 Reopening an old account to improve credit
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 Dear
Dr. Don,
Is it a good idea to reopen a previously held credit card account
and what will my credit history show? I closed a personal credit
card account that had seven years prior credit transaction history
on, before my marriage, because I joined my former spouse's credit
card account.
Now that we are getting divorced, I need to apply
for my own credit card again. I've heard it's a good idea to stay
with the same card company to establish a long history, which can
prove helpful in future situations where my credit history is reviewed.
I'm not one for card hopping or trendy perks, and have excellent
credit history as well as a FICO score. Will reopening the same
account work in my favor? Thanks,
-- Jeff Jury-rig
 Dear
Jeff,
There's no harm in asking a credit card provider to reopen an account.
You can also work with your existing credit card company to set
you up with an individual account versus the joint or authorized
user account you currently share with your wife.
What shows up on your credit report is more of a
systems issue between the creditor and the credit bureau than something
you can manage, in an attempt to improve your credit score. But
you can and should talk to the card provider about how the account
history will be reported.
The length of your account relationships is one aspect
of your credit score. Applying for new credit is also a consideration.
Your credit score is based solely on the information in your credit
report.
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| How FICO scores are determined: |
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| The following chart,
from myFICO.com, shows how that information
is used in computing your credit score: |
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It's certainly worth talking to these companies about reopening the old account and continuing an account relationship with your current credit card provider.
Managing your credit history during a divorce is critical
because you're both trying to rebuild your lives after a marriage
and rebuilding is that much harder with bad credit.
Stay current on your payments and remember that even
if the court tells her that she's responsible for a bill, the creditor
isn't a party to the court order and you can still have the legal
obligation to pay the debt. Late and missed payments will show
up on your credit report. Take the time to read through the
FTC's Facts for Consumers guide, Credit
and Divorce.
To ask a question of Dr. Don, go to the "Ask
the Experts" page, and select one of these topics: "Financing
a home," "Saving & investing" or "money."
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