How to Fix Closed Credit Card Accounts

Attempting to "fix" or reopen a closed credit card account is a relatively simple process. Credit card accounts are canceled for a number of reasons. Often the reason is that the account has been inactive for a long period of time. If lenders cannot make a profit on certain accounts, they usually reserve the right to close the account at will to take it off their books.

Things You'll Need

• Old credit card account number
• Any passwords
• PIN numbers

Instructions

1. Confirm the account is actually closed. If you use the card at a retailer or online and the transaction doesn't process, it could simply mean there is a hold on the account. With increased identity theft, most credit card companies have instituted vigilant fraud protection departments that freeze accounts with irregular activity (for example, purchases outside of your normal purchasing area). Call your card's customer service department to confirm the card has been closed.

2. Pull your own credit report. By reopening a closed account, you are applying for a new card. This means that a credit decision will be rendered based on your creditworthiness. For a free copy of your credit report, see the Resources section. Make sure you clear up any delinquencies, charge-offs, judgements, and other negative marks on your report before calling your card company. They will pull a credit report (which generates an inquiry, a potentially negative mark on your credit) and see the information as well, and you'll want to be sure you'll requalify for your old account.

3. Contact your card company. Ask to be transfered to account services. Customer service representatives are trained to field questions concerning account balances, payments, credit line increases, and demographic changes. You'll need an account services representative that can handle credit requests. Be prepared to be on the phone for a considerable amount of time---by "fixing" your closed account you're essentially applying for a new card.

4. Be prepared to answer all questions about your former account. Make sure to have the old account number handy, and be ready to supply any passwords connected to the old account. Be patient with the representative---often when accounts are closed, the information attached to the account is purged for security reasons. Wait on the line while the representative pulls a credit report. You may also need to ask for a certain credit line dollar amount.

5. Appeal the decision if you are denied for a new account. Ask for the mailing address of the company and send a business letter explaining the reasons for your appeal. Include a copy of your credit report---with the payment history of the closed account highlighted, if positive---and ask for a reason for the denial. Also, attempt to find the original copy of the loan agreement for the first account, and look for any regulations the company may have violated when closing your account.

References

• Reopening and Reinstating Closed Credit Card Accounts

Resources

• Annual Credit Report: Get a Free Report