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What happens to TL during a transfer?

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Empires
Established Member

What happens to TL during a transfer?

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. 

Message 1 of 17
16 REPLIES 16
GatoradeZeroGuy
Valued Contributor

Re: What happens to TL during a transfer?


@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. 

Starting FICO 8:

Current FICO 8:

1/6, 5/12, 12/24

Message 2 of 17
Empires
Established Member

Re: What happens to TL during a transfer?

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

Message 3 of 17
FireMedic1
Community Leader
Mega Contributor

Re: What happens to TL during a transfer?


@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.


Message 4 of 17
SUPERSQUID
Valued Contributor

Re: What happens to TL during a transfer?

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

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Message 5 of 17
longtimelurker
Epic Contributor

Re: What happens to TL during a transfer?


@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.

Message 6 of 17
Kforce
Valued Contributor

Re: What happens to TL during a transfer?


@longtimelurker 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.

Message 7 of 17
Kforce
Valued Contributor

Re: What happens to TL during a transfer?


@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  Smiley LOL

Message 8 of 17
UncleB
Credit Mentor

Re: What happens to TL during a transfer?

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.

Message 9 of 17
IntegerIntrovert
Frequent Contributor

Re: What happens to TL during a transfer?

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



EQ - 809 / TU - 817 / EX - 817

Message 10 of 17
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