Upgrade Card vs Credit Card

[Anonymous]

If I was to get the Upgrade Card will my fico score decrease exactly the same as if it was a credit card. I don't plan on using the card. There's a CK $400 promo that requires to simultaneously open a checking acct and making 3 debit transactions to get the bonus.

[Kahnawake007]

Yes, it will act just like a credit card. I get the idea of churning, but signing up for a checking account, Just for a $400 SUB through CK doesn't sit right with me. 

$400 sounds nice, but at what cost to you? Can't say it's free when it will impact your credit score, you will most likely not receive that money until about 8 weeks later. So you have to keep that account open at least until you get that. And then when you stop using the card and they shut it down and close the account, you will get a little ding on your credit report again, just the same as if paying off a loan. But now that you have opened and closed an account in such a short period, other card issuers and loan places see that as a red flag and can deny you as they think you will treat them like that too.

My two cents says stay away from CK products to begin with. Also, read the fine print. How long do they say it takes to get that 400? What form, is it like a cashback check? Some version of rewards points? 

If you're trying to build credit, chasing SUBs through institutions you have no plans to stay with isn't the way to do it. 

[FinStar]

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@Anonymous wrote:

If I was to get the Upgrade Card will my fico score decrease exactly the same as if it was a credit card. I don't plan on using the card. There's a CK $400 promo that requires to simultaneously open a checking acct and making 3 debit transactions to get the bonus.

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It will in the sense that it will reset your AAoYA and there will be an AAoA hit whether you use it or not. By how many points? No one knows. It's the risk vs reward you'll have to evaluate when churning things.

[akaFettHutt]

Was given a SL 20960(weird like Citi). Itching to apply only because there's currently a $400 promo. I know to avoid interest just make a payment as soon as the charges post.

[FireMedic1]

Go donate your plasma for 1 month and save a life for more than that. Credit file saved too.