If Your Credit Card Closed Due to Delinquency, Can You Reopen It?


CLOSED CREDIT CARD

There are many reasons why having a credit card closed can be bad news. But, having the card closed because of delinquency is probably one of the worst things that can happen to an individual, as far as your credit score is concerned. Of course, once your card is closed due to delinquency, you’ll want to reopen it. However, is that possible? Can you reopen a card closed due to delinquency?

You may be able to reopen a closed credit card account, especially after paying your balance. However, that is for the credit card issuer to decide. If the issuer doesn’t reopen the account, you’ll have to request a new one.

Are you behind on your credit card payment? If you are, I advise that you make an effort to pay it. Most credit card issuers will close your account after missing seven payments. Of course, when that happens, you’ll want to reopen it to enjoy the card’s perks. However, is that possible? Can you reopen such a credit card? Read on to find out.

Can You Get Scammed Through E-transfer?

If Your Credit Card Closed Due to Delinquency, Can You Reopen It?

Before we delve further, let’s first understand what it means to be delinquent.

Delinquent refers to the state of being in arrears. When an individual is delinquent, they are past due on their financial obligations, like a loan, credit card, or bond payments. This means a borrower’s payments are not made to fulfill their debt in a timely way.

Delinquent entities can either be persons or businesses. Financial delinquency often results in default if the arrears aren’t repaid completely. The term may also be used to describe the failure to carry out a duty by a financial professional.

How Being Delinquent Works?

As stated earlier, the meaning of the word delinquent depends on the manner of usage. In finance, it commonly refers to a situation where a borrower is late or overdue on a payment, such as income taxes, a mortgage, an automobile loan, or a credit card account. An account that’s at least 30 days past due can be deemed to be delinquent.

The effects of beings delinquent vary based on the account, contract, and creditor. Too many delinquencies in a row can push a debtor to default. Factors include the type, duration, and cause of delinquency.

For example, if you don’t make your credit card payment, you may have to pay a late fee. Things are quite worse for homeowners who owe mortgages as mortgage lenders can initiate foreclosure proceedings if homeowners don’t make payments within some time.

Having understood what delinquency is, let’s narrow it down to credit card delinquency.

What Is Credit Card Delinquency?

Delinquency is failing to pay the minimum payment needed on your monthly statement by the due date. This is what is meant by “pay as agreed.” When you got your credit card, you received an agreement containing the card terms. Many of us don’t even bother to go through the terms. No issue!

However, next time you get one, ensure you read the terms. The terms contains not only your contractual terms but also a good list of benefits you may get with the card you have ignored. For instance, it may offer a warranty extension of a year on purchases. As everyone is aware, equipment breaks only after the warrant expires, so this feature can save you big time.

The issuer also included language agreeing to give you a certain line of credit, and you agreed to initiate regular required payments. If you decide not to make payment, you enter into a delinquent state. No matter what happens next, you will owe them the money, plus extra insults to your pocketbook in the form of high interest, fees, and penalties.

How Can I Check if My Credit Card Bill Is Delinquent?

Want to know if your credit card bill is delinquent? Log into your online account or contact the customer service number behind your credit card. You’ll be able to check your payment history and confirm whether or not you have any late bills.

Your lender will also reach out to you by mail, email, text, or mobile alert when you are late on a payment, so you may already have gotten notification of a potential credit card delinquency.

If you discover your credit card bill is delinquent, make a payment as fast as possible. If this is your first delinquency and you are less than 30 days late, you may even be able to reach out to your credit card issuer and get your fee waived.

Can Your Credit Card Be Closed Due to Delinquency?

Of course, it can. But, your credit card will not be closed until you have missed four payments. This means your account is 120 days past due. During that time, your lender will most certainly have reached out to you.

Sometimes things gets rough and lenders are aware. Perhaps you just forgot. Or maybe you are experiencing some financial hardship; if that is the case, your lender will surely want to help. That’s mostly because it doesn’t want to lose a customer.

Most lenders have hardship programs that will reduce your required monthly payment. But you generally have to request for one to be given. You should know that these programs aren’t long-term. They are usually in the three-to-six-month range. But it is certainly worthwhile to take a good look at these options before becoming delinquent to the point that the lender is forced to shut your account.

The earlier you do this, the more options you have to choose from. Once the card is shut, it becomes almost useless. You cannot use it to make purchases, but you are still responsible for the balance on the account.

Are e-transfers Traceable?

Can You Reopen the Card?

You may be able to reopen your closed account when you repay what you owe, but that is a choice for the card issuer to make. While this could happen, the more likely scenario is that you will have to reapply for a new account with the issuer.

Most credit card companies close delinquent credit card accounts after payments have been missed for six months. Ensure you pay your credit card bills early to prevent the closure of your account.

Recent Posts