topic Re: Re-opening old credit cards in Credit Cards

Re-opening old credit cards

Anonymous — Fri, 26 Sep 2014 02:29:54 GMT

Out of curiosity, I contacted comneity bank and had my old victorias secret and express card re-opened (same account number, no need to apply again). The account had been closed in 2011 after some delinquent payments (mostly because I was out of the country and just forgot--no excuse I know).

I was wondering what happens to the interim when the tradelines start reporting? Like the last activity is at 2011 and then activity shows up again in 2014. In the interim period how does the bank report? Would this gap between the reporting also help my score at all?

Thank you

Re: Re-opening old credit cards

myjourney — Fri, 26 Sep 2014 02:33:10 GMT

While it may be good for AAoA

I pray they don't report the lates and in that case you would now have a problem

Good luck

Re: Re-opening old credit cards

Anonymous — Fri, 26 Sep 2014 02:34:48 GMT

Wouldn't the lates already be contributing to my low score since its only 3 years old?

Re: Re-opening old credit cards

myjourney — Fri, 26 Sep 2014 02:38:34 GMT

@Anonymous wrote:
Wouldn't the lates already be contributing to my low score since its only 3 years old?

If the account is on your CR's yes it would

But I have an honest question here and just out of curiosity......Why would you want those accounts re-opened? Do you shop there that much or what was your reasoning?

Ok sorry maybe 2 questions Lol

Re: Re-opening old credit cards

Anonymous — Fri, 26 Sep 2014 02:42:44 GMT

My reasoning was simply to increase the average age of account opened. i am fairly new and bad at the whole credit game and was stupid with these cards when I originally had them. Since they closed in about 2 years, I thought it would significant help my average age to re-open them thus improving my score.

When I got back, I actually settled the accounts in full and afterwards had them re-opened. Since they were already reporting negatively with the past dues (and then $0 after settlement) I thought I might as well try and have them re-opened and they might report positively in terms of age.

I was just wondering though since I had settled the payments on the account and there is no activity for 3 years.. how do those 3 years report? And wouldn't atleast 3 years of account age and technically no balance benefit my score?

I hope that answers your questions.

Thank you guys for your help

Re: Re-opening old credit cards

myjourney — Fri, 26 Sep 2014 02:53:38 GMT

@Anonymous wrote:
My reasoning was simply to increase the average age of account opened. i am fairly new and bad at the whole credit game and was stupid with these cards when I originally had them. Since they closed in about 2 years, I thought it would significant help my average age to re-open them thus improving my score.

When I got back, I actually settled the accounts in full and afterwards had them re-opened. Since they were already reporting negatively with the past dues (and then $0 after settlement) I thought I might as well try and have them re-opened and they might report positively in terms of age.

I was just wondering though since I had settled the payments on the account and there is no activity for 3 years.. how do those 3 years report? And wouldn't atleast 3 years of account age and technically no balance benefit my score?

I hope that answers your questions.

Thank you guys for your help

We dont see many lender offer to re-open old closed accounts so its really hard to say what they'll report it's a interesting concept tho

For your sake I hope they report as you wish

But as far as the lates let's just say they report back to 2011

Start the GW process and if the baddies are removed you'll have just what you want an increase in AAoA on the positive account

Good luck and let us know how this turns out

Could be interesting indeed

Edit the downside is if they report as new TL you decrease AAoA...sorry being honest

Re: Re-opening old credit cards

Anonymous — Fri, 26 Sep 2014 02:56:25 GMT

If the accounts were still on your report (as they probably are) they are counting towards your AAoA anyway (as closed accounts usually stay on for about 10 years post closure) So not sure that this helps, at least in the short term.

Re: Re-opening old credit cards

Anonymous — Fri, 26 Sep 2014 02:57:44 GMT

I totally understand. I'm here for honesty.

I was under the assumption of you don't apply for new credit and they don't pull your credit report and give you the same account number then it's the same account?

In order to report as a new tradeline wouldn't I have to go through the credit applying process?
I just shot them an email explaining the late payments and settlement and they automatically just increased my credit line from 0 to 300. I assumed that would be the same account?

Sorry if these questions are dumb. I am not very knowledgeable about this whole thing and kind of end up getting confused the more I try to read into it.

Re: Re-opening old credit cards

Anonymous — Fri, 26 Sep 2014 03:00:23 GMT

I'm sorry but that's what I am confused about as well. If my credit history is four years old and my average age of accounts is two years wouldn't reopening my old accounts bump the average age to 4?
Once again I apologize if these questions are very basic

Re: Re-opening old credit cards

myjourney — Fri, 26 Sep 2014 03:04:09 GMT

@Anonymous wrote:
I'm sorry but that's what I am confused about as well. If my credit history is four years old and my average age of accounts is two years wouldn't reopening my old accounts bump the average age to 4?
Once again I apologize if these questions are very basic

What LTL is saying and he's correct AAoA is closed and open accounts

So if its 2 years now it will remain 2 years

Re: Re-opening old credit cards

Anonymous — Fri, 26 Sep 2014 03:11:21 GMT

Then I'm confusing length of credit history vs average age?

I assumed that if the card re opened since it was my first card it would show open from 2009 and the average age would also update to 4 years let's say instead of 2.

Anyway, when they do report I will let you all know what happens. (Hopefully nothing bad) thank you

Re: Re-opening old credit cards

myjourney — Fri, 26 Sep 2014 03:15:30 GMT

@Anonymous wrote:
Then I'm confusing length of credit history vs average age?

I assumed that if the card re opened since it was my first card it would show open from 2009 and the average age would also update to 4 years let's say instead of 2.

Anyway, when they do report I will let you all know what happens. (Hopefully nothing bad) thank you

I see where you getting confused

AAoA = is calculated using both open and closed accounts

So as long as an account is on your CR's it's contributing towards your AAoA open or closed

Re: Re-opening old credit cards

Anonymous — Fri, 26 Sep 2014 03:18:57 GMT

Thank you for clearing that up.
I hope I didn't make a huge mistake. When they report I'll let you know what happens and how the interim reports.

Thank you all again

Re: Re-opening old credit cards

Firehorse — Fri, 26 Sep 2014 03:24:06 GMT

Mistakes happen. That's why we're all here. To learn from them.

Re: Re-opening old credit cards

myjourney — Fri, 26 Sep 2014 03:31:31 GMT

@Anonymous wrote:
Thank you for clearing that up.
I hope I didn't make a huge mistake. When they report I'll let you know what happens and how the interim reports.

Thank you all again

You'll be fine

Work on those GW's that can really help

Re: Re-opening old credit cards

Anonymous — Fri, 26 Sep 2014 03:35:34 GMT

As soon as the tradelines start reporting and since they actually let me re open an old account (which to my understanding is unusual) ... I will hit them with the gw after a couple of months of on time payments since I still have 4 years before the delinquent payments fall off anyway (to my understanding).

I'm hoping beyond hope that since they actually re opened the accounts they might be kind enough to delete the bad stuff, too.

Will continue to push my luck as far as it can go

Re: Re-opening old credit cards

myjourney — Fri, 26 Sep 2014 03:39:27 GMT

@Anonymous wrote:
As soon as the tradelines start reporting and since they actually let me re open an old account (which to my understanding is unusual) ... I will hit them with the gw after a couple of months of on time payments since I still have 4 years before the delinquent payments fall off anyway (to my understanding).

I'm hoping beyond hope that since they actually re opened the accounts they might be kind enough to delete the bad stuff, too.

Will continue to push my luck as far as it can go

I'm thinking the same way ....so save the contact info you have and talk to them again

Re: Re-opening old credit cards

CreditDunce — Fri, 26 Sep 2014 18:42:06 GMT

If it was your oldest account, I think it was a smart move having them reopen the account. It may not help in the short term, but an open TL never falls off your credit report.

good luck with the reporting. If it really is the same account number, I think it will report as the same account on your credit report.

Edit: I forgot to add, I don't think it matters if there is a gap in your credit report. It certainly doesn't matter for those with Amex reporting an old MSD. Moreover, small gaps are common from CCC's not reporting some months (e.g. no activity/statement or Discover giving a CLI).

Re: Re-opening old credit cards

Anonymous — Fri, 26 Sep 2014 20:37:04 GMT

I do hope it turns out to be smart or to my benefit.

But also I was kind of hoping that a three year gap and then good payment history would kind of flush out the bad payment history before. Not sure if that happens but I thought I would give it a shot and see.

Re: Re-opening old credit cards

CreditDunce — Fri, 26 Sep 2014 20:54:29 GMT

@Anonymous wrote:
I do hope it turns out to be smart or to my benefit.

But also I was kind of hoping that a three year gap and then good payment history would kind of flush out the bad payment history before. Not sure if that happens but I thought I would give it a shot and see.

I am sorry, the gap will probably not flush out any bad payment history. However, any minor derog's (30&60's) are probably not hurting your score. I don't think they are factored in after 2 years. The major derog's are still hurting, but their effect lessons with time.

On the plus side, the account (small as it is) will start counting in your overall utilization numbers again. If you don't have many open CC's it will also help there. FICO likes to see a couple of zero balance CC's (not that I would worry about that unless you need to app for something).

Re-opening the account will probably have a minimum short term effect. However, it should help you in the long term with CR age and AAoA.