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What happens when retail cards change banks?

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rgd51
Frequent Contributor

What happens when retail cards change banks?

I have the chase amazon visa and have been reading the rumors that it could be leaving chase. I have never experienced it before but if it goes to another lender what happens to my chase account? Does it get closed with no option to PC to another chase card? Does a new account with the new lender hit my CR? Does an HP hit my CR as well? I know these answers aren't fully known yet for this card but I know that retail cards can switch lenders and I'm sure numerous people on this site have experienced that so was hoping someone could describe what happens.

Message 1 of 10
9 REPLIES 9
chiefone4u
Established Contributor

Re: What happens when retail cards change banks?


@rgd51 wrote:

I have the chase amazon visa and have been reading the rumors that it could be leaving chase. I have never experienced it before but if it goes to another lender what happens to my chase account? Does it get closed with no option to PC to another chase card? Does a new account with the new lender hit my CR? Does an HP hit my CR as well? I know these answers aren't fully known yet for this card but I know that retail cards can switch lenders and I'm sure numerous people on this site have experienced that so was hoping someone could describe what happens.


Typically, if the new lender buys the portfolio from the previous lender; the account and it's history transfer to the new lender (usually shows old lender closed account, and new lender populates the old account history with new lenders name and information). This doesn't result in HP.

 

If the new lender doesn't buy the old lenders portfolio,  the old lender may offer a product change/create new product to keep the customer or close the account depending on customer's history with old lender and current credit score. This option can, but doesn't always require a HP. 

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Message 2 of 10
rgd51
Frequent Contributor

Re: What happens when retail cards change banks?

Would the new account with the new lender appear on my credit report as a new account where I get dinged on my score for a new account and it negatively affect my average age if the account was younger than my average age?

Message 3 of 10
Ficoproblems247
Valued Contributor

Re: What happens when retail cards change banks?


@rgd51 wrote:

Would the new account with the new lender appear on my credit report as a new account where I get dinged on my score for a new account and it negatively affect my average age if the account was younger than my average age?


No, it will appear as the account with the new lender will have been open since the date your originally opened your card, thus not dinging you with a new account penalty or negatively effecting your AAoA. Your payment history from the original lender will appear no differently on the new lender's reporting. 





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Message 4 of 10
Brian_Earl_Spilner
Credit Mentor

Re: What happens when retail cards change banks?

It depends on the lenders and the deal they've made.

 

Wayfair: some users had their accounts closed, some had their cards converted to a Cashback MasterCard. Mine was converted, there was no change to my reports other than card type.

 

PlayStation Visa: comenity did a hard pull when my account was moved to them. Other than that, only lender name changed on reports.

 

Walmart/Williams Sonoma: most have no changes other than name, but some people were upgraded from retail to open loop cards. Since Williams Sonoma hasn't finished, we don't know if there will be hard pulls. Also, as with other deals, there's a chance that only part of the portfolio will move to the new lender leaving some with the old.

 

There's no way to answer your question specifically as we do not have the details of the deal or lender policies.

 

 

    
Message 5 of 10
SoCalGardener
Valued Contributor

Re: What happens when retail cards change banks?


@rgd51 wrote:

I have the chase amazon visa and have been reading the rumors that it could be leaving chase. I have never experienced it before but if it goes to another lender what happens to my chase account? Does it get closed with no option to PC to another chase card? Does a new account with the new lender hit my CR? Does an HP hit my CR as well? I know these answers aren't fully known yet for this card but I know that retail cards can switch lenders and I'm sure numerous people on this site have experienced that so was hoping someone could describe what happens.


It depends.

 

I had a Walmart Dual Card and a JCPenney Mastercard, both of which got sold in 2019. WM went to CapitalOne and turned into a Capital One Walmart Rewards Mastercard, JCP went to Synchrony and became a JCPenney Gold Mastercard. They show identical 'closed' dates. BUT, the CapOne card kept the old card's history/age, while the Sync card did *NOT*. I even contacted them at the time to see if they could change that, but they said no. So I lost 5+ years of history and there was nothing I could do about it.

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Message 6 of 10
FalconSteve
Valued Contributor

Re: What happens when retail cards change banks?


@rgd51 wrote:

Would the new account with the new lender appear on my credit report as a new account where I get dinged on my score for a new account and it negatively affect my average age if the account was younger than my average age?


Usually, no, but this can technically vary (not that I have every seen a younger date). I have even seen both banks keep the account and the AAoA get older once (that was trippy).

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Message 7 of 10
FinStar
Moderator Emeritus

Re: What happens when retail cards change banks?


@SoCalGardener wrote:

@rgd51 wrote:

I have the chase amazon visa and have been reading the rumors that it could be leaving chase. I have never experienced it before but if it goes to another lender what happens to my chase account? Does it get closed with no option to PC to another chase card? Does a new account with the new lender hit my CR? Does an HP hit my CR as well? I know these answers aren't fully known yet for this card but I know that retail cards can switch lenders and I'm sure numerous people on this site have experienced that so was hoping someone could describe what happens.


It depends.

 

I had a Walmart Dual Card and a JCPenney Mastercard, both of which got sold in 2019. WM went to CapitalOne and turned into a Capital One Walmart Rewards Mastercard, JCP went to Synchrony and became a JCPenney Gold Mastercard. They show identical 'closed' dates. BUT, the CapOne card kept the old card's history/age, while the Sync card did *NOT*. I even contacted them at the time to see if they could change that, but they said no. So I lost 5+ years of history and there was nothing I could do about it.


Just a point of clarification on SYNCB.

 

Whenever upgrades occur (store versions to network V/MC versions) the store card is closed (not sold) and a new [V/MC] account is created. This is an important distinction because JCP credit cards have been with SYNCB for a very long time (through their many iterations and rebrandings going back to GECRB/GEMB) so they weren't sold.  FWIW, the JCP MC upgrades were limited to a select number of cardholders and not all store versions qualified for the MC [upgrade] version. Prior to GEMB, JCP credit cards were with Monogram Bank before that portfolio was sold, and before that, they were their own in-house entity.

Message 8 of 10
JNA1
Valued Contributor

Re: What happens when retail cards change banks?


@FinStar wrote:

@SoCalGardener wrote:

@rgd51 wrote:

I have the chase amazon visa and have been reading the rumors that it could be leaving chase. I have never experienced it before but if it goes to another lender what happens to my chase account? Does it get closed with no option to PC to another chase card? Does a new account with the new lender hit my CR? Does an HP hit my CR as well? I know these answers aren't fully known yet for this card but I know that retail cards can switch lenders and I'm sure numerous people on this site have experienced that so was hoping someone could describe what happens.


It depends.

 

I had a Walmart Dual Card and a JCPenney Mastercard, both of which got sold in 2019. WM went to CapitalOne and turned into a Capital One Walmart Rewards Mastercard, JCP went to Synchrony and became a JCPenney Gold Mastercard. They show identical 'closed' dates. BUT, the CapOne card kept the old card's history/age, while the Sync card did *NOT*. I even contacted them at the time to see if they could change that, but they said no. So I lost 5+ years of history and there was nothing I could do about it.


Just a point of clarification on SYNCB.

 

Whenever upgrades occur (store versions to network V/MC versions) the store card is closed (not sold) and a new [V/MC] account is created. This is an important distinction because JCP credit cards have been with SYNCB for a very long time (through their many iterations and rebrandings going back to GECRB/GEMB) so they weren't sold.  FWIW, the JCP MC upgrades were limited to a select number of cardholders and not all store versions qualified for the MC [upgrade] version. Prior to GEMB, JCP credit cards were with Monogram Bank before that portfolio was sold, and before that, they were their own in-house entity.


I never had a credit card in my life until 2018, but I did have a PayPal credit account that I opened in 2002. I used it to buy some stuff to take advantage of the 0% financing on eBay when my oldest daughter was a baby, but I never used it again. IIRC, it was backed by GE Capital Services? and at some point it became Synchrony. 

I never checked or kept up my credit reports until 2018, and that account was closed at some point (I assume due to lack of activity?) 

Looking back, if I wasn't a credit dummy, I would kept that account open and it would be almost 20 years now! 🙈🤷‍♂️😂

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Message 9 of 10
SoCalGardener
Valued Contributor

Re: What happens when retail cards change banks?


@FinStar wrote:

@SoCalGardener wrote:

@rgd51 wrote:

I have the chase amazon visa and have been reading the rumors that it could be leaving chase. I have never experienced it before but if it goes to another lender what happens to my chase account? Does it get closed with no option to PC to another chase card? Does a new account with the new lender hit my CR? Does an HP hit my CR as well? I know these answers aren't fully known yet for this card but I know that retail cards can switch lenders and I'm sure numerous people on this site have experienced that so was hoping someone could describe what happens.


It depends.

 

I had a Walmart Dual Card and a JCPenney Mastercard, both of which got sold in 2019. WM went to CapitalOne and turned into a Capital One Walmart Rewards Mastercard, JCP went to Synchrony and became a JCPenney Gold Mastercard. They show identical 'closed' dates. BUT, the CapOne card kept the old card's history/age, while the Sync card did *NOT*. I even contacted them at the time to see if they could change that, but they said no. So I lost 5+ years of history and there was nothing I could do about it.


Just a point of clarification on SYNCB.

 

Whenever upgrades occur (store versions to network V/MC versions) the store card is closed (not sold) and a new [V/MC] account is created. This is an important distinction because JCP credit cards have been with SYNCB for a very long time (through their many iterations and rebrandings going back to GECRB/GEMB) so they weren't sold.  FWIW, the JCP MC upgrades were limited to a select number of cardholders and not all store versions qualified for the MC [upgrade] version. Prior to GEMB, JCP credit cards were with Monogram Bank before that portfolio was sold, and before that, they were their own in-house entity.


Thanks for this info.

 

Because my memory is fuzzy, I cannot accurately explain this, but somehow the WM and JCP cards were related, and were closed/transferred simultaneously. As noted earlier, they show identical 'closed' dates on my reports. The mailings telling me about their closures were identical. So when I saw that the JCP account lost its entire history, but the WM card retained its, I called and asked about getting that restored, but was told it wasn't possible. Now, based on what you're saying, it's starting to make better sense!

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Message 10 of 10
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