Can You Reopen a Closed Credit Card? All You Need to Know

If your credit card was closed due to lack of use (or misuse), or you closed the account yourself and now regret the decision, you may be able to reopen the card. Your chances of success typically depend on the reason the account was closed and the card issuer’s policies. 

Read on to learn steps you may take to reopen a closed credit card account, plus when you might be better off opening a new card instead.

Why Your Credit Card Account May Be Closed

An account closure may be initiated by the cardholder or by the credit card issuer. A cardholder might close their credit account for a number of reasons. These include:

• A high annual fee

• A negative customer experience

• A desire to limit spending temptation

• Too many credit cards

• A better credit card offer

If your account was closed and you were not the one who closed it, the credit card issuer may have closed the account. There are several reasons why they might do this, including:

• You didn’t use it: Typically, the terms of a credit card indicate that you must use the card at least once during a certain time period. If you don’t, they may close your account.

• You didn’t accept the updated terms: When an issuer makes major changes to a card's terms or conditions, it usually sends out a notice and requires cardholders to accept the new terms. If you fail to do so, they may close your account.

• You didn’t follow the rules: If you repeatedly flout the terms of your credit card, such as paying your card late or failing to pay the minimum on your credit card statement, the issuer could decide to close your account.

• You’re in a debt management plan: If you are working with a credit counseling agency to manage your debt, the card issuer is likely to close your card.

• They made a mistake: Sometimes credit card issuers may accidentally close the wrong account. This may happen if a customer reports a stolen card and the issuer closes a different account by mistake.

Recommended: Should You Cancel Unused Credit Cards or Keep Them?

Guide to Reopening a Closed Credit Card Account

If you closed the account yourself, you may be able to contact your issuer to get it reinstated. If your card issuer initiated the closure, whether or not you may reopen it depends on the reason why they closed the account and their policies about reopening closed accounts. 

Whoever did the closing of the account, here are steps you may take to try to get it reopened.

1. Find Out Why the Account Was Closed

If you were the one to close the account, you may want to think about why you originally closed it and why you want to reopen it now. If the card issuer was the one to cancel your account, it’s a good idea to call them to find out exactly why they canceled it. 

2. Talk to Customer Service

Once you know why your account was closed, you may contact the issuer's customer service number and simply ask if they’ll reopen it. You may need to explain why you want to reopen the account and, if the issuer closed the card, address any issues that led them to cancel your card. 

3. Keep the Card in Good Standing 

If you are able to reopen your account, you’ll want to make sure that the card issuer doesn’t close your card again (or do so for the first time) by keeping your card active and in good standing. This means regularly using the card and paying your credit card balance on time and, ideally, in full each month.

Reopening a Closed Credit Card vs Getting a New Card

In some cases, it may not be worth the effort to open an old account. If you have good credit and the issuer closed your card due to something innocuous (such as inactivity or failure to opt into new terms), it might be a good time to explore getting a new credit card and comparing credit card options. You could potentially be able to get a card with better rates, terms, and rewards, and maybe even a welcome bonus. 

Recommended: How to Find the Right Credit Card

Alternatives if You Can’t Reopen Your Account

If the issuer closed your account due to failure to pay or being in a debt management program and won’t reopen it, you may be better off waiting until your credit history improves before applying for a new card.

Or you might want to look into getting a secured credit card. This requires putting down a security deposit (which becomes your credit limit) and may be much easier to qualify for. After around 12-18 months of on-time payments, you may be able to transition to a traditional credit card with the same or a different issuer.

How Closing a Credit Card Can Hurt Your Credit Score

A closed credit card account may negatively affect your scores in the following ways:

• Increasing your credit utilization ratio: Your credit utilization is the sum of all your balances divided by the sum of your cards' credit limits and is an important factor in calculating your credit scores. Closing an account may increase this ratio by lowering the total amount of credit you have available.

• Lowering the average age of accounts: Credit scoring models reward you for having long-standing credit accounts. Closing an older account could lower the average age of your accounts.

• Reducing your credit mix: Having a mix of different types of credit in your credit history may positively impact your credit. Depending on the type of card that was closed, it could potentially reduce your credit mix.

• Leading to a derogatory mark: If your account was closed because your debt has been charged off (meaning the creditor has written the account off as a loss), the issuer is likely to include this information when reporting to the credit bureaus. This may put a derogatory mark on your account, which could hurt your credit.

What to Do After You Reopen Your Credit Card Account

After you reopen your credit card account, you’ll want to make sure it doesn’t get closed again. You may do this by having a firm understanding of how credit cards function and keeping your account active. One way to make sure the card remains active is to use it to pay a recurring bill or subscription and set up autopay.

As with any credit card account, you’ll want to use the card responsibly, which means never charging more than you could potentially afford to pay back in full at the end of the month.

The Takeaway 

A closed credit card account doesn’t always have to stay closed. Depending on the reason for the closure and the card issuer’s policies, reopening the account may be possible after contacting the issuer and addressing any outstanding issues. If reopening isn’t an option, applying for a new or secured credit card offers another path to rebuilding credit. Regardless of the approach, keeping accounts active, making on-time payments, and using credit responsibly helps support a stronger credit profile over time.

If you decide not to reopen a closed account and are in the market for a new credit card, Lantern by SoFi can help. With our online credit card marketplace, you can quickly compare personalized offers from multiple credit card issuers all in one place, and without making any commitment.