Should You Consider Re-aging Your Credit Card?

Written on May 31, 2010 – 10:54 pm | by Katie Perry

If you are a delinquent cardholder, meaning you have a slew of added fees and charges for payments made past the due date, you might consider re-aging your credit card to get you back on track.

It’s an increasingly common tactic employed by cardholders and their credit card companies. Here’s how it works. If you were behind in your payments by a few months, you could request that you card company erase those late payments and fees.

So why would a card company do that? Credit card companies want you to use your card. It is worthless for them to have an unpaid balance left alone month after month. In most cases, you will be required to make an immediate payment (typically one larger than your standard monthly payment). You may need to agree to a new plan that will likely require higher monthly payments.

Late payments can be a stain on your credit report and keep you from being approved for future credit cards, auto loans and mortgages. Re-aging is a savvy way to get back on track to being a responsible cardholder.

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