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You may not have given much thought to the credit card in the back of your wallet or in a drawer – the one that was paid off and that you haven’t used in a while. But after a certain period of time, which varies depending on the lender or creditor’s policies, they may consider your account “inactive” and it may be closed. Remember that when it comes to credit, it’s important to show that you can handle financial commitments responsibly. A part of that is being able to use credit cards responsibly by paying them off regularly, on time, every time. If you weren’t using the credit card, will the cancellation impact you at all? That depends on several factors, but here are some of the things you should know about account inactivity. How long can my account be inactive before it's closed? It depends on the company. Accounts may be deemed inactive if there aren’t any new purchases on the card for a certain period of time. You may want to consider speaking with the credit card company with whom you have an account to learn more about its policies on account inactivity. Will I be notified before my account is closed? Not necessarily. Credit card companies aren’t required to give you any notice that they’re closing your account. The Credit Card Act of 2009 requires lenders and creditors to provide customers with 45 days’ notice of major changes to their account, but that doesn’t include card cancellation notification because of inactivity. How does this affect my credit history? A credit card canceled for inactivity may impact you in the following ways:
In addition, if a credit card is closed due to inactivity, you may lose card benefits or accumulated rewards. If you have a credit card, be sure to understand the company’s policy about rewards and benefits if an account is closed due to inactivity. Please note that a closed account isn’t immediately removed from your credit reports. Even if you paid the account as agreed, it can remain on your reports for up to 10 years. What can I do? If your card has been canceled but you want to keep it, you can contact the credit card company about the cancellation. Some lenders will reinstate the account, although you may be subject to a credit check. If you decide not to ask that the card be reinstated, it’s a good idea to check your credit report to make sure the card account shows as closed. You’re entitled to a free copy of your credit reports every 12 months from each of the three nationwide credit bureaus by visiting www.annualcreditreport.com. You can also create a myEquifax account to get six free Equifax credit reports each year. In addition, you can click “Get my free credit score” on your myEquifax dashboard to enroll in Equifax Core Credit™ for a free monthly Equifax credit report and a free monthly VantageScore® 3.0 credit score, based on Equifax data. A VantageScore is one of many types of credit scores. How do I avoid having credit cards canceled for inactivity? To keep a credit card active, you may want to consider using it – responsibly – every few months, if only for small purchases. You might also consider putting a small recurring charge on the card to keep it active, or making it your primary card for a frequent purchase -- say, for gasoline purchases. At Experian, one of our priorities is consumer credit and finance education. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more information, see our Editorial Policy. In this article:
You may be able to reopen a closed credit card account, but it will depend on why your account was closed and your issuer's policies. There's no guarantee the issuer will reopen your account, especially if they closed it due to missed payments or other problems. Here are steps you can take to try to reopen a closed credit card or decide if you're better off applying for a new card instead. How to Open a Closed Credit Card AccountIf you initiated the account closure, you may be able to contact your issuer to get it reinstated. And if your card issuer closed your account, you may still have the option to reopen it. Here are some steps you can take to potentially reopen a closed credit card account. 1. Know Why Your Account Was ClosedReview the reason for your account closure. If you chose to close the account, consider why you originally closed it and why you'd like to reopen it. If your credit card issuer canceled your account and you don't know why, call them to find out. An issuer may close your credit card account for several reasons:
If there was a mistake on their end, you may be able to appeal their decision. If the card issuer closed your card because of a minor reason, like inactivity, you may have a better chance of reopening it than if you had several late payments and carried high balances. 2. Call Your Card IssuerOnce you know the reason for account closure, call customer service and ask them to reopen the account. You'll likely need to provide the reasons you'd like to reopen the account and address any issues that led the issuer to close the account, if that was the case. If your card issuer agrees to reopen the account, find out whether you will keep your same account number, pay another annual fee or even retain rewards from your closed account. In some cases, you may need to authorize a hard credit inquiry, or credit pull, to confirm that you're still qualified for the account according to the card issuer's requirements. A hard credit inquiry could cause your credit score to take a temporary dip, though the effect will lessen over time. 3. Responsibly Use the CardIf you were successful in reopening your credit card, take some steps to make sure your issuer doesn't close the card again or that you don't opt to close it. Keep your card active by using it to pay for a recurring subscription, such as a streaming service. Also, set up autopay so you know your bill will be paid on time and ideally in full each month. What to Know About Reopening a Closed Credit CardBefore you start the process of reopening a closed credit card, consider that a reinstated account may look quite different from your original account. Fees and Interest Rates May ChangeWhen you reopen a closed account, the original terms of your account may have changed. For example, your interest rate and annual fee may now be higher. It's best to find out about any rate changes before you reopen the account to determine whether the cost is worth it. Your Credit Limit May ChangeThere's also a chance that your card will be reopened with a lower credit limit. If you'd like a higher limit, ask for it ahead of time or wait a few months until you demonstrate to your issuer that you can responsibly manage your card. You May Lose Out on RewardsIf you're allowed to reopen your account, it's possible that you won't be able to recoup any of the unused rewards you previously earned with the card. While you can ask if the rewards can be reinstated, there's no guarantee your issuer will do it, as it's often in your cardmember agreement that rewards will be forfeited at account closure. Other perks such as an intro bonus may not apply since you were already a cardholder. Alternatives if You Can't Reopen Your AccountThere are times when it's not worthwhile to reopen a closed account or your issuer doesn't allow it. You may have closed your credit card because the terms or rewards weren't a good match for your lifestyle anymore. Or your card issuer may have closed your account due to past-due payments or inactivity. Whatever the reason, make sure you weigh the benefits of trying to reopen a closed account against simply applying for a new card. Applying for a new credit card allows you to look for a card with rewards and other features that work for you. Depending on your spending habits, you might look for a card that has no annual fee, everyday rewards or intro 0% APR financing. To make your search easier, you can use Experian CreditMatch™ to find credit offers that match your credit profile. The platform also shows you the cards with the highest approval odds based on your current credit information. Reopening a Closed Card vs. Getting a New CardThere may be a good reason to consider reopening a card, especially if you've got a favorable track record attached to the account and you know you'll make use of the card's perks. If the card issuer refuses to reopen your account, you can search for a new credit card. Keep in mind that if the account was closed due to late payments or other problems that affected your credit score, it may be more challenging to find a new card. In that case, you might consider a secured card, which requires a deposit but tends to be easier to qualify for. The Bottom LineWhether you choose to close a credit card or your issuer cancels your account, the decision may not be set in stone. In some cases, you may be able to reopen it. If you want the best chance of reopening a closed credit account, consider signing up with a credit monitoring service, which will help you understand where your credit is at and will alert you of changes like account closures. With these updates, you can contact your issuer right away to try and get your card reinstated. Does reactivating a credit card hurt your credit?Whether you activate your card or not has no direct affect on your credit.
What does reinstating a credit card mean?Reinstatement occurs when a borrower has cured a delinquency by making past-due payments plus any applicable penalty fees or late charges. If the account is a bank credit card, the customer's account number is removed from a list of accounts-the warrant-that limits the consumer's ability to use the card.
What happens when you reopen a credit card?Fees and Interest Rates May Change. When you reopen a closed account, the original terms of your account may have changed. For example, your interest rate and annual fee may now be higher. It's best to find out about any rate changes before you reopen the account to determine whether the cost is worth it.
Can you reactivate a credit card after Cancelling?It may be possible to reopen a closed credit card account, depending on the credit card issuer, as well as why and how long ago your account was closed. But there's no guarantee that the credit card issuer will reopen your account. For example, Discover says it won't reopen closed accounts at all.
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Does reinstating a credit card hurt your credit?
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