Can You Reopen a Closed Credit Card Account? [Know The Fact]

Can You Reopen a Closed Credit Card Account

There are often when cardholders or issuers close a credit card account. And the cardholder cannot use the credit card or make purchases once the account is closed. But can you reopen a closed credit card account? 

Whether cardholders can reopen the closed accounts depends on both cardholders and issuers. While reopening a closed account is possible, it usually relies on the reasons behind the closure and the issuer. Credit card account closing reasons include lack of activity, disagreeing with updated terms, etc. 

This guide will discuss how to reopen a credit account that has been closed. Not only that, but we will also talk about information relevant to the topic.

4 Reasons for Closure of Credit Card Accounts

There are several reasons why a credit card account may be terminated(1), as explained below.

1. An Inactive Account:

Credit card companies may close a dormant account. For example, if you have not used the credit card for months or years, the issuer may decide to close the account.

2. An Account Considered Delinquent:

Credit card companies will close an account they deem delinquent, especially if there is a high credit utilization rate. For example, if you do not pay your bills on time or you are in default, the credit card company may terminate your account and report it to the credit bureau, which will hurt your credit history.

3. A Drop In Credit Score:

Dropping credit scores is a factor that most credit card issuing services use to close accounts. Of course, it might not always be the case, but an issuer might notice a sharp drop leading to a bad credit score or a negative review on your credit report and opt to terminate your account.

4. Failure To Agree With New Terms:

Credit card companies often update their terms of service as per their policy and rules. Agreeing to these terms is essential to ensure that you follow the new terms. Cardholders who agree with the new terms can continue using the credit cards without trouble. However, failure to agree with these terms often results in account closure.

Procedure To Reopen A Closed Credit Card Account

If the credit card account was closed by the issuer or if you closed it, you might still be able to reopen it. Below are some of the procedures you can follow to try to reopen your terminated credit card account.(2)

  • Understand The Reason behind the Closure:

It is essential to start by reviewing why your account was closed. If you previously chose to terminate the account, think about why you closed the account and why you need to have it reopened. If the issuer closed the credit card account without your knowledge, you can call the company’s customer service department to learn about it. 

You can appeal the decision if there was an error on the issuer’s end. People whose accounts were closed for minor reasons, such as inactivity, are more likely to have their accounts reopened than those with significant reasons, such as high balances and late payments.

  • Get In Touch With Your Credit Card Company:

Once the cardholder has established the reason why the credit card account was closed, call the issuer’s customer care requesting to have it reopened. You will be required to explain why you’d like the account reopened. In addition, you will need to work on the reasons that resulted in the credit card account closure.

If the issuing company is willing to reinstate the account, you should find out if you need to clear any annual fee. And if you get a new account number and keep your bonuses or rewards from the old card account.

Sometimes, you will have to provide personal information and permit a critical inquiry to the credit bureau to confirm if you are still eligible to use the account.

  • Use The Card Responsibly:

If you successfully reopen a credit card account, it is essential to take key steps to ensure the issuer does not close it again. For example, you’ll need to keep the card active by making purchases regularly or setting up an automatic payment using the credit card. 

3 Key Points to Note about Reopening a Terminated Credit Card Account

Before you consider reopening your terminated credit card(3) account, understand that the reopened account may differ from your initial one. These are the essential points to note about reopening a closed card account.

1. Interest Rates and Fees Might Change:

When reopening a terminated credit card account, the previous terms and conditions of the account may have shifted or changed. For instance, your annual fee and interest rates may increase. Make sure you learn about the rates with your issuer before reopening your account.

2. You May Lose Rewards:

If your issuer agrees to reopen the credit card account, chances are that you may lose your previous rewards. However, some issuers may reinstate your previous rewards, so contact them to request they do so.

3. You May Receive a Lower Credit Limit: 

There is a chance that the credit card company might reopen a credit card account with a reduced limit. If you need a higher credit limit, you may request so from your issuer beforehand. Or, simply be patient and wait for some time while you prove you can be responsible with the card.


Does It Hurt Your Credit To Reopen A Closed Credit Card?

Reopening a closed credit card usually helps the credit score of the cardholder. However, it allows cardholders to reduce their credit utilization ratio. This is because reopening a credit card increases the cardholder’s credit limit. And the credit utilization ratio depends on the available balance by the credit limit. 

For example, you have $400 available on a credit limit of $1000, which causes your credit utilization ratio to be 40%. But with a credit limit of $2000, the ratio is 20%. And typically, the ratio should be less than 30% to maintain a decent credit score.

Should You Pay A Closed Credit Card?

Paying for a closed credit card with an outstanding balance is quite common. However, cardholders will still have to continue to make payments to pay off the outstanding balance on the card. Failure to do so will cause the balance to pile on due to the credit card’s interest rate. 

The process of paying off a closed credit card is similar to paying for the one you use. Not paying off the outstanding balance will affect your credit score negatively.

Do Closed Accounts Affect Your Credit Score?

Closing a credit card account can negatively affect the credit score. Factors such as payment history, available credit, credit utilization ratio, etc., can significantly affect the credit score. Minimizing the damage caused by the closed account is possible by ensuring the outstanding balance is paid off in full. 

When the credit card is closed, it affects the credit utilization ratio of the cardholder. Not only that but the credit history is also affected when a credit card account is closed. These reasons negatively impact the credit score, causing it to drop. 

What If You Can’t Reopen Your Credit Card Account?

Oftentimes, a few cases come forward when it is impossible or not worth it to reopen a terminated credit card account. Maybe you closed the account because the rewards and terms didn’t match your conditions anymore. 

Despite the reason behind the credit card termination, it is crucial to consider the benefits of reopening it against those of opening a new credit account. Looking for a new credit card gives you a chance to find one that has rewards and features that match your needs. 

Final Verdict:

Whether an issuer closes a credit card account or you decide to terminate it, the reason behind the termination of the account determines whether you can reopen it or not. Your best chances of reopening the credit card lie in reaching out to your issuer and addressing the issue behind the closure. 

You may be able to resolve minor problems quickly. However, major issues that lead to account termination may result in losing rewards and other benefits when you reopen your card. Therefore, opening a terminated credit card account is possible but it’s not always the best idea. 


  1. Cain, S. L. (2022, September 1). Guide to Reopening a Closed Credit Card. SoFi. Retrieved November 11, 2022, from
  2. Harzog, B. (2021, June 23). Can You Reopen a Closed Credit Card? | Credit Cards | U.S. News. US News Money. Retrieved November 11, 2022, from

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