Credit Card Changeover - What Impact on Credit?

[cynicredit]

I know you're not supposed to cancel your oldest line of credit, but...

When banks switch credit brands, does it hurt you?

My CU (PenFed) called and said they are no longer going to use Visa, instead they are transferring to AMEX. So, they are cancelling the Visa as of the end of the month and have already created an AMEX account for me (with same credit limit as the old Visa) and I have to let them know by the end of the month if i want it. Well, I don't want it...because there is an annual fee and if I get an AMEX I'd rather get the COSTCO one.

My concern is if this will negatively impact my credit. I might accept the AMEX it carries over with the 10 years I've had the account. On the other hand, if the clock starts over then there's no point at all in accepting the AMEX!

My old Visa is fully paid off and I used all the promo points.

Any advice is appreciated!

[chane]

Yes, it will probably hurt your credit a little bit, but if it's positive it will stay on indefinitely. So, it will be a positive account, it just won't be active.

[cynicredit]

Originally Posted by chane

Yes, it will probably hurt your credit a little bit, but if it's positive it will stay on indefinitely. So, it will be a positive account, it just won't be active.

Thanks - So, you don't think there is any advantage in accepting the AMEX that would offset the fact that I don't want it?

...I just knew this would inevitably have an impact somehow; sucks since it's not through any fault of my own.

[chane]

No, not really, it will be a different account number and reported as a new account.

[cynicredit]

Originally Posted by chane

No, not really, it will be a different account number and reported as a new account.

That's what I figured.

One last question....should I just let them cancel the visa at the end of the month or should I call and cancel it myself? Which is better for my credit?

Thanks

[chane]

It's won't make that much of a difference, but you are probably better off calling them, closing it and having them state that it was closed as your request.