cancel
Showing results for 
Search instead for 
Did you mean: 

The all new Costco Anywhere Visa card by Citi

tag
jeffeverde
New Contributor

Re: Latest on Costco and Citi Bank Visa


@thelethargicage wrote:
Will new Citi TL retain backdating or will actual account opening date be reported? I hope so--it would be like having an additional backdated Amex.

It *should* retain the account number and opening date of the original AmEx card.  Similar to when HSBC sold its portfolio to Cap1, or when a mortgage changes hands -- same loan, new lender.

Message 21 of 551
Anonymous
Not applicable

Re: Latest on Costco and Citi Bank Visa


@jeffeverde wrote:

Already a done deal.  This time, AmEx will be selling the TE portfolio, rather than keeping and PC'ing as they did in the Canada changeover.


@creditguy wrote:

I recently read an article about Costco Canada and the Amex transition. When Amex was replaced by a Capital one MC at Costcos in Canada, Amex kept their credit card portfolio and just PC'd the Costco Amex to a different Amex card with the same account number, leaving the cardholder with the same account just a different card. The downside was that Amex cardholders would have to apply for the new Cap One card separately since Amex technically owned the cardholders account. 

 

The article goes on to state that in the US, Amex will more than likely sell the portfolio to Citi for a billion dollar plus profit and use the money for marketing and rewards programs to make up for the Costco loss, Costco does make up 8% of Amex's global sales and 20% of it's cardmember loan portfolio, so they are going to need the cash to keep competitive. So long story short, it does appear more than likely you will have a seamless transition to a Citi card. 

one 

 


So does that mean that those of us with only a Costco AMEX should apply for another one before that disappears so we at least have one after the transfer takes place?

 

also, I could only read part of the FAQ sheet. What if we don't want the citi visa, is there a way to opt out if their offering can't beat another card we have on hand?

Message 22 of 551
creditguy
Valued Contributor

Re: Latest on Costco and Citi Bank Visa

Good question. I'm sure Amex does not want to lose any cardholders so I would guess they'll offer a PC, especially if your Costco card is your only account with Amex. I'm sure they'll make the transition more clearer as the transition date approaches.
Message 23 of 551
NRB525
Super Contributor

Re: Latest on Costco and Citi Bank Visa


@jeffeverde wrote:

@thelethargicage wrote:
Will new Citi TL retain backdating or will actual account opening date be reported? I hope so--it would be like having an additional backdated Amex.

It *should* retain the account number and opening date of the original AmEx card.  Similar to when HSBC sold its portfolio to Cap1, or when a mortgage changes hands -- same loan, new lender.


This is actually impossible. AMEX cards have 15 digits, VISA, MC and Discover have 16 digits. More importantly, the first 6 digits of the card number are specifically used to identify the network and type of card.

Your Citi Costco card will have a new credit card number.


Whether it maintains the same credit history, is doubtful. Possible, but doubtful. Card issuers prefer to start fresh with major account changes such as this, so my bet is, the Citi Costco card will be an April 1, 2016 start date for all cardholders.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 24 of 551
EW800
Valued Contributor

Re: Latest on Costco and Citi Bank Visa


@NRB525 wrote:

@jeffeverde wrote:

@thelethargicage wrote:
Will new Citi TL retain backdating or will actual account opening date be reported? I hope so--it would be like having an additional backdated Amex.

It *should* retain the account number and opening date of the original AmEx card.  Similar to when HSBC sold its portfolio to Cap1, or when a mortgage changes hands -- same loan, new lender.


This is actually impossible. AMEX cards have 15 digits, VISA, MC and Discover have 16 digits. More importantly, the first 6 digits of the card number are specifically used to identify the network and type of card.

Your Citi Costco card will have a new credit card number.


Whether it maintains the same credit history, is doubtful. Possible, but doubtful. Card issuers prefer to start fresh with major account changes such as this, so my bet is, the Citi Costco card will be an April 1, 2016 start date for all cardholders.


I agree.  It is not possible for the same account numbers to be used.  NRB is spot-on in regard to the first several digits being very key factors.  

 

Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
April 2023: EX8: 840; EQ8: 832; TU8: 842 -- Middle Mortgage Score: 822
In My Wallet: Discover $73.7K; Cap1 Venture $48.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $22.5K; Cap1 Plat $8.4K; Barclay $7K; Chase Amazon $6K; BoA Plat $21.6K; Citi TY Pref $21K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $296K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
Message 25 of 551
LadyJEsq
Established Contributor

Re: Latest on Costco and Citi Bank Visa


@CreditCuriousity wrote:

Thanks for this info.. If this is the case Citi is a seemless takeover I will be applying for the Amex TE card to have my "IN" with Citi finally.  Thanks again for the info!


Funny, I was thinking the same thing!

 

Thank you very much OP, I've been wondering about this as soon as I heard the news.

**FICO 8 Scores EQ EX TU **


Message 26 of 551
takeshi74
Senior Contributor

Re: Latest on Costco and Citi Bank Visa


@Anonymous wrote:

Latest on Costco and Citi Bank Visa


Thanks! It still leaves a lot of questions on the exact details but it is more information on the situation and is appreciated.

 


@Skye12329 wrote:
On a side note it sounds like people will automatically have their Costco cards switched to Citi Visa? Do I understand that correctly?

Per the FAQ posted "it is unlikey that you will need to apply...".  I personally wouldn't take that as a firm statement but it seems to be a good sign.

 


@jeffeverde wrote:

Already a done deal.  This time, AmEx will be selling the TE portfolio, rather than keeping and PC'ing as they did in the Canada changeover

Citation?  It's in part because of your statement about the account number (which can't be correct for reasons stated above) but I'm skeptical of this claim.

Message 27 of 551
MASTERNC
Frequent Contributor

Re: Latest on Costco and Citi Bank Visa

If you want more insight into the Costco/AMEX relationship and what happened when it went sour, Bloomber just posted an article.

 

http://www.bloomberg.com/features/2015-how-amex-lost-costco/

 

However, the article also notes two things that seem to vindicate both sides regarding what will happen with current cards:

 

"As part of Costco’s new agreement, Amex must sell the loan portfolio to Citigroup, a deal that the two banks are still negotiating. Chenault says the company will do whatever it can to get Costco cardholders to switch to regular Amex cards."

Message 28 of 551
thelethargicage
Valued Contributor

Re: Latest on Costco and Citi Bank Visa

Amex doesn't seem to be trying too hard to retain any of the current TE card holders.


Message 29 of 551
MASTERNC
Frequent Contributor

Re: Latest on Costco and Citi Bank Visa


@thelethargicage wrote:
Amex doesn't seem to be trying too hard to retain any of the current TE card holders.

Yet.  Keep in mind we just passed the six month milestone.  If the Bloomberg article is accurate, they haven't even settled on how to handle the transition with Citibank.  Also, switching products now (versus after Citi issues new cards) might be an issue since the card doubles as the Costco membership card.  If AMEX is going to try to retain current TE cardholders, I would expect a push closer to the transition date.

Message 30 of 551
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.