Can a Suspended Credit Card Account Be Reinstated?

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A credit card company can choose to suspend an account for several reasons, including irresponsible spending practices and inability to make timely payments. Reinstating these credit accounts could be as easy as paying a penalty or it could be as difficult as repairing your credit score and developing better strategies for managing your finances.

Paying Back Balances

You can only cure a suspension of your credit card spending privileges due to repeated late payments or being over your spending limit by paying your bill on time and reducing your revolving balance. This may require paying more than your minimum payment each month to reduce the balance quickly so over-the-limit fees and interest charges do not consume your payment and cause negative amortization. This is a phenomenon where you don't you use your credit card and make a timely payment only to have the balance increase due to fees and interest. Once you get the balance below your spending limit, your credit card company should restore your spending privileges.

Bad Credit Suspension

A credit card company may temporarily suspend your account or reduce your available credit in response to a dramatic drop in your credit rating or a sharp increase in your debt-to-income ratio. This means your total debt could be infringing on your income's capacity to provide for timely payments on your other credit obligations. The credit card company reinstating your credit card is dependent on your ability to improve your score through responsible spending and paying down your total debt.

Repairing Credit Rating

The Fair Debt Collection Practices Act allows you to request a copy of the credit reports compiled by all three major credit reporting bureaus free of charge once each per calender year. Reviewing your credit report can inform you of accounts showing negative notations that may be the cause of your credit card suspension. If you notice any incorrect notations, federal law allows you to contact the credit bureau showing the notations in writing and request a formal review of the items in question. The credit bureau has 30 days to confirm the notations on your credit report and remove any items that appear in error.

Fixing Credit Takes Time

Repairing your credit score and getting credit card companies to reinstate your accounts won't happen overnight or even in a few months. Valid negative notations on your credit report can remain for up to seven years and cause you problems in securing new credit or keeping your current accounts. To mitigate the damage, the best thing you can do is reduce the balances of delinquent accounts to zero, then check your credit report to ensure these accounts show a balance of zero. You can take this information to your existing credit card companies as evidence of your responsible credit management even if your credit score doesn't yet show the results.

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