topic Re: Reopen Accounts in Credit Cards

Reopen Accounts

Anonymous — Tue, 02 May 2017 16:54:56 GMT

I currently have a Discover IT, BankofAmerica BankAmericard, and WellsFargo Cash Back card that were recently closed due to a debt consolidation. Has anybody had any success in having those accounts reopened? They were just closed last week. I don't want to reapply I just want the original accounts reopened if allowed. Any pointers on whom I may need to speak with regarding this at each of the corresponding banks?

TIA

Re: Reopen Accounts

Anonymous — Tue, 02 May 2017 16:56:27 GMT

I've never heard of anyone doing this successfully. The only option I'm aware of is to reapply for the cards once your FICO scores allow you to be approved -- and some banks might blacklist you for a number of years (or forever) if you paid less than owed (some debt consolidation companies negotiate a lower amount).

Re: Reopen Accounts

Anonymous — Tue, 02 May 2017 16:58:56 GMT

It was a personal loan I did on my own but the credit union had me sign letters requesting account closures and sent along with the cashier checks for payments. No settlements were done, all accounts were paid in full.

Re: Reopen Accounts

Anonymous — Tue, 02 May 2017 17:04:25 GMT

If you made a contract with your loan originator that you would close those accounts, I'd be careful reopening them. The loan originator can soft pull your credit reports to make sure the accounts are closed and stayed closed.

Some credit card banks will allow a closed account to be reopened within 30 days fo closure depending on the reason for closure. Chase, Amex, BofA all MIGHT allow you to reopen the accounts if it's recent, but definitely be aware that if you have an agreement with another lender to close them, it might work against you if that lender calls your loan in for violating the contract.

Re: Reopen Accounts

CreditInspired — Wed, 03 May 2017 02:02:42 GMT

OP, why do you want to reopen these accounts? IMHO, you're begging for trouble. You were only approved for the personal loan based on your agreement to close the CCs. Reopening the CCs or even applying for new debt before the personal loan is PIF might cause your debt to spiral out of control. IMHO I think you should consider taking advantage of this "no CC debt" opportunity to take a trip to the garden.

Re: Reopen Accounts

Anonymous — Wed, 03 May 2017 02:10:34 GMT

Wow! Guess you learn something new every day. That's the only way they would give you the loans? Close all those accounts and kill your credit?? That's BS I would have told that credit union to shove it where the sun doesn't shine

Re: Reopen Accounts

Anonymous — Wed, 03 May 2017 02:19:46 GMT

Finally someone sees where I'm coming from. While I understand the point of closures to prevent going back into debt, I only had $13k. It was very manageable but I wanted lower rates than what cards had. I kept one card though. Only reason I'm seeking reopening is utilization purposes since we all know that's the most important thing.

Re: Reopen Accounts

thummel — Wed, 03 May 2017 03:35:48 GMT

You signed an agreement and knew what you were coming into to be honest. If you didn't like the terms you can always back out and take your business elsewhere. I wouldn't even try if I was in a signed agreement with another bank that they would be closed. You can always apply for new cards for utilization purposes too.

Re: Reopen Accounts

Anonymous — Wed, 03 May 2017 03:59:37 GMT

The closure requirement is actually nowhere in the loan agreement. It's just a policy of this credit union to require we request closures. I even asked them what if they don't close based on this request and I was told that's up to those banks, they just want me to authorize a request for closure.

Re: Reopen Accounts

Anonymous — Wed, 03 May 2017 11:16:20 GMT

@CreditInspired wrote:
OP, why do you want to reopen these accounts? IMHO, you're begging for trouble. You were only approved for the personal loan based on your agreement to close the CCs. Reopening the CCs or even applying for new debt before the personal loan is PIF might cause your debt to spiral out of control. IMHO I think you should consider taking advantage of this "no CC debt" opportunity to take a trip to the garden.

+1 Excellent advice OP.

Re: Reopen Accounts

Anonymous — Wed, 03 May 2017 11:27:19 GMT

@Anonymous wrote:
Finally someone sees where I'm coming from. While I understand the point of closures to prevent going back into debt, I only had $13k. It was very manageable but I wanted lower rates than what cards had. I kept one card though. Only reason I'm seeking reopening is utilization purposes since we all know that's the most important thing.

I think we all understand your thinking but you agreed to close these accounts if they gave you a loan. If you didn't like or agree with the terms, why didn't you go elsewhere?

Re: Reopen Accounts

Anonymous — Wed, 03 May 2017 11:25:07 GMT

@Anonymous wrote:
The closure requirement is actually nowhere in the loan agreement. It's just a policy of this credit union to require we request closures. I even asked them what if they don't close based on this request and I was told that's up to those banks, they just want me to authorize a request for closure.

Understood. I think the CU was pretty sure your creditors would close your accounts.

Re: Reopen Accounts

Mattopotamus — Wed, 03 May 2017 16:46:01 GMT

To answer your question OP, I do not think you will be able to reopen any accounts. They would make you reapply. I have never had any luck doing this.

Re: Reopen Accounts

Anonymous — Wed, 03 May 2017 22:29:52 GMT

1) This used to be VERY standard back in the day for conservative Credit Unions...

With my 1st CU gig when it came to a DEBT CONSOLIDATION, it was a REQUIREMENT of getting the loan, period!

Actually, going back and opening an account could absolutely be cause for the loan to be ESCALATED
Just like any lender, said CU during a simple AR can SEE that those accounts that THEY paid off are now reopened....and even if they let that slide, Lord help you if there is ACTIVITY of those accounts.

Ppl might not 'like' it but a debt consolidation means the applicant allowed things to get out of hand and came for HELP, so the lender could take the position that any other debt, especially NEW debt ain't gonna happen, such to the degree that they don't even want to take the CHANCE of having 'loan cards' walking around in folks pockets.

Honestly, I seen it WAY too often where it happens that ppl pay off their debt, only to be drowning in it again within a birthday or two.

I'm not on anyone's side I'm just saying from the person LENDING the 💰 POV there are times where they feel the reason the loan was given,with these terms, Apr etc was because of the DTI and debt load as of paying off everything AND not having the open TLs

Once any of that changes,the Lender might feel and could be justified in wanting to change their position as well....and that could mean instead of a 5 year payback I want my $$ NOW....then what do you do?

Again, I'm not finger wagging I'm just saying they could easily take that tact

You have the ability to carry it your way and they also have the ability to say we prefer it this way...no right or wrong just two points of view.

The OP says in this case,it wasn't an over the head thing but more a looking to save thing, which is fine but when one request 💰 from another they become subject to lender....in today's world there are TOO many lenders and options for non desperate ppl with decent credit and the proper income to accept terms they don't want.

Typically, in these debt consolidations where it's send the letters, cut up the cards etc it's because options are lean, perhaps the OP didn't do a great job of due diligence prior to accepting these terms, as I said too many places in 2017 for this to be 'required' again depending on the status of the applicant.

Saving a little on % generally is NOT enough for most ppl who know about credit to KILL that many revolving accounts w/o thoughtful consideration...again a person DROWNING in debt sees it differently, credit darn they need relief...it's hard to 'see' what the OP was thinking, I can really see 'how' an UWer could be leery enough to call a loan in a nano second.

Re: Reopen Accounts

jeffery581 — Thu, 04 May 2017 04:59:00 GMT

If it were me I would pay off the loan first then re apply for those cards. If you left them in good standing paid and no lates you might have good results in re applying. I would not open them all again or just keep the limits low and manageable.