Merged Credit Card Accounts

Anonymous · ‎08-20-2009

Good Morning All!!

Quick question here... I have two low limit credit cards with HSBC (Orchard Bank) that I got in order to start rebuilding my credit. One had an annual fee and the other offered a rewards program with no annual fee. Long story short, I put in a request to have the two lines of credit merged, keeping the card with the rewards program open, and closing the card with the annual fee. Everything went through and the two accounts became one. However, I have a couple questions for you very helpful people on this message board...

1.) Will the annual fee from the closed card transfer to the new card?

2.) My % util is lower now that I have a higher limit card, but the other account is being reported as closed. How will this effect my credit score? (The closed card does have a balance on it, but I submitted the full payment yesterday.)

And info would be most helpful!

Thanks!! :-)

AndySoCal · ‎08-20-2009

The annual fee will not transfer because it not in the terms of account that has the points. On your second question I am confused. When they combined the accounts did they increase the credit limit too?

My % util is lower now that I have a higher limit card, but the other account is being reported as closed. How will this effect my credit score? (The closed card does have a balance on it, but I submitted the full payment yesterday.)

FIC Scores XPN v8 805 V2 831 (SDFCU) TUC V 8 800 07/25 EFX Bankcard v8 822 EFX FIC0 v8 807 Vantage score 4.0 817 via JC Penney
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Anonymous · ‎08-21-2009

Thanks for the response! Yes, they raise the limit...sort of... They took the limit on the closed account and added it to the open account. I hope that makes sense...

jackg · ‎08-21-2009

Iira,

I suspect that you could be free from the AF.

Your % of utilization has not changed because when you close an acct the CL disappears.

If the CL from the acct you closed was transferred to the acct you left open I think you can assume that your score will not change, assuming nothing else changes, because you have the same amount of debt and available credit.

Something that is strongly advocated here, for future reference, is never close an account with a balance due. The reason is that the creditor, HSBC & CRAP 1 more so than others, does not care about updating closed accts., so if you paid it in full it probably will be awhile before they report it. If I were you I would start calling them today to campaign for that update. Make a pest of yourself, squeaky wheel ya know.

FICO scores on November 17, 2014 (prior to applying for and being approved my mortgage)

EX=738
EQ=735
TU=754

FICO scores on March 4, 2015 after being approved for mortgage and buying the home, the mortgage isn't yet reporting.
EX- 689 EQ- 739 TU- 739