Some years ago, I had closed my credit card account but like they said “change is constant” so currently I needed to reopen it so I began to wonder if it’s possible.
If you are in my shoes, you may have decided to close a credit card account in the past for various good reasons.
Perhaps the annual fee became too costly for you, the rewards program lost value,or you consolidated debt onto another card with better perks, or maybe you closed some extra retail cards you no longer frequented.
But now, you are having second thoughts and want access again.
You are in the right place. Come with me on this journey, let’s find out if it’s possible.
In many cases, reopening a previously closed credit card is possible, provided you follow certain steps that we’ll bring to you in this article.
Read on to learn more about how and why you might reactivate a closed credit card.
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Table of Contents
Reasons to Reopen a Closed Credit Card.
It is quite unbelievable that a person who had signed up to have his account closed would later decide to have it reopened but like they say “change is constant “
Below are some motivations for wanting to resurrect an old account:
- To Regain Lost Credit History
Closing a card, especially an older paid-off one, means you’ll have to relinquish that credit history which dings your score.
So Reopening the same account makes it easier for you to quickly reestablish the original open date and credit record once again.
- To Re-access Better Terms and Conditions
Over time you may realize that your newer card offers inferior rewards, rates, or features compared to the old one you shut down. If so, you may decide past features were more favorable for you and decide to reopen .
- Out of Convenience or Familiarity
Getting a new credit card means you’ll have to update logins, figuring out its quirks, tracking new numbers, etc.
So Reviving your old familiar card saves you from that stress
- When Faced with Approval Challenges
Just maybe your credit score dropped after closing an account or you face rejection trying to apply for a good rewards card, reopening an old one with a known approval offers a simple alternative for you.
As you can see, several perfectly valid and practical reasons justify why a person would want to revisit closed accounts.
The convenience often makes it worthwhile.
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How to Reopen a Closed Credit Card
When hoping to reopen a credit card account closed in the past, what steps do you need to take? Consider these best practices:
Step 1: You have to Evaluate Your Account Standing
Confirm your previous account still remains in good standing without any negative issues or history of delinquency reported which could hinder your plans of reopening the account.
Step 2: You need to Review Card Company Policies
Some issuers make it easier for you to revive closed accounts than others if they were in positive standing when shut down.
So you need to Check your card’s website for any stated policies regarding reopening capabilities and associated requirements before progressing your account reopening.
Step 3: You need to Contact Cardholder Service
You need to have direct contact with an account representative. You can Call up customer service or engage the bank’s online chat features to discuss reactivating your old card.
Inquire about their restrictions, qualifications, paperwork, etc. based on their resurrection procedures.
Step 4: You have to Complete the New Application
Be aware that reopening a voluntarily closed credit card resembles opening a new account altogether.
So you should Expect to complete fresh applications and submit updated personal details to reignite the account.
Step 5: You really have to Accept New Terms
You’ll agree that so much time has passed since the original opening, so expect the reopened accounts to bear new terms, conditions, rates, and fees reflecting current offerings as opposed to your old deal.
But some original credit history should normally carry forward.
It is believed that With the right timing and reason, companies would make reasonable efforts to accommodate customers seeking to restore closed accounts with clear records.
Just make sure to involve direct contact and complete procedural requirements.
Factors Impacting Ability to Reopen Card
If you’re hoping to reactivate a previously terminated credit card account, you need to consider what aspects would determine your success..
Provided below are key factors that shape the feasibility:
- How Long the Card Stayed Open Originally
The longer you had previously maintained a positive history with the card before closing, the higher the probability they’ll grant you another shot. Brief flings get treated more warily than longer loyal relationships, you know that! .
- Payment History and Credit Status
To reopen an account, you must meet at least minimum approval standards regarding credit record and scores.
It’s unfortunate, but Past late payments or current scores below 650 hurt reopening chances.
- Time Elapsed Since Closing
The shorter the gap between original closure and reapplication, the smoother the renewal process flows for you because records stay fresh. But if your decision of reopening comes after 4-5 years of inactivity, the increased scrutiny slows things down.
- Relationship and History with Issuer
Banks tend to favorably lean towards customers with longest tenure and multiple active products like checking accounts or past loan experience in addition to the credit card seeking reactivation.
So while one closed card denies attempts to reopen, another previously closed account with more favorable factors readily reactivates thanks to your trusted relationship resume with that specific financial institution.
Tips for Successfully Reopening Closed Card Accounts
For one who hasn’t decided yet, if you consider reopening your account, or one who plans to close and later on reopen his accounts, you need the following tips to pave the way for reopened accounts:
- Maintain Good Standing Before and After Closing
For ease, you need Avoid black marks by making on-time payments before voluntarily closing any card you think you may eventually reopen. And keep your credit activity clean in the interim period to pass the requalification checks.
- Keep Other Accounts Open and Active
When you Continuously use other credits, will prevent going dormant which insurers red flag as risky since they cannot assess active behavior. routine credit activity elsewhere keeps scores higher for you.
- Set Calendar Reminders to Attempt Reopening
Different Institution protocols may require you to leave accounts closed for 12-18 months before trying to reopen. So you need to set future reminders via digital calendar to follow back up when the timing aligns with requirements.
- Lead with Inquiry via Secured Channel
You need to Initiate the conversation about the eligibility to reopen the account through online banking message portals or phone so they document the secure path of your sensitive inquiry before submitting the actual application.
When you execute your application strategically, your previously terminated credit card accounts stand an excellent chance of renewal thanks to your reliable history and profile.
Effect on Credit Scores of Reopening Closed Cards
A reopened credit card essentially functions as a reborn account when it comes to credit scores and reports.
Below is how your scores respond after reopening a voluntarily closed credit card the right way:
- Quick Credit Line Reboost
Once you reopen your credit card account, your total open credit limit gets reinstated which helps lower overall utilization ratios. This immediately benefits your scores as long as you refrain from maxing cards back out.
- Length of History Partly Restored
While the clock keeps ticking forward from the newly reopened date, some portion of your aged history that got forfeited by originally closing now gets baked back into the longevity mix boosting average age of your history .
- Mix of Accounts Improved
Let’s assume that your revived account adds diversity alongside mortgages, other cards, loans, etc, reintroducing a previously shed credit card also brings back a healthier mix which scores favor.
When the planets align favorably, resurrecting a credit card you willingly closed, it ultimately lifts both short and long term scoring scenarios thanks to regained aged history, limit boosts. and account variety .
It would be worth the reopening effort!
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Conclusion
Closed credit card accounts can often reopen thanks to grace policies of the issuer and regs allowing voluntary account renewal in many cases.
However the Success depends largely on your history and relationship with the institution, as well as your credit status meeting approval thresholds.
While your freshly reopened accounts reset some clocks, they often piggyback on previously established dates and details.
Now, Strategically reviving a closed credit card restores lost available credit, longevity history, account diversity and ultimately your scores.
Having the right motivation and situation, the effort pays dividends that make reopening cards worth consideration.
You should try it!
