What Happens to American Express Costco Card Credit Score
The American Express Costco Card was a popular credit card option for many consumers. However, in 2016, Costco announced that it would be ending its partnership with American Express and transitioning to a new partnership with Visa. This change left many cardholders wondering what would happen to their credit scores. In this article, we will explore the impact of this transition on credit scores and answer some frequently asked questions.
1. Will closing my American Express Costco Card affect my credit score?
Closing a credit card account can potentially have an impact on your credit score. When you close an account, it reduces your overall available credit, which may increase your credit utilization ratio. However, if you have other credit cards with a low utilization rate, the impact on your credit score may be minimal.
2. Do I need to apply for a new credit card after the transition?
Once Costco ended its partnership with American Express, existing cardholders were automatically transitioned to the new Costco Anywhere Visa Card by Citi. Therefore, you did not need to apply for a new card. Your account was automatically transferred to the new card.
3. Will my credit history with American Express Costco Card be transferred to the new card?
Yes, your credit history with American Express Costco Card will be transferred to the new Costco Anywhere Visa Card by Citi. This means that your payment history, credit limit, and account age will remain intact.
4. Will my credit score be affected by the transition to the new card?
The transition to the new Costco Anywhere Visa Card by Citi should not have a significant impact on your credit score. As long as you continue to make on-time payments and maintain a low credit utilization ratio, your credit score should not be negatively affected.
5. How long will it take for the transition to be reflected on my credit report?
Typically, it takes a few weeks for the transition to be reflected on your credit report. During this time, it is important to continue making payments on your American Express Costco Card until the transition is complete.
6. Can I still use my American Express Costco Card after the transition?
No, you cannot use your American Express Costco Card after the transition. Once the transition is complete, your American Express Costco Card will be deactivated, and you will need to use the new Costco Anywhere Visa Card by Citi for your future purchases.
7. Should I be concerned about my credit score during the transition?
While it is always important to monitor your credit score, you should not be overly concerned about the transition to the new card. As long as you continue to make timely payments and maintain a good credit utilization ratio, your credit score should remain stable.
In conclusion, the transition from the American Express Costco Card to the new Costco Anywhere Visa Card by Citi should not have a significant impact on your credit score. Your credit history will be transferred to the new card, and as long as you continue to make responsible credit decisions, your credit score should remain unaffected. It is important to monitor your credit report and ensure that the transition is accurately reflected. If you have any concerns or questions, it is always advisable to contact the credit card issuer for clarification and guidance.