3 Important Things You Should Know Before Re-applying for a Closed Credit Card

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A while ago you cancelled one of your favourite travel cards. Recently, you’ve seen the incredible rewards and bonus it’s offering and now you wish to apply for that old card again. But what are your chances of getting your travel card with the sign-up bonus?

There are tons of people who purposely open and shut their credit accounts for one reason—to get their hands on that wealth of reward points. This is called ‘churning’ and people do this to get the best out of their travel credit cards.

Which is why, banks have become more restrictive during the application process. To avoid credit card churners, they have put some rules in place.

Now, it can be difficult to know if your second application is going to be accepted or no. There are no hard and fast rules on how second-time applications work. In fact, if you contact the bank, you might get a vague answer from them.

To ensure your application doesn’t get rejected, here are some general guidelines to keep in mind before signing up for your old card again.

Can I Apply for My Old Card Again?

Yes, you absolutely can. There could be many reasons you decided to cancel your old travel card—change in spending habits, more value from a cashback card, and more. Now that you have a job that requires you travel more frequently, it makes more sense to switch back to your old travel card.

However, the application approval depends on the credit card issuer. For instance, some banks will approve your application because of your responsible repayment behaviour. Whereas, some banks may reject your application. What you can do is contact the bank and ask them if you’re eligible for reapplication.

Will I Get the Sign-up Bonus Again?

This depends on the policy of the credit card provider, and these policies vary by issuer, especially when there’s a sign-up bonus up for grabs. For instance, some banks require a long gap between the applications before they approve it the second time. If you speak to them, they might also tell you that you’re not eligible for the bonus.

In case of rejection, you should go through all the related documents to understand why. It’s important to know what the current policy is as they are subject to change.

Most banks will inform you that your application is reviewed on a case-by-case basis. Which means your repayment behaviour and your credit history with the bank has to be outstanding. If you were late with repayments or got a few penalties because of certain errors, your application is most likely going to be brushed aside.

Can I Apply for Multiple Credit Cards?

Yes, it’s possible, but there are always downsides of such. It’s crucial to know that multiple credit card applications, especially in a short period of time, will affect your credit. The same goes for closing multiple credit accounts the minute you open them. This reflects as irresponsible behaviour and credit card issuers will be reluctant to approve your applications.

That’s why you should make sure your applications are spaced out well. Only apply for a credit card you know you’re eligible for. It’s good to check your credit score and check your credit report as well, for any discrepancies that can be modified. To avoid damage on your credit, avoid closing accounts quickly as well.

It’s equally important to do your research and find a travel credit card that not only meets your requirements but also one that you’re eligible for. Try comparison websites and tools to make your search easier and more streamlined. You can also check your eligibility and apply for the card online.

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