topic Re: Question about Account Change and CR impact... in Understanding FICO® Scoring

Question about Account Change and CR impact...

EaglesFan2006 — Thu, 30 Jun 2016 12:38:22 GMT

Hello,

I had a PayPal Smart Connect that they automatically converted to the PayPal Extras Mastercard...not action. Both accounts are appearing on my credit report. The SmartConnect says its closed due to Account Transfer. The PayPal Extras is reporting as being just opened 1 month ago. This is dinging my score pretty good...what's the best method to have this corrected?

Re: Question about Account Change and CR impact...

EaglesFan2006 — Thu, 30 Jun 2016 13:46:57 GMT

@EaglesFan2006 wrote:
Hello,

I had a PayPal Smart Connect that they automatically converted to the PayPal Extras Mastercard...not action. Both accounts are appearing on my credit report. The SmartConnect says its closed due to Account Transfer. The PayPal Extras is reporting as being just opened 1 month ago. This is dinging my score pretty good...what's the best method to have this corrected?

I did talk to PayPal and got a mixed bag of answers...one agent said it would change in 2 billing cycles, the other said it would remain as a new account. I finally spoke to a manager, who said that they were aware of the issue and were 'working to determine if a resolution' is possible. No idea how long that will take, but this is very discouraging...my score had a significant drop because of this and we have a major purchase on the horizon in early fall.

Re: Question about Account Change and CR impact...

RonM21 — Thu, 30 Jun 2016 22:18:50 GMT

Are you saying this is dinging your score due to both cards reporting? I

t interests me because a couple of years ago I was approved for a Walmart card, but somehow they had the wrong address. They closed that card, sent a new one. Then several months later, I was updated to a MC.

All 3 show on my report. The first one closed, no data, and the second says closed/transferred. Obviously the MC is current. I never thought about I that was a bad thing/.

Re: Question about Account Change and CR impact...

EaglesFan2006 — Fri, 01 Jul 2016 11:10:09 GMT

@RM21 wrote:
Are you saying this is dinging your score due to both cards reporting? I

t interests me because a couple of years ago I was approved for a Walmart card, but somehow they had the wrong address. They closed that card, sent a new one. Then several months later, I was updated to a MC.

All 3 show on my report. The first one closed, no data, and the second says closed/transferred. Obviously the MC is current. I never thought about I that was a bad thing/.

For me it's mainly because it's showing as the account having been opened only a month ago, so it's impacted my AAOA. And also both do appear.

Re: Question about Account Change and CR impact...

dabo1502 — Sat, 02 Jul 2016 03:26:40 GMT

@EaglesFan2006 wrote:
@RM21 wrote:
Are you saying this is dinging your score due to both cards reporting? I

t interests me because a couple of years ago I was approved for a Walmart card, but somehow they had the wrong address. They closed that card, sent a new one. Then several months later, I was updated to a MC.

All 3 show on my report. The first one closed, no data, and the second says closed/transferred. Obviously the MC is current. I never thought about I that was a bad thing/.
For me it's mainly because it's showing as the account having been opened only a month ago, so it's impacted my AAOA. And also both do appear.

My scores took a major hit too, actually, it was a tsunami! At the time it reported, I app'd for a Chase IHG, with 2 inquiries due to fall off the day in which I app'd; on top of that, I allowed 2 other cards to report a balance - still I had less than 2% credit reporting. Prior to all of these events, my EX (801); TU (804), EQ (794) dropped to the following: EX (776), TU (794), TU (792). The new IHG pulled EX and EQ. I hope there is truly a "course correction" in the offering. That's a 24 point drop!

Re: Question about Account Change and CR impact...

Anonymous — Sun, 03 Jul 2016 07:11:48 GMT

Sorry to say OP that first rep lied...It won't change for two reasons...It's an upgrade to a new tradeline when it went from a line of credit essentially to a major card...Any sync upgrades do this. The only bank so far I didn't experience that with was Citi my DH got an upgrade from the Best Buy SC to the Visa, I'm AU and the card hasn't arrived but it's reporting already on the first one as closed/transferred and the new one has the original start date and history on all my CRAs already.

Now I'm AU on my moms Gap and American Eagle store cards (both are Sync also) and they too got upgrades this summer and alongside the PayPal MC all are reporting as totally new accounts and the old accounts as closed/transferred. The new accounts have new start dates.

Re: Question about Account Change and CR impact...

EaglesFan2006 — Sun, 03 Jul 2016 13:02:53 GMT

I understand what you're saying, but that's garbage that they l wouldn't fix it. For one thing, none of this was initiated by me. This was automatically done, and I never even received a letter in advance that might have indicated that this was a potentially new TL with a new date. On top of that, the manager admitted that this was a process failure that they're looking into and would "resolve" for me. From what your saying, It sounds like they've been well aware of this for a while and aren't likely to do anything. But since I was told it would be fixed, I'll continue to hound them until they do so.

Sorry but to me this is completely unethical on their part.

Re: Question about Account Change and CR impact...

Anonymous — Sun, 03 Jul 2016 19:51:47 GMT

I agree it doesn't seem fair but you can check the forum for all the sync upgrades for the past few years, the upgrade reporting as a new account is out there, it's know to change your AAOA, it helps utilization since most activations result in a credit limit increase, but a lot of us can't really take the AAOA hit since it results in a drop, for me it wasn't bad since I tanked my AAOA rebuilding so the effect was really like 5 points down for me.