02-10-2010 11:23 AM - edited 02-10-2010 11:29 AM
I have been lurking on the forums for months thanks to a few threads that I've bookmarked I've been able to remove 3 derogatory items from my credit report thusfar. I wish I would have stumbled upon this site sooner! That being said, I am a newbie and if this has already been posted, I apologize - I searched but found nothing.
I have been working on paying off a closed Bank of America card that I opened in 2005. In late 2008 I started on a monthly payment plan to have $75 pulled from my checking account to start working the balance down; with my federal tax return I recently paid the card off. I didn't get anything in writting when I started the payment plan (DOH!) but I was told at that time when I paid the balance down or paid it off I would be able to reopen the account. I called a credit analyst at 800-718-6072 (thanks to the great thread on backdoor numbers) and she told me that because of 2009 credit card legislation they are unable to open an account that has been on a payment plan. This payment plan was through BoA and not a collection agency, btw.
Does anyone know if there is any truth to this? I'm trying to rebuild my credit and I thought that if I could reopen the account and even drop the credit limit down to $500 (it was $5000 when it was closed) it would help me out because that is my oldest revolving account. Should I keep hammering the credit analyst line or is there truth to what she said? I appreciate any information/help/advise on this!
edit: I read the Credit CARD Act of 2009 sticky and didn't see it in there; also, the account reports as closed by consumer with all 3 bureaus.
02-10-2010 12:11 PM
BOA will reopen accounts if it haven't been closed more than six months. They reopened my account that was in good standing when I closed it. BOA will still check the credit reports before making a decision to reopen an account.
Some creditors won't reopen a close account at all. Your account became adverse and have been closed more that six months. The credit card act is not the reason why BOA isn't opening your account. It's because of the adverse history and it's been more than six months.
With that said, once your FICO score become greater than 750, you can try reapplying for a new card.
02-10-2010 05:50 PM
02-10-2010 06:12 PM
I was told no by at least 7 different people at BoA, when trying to reopen an account that was closed upon entering a payoff plan even after sucessful payoff.
There was no settlement on the account nor was there a charge off. The account was paid in full but with special terms. Only option that I was given was to open a secured credit card and after 9 months it could and I say could become and unsecured card even with perfect repayment. It never hurts to ask though... all they can do is tell you no....I would also try it in writing...people have had better luck with writing or emails than phone conversations. Goodluck!
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.