation, how it may have changed, and why you want to use the account again.

If you closed the account yourself, let the representative know that you’ve changed your mind.

If they closed the account, address their concerns and be prepared to answer any questions they might ask you.

Ask For the Account To Be Reopened

Once you’ve established the situation, simply ask for the account to be reopened.

Depending on the credit card company and how long your account has been closed, you may have to apply for a new card instead. If this is the case, you’ll need to agree to a hard inquiry on your credit report. Some companies might require a hard inquiry even if you’re just reopening a previous credit account rather than a new one.

You should also be prepared for the customer service representative to respectfully decline your request. Regardless of your situation or circumstances, an issuer considers several factors when evaluating whether to offer or reinstate credit. And in many cases, closing an account is permanent.

If your account is reopened, be sure to review the new terms before agreeing to them. There may be updates that you haven’t seen, including changes in fees or interest rates.

It’s also possible that the credit card rewards structure or other perks have changed. And since you’re not a new cardmember, you may not qualify for any welcome bonuses or introductory APRs.

Can a Closed Account Hurt Your Credit?

A closed account will appear on your credit reports. And yes, closing a credit card can hurt your credit score in several ways, even if you initiated the closure.

• Late payments that led to a card being closed will each impact your credit score.
• A charged-off account sent to collections may further affect your credit.
• Increased credit utilization that results from reduced available credit can ding your score.
• Lowering the average age of your credit accounts by closing an older card will likely reduce your score.
• Removing revolving credit from your credit mix can sometimes lower your score.

Steps To Prevent Your Credit Card Account From Getting Closed

Of course, it’s always a good idea to be proactive instead of reactive. So the best way to deal with a closed credit card is to prevent it from happening in the first place.

You can lessen the chances of having another account closed by following a few best practices.

• Charge a recurring cost to the card — like a monthly subscription or utility bill — so it remains active.
• Set up automatic payments for at least the minimum due each month so you never face late fees or missed payments.
• Make additional payments when you can to establish a positive payment history and increase available credit.
• Maintain healthy credit utilization by using less than 30% of your credit line at any given time.
• Update your contact information so you don’t miss any important notifications about your account status.
• Inform the issuer that your account is still active even if you haven’t made any recent transactions.

Bottom Line

The process of attempting to reopen a closed credit card account can be pretty simple. First, make sure you understand why the account was originally closed. That will let you determine the options available to you. Then decide the best course of action to get the credit line you need.

During this process, consider investigating different credit card options to find a new one that may be a better fit for your situation. If you decide to open a new credit card account instead of the old one, Credit One Bank offers a range of cards to suit people with many types of credit history. It only takes a few minutes to see if you pre-qualify, which doesn’t harm your credit score.