topic Re: What happens to TL during a transfer? in Credit Cards

What happens to TL during a transfer?

Empires — Sat, 22 Jul 2023 04:32:39 GMT

My local small bank was recently acquired by a bigger regional bank. I have a secured card with the small bank. I was told that the account number will remain the same but I will receive a new card in the near future with the new Bank name on it. My question, what happens to the TL on the credit report?

Does the tradeline simply get updated? Or do they close the previous tradeline and open a new one causing a reaging of the account. Because if it is the latter, I am ready to close this $500 account. It is charging me a $30 annual fee which I don't really like. No other benefit for the account as I have other accounts with the same age.

Re: What happens to TL during a transfer?

GZG — Sat, 22 Jul 2023 04:52:01 GMT

@Empires wrote:
My local small bank was recently acquired by a bigger regional bank. I have a secured card with the small bank. I was told that the account number will remain the same but I will receive a new card in the near future with the new Bank name on it. My question, what happens to the TL on the credit report?

Does the tradeline simply get updated? Or do they close the previous tradeline and open a new one causing a reaging of the account. Because if it is the latter, I am ready to close this $500 account. It is charging me a $30 annual fee which I don't really like. No other benefit for the account as I have other accounts with the same age.

you'll have to call and ask, they can do it any number of ways that would be 'accurate', ways that are good and ways that would be 'bad' for your credit.

this seems like a card you don't need, close it out.

Re: What happens to TL during a transfer?

Empires — Sat, 22 Jul 2023 05:31:04 GMT

I called. This specific question though, Nobody had an answer for.

Re: What happens to TL during a transfer?

FireMedic1 — Sat, 22 Jul 2023 09:03:49 GMT

@Empires wrote:
My local small bank was recently acquired by a bigger regional bank. I have a secured card with the small bank. I was told that the account number will remain the same but I will receive a new card in the near future with the new Bank name on it. My question, what happens to the TL on the credit report?

Does the tradeline simply get updated? Or do they close the previous tradeline and open a new one causing a reaging of the account. Because if it is the latter, I am ready to close this $500 account. It is charging me a $30 annual fee which I don't really like. No other benefit for the account as I have other accounts with the same age.

It would help if you name the banks. It will lets us to see if its worth keeping the card with the CL and AF. Usually the old account is closed and a new entry starts with the new bank.

Re: What happens to TL during a transfer?

SUPERSQUID — Sat, 22 Jul 2023 11:52:44 GMT

In my experience when a card changes banks they simply send you a new card usually with the same account number and the only action required on your part is to activate the new card.

Nothing should change on your reports regarding that card except the lender name

Re: What happens to TL during a transfer?

Anonymous — Sat, 22 Jul 2023 12:51:10 GMT

@SUPERSQUID wrote:
In my experience when a card changes banks they simply send you a new card usually with the same account number and the only action required on your part is to activate the new card.
Nothing should change on your reports regarding that card except the lender name

Though these terms don't exist, it might be helpful to think of a Hard Transfer and a Soft Transfer (like HP/SP) as both models exist. As @FireMedic1 says, sometimes a new account is created with 0 age, other times a new account is created with the old age (which is fine) and finally, as @SUPERSQUID says, sometimes it is "soft", with just some bookkeeping on the name on the record.

My take: if they said the account number will stay the same, it is probably a soft one. If the new bank was going to open an account within its own systems, its very unlikely they would bother to keep the same account number. But that is just my guess! If you are concerned and cannot get an answer, it sounds like you don't value the card anyway, and it may be worth closing. But depending where there are in the transfer, it might be too late to avoid a new account if that is what is actually happening.

Re: What happens to TL during a transfer?

Kforce — Sat, 22 Jul 2023 16:53:36 GMT

@Anonymous wrote:
@SUPERSQUID wrote:
In my experience when a card changes banks they simply send you a new card usually with the same account number and the only action required on your part is to activate the new card.
Nothing should change on your reports regarding that card except the lender name
Though these terms don't exist, it might be helpful to think of a Hard Transfer and a Soft Transfer (like HP/SP) as both models exist. As @FireMedic1 says, sometimes a new account is created with 0 age, other times a new account is created with the old age (which is fine) and finally, as @SUPERSQUID says, sometimes it is "soft", with just some bookkeeping on the name on the record.

My take: if they said the account number will stay the same, it is probably a soft one. If the new bank was going to open an account within its own systems, its very unlikely they would bother to keep the same account number. But that is just my guess! If you are concerned and cannot get an answer, it sounds like you don't value the card anyway, and it may be worth closing. But depending where there are in the transfer, it might be too late to avoid a new account if that is what is actually happening.

^^^ This

Have had it both ways.

Would not take the chance if you don't need the card enough for the gamble. Have had new card & reset account age two times and at least 6 others with keeping age, CL, etc. I give you 75% chance of no problems, from personal experience.

Re: What happens to TL during a transfer?

Kforce — Sat, 22 Jul 2023 16:56:56 GMT

@Empires wrote:
I called. This specific question though, Nobody had an answer for.

Even if they gave you one, you only would have a 50/50 chance if it being correct

Re: What happens to TL during a transfer?

UncleB — Sat, 22 Jul 2023 20:05:48 GMT

When BBVA/Compass accounts migrated over to PNC it was just a name change on my credit reports. Same when the HSBC portfolio moved to Capital One years ago... everything stayed the same with the credit reporting, just the bank info on the credit report was updated.

The only time I've had to 'start over' was after a Synchrony upgrade on my CareCredit to the CareCredit Mastercard, but from what I understand even that's changed. (???)

Usually the new bank will send out a letter/email explaining what's going to happen, if for no other reason so their customer service lines aren't tied up. Also in the cases of PNC and Capital One both had websites with a FAQ on the transition which answered this question.

Just my 2¢.

@FireMedic1 wrote:
It would help if you name the banks. It will lets us to see if its worth keeping the card with the CL and AF.

This. ^^^ Otherwise all we can do is speculate.

Re: What happens to TL during a transfer?

IntegerIntrovert — Sat, 22 Jul 2023 20:13:44 GMT

FWIW, when Costco moved from AMEX to Citi, my old tradeline closed out and CITI started a new one for me.

Re: What happens to TL during a transfer?

Anonymous — Sat, 22 Jul 2023 20:14:19 GMT

@UncleB wrote:

@FireMedic1 wrote:
It would help if you name the banks. It will lets us to see if its worth keeping the card with the CL and AF.
This. ^^^ Otherwise all we can do is speculate.

Although, to be honest, with that info all we can do is speculate too! Every takeover is different so even if we are very familiar with Bank X, it doesn't mean that history applies now.

While asking for data can often help, we should remember that it will often not be determinative.

Re: What happens to TL during a transfer?

UncleB — Sat, 22 Jul 2023 20:19:19 GMT

@Anonymous wrote:
@UncleB wrote:

@FireMedic1 wrote:
It would help if you name the banks. It will lets us to see if its worth keeping the card with the CL and AF.
This. ^^^ Otherwise all we can do is speculate.
Although, to be honest, with that info all we can do is speculate too! Every takeover is different so even if we are very familiar with Bank X, it doesn't mean that history applies now.

While asking for data can often help, we should remember that it will often not be determinative.

Yeah, but we could at least dig around for a FAQ page, assuming the OP hasn't already done that (stranger things have happened).

Re: What happens to TL during a transfer?

FireMedic1 — Sat, 22 Jul 2023 21:31:52 GMT

Were not assumming. We know what that means. But it would be nice to see who the OP is talking about.

Re: What happens to TL during a transfer?

SUPERSQUID — Sat, 22 Jul 2023 22:44:27 GMT

@UncleB wrote:
When BBVA/Compass accounts migrated over to PNC it was just a name change on my credit reports. Same when the HSBC portfolio moved to Capital One years ago... everything stayed the same with the credit reporting, just the bank info on the credit report was updated.

The only time I've had to 'start over' was after a Synchrony upgrade on my CareCredit to the CareCredit Mastercard, but from what I understand even that's changed. (???)

Usually the new bank will send out a letter/email explaining what's going to happen, if for no other reason so their customer service lines aren't tied up. Also in the cases of PNC and Capital One both had websites with a FAQ on the transition which answered this question.

Just my 2¢.

@FireMedic1 wrote:
It would help if you name the banks. It will lets us to see if its worth keeping the card with the CL and AF.
This. ^^^ Otherwise all we can do is speculate.

Also another one which reset the credit line was Fingerhut Fetti. Fingerhut changed to Fingerhut Fetti and restarted your account right then no matter how long your account was in good standing. Suddenly a new account from Fingerhut Fetti showed up on your reports putting a ding on your scores.

Re: What happens to TL during a transfer?

RealEstateGuy89 — Sun, 23 Jul 2023 02:39:46 GMT

@SUPERSQUID wrote:
@UncleB wrote:
When BBVA/Compass accounts migrated over to PNC it was just a name change on my credit reports. Same when the HSBC portfolio moved to Capital One years ago... everything stayed the same with the credit reporting, just the bank info on the credit report was updated.

The only time I've had to 'start over' was after a Synchrony upgrade on my CareCredit to the CareCredit Mastercard, but from what I understand even that's changed. (???)

Usually the new bank will send out a letter/email explaining what's going to happen, if for no other reason so their customer service lines aren't tied up. Also in the cases of PNC and Capital One both had websites with a FAQ on the transition which answered this question.

Just my 2¢.

@FireMedic1 wrote:
It would help if you name the banks. It will lets us to see if its worth keeping the card with the CL and AF.
This. ^^^ Otherwise all we can do is speculate.
Also another one which reset the credit line was Fingerhut Fetti. Fingerhut changed to Fingerhut Fetti and restarted your account right then no matter how long your account was in good standing. Suddenly a new account from Fingerhut Fetti showed up on your reports putting a ding on your scores.

Yasss, I remember all to well that slick trick they tried to pull last year! I canceled my Fingerhut account quickly before the new Fingerhut Fetti was set to be issued, thinking I had surely saved myself much trouble.

Well, I STILL ended up with the new account reporting on my all bureaus with a MUCH lower credit line... I think my original account was somewhere around 11 years old with a $4700 credit limit and the new Fetti was 0 months old with a $1500 credit limit. I was completely livid 😮 when I started getting all the new account notifications as Fetti was hitting my credit reports. Fingerhut nor Fetti was interested in the least in helping me. They even suggested that I might as well be stuck with them for awhile because even if I closed the new Fetti account, it would still stay on my reports for quite some time, meaning the score hit and damage was already done.

I ended up making an online complaint to the federal website that handles credit complaints and it took about 2 months but they ended up taking it off of all my credit reports! I considered myself very lucky 🍀 and also felt for my fellow MyFico people that were just reporting fresh hits to their reports by Fetti too.

Do you still have your Fingerhut Fetti account @SUPERSQUID or how did that work out for you?

Re: What happens to TL during a transfer?

SUPERSQUID — Sun, 23 Jul 2023 07:25:51 GMT

@RealEstateGuy89 wrote:
@SUPERSQUID wrote:
@UncleB wrote:
When BBVA/Compass accounts migrated over to PNC it was just a name change on my credit reports. Same when the HSBC portfolio moved to Capital One years ago... everything stayed the same with the credit reporting, just the bank info on the credit report was updated.

The only time I've had to 'start over' was after a Synchrony upgrade on my CareCredit to the CareCredit Mastercard, but from what I understand even that's changed. (???)

Usually the new bank will send out a letter/email explaining what's going to happen, if for no other reason so their customer service lines aren't tied up. Also in the cases of PNC and Capital One both had websites with a FAQ on the transition which answered this question.

Just my 2¢.

@FireMedic1 wrote:
It would help if you name the banks. It will lets us to see if its worth keeping the card with the CL and AF.
This. ^^^ Otherwise all we can do is speculate.
Also another one which reset the credit line was Fingerhut Fetti. Fingerhut changed to Fingerhut Fetti and restarted your account right then no matter how long your account was in good standing. Suddenly a new account from Fingerhut Fetti showed up on your reports putting a ding on your scores.
Yasss, I remember all to well that slick trick they tried to pull last year! I canceled my Fingerhut account quickly before the new Fingerhut Fetti was set to be issued, thinking I had surely saved myself much trouble.

Well, I STILL ended up with the new account reporting on my all bureaus with a MUCH lower credit line... I think my original account was somewhere around 11 years old with a $4700 credit limit and the new Fetti was 0 months old with a $1500 credit limit. I was completely livid 😮 when I started getting all the new account notifications as Fetti was hitting my credit reports. Fingerhut nor Fetti was interested in the least in helping me. They even suggested that I might as well be stuck with them for awhile because even if I closed the new Fetti account, it would still stay on my reports for quite some time, meaning the score hit and damage was already done.

I ended up making an online complaint to the federal website that handles credit complaints and it took about 2 months but they ended up taking it off of all my credit reports! I considered myself very lucky 🍀 and also felt for my fellow MyFico people that were just reporting fresh hits to their reports by Fetti too.

Do you still have your Fingerhut Fetti account @SUPERSQUID or how did that work out for you?

Not meaning to sidetrack this thread, the same exact thing happened to me with fingerhut. i closed my account but they still reported that new fetti account. to tell you the truth all i remember is calling them to make sure they closed the fetti as well, i never followed up. they lost me as a customer and i had an excellent payment record with them and often bought things

Re: What happens to TL during a transfer?

SouthJamaica — Sun, 23 Jul 2023 11:01:50 GMT

@Empires wrote:
My local small bank was recently acquired by a bigger regional bank. I have a secured card with the small bank. I was told that the account number will remain the same but I will receive a new card in the near future with the new Bank name on it. My question, what happens to the TL on the credit report?

Does the tradeline simply get updated? Or do they close the previous tradeline and open a new one causing a reaging of the account. Because if it is the latter, I am ready to close this $500 account. It is charging me a $30 annual fee which I don't really like. No other benefit for the account as I have other accounts with the same age.

Usually the account just gets updated, rather than causing a reaging of the account. But there is no guarantee that it will play out that way. So you have a decision to make.