@Anonymous wrote:Hello,
I recently requested to upgrade my credit card with my credit union to get 1% Cashback instead of their common 0% rewards. It is my only non cap one MasterCard. I found out in order to upgrade they closed my account as a consumer requested to close account at 5 months of age and started a new line at 1 month now. What is my long term impact on credit score? I know the closed account will continue to report for many years but I am not sure.
I only upgraded to at least get some use out of it for if and when I use a MasterCard (possibly through plastiq) and just a card that has some good growth potential and and rewards. I needed to have a credit product to refi my student loans to build a better internal score.
If on a clean score card, one could get a new account penalty. If on a derogatory score card, no penalty.
New account will lower your AAoA Average Age of Account.
As long as the credit line is the same and doesn't negatively impact your overall utilization, there really won't even be much if any short-term impact as it appears that many of your accounts are newer. Long-term, the card will remain on your reports for up to 10 years, and will positively impact your average age of accounts.
