Can You Reopen a Closed Credit Card Account?

Yes, it is possible to request to reopen a closed credit card account, but it ultimately depends on the credit card issuer's policies.

Have you ever closed a credit card account only to regret it later on? Maybe you miss the rewards or perks that came with that card, or perhaps you want to improve your credit score by having a longer credit history. Whatever the reason, you might be wondering if it’s possible to reopen a closed credit card account.

The short answer is: it depends. In most cases, once a credit card account is closed, it cannot be reopened. However, some credit card issuers may allow you to reopen a closed account within a certain timeframe after the closure. Read on to understand options for reopening a closed credit card account. 

Why Your Credit Card May Be Closed

Either the cardholder or the credit card company 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 and conditions
• 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.

How to Reopen a Closed Credit Card Account

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 if you decide to reopen a closed credit card:

1. Find out the reason why the account was closed: If a credit card is cancelled without your request, you should find out the reason why from the issuing bank. This could be due to various reasons such as recent usage, changes in terms or late payments. It is recommended to contact the issuer for clarification as they may not inform you of the account closure.

2. Prepare relevant documentation: Before requesting to reopen your credit card account, make sure you have the account number and any necessary proof of payment or delinquency. The credit card issuer may also require additional personal information.

3. Contact the card issuer: Call the credit card company and ask about the possibility of reopening a closed credit card account.

• If the lender or issuing bank approves reopening the card, it will issue a new credit card or reinstate your existing card.
• If the lender or issuing bank isn't willing to reinstate the credit card, it may give you an option to open a different credit card.
• If the lender or issuing bank 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.

How Does a Closed Credit Card Account Impact Your Credit Score?

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 limit, potentially increasing your debt-to-income ratio. This, in turn, can negatively impact your credit score.
• 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. 

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 and how to read a credit report to better understand the impact of closing credit cards.

Reopening a Closed Account vs. Applying For a New Card

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 inquiry, 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. 

Do Returning Cardholders Qualify for Card Benefits?

The short answer is that it depends on the credit card issuer and their specific policies. Some credit card companies view returning cardholders as new customers, while others consider them to be existing customers. This distinction can make a significant difference in whether you qualify for card benefits or not. It's important to read the terms and conditions of your credit card to understand the issuer's policies regarding returning cardholders.

In some cases, if you cancel a credit card and then reapply for the same card, you may be considered a new customer and therefore qualify for the introductory benefits and perks that are often offered to new cardholders. These benefits may include sign-up bonuses, introductory 0% APR periods, rewards points or cashback offers. This can be an attractive option for those who want to take advantage of these lucrative benefits again.

However, not all credit card issuers treat returning cardholders as new customers. Some companies have policies in place that restrict the availability of certain benefits to new cardholders only. These restrictions may include eligibility for sign-up bonuses, introductory offers or promotional interest rates. If you cancel and then reapply for the same card, you may not be eligible for these benefits again.

It's best to reach out to the credit card issuer directly to get the most accurate and up-to-date information regarding benefits and eligibility for returning cardholders.

Using Credit Cards to Create Financial Freedom

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. 

Frequently Asked Questions