Can You Reopen a Closed Credit Card Account?

If you closed a credit card account and saw a dip in your credit score, you might wonder whether reopening the account will boost your credit score. The answer depends on the credit card issuer and why you closed the account. Read on to understand options for reopening a closed credit card account. 

Can a closed credit card be reopened? Yes, in some cases. Whether you can reopen closed credit cards depends on the card issuer. If the credit card account was in good standing when you closed it, it may be happy to reopen it. Some issuers may not allow you to reinstate an old credit card account and instead suggest you open a new one. 

Either the cardholder or the credit card issuer might choose to close a credit card account for numerous reasons, including:

• You haven’t used the card in months or years
• You don’t want to pay the annual fee
• You don’t want to accept the card’s terms 
• You failed to comply with the cardmember agreement
• Your account was delinquent or in default because of missed payments
• You filed bankruptcy
• You’re in a debt management plan

Sometimes, the card issuer may close the account and inform you. In other cases, you can request that the account be closed for any personal reason, from those listed above or because you have too many credit cards.

You may want to reopen a closed credit card account instead of opening a new one for many reasons. For example, you might reopen a credit card that increases bonus offers. Likewise, you might simply realize you used that card and want to have it again. 

Or you might want to reopen a closed credit account if your credit score drops too much after account closure. This can be for one of two reasons. You could see a drop in your credit score because the card was your oldest line of credit or because of a reduced line of credit. 

Regardless of your reasons, the step-by-step process to reopen a closed credit card account starts with asking. Whether the lender is willing to reopen the account depends on the reasons for closure and how long it has been since the account was closed. Here are the steps to take:

1. Call the lender and ask about the possibility of reopening a closed credit card account.
2. If the lender approves reopening the card, it will issue a new credit card or reinstate your existing card. 
3. If the lender isn’t willing to reinstate the credit card, it may give you an option to open a different credit card.
4. If the lender declines reopening, you can reapply for a new credit card. In that case, the card issuer will usually pull your credit report and credit history when opening the card. You’ll get a new card number if approved, and your credit card account age will start at zero. 

A closed account will stay on your credit report for 10 years before falling off. That’s good news if you’ve built up a positive credit history on the closed credit card account, as it will continue contributing to your positive credit history. Learn more about what affects your credit score here. 

A credit card can impact your credit score in various ways. The three major credit bureaus, Experian, Equifax and TransUnion, receive reports on your credit utilization ratio and oldest credit line. Closing a credit card account can impact your credit score through both the available credit and the age of the account.

When you close a credit account, you’ll reduce your available credit, potentially increasing your debt-to-income ratio. This, in turn, can negatively impact your credit score. Likewise, if the closed account was your oldest line of credit, that can decrease the oldest line of credit on your credit report, also reducing your credit score. 

After a credit card account is closed, its on-time payment history may still be recorded as positive payment history in your credit reports for 10 years. Learn more about how to read a credit report and understand the impact of closing credit cards. 

You always have the option to apply for a new credit card. You can access any available signup bonuses if you apply for a new card. However, the lender will usually perform a hard credit check, which may cause a temporary dip in your credit score. 

Should you reopen a closed account or apply for a new card? When you reopen a closed account, you won’t be able to access any new account bonuses. But it does offer access to the same credit line and benefits you had previously. Which option is better will depend on your financial situation and goals. 

A credit card is a useful financial tool to help you build new financial opportunities like better loans or mortgage terms. Can closed credit cards be reopened? Yes, sometimes. Whether you reopen a closed credit card or get a new one, using a credit card responsibly can help you leverage rewards and fit offers within your budget and financial goals. To get the most out of any credit card, set up automatic payments for at least the minimum due to avoid late payments. You can also consider different types of credit cards to maximize rewards. If you’re ready to research new cards, find the best credit cards here.