topic Re: Does switching credit cards affect credit score? in Credit Cards

Does switching credit cards affect credit score?

Anonymous — Sun, 30 Aug 2020 04:25:27 GMT

I was recently sent an offer to switch my credit card from the Citi AT&T Universal card to the Citi Rewards+ card. It looks like a better card, and it says in the offer that there's no application and no credit bureau inquiry. However, I've had this card since 2002. If I switch to a new card will it reset the length of credit or will it still report the account since 2002 on the new card? I'm going to apply for a house refi soon and am in the process of giving my credit score a major boost and don't want to do anything to derail that. Thanks!

Re: Does switching credit cards affect credit score?

cashorcharge — Sun, 30 Aug 2020 04:50:30 GMT

"Typically" a product change does not trigger the closed account/new open account flag and while the account number may change, the original date and age stays the same.

I have not done that with Citi...but with other banks and never been an issue.

Re: Does switching credit cards affect credit score?

Anonymous — Sun, 30 Aug 2020 04:59:16 GMT

Appreciate the reply. I'm going to hold off until I get a response that is citi-specific as my credit score is 685 right now and I'm trying to get it to 740 in the next 3 months and can't make any moves that will hinder that.

Re: Does switching credit cards affect credit score?

Anonymous — Sun, 30 Aug 2020 08:33:00 GMT

@Anonymous wrote:
I was recently sent an offer to switch my credit card from the Citi AT&T Universal card to the Citi Rewards+ card. It looks like a better card, and it says in the offer that there's no application and no credit bureau inquiry. However, I've had this card since 2002. If I switch to a new card will it reset the length of credit or will it still report the account since 2002 on the new card? I'm going to apply for a house refi soon and am in the process of giving my credit score a major boost and don't want to do anything to derail that. Thanks!

Among the major issuers, Wells Fargo is the case where product changes result in a new account being reported.

I have product changed Citibank cards and the account history was preserved.

This may be an unpopular opinion but if you think the home purchase is likely, personally in this case I would wait on the product change.

The product change should not impact credit report or score.

However, in the current environment with different staff working at different locations more chance for error or miscommunication.

Credit underwriting now is very strict.

The score increase you are looking for is going to be challenging in three months.

Among the easiest ways to rapidly increase scores is to lower utilization.

If you intend to get a mortgage, the scoring that you need to care about are almost certainly... mortgage scores.

Re: Does switching credit cards affect credit score?

Drwaz99 — Sun, 30 Aug 2020 09:21:00 GMT

@Anonymous wrote:
Appreciate the reply. I'm going to hold off until I get a response that is citi-specific as my credit score is 685 right now and I'm trying to get it to 740 in the next 3 months and can't make any moves that will hinder that.

I changed my Citi AA card to a Double Cash in May of this year and there's no new account, no HP, and the account history on my credit report remains intact from my initial opening. It won't affect your score in any way.

Re: Does switching credit cards affect credit score?

K-in-Boston — Sun, 30 Aug 2020 09:57:21 GMT

In most cases, a Citi product change will cause no change whatsoever to your credit reports. In certain cases, it's been reported that a product change results in a "new" account being reported that inherits the full account history. So "worst case," you'd end up with an additional 18 year-old account on your reports. If the account has no late payment history, not only would that not hurt your scores, it would actually likely help them! But in my experience with two product changes (to Double Cash and to Rewards+) nothing changed.

Re: Does switching credit cards affect credit score?

SouthJamaica — Sun, 30 Aug 2020 11:54:11 GMT

@Anonymous wrote:
I was recently sent an offer to switch my credit card from the Citi AT&T Universal card to the Citi Rewards+ card. It looks like a better card, and it says in the offer that there's no application and no credit bureau inquiry. However, I've had this card since 2002. If I switch to a new card will it reset the length of credit or will it still report the account since 2002 on the new card? I'm going to apply for a house refi soon and am in the process of giving my credit score a major boost and don't want to do anything to derail that. Thanks!

Probably it will be the same, but why take the chance? Certainly I wouldn't do it without getting clear information from Citi that it will continue as the old account in the credit reports.

Re: Does switching credit cards affect credit score?

Anonymous — Sun, 30 Aug 2020 14:52:24 GMT

A few years ago I changed my ancient Citi Diamond Preferred to a DoubleCash. I asked for, and received, assurance in writing from Citi that the account itself would remain the same.

If I were buying a house I would also have waited until after closing.

Re: Does switching credit cards affect credit score?

UpperNwGuy — Sun, 30 Aug 2020 15:01:16 GMT

I would make no changes relating to credit cards until your home purchase has been completed.

Re: Does switching credit cards affect credit score?

Anonymous — Sun, 30 Aug 2020 15:47:58 GMT

@SouthJamaica wrote:
@Anonymous wrote:
I was recently sent an offer to switch my credit card from the Citi AT&T Universal card to the Citi Rewards+ card. It looks like a better card, and it says in the offer that there's no application and no credit bureau inquiry. However, I've had this card since 2002. If I switch to a new card will it reset the length of credit or will it still report the account since 2002 on the new card? I'm going to apply for a house refi soon and am in the process of giving my credit score a major boost and don't want to do anything to derail that. Thanks!
Probably it will be the same, but why take the chance? Certainly I wouldn't do it without getting clear information from Citi that it will continue as the old account in the credit reports.

Trouble is you couldn't really trust such info from a CSR, and if it turns out differently, any impact on the refi would be too late to correct.

Two (contradictory) points:

1) I think that in general, people on MyFico are a little too wary of changes near mortgage time. Unless you are on a border, getting a new card won't derail things, worse case you have to supply an additional form about it (I did this last time I refinanced). And a PC almost certainly won't have an impact at all.

2) That said, there should be a good enough reason to take the risk, such as a limited time offer on a great credit card that will expire before closing, or something that will work for a large purchase that you really need to make now. Doing a PC to a "normal" card without any special offer doesn't meet this criteria IMO!

So wait...

Re: Does switching credit cards affect credit score?

Anonymous — Sun, 30 Aug 2020 16:01:07 GMT

@Drwaz99 wrote:
@Anonymous wrote:
Appreciate the reply. I'm going to hold off until I get a response that is citi-specific as my credit score is 685 right now and I'm trying to get it to 740 in the next 3 months and can't make any moves that will hinder that.
I changed my Citi AA card to a Double Cash in May of this year and there's no new account, no HP, and the account history on my credit report remains intact from my initial opening. It won't affect your score in any way.

I did the same thing this year and kept the same age etc. with no INQ. It's generally the same with target offers from them.

Though I'd probably never PC to a reward card due to losing out on the SUB, I'd rather apply for that one and start out ahead.

PC to DC makes sense because there's no SUB to miss out on