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I currently have a closed credit card account with a small remaining balance on it. It was closed by my bank due to lack of payments because I didn't have a job at the time. I've only had the card for 2 and a half years and it is almost payed off. Since this was my first credit card should I leave it closed and apply for a new card elsewhere, or reopen it and rebuild my credit through that one? Or is it safe to do both? How does this affect my credit?
credit
The decision is up to you, of course,...but, I would seee if the account can be re-opened after you apy it off (I'm sure it can be). THAT way, you are STILL using the SAME credit as before. If you try and apply for ANOTHER CC, this can lower your Credit score some. Hope this makes sense.
closed bank account
Hi boa,
I agree with sdchargers. This is your decision whether or not you will rebuild credit through the old card, or take a new card to build your credit. However, I should say that it is better to pay off the balance on the closed card. Talk to your bank about the card, and make payment arrangements. Get the payment arrangement in writing.
I don't know what your credit score is. If you are trying to get a new card, you need to have a good credit score. If not, you can get a secured credit card to build up your credit. Secured credit cards are a great way to build your credit. Before taking the card, do check if the company reports to all the three credit bureaus. If not, your credit won't build up at all.
Use the card to make purchases (within your limits), and then make ontime payments on the card. This will help you in improving your credit.
Thanks,
Aaron