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mabgh
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Subject: Can I reopen closed accounts?
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Wed Jun 24, 2009 9:17 am
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| My score is in the 700's. But I have been turned down for credit card a number of times because my credit records lacks age. My oldest account is about 1 year old. I had paid and closed all my accounts and about 5 years ago. I had defaulted on many payments. Now I would want to know whether it is possible to reopen a closed account. I don't want to wait till my present cards get old enough to allow me get new credit. I also want to know what should be the length of the credit history. |
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scott
Joined: 28 Jun 2006
scott's page
Posts: 462
10934 Magic Points
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Wed Jun 24, 2009 9:39 am
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Hi mabgh,
You can request the credit card company to reopen the closed accounts. Even if the company agrees to reopen the old accounts, they will definitely review your current credit records. The credit card companies would want to see whether you have been using your credit accounts responsibly, after closing the accounts you had with them.
If you are successful in reopening the old accounts, you should check whether all your past payment status appears on your credit report. It will be best, if you are able to convince the card company to not report any default payments related to the accounts. Having the account listed on your credit report as "Open" with a remaining balance of $0, will have a positive impact on your credit score.
_________________
SCOTT
Use your credit account responsibly and enjoy a debt free life. |
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Wed Jun 24, 2009 10:04 am
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Hi mabgh,
If you are not able to reopen the closed account, there is another way to increase the length of your credit history. If you have a friend or a close relative who has an old account with very good payment records, you can just ask him to add you as an authorized user in the account. You neither have to know the account number, nor ever use the accounts, but the good payment details will show on your credit report. Isn't that great?  |
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rachael
Joined: 11 May 2009
rachael's page
Posts: 244
6581 Magic Points
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Wed Jun 24, 2009 10:18 am
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Hi mabgh,
| Quote: |
| I also want to know what should be the length of the credit history. |
I'll just try to explain this with an example. For instance 'A' and 'B' are two individuals having the same credit score. But A has a credit history that goes back to about 10 years. On the other hand B's credit history is only 5 years old. When both A and B apply for credit, A's credit application is approved, while B's application is turned down.
So, the summary of the whole matter is that the longer your credit history, the greater will be the chances of qualifying for a new line of credit. There is no exact length of the credit history, that is accepted as standard by the creditors/credit bureaus.
_________________
Looking forward to a debt-free life. |
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credit-guru
Joined: 24 Jun 2009
creditguru's page
Posts: 2
75 Magic Points
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Wed Jun 24, 2009 9:59 pm
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Negotiate with the old creditor to reopen the account. You can create the terms. You can also do what is called piggybacking, by becoming an authorized user on someone else's account. That way, all of their credit history will appear on your credit report. Even if you close the account after 90days, the history will remain on there. This is your best bet. Whatever you do, just don't fall into the "seasoned trade lines" trap. New laws are cracking down on that method, and its putting people in a worst position than they began.
_________________
More free advice at www.good-credit-gone-bad.com or get
The Credit Secrets Bible
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los
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Subject: reopen accout
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Sun Nov 08, 2009 3:22 am
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| will creditor offer to reopen an acount after you paid off the debt.? |
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debranewell2008
Joined: 10 Oct 2009
debranewell2008's page
Posts: 605
89 Magic Points
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Sun Nov 08, 2009 3:59 am
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| Wow that is very helpful information. I have never heard of the piggybacking method before. So you never have access to the account they just add you as an authorized user of one account. So how does their whole credit history get reported if you are only on one account. I know when I bought my land I gave someone the cash and then they cosigned for me a loan for the same amount. I made the payments for 6 months and paid it off. Now on my credit report it is listed as a joint account. But the cosigners credit history didn't end up on my report. So can you tell me the difference in piggybacking and a cosigner? Why would one show their credit history and the other one doesn't? |
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FrICO
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Subject: "piggybacking"
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Wed Mar 10, 2010 5:59 am
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| Regarding this method of hopping on to someones account as an authorized user: My sister added me to her major credit card as an authorized user back in 2005, and she maintained a good credit history with that credit card. By the time I turned 18 I had already wonderful credit so applying for my first credit card I was instantly approved with a higher than "starting limit" than my other newly adult friends. On top of that I had the best interest rates. Okay, so a hasty teen goes on a couple shopping sprees and even maxes out her own sister's card, (as an authorized user). She loses her job can't pay it off, and I never had the money to pay it off to begin with. So this credit card ends up with the highest possible interest and here I am struggling to pay it off. IMPORTANT PART: recently when I have been calling to make payments (minimum hardly covering interest) the representative always says "as the authorized user you are not responsible for this debt". Also the credit card no longer shows on my Credit report (from all 3 bureaus). Pretty much... signing on as an authorized user onto credit cards will NOT do anything to your credit score. As an authorized user to a credit card only gives you permission to use the card. That is it. This is something that has developed recently (in the last year or so). My statement only applies to authorized users for credit cards. Cosigning is a different thing |
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