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Upgrade that starts a new account?

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Anonymous
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Upgrade that starts a new account?

I've had a BP card for seven months and received a letter saying I would receive a BP Visa card within the next 45 days.

Was wondering if I should go ahead and accept since my current card isn't even a year old?
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Anonymous
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Re: Upgrade that starts a new account?

This decision is based on several things, not just the age of that one card.

 

How old are your other accounts?  [You AAoA takes a smaller hit if you accept but have older accounts]

How many other accounts do you have?  [AAoA overall is less sensitive if you have multiple accounts, especially if the others are older than this one]

How many other Visa/MC/Discover/Amex cards do you have?  [Will this help you out, if you can use it anywhere?]

Do you frequently use this card at BP because you generally use BP for gas, or would you use the card more if you had the ability to use it anywhere? [Since in some cases usage can lead to faster/better CLI, if you intend to grow this card and keep it long-term, how will your usage compare if it remains BP-only?]

Is there an improved rewards schedule with the Visa version?  

Is there a better or worse APR with the Visa version?

Is there an annual fee with the Visa version? 

 

 

The shift from one to the other (closing a <year old card for a new one) may affect your AAoA, but if your file is quite young/thin, this is not a priority consideration.

In one year, the new card will be a year old.  I know that can sound like a long time, but in the realm of building/rebuilding credit, a year is just a year.  A brick-solid, healthy, top-tier file generally has much more life on it than a year, and so this one-year/two-year consideration in your situation is really not something to weigh too heavily.  Other factors - including usage ability, ability to grow the account, cost of interest/AF, etc. - should probably be given more weight.

 

 

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Anonymous
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Re: Upgrade that starts a new account?

Synchrony does close the private label card once you accept the Visa/MasterCard upgrade and then establishes the new trade line for the Visa/MasterCard. 

 

Accepting the Visa upgrade will affect AAoA because a new trade line will be added. Depending on the length of your credit and the length of time since your last account(s) have been opened, the AAoA hit could be small (long credit history, not a lot of new accounts) or could be a larger impact (shorter credit history, lots of recent, new accounts). The great thing about AAoA is that time heals all wounds. 

 

I personally do not see any reason to have a BP Visa. Do you really need a Visa card that badly? Do you plan on keeping it long term? I would rather have a Visa from Chase or BofA or a credit union etc that I plan on keeping long term not just a Visa for the sake of having a Visa and in 5 years you end up closing it.

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