Switching between Citi bank cards

[aspentosh]

H's oldest credit card is through Citibank, but we don't really use it because the points system is pretty crappy. We got an email to switch to a new one that looks better so I was contemplating a switch.

But, do you all know, if you switch between cards does it:
1) ding your credit
2) effectively close your old one and open a new one

The only way I'd be willing to switch is if neither of these happened. We're not planning to buy anything that needs a credit check, and ours are both 800+, but with a 15y credit card with well over $30k limit I just don't want to risk it.

I guess I could call Citi but wanted to go the easier route first  

[ohgillian]

I don't think there's a definite blanket answer, which is probably why no one has replied. It seems like it depends on what your current card is and what you PC ("product change") to. Here's an article from Dr of Credit that might help:

www.doctorofcredit.com/product-changing-citi-card-result-new-card-number/

Is there a reason not to open a new card and just keep the old one also? Not all issuers close accounts for inactivity, but even so, you could get the old card out once a year or so to use it and keep it active.

Otherwise, I think you should just call and ask; if they say it would be a new account, decline to do it, hang up, and call back for a different CSR.

One last thing I'd say is that if you'd be switching from Visa to Mastercard, for example, I think that would definitely mean closing an account and opening a new one.

Hope that helps. aspentosh,

[kanga1]

If they won't just switch it to a different card I would just leave the original card open. I've got a Cabelas Visa that I opened in 2002 with a $17,000 credit limit. I rarely use it but still keep that one open as it is my longest open credit card. I will open and close others for the sign on bonus but always keep that Cabelas one just because of it's history.

[aspentosh]

Thanks guys.

ohgillian, that all makes sense. Appreciate the insight. It would stay Citi and would stay Mastercard. I'll give them a call.

I mainly don't want to open a new one because we have... a lot of credit available to us and have like 5 cards between us (our longest each, one for Costco, one for Target, and then another local store card) so I'd prefer not to have more. We pay off our cards each month that they are used but 6 just seems like a lot for two people, lol.

[k3am]

Your credit sounds similar to ours. But I don't think managing credit scores is a reason to make decisions. Have credit and use it wisely, yes, but making decisions based solely on how it effects your credit score? Nah.

Unless you're going to be shopping for a car loan or a mortgage in the near term, I'd just get the new card and maybe cancel the other. You'd take a temporary hit, but it won't be forever.

FWIW, DH has the same credit score as me, and he has NO credit cards in his name, he's just an authorized user on my cards. He cancelled a 15 year credit line because he didnt' want to be in charge of paying it.

If you're very concerned about your score, you can review your creditkarma score stimulator if you were to add/close an account.

[k3am]

FWIW, I just ran a credit stimulation on my own score.

Closing my oldest trade line, drops my score 12 points, with a low impact and a short time to recover.
Adding a new trade line of the same amount drops it 6 points, with a low impact and a short time to recover.

They used to let you stimulate doing multiple things at once, but I guess that feauture has changed. So even if I did both, my score would still be in the "excellent" range.

[mich1]

I have an old Citi card that I keep only because it is associated with about a 30 year credit history. I rarely use it, but I still spank it about every 6 months to keep it current. However, I really don't chase my credit score. I just use credit because it benefits me. I keep this old card around because I only have 4 remaining lines of credit that are solely in my name.

[aspentosh]

I just worry that with this being the oldest card (in his name, I'm authorized user) by over 6 years that closing it will be a hit. Maybe I have been so trained to think old card + high credit limit = keep open? lol

[k3am]

aspentosh, you'll take a hit, but it won't be a huge one, and it won't last forever. People have been brainwashed into thinking they need the absolute highest score possible, and it's not true. Anything in the "excellent" range will get you good rates. And if you're not shopping for new loans? It doesn't matter.

I look at credit reports frequently for work. The score itself means very little. We look at trends - payment history, deliquencies, collections, deragatory remarks, etc, but more importantly leverage. AKA how much debt does this person have compared to what they make. Some of the wealthiest people I've seen have some of the lower credit scores - because they don't use credit frequently. That doesn't make them a credit risk, that makes them a BETTER credit risk. People get too caught up in the NUMBERS in their credit score vs. the CONTENT of the credit report. I don't ever flinch when I see "paid/zero balance" or "closed at consumer request."

Mortgage lenders and credit card companies are more prone to relying on just a score, but if you've got excellent credit and you close your account.. you'll still likely have excellent credit.. just on the lower range of excellent.

I'm not saying go out and blow your credit score by being financially irresponsible, obviously, but if you want a card with better rewards and want to close out one that isn't giving you good rewards? Why settle for bad rewards?

[ohgillian]

Jan 31, 2020 13:52:39 GMT -5 aspentosh said:

I just worry that with this being the oldest card (in his name, I'm authorized user) by over 6 years that closing it will be a hit. Maybe I have been so trained to think old card + high credit limit = keep open? lol

I don't disagree, and that's why we haven't closed our oldest card (like from 1995). I just rarely use it because I do a fair amount of churning and even when I'm not churning, I'm using a baseline card with better rewards. But if you don't want an additional card, just get a new one even if you take a credit hit, unless, as someone said, you are in the market soon for a loan.