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Can A Closed Account On Credit Report Be Reopened

How To Remove A Charge

What should I do if a closed account is reopened after being charged off?

Removing charge-offs or other negative information from your credit reports can be tricky. Technically, negative credit information that’s accurate can legally remain on your credit reports for seven years, and some types of negative information can stay even longer.

That being said, there are some remedies for dealing with charge-offs. The first is disputing a charged-off account if you believe it’s being reported in error. Federal law allows you to initiate a dispute with the that’s reporting information you believe to be inaccurate. The credit bureau then has to investigate your claim and if there is an error, correct it or remove it.

What Happens When You Close An Account

When you close an account, it’s no longer available for new transactions, but you’re still required to pay off any balance outstanding by paying at least the minimum owed each month by the due date.

After the account is closed, the account status on your credit report gets updated to show that the account has been closed. For accounts closed with a balance, the creditor continues to update account details with the credit bureaus each month. Your credit report will show the most recently reported balance, your last payment, and your monthly payment history.

Re: Can A Creditor Reopen And Close An Account Already Closed

Closing only restricts the consumer from making additional charges on the debt.

If the account is revolving, yes, it can be reopened and then closed again by the creditor.

Regardless, it should not have had a negative impact on your score.

The removal of the delinquency would only be positive, and change of open/closed status is not a scoring factor.

The score change is likely nothing to do with open or closed status.

Also Check: How To Check Hard Inquiries Credit Karma

Negative Accounts Can They Reappear On Your Report After Removal

Erroneous entries on your can drag your score down. And, that is why federal law requires that debts be either validated or removed when they are challenged. But, can the debt come back to haunt you after youve gotten it removed? The answer is that it depends on why and how the account was deleted in the first place.

Collection Agency Reopened Closed Accounts

How to Reopen a Closed Credit Card Account

I sent in dispute letters to EQ last week to reinvestigate HSBC BANK and SYNCB/CARE CREDIT accounts. Both accounts were CLOSED Collection/Charge-Off accounts before I disputed the accounts. Yesterday they were added back to my account as OPEN Collection/Charge-Off. This made my EQ score drop 21 points. I have never had this happen while under reinvestigation the collection agency added it back to my credit report as an open account. What should I do now? I’m so confused as to why this happened. I’m trying to rebuild my credit so I can obtain a mortgage loan through USDA. This is a huge setback. Please help! Thanks in advance


I sent in dispute letters to EQ last week to reinvestigate HSBC BANK and SYNCB/CARE CREDIT accounts. Both accounts were CLOSED Collection/Charge-Off accounts before I disputed the accounts. Yesterday they were added back to my account as OPEN Collection/Charge-Off. This made my EQ score drop 21 points. I have never had this happen while under reinvestigation the collection agency added it back to my credit report as an open account. What should I do now? I’m so confused as to why this happened. I’m trying to rebuild my credit so I can obtain a mortgage loan through USDA. This is a huge setback. Please help! Thanks in advance

On what basis were you disputing? How old are these? How big are they? What is the SOL on them?

Also Check: Does Balance Transfer Affect My Credit Score

Can A Creditor Reopen And Close An Account Already Closed

Not sure if this is the right place for the question, but here is my situation. I have a great score but had one derogatory late payment from a few years ago that was paid within 60 days. I closed the account back then as soon as I paid it. Creditor was credit first tires plus..

I decided to write a letter asking for a Goodwill or early delete on this closed account.

Today I received an alert saying my score went down 30 points! When I looked it over nothing changed except one credit line was increased and tires plus showed no late payments but closed my already closed account this month.

Is this legal? What recourse do I have, I was trying to boost my score by having no lates and instead I have no lates but my score dropped 30 points!

Should I Close My Syncb Account

Once again, closed accounts affect your utilization rate, which impacts your overall credit score. For the most part, if you don’t owe any debt, closing your recent SYNCB account will only negatively affect your credit score temporarily.

If you don’t ever plan to use this credit line and don’t want to have it out there, it’s probably a good idea to go ahead and close it. Of course, keeping it open won’t hurt your credit. However, if you don’t use it, then SYNCB will close the account for inactivity eventually.

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Next Steps: How To Recover If Your Account Is Closed

If youre worried about your credit scores dropping after an account is closed, you may want to consider these ideas.

  • Getting a credit-builder loan If your account was charged off or closed because of delinquent payments, a credit-builder loan may help you establish a positive payment history and build credit.
  • Rounding out your credit mix Getting a new loan just to improve your credit mix probably doesnt make sense. But if you dont have any open revolving accounts, you may want to consider getting a credit card. If you use it sparingly and pay the balance in full each month, you wont accrue interest on your purchases. And itll improve your credit mix, possibly helping to bring your scores up.
  • If a revolving account was closed, reducing the balances on your remaining revolving accounts will help decrease your credit utilization rate, which may improve your credit scores.
  • Have your rent payments reported to the credit bureaus Rent payments arent automatically reported to the credit bureaus. But you might be able to get them added by signing up for a rent payment service that reports your payment history. On-time rent payments might help lift your scores. But keep in mind that not all credit-scoring algorithms use them.
  • Quick Tips for Your Credit Health
  • The Credit Repair Option


    Another option is to work with a legitimate company to try to get charge-offs or other negative information removed from your credit file. While this can save you time, there’s typically a fee involved, and in most cases, the credit repair company can’t do anything for you that you couldn’t do by yourself.

    Worse, some credit repair companies are just thinly disguised scams whose only goal is to defraud people who need credit help.

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    How To Prevent Your Credit Card From Closing

    We get ithaving a credit account closed isnt great. Whether it hasnt happened yet or youre worried itll happen again, there are a few things you can do to prevent it:

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  • Use it to pay off a subscription. We live in a world full of different subscriptions, so youre bound to have one or two. If you have a Netflix or Hulu account, or another subscription service, use your credit card to make each monthly payment.
  • Only use it for online shopping. If theres a website that you commonly shop, like Amazon or Wayfair, make your card the main card for that website. Its an easy, mindless way to use your credit card semi-regularly.
  • Pay your bills on time. You might be tempted to put too many purchases on your credit card. But doing so will make it harder for you to pay your bills on time. Keep your purchases reasonable so you can pay your credit card bill on time every month.
  • Keep your credit score up. Your credit score is the only reason why you got your credit card. Make sure to keep your score up. Or if its down, try to build it back up. If youre credit scores in good shape, your credit card issuer should have no reason to closer your account.
  • When Removing A Charge

    If you’ve tried to negotiate with a creditor for the removal of a charge-off but hit a dead end, your only option may be to simply wait it out until the seven-year mark passes. Once that period is up, the charge-off will fall off your credit report naturally and no longer be included in your credit score calculations.

    Again, this doesn’t mean that you can ignore the debt altogether. You’re still legally obligated to pay it. At some point, however, the statute of limitations on the debt may expire. When that occurs, debt collectors can no longer sue you to recover the money. The statute of limitations for different types of debt varies from state to state.

    Also Check: How To Get A Repo Off Credit Report

    How Open Credit Card Accounts Help Your Credit Score

    To a lot of consumers, common sense says otherwise, but marked as open on your credit report will usually help your credit score more than a closed account.

    Many people think a closed or paid off account, looks better in their credit history.

    Here are several reasons why youll want to keep open credit card account or two on your credit report:

    • Payment History: Payment history has a big influence on your credit score 35 percent of your FICO. With an open account, you can rack up the on-time payments even if theyre for a small amount. This is an easy way to help your credit score soar.
    • Available Credit: A card with a balance of $1,000 that you arent using shows creditors you have credit to spare. Scoring models often refer to this as your credit utilization ratio. Open accounts with low balances lower your credit utilization and raise your score. Available credit comprises 30 percent of your FICO score.
    • Average Age of Accounts: Open accounts can continue adding to the average age of your credit accounts. Closed accounts pull down your average account age. Even if the open credit card account sits unused, it continues to age. The average age of accounts comprises 15 percent of your FICO score.

    Together, the three factors above comprise 80 percent of your FICO credit score, and keeping a credit card account open can help with all three!

    And open accounts could even help with the remaining 20 percent of your score, at least indirectly:

    Closed Versus Charged Off

    Will Closing A Credit Card Hurt My Credit : Will Closing a ...

    Before a credit card company charges off your account, they almost always close it first so that you can no longer use it and they wont incur additional bad debt. Unlike a charge-off, when a delinquent account is closed, theres nothing preventing a creditor from reopening it at a later date. However, the more likely scenario is that, after some time has passed, you will have to reapply for the card. If your circumstances have improved significantly, the credit card company may open a new account for you with a very low credit limit. Over time, if you use the card and pay the balance down regularly, they may incrementally increase your credit limit.

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    Make A Plan To Pay Off The Debt Before Adding New Credit

    Now that you know you will lose points for carrying a debt on a closed card, you will want to have a plan in place to pay off the debt. This is especially important before you look to add new credit to your file. Applying for credit and generating a hard inquiry will ding your score temporarily. You dont want to add insult to injury by applying too soon and being denied because a closed negative account is still dragging down your score.

    The best way to avoid that is to take care of your outstanding debt and begin repairing your credit before you do anything else. And remember to only apply for new credit when you need to, not just because you can. This will help you in all areas of your credit, and your overall financial health.

    As noted above, you should do your best to stay out of minimum payment territory and focus on making payments that will help you pay off the debt. This handy calculator will help you determine how long it will take you to pay off your debt and how much interest you will pay. If you find you can pay more as time goes on, you should do that. The sooner you can get the debt paid off, the better.

    Remember to keep track of your score!

    Editorial Disclaimer

    The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

    How To Remove Synb/pcc From My Credit Report

    As we’ve been stressing throughout this entire article, having multiple hard inquiries pulled can drop your score and hurt your chances of getting approved for credit accounts in the future. So, if you’re able to, you’ll want to attempt to get the SYNCB, or SYNCB/PPC hit removed from your credit report.

    Here’s how it’s done:

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    Use A Validation Letter To Dispute The Inquiry

    With so much of our personal information all over the internet, we’re ripe for the picking for identity thieves. So, if you haven’t authorized the opening of any accounts with SYNCB or its partners, it means that someone else did. In your name.

    Again, if identity theft is the case, you’ll need to dispute it immediately.

    To file a proper dispute, you’ll want to write a debt validation letter to send to both SYNCB and the three credit bureaus they report to . When you do this, Synchrony Bank will have to find evidence of your credit application. Otherwise, they’ll have to remove the hard inquiry from your report.

    This is usually a quick and easy fix. However, you only have 30 days to dispute the inquiry’s validity, starting with the date of the first SYNCB or SYNCB/PPC appearance. This is why it’s so important to monitor your credit score frequently.

    What Is A Pay


    A pay-for-delete letter is when you offer to settle a balance on a negative account in exchange for the debt being deleted from your credit report. The creditor or debt collector is not obligated to agree to your request, but it may be worth sending the request. If you’re sending the request to a collection agency, you’ll need to offer enough for it to be profitable for them to settle. There’s no way to know how much that is, though. If you’re close to the seven-year mark for the item to fall off your credit report, it may not be worth sending a pay-for-delete letter.

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    Heres What Happens To Your Credit Score When You Cancel A Credit Card:

    • : Your credit score often goes down because the average age of your open accounts decreases and your overall utilization increases .
    • Scores bounce back: Your credit score should rebound within 3-6 months of canceling your credit card account. Make sure to have at least one open credit card remaining and pay all your bills on time.
    • What happens if you dont cancel: A credit card that is in good standing will continue to help your credit score. Even if you dont make purchases with it, it will still report positive information to the each month. This is definitely worth considering if your card does not charge an annual fee.
    • Age matters: Closing newer accounts wont have as much of an impact as closing older ones.
    • Limit matters: Closing low-limit accounts wont do as much damage as closing high-limit ones.
    • When score drops matter: If you dont need the best score possible for the 3-6 months it usually takes credit scores to bounce back after credit card cancelation, the temporary drop shouldnt cost you anything.

    Bottom Line: Avoid canceling your oldest card and your card with the highest credit limit. That will mitigate the amount of credit score damage. And if you have to close your oldest or highest-limit card, make sure you do it at a time when you dont need your credit score to be at its best.

    How To Reopen An Account That The Credit Card Company Closed

    If you or a credit card company closed one of your old credit card accounts, but you now want to reopen the account for the benefits it can have on your credit report and score, you can make a formal request to have the account re-opened. In most cases, an account can be re-opened in a matter of minutes giving you immediate access to your old or new extended line of credit for purchases, withdrawals and balance transfers. The credit card issuer will report your end of billing cycle balance to the three national credit reporting bureaus each month.

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    Write A Goodwill Letter

    A goodwill letter is a formal request to a creditor asking for a negative item to be removed.

    Although creditors are not required to remove negative items upon request, they may be willing to do so if you have a long history with them or if there were special hardships that led to the negative item.

    However, goodwill letters are generally useful only for late or missed payments rather than collections, repossessions or other more significant negative items.

    In addition to goodwill letters, you can also request that an account is removed using a pay for delete letter. These letters can lead to an agreement with a collection agency to remove an account in exchange for a set payment. That said, the collection agency may decide not to remove the account, and the original account that went to collections may remain on your report.


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