It may be possible — under certain circumstances — to reopen a credit card that has been cancelled.
There are many caveats and things to consider, including the reason for cancellation and the bank's policy regarding reopening a cancelled account.
Considerations
General rules of thumb
- Some credit card issuers will reopen a closed credit card account, but your options depend on why it was cancelled and how long the account has been closed for.
- If the credit card account was closed by the issuer, contact customer service and find out whether it can be opened again.
- If the credit card account was closed due to inactivity, it may be possible to get it reopened subject to conditions such as setting up a recurring charge on the account or committing to a minimum monthly spend.
- If the card was cancelled because you defaulted, it's highly unlikely that you'll be able to open it again, even if you brought the account up to date.
Options compared
Reopening vs applying for a new card
It may not be possible to reopen a credit card account that the bank cancelled for missed payments or defaulting. Reopening is only possible with some issuers, while others categorically state that they do not reopen closed or cancelled credit card accounts for any reason.
If you want the same card because of its perks and benefits, you may be able to apply for the same card from the same card issuer later. However, whether the new card will be approved depends on who cancelled the card and the reason why.
If it was you who cancelled a card because having it no longer made sense, you might be able to reapply without an issue. This is especially so if you used your previous credit card responsibly by not missing payments or repeatedly maxing out the card limit.
Card companies generally discourage existing customers from cancelling active credit cards just so they can reapply for a newer, more attractive offer on the same card. As a result, most banks generally do not make new card perks and offers available to existing customers, making reapplicants ineligible for the offers that made them attractive in the first place.
Can't reopen your account?
Alternatives to reopening a cancelled credit card account
Here’s what you can do if your credit card has been cancelled by either you or the bank.
- Get in touch with your bank. If the bank cancelled your credit card, but you want to keep it, you can contact your credit card company about the cancellation. Find out why the card was cancelled. Some credit card companies will reinstate your account after running a credit check.
- Reapply for the same card from the same issuer. If the bank won’t reinstate your account and you were a responsible customer or the bank cancelled the card due to inactivity, it may be possible to open a new credit card account. This is not a given, and policies differ significantly among companies. If it is allowed, you may not be eligible for the sign up bonus.
- Apply for a different credit card from the same issuer. This is similar to reapplying for the same card. It’s possible that you will not be eligible sign up offers.
- Apply for a new card from a new issuer. Benefits include selecting from a broader range of credit cards and eligibility for the sign up bonus (assuming you don’t have a card with them already). Remember that late and missed payments are recorded on your credit report, which will be checked after applying.
- Decide to do without a credit card. This is an alternative, especially if your card was cancelled due to a default and you have mountains of debt you need to pay off.
- Use a buy now pay later service. It may be possible to get a buy now pay later account since some of these providers, i.e. Afterpay, do not perform a credit check.
FAQs
If my credit card account was closed by the bank, do I still have to pay?
Yes. If the bank closed your account, you still have to pay back whatever was outstanding.
What happens if I don't make repayments after defaulting?
If you have defaulted and the bank have closed your account, they may appoint a debt collector to pursue you for payment.
