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SkyOne Credit Card Dilemma

Avinion
Established Member

SkyOne Credit Card Dilemma

Hey guys!

 

I've had a credit card with my credit union, SkyOne, since I started rebuilding five years ago. It's a super basic classic visa, but it's a fixed rate card at 17%. Yesterday I requested a CLI, because my file has improved and I believe warrants a higher limit. I went fairly conservative for a CU and asked for $5k, which is double my current limit.

 

I spoke with a loan officer today about my request. He said SkyOne doesn't service my "dinosaur"(lol) card anymore and that if I wanted an increase, I would have to get a new card. He said I could get any card they currently offer, even with a better rate, but when asked he said that this would in fact be an entirely new account. In other words, this wouldn't be a PC and my four year old account would be closed.

 

I'm honestly not sure what to do here. Do I take the new card with actual rewards, a higher limit, and a better rate? Or do I hold onto my old card for the account age and credit history? He said they aren't forcing closures or switches yet, but it's something that could happen in the future.

2 REPLIES 2
FinStar
Moderator Emeritus

Re: SkyOne Credit Card Dilemma

The decision rests entriely up to you. A variety of CUs, especially smaller ones, do not have the system capability to change the product or increase the limit without creating a new account. Their systems treat it as a new origination -- very 'old school' but that's how some of them operate.

 

So, if the basis of your request was "because my file has improved and I believe warrants a higher limit."; then the question is, if your current limit is $5K, are you using at least 50% of your limit and on a frequent basis?  You mentioned it's a 'basic' card so I assume you're not placing most (of not all) of your spending on this particular card. Unless, you don't have any other cards that earn rewards at the moment.

 

If you're basing it on principle, then you can take the hit, see whether it yields a higher limit and upgrade to a rewards-type of product. The former card will be closed, but will remain on your CRs for up to ~10 years (give or take) so it won't impact your AAoA until it drops off. Or, you can let things be and keep the card as is.

Message 2 of 3
SoCalGardener
Valued Contributor

Re: SkyOne Credit Card Dilemma


@Avinion wrote:

Hey guys!

 

I've had a credit card with my credit union, SkyOne, since I started rebuilding five years ago. It's a super basic classic visa, but it's a fixed rate card at 17%. Yesterday I requested a CLI, because my file has improved and I believe warrants a higher limit. I went fairly conservative for a CU and asked for $5k, which is double my current limit.

 

I spoke with a loan officer today about my request. He said SkyOne doesn't service my "dinosaur"(lol) card anymore and that if I wanted an increase, I would have to get a new card. He said I could get any card they currently offer, even with a better rate, but when asked he said that this would in fact be an entirely new account. In other words, this wouldn't be a PC and my four year old account would be closed.

 

I'm honestly not sure what to do here. Do I take the new card with actual rewards, a higher limit, and a better rate? Or do I hold onto my old card for the account age and credit history? He said they aren't forcing closures or switches yet, but it's something that could happen in the future.


So you're currently using a $2,500 card that's four years old? And your only options are to close it and get a new account, or keep it and not get a better card? You can't do both? They won't let you keep it but also get a new, better card?

 

As for deciding what to do, it really is up to you--what your preferences are, how you'll feel about it going one way or the other, etc. A few years ago, two of my cards moved; it had something to do with Synchrony--one kept its original opening date, but the other didn't. I lost 5+ years of history because of that--and when I see its new age on my credit reports, it STILL bugs me! And it's been like three years! If you're going to be bothered by that--and you already know going in that this is what will happen (I didn't; I had no idea that one card would retain its original age but the other wouldn't)--take that into consideration.

 

If the benefits of closing the old card outweigh any negatives, I'd say go for it. Since you're aware now that you're stuck with a $2,500 CL on this card, that should be part of your decision making. If I had to choose.... hmmm.....  I *think* I'd go with the new, better card.

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