Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
ljeana

0 Contributions
0 People Helped
When Costco and AMEX split, how will the cancellation of the AMEX credit card affect credit scores?
Costco and AMEX are severing their business relationship as of March 2015. My AMEX card will then likely be revoked. Since I use the card, but keep a zero balance monthly, how will this affect my credit scores, if AMEX cancels it? WOuld it be better if I cancel it? Or since it is the result of the split between the two companies, will there be no effect?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-10 of 10Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
2 Contributions
1 Person Helped
Most Helpful Response

Helpful to 1 out of 1 people

For about two months the new Visa card didn't show up on my credit report and it dinged my score significantly.  Just about a week ago it finally showed up, however, they completely messed up tranfering the account age.   The AmEx card was one of my oldest cards and the new Visa card had about 6 years lesser age.  So I've seen a partial recovery in my credit score, but I'm still seeing about a 10-20 point drop, instead of the 40+ point drop.

I now have to send an appeal request to all the credit agencies to fix this mistake by AmEx.  Neither AmEx nor Citi stated they could fix the issue at this point without going through an appeal via each credit agency.  This is a royal pain in the ***.

1 Contribution
1 Person Helped

Helpful to 1 out of 1 people

Costco closed our Amex card and sent us the new Citi card without us having to reapply. Unfortunately, when they closed the Amex, it hit our credit and dropped us down about 80 points. I am fuming mad! We have been working hard to get our credit in good shape to buy a home in the spring. I'm so disappointed with how this worked out. If it still affects our loan process, I'm going to be giving Costco a real big piece of my mind!

1 Contribution
1 Person Helped

Helpful to 1 out of 1 people

As Megaster mentioned, it ditched my Equifax credit score by around 20 points and Transunion score by 15. I only had 2 cards and this one major card I was using.

2 Contributions
0 People Helped

Costco Amex

Amex sent a letter stating that a new card ws automatically coming out to us.

1 Contribution
0 People Helped

Credit score

I didn't see an answer to your very specific question "how will this affect my credit scores, if AMEX cancels it?" from any of the responses. I found an article (link below) that may be helpful. 

Will The New Card Affect My Credit?

Usually, applying for a new line of credit can result in a “hard pull” on your credit report. But in this case, since no new credit is being issued, Citi says it will not pull a credit report as part of the account transfer process.

To confirm, Consumerist reached out to the three major credit bureaus — Equifax, TransUnion, and Experian — about how this transition would be reflected in customers’ reports. Neither Experian nor Equifax responded to our requests, while TransUnion referred us to the Consumer Data Industry Association, a trade group for credit reporting agencies.

Stuart Pratt, president and CEO of the CDIA, tells Consumerist that cardholders should see no adverse effect on their reports from the transition at Costco.

“Consumers shouldn’t worry about inquiries on their credit reports which result from the transition since these are considered ‘soft inquiries’ and they are not shared with subsequent lenders,” he explains.

A soft inquiry — such as account review inquiries made by your current lender relative to a current account relationship or the inquiry logged when you order your free report — are not reported to lenders or others requesting a consumer’s credit report.

https://consumerist.com/2016/04/06/will-costcos-switch-from-american-express-to-visa-affect-my-credit/

Reply by
Megaster

1 Contribution
4 People Helped
Helpful to 4 out of 4 people

My report on Credit Karma currently shows I have lost 25 points and I have a credit account closed. Of course it is my Costo AMEX credit account that got close. I have the CITI credit account but that is not showing up yet. I don't know what is going on but the transition from AMEX to Citi has not been as smooth as Costco promised.

Top Contributor
166 Contributions
192 People Helped

good question

Helpful to 1 out of 3 people

AMEX is a really good credit card company. I would contact AMEX to see what options they have to offer. Don't worry you'll be ok! I hope this helps!

Top Contributor
784 Contributions
298 People Helped

Helpful to 1 out of 3 people

Excerpt from an article I found:  AmEx says that it will offer a new type of card to holders of these co-branded accounts, though it isn’t yet providing specific details on when that will happen or what, if any, benefits those new cards will provide or what fees will be charged.

1 Contribution
0 People Helped

no infomation

Helpful to 0 out of 1 people

As of 3/20/15, I had no information from AMEX.  The local Costco store is still displaying AMEX  as Executive privileges ofer their Credi counter...

Top Contributor
784 Contributions
298 People Helped

Helpful to 1 out of 4 people

Amex will be sending letters out to all card holders. Canadian Costco only accepts Mastercard now I believe. I haven't heard or read what the United States Costco has decided to do. 

Reply by
ValiyaVeedan

7 Contributions
64 People Helped
Helpful to 2 out of 2 people

I called Amex, not once multiple times. They have told me following

1) We need to apply for a new card. It will lead to hard enquiry. 

2) OR you can cancel your card.

I felt this is odd, becasue I have been with Amex for 5 yrs now, it sounded as if they dont care for my business. I have about 30k line wiht them with 780+ score. Not sure why they dont consider to give a card without a hard enquiry.

Anyways, I am not ready for new amex with hard enquiry. I dont need it

Thanks!

Reply by
twatripp

2 Contributions
1 Person Helped
Helpful to 1 out of 1 people

I just got a letter from AMEX saying Costco Cards would be cancelled April of 2016.  They enclosed an application form which was just like one for a new customer.  Since I have been with AMEX since 1988, I find it amazing that they  would not just issue a new card.  I can't really see any reason to apply for a new one in view of their attitude.

1 Contribution
0 People Helped

AMEX COSTCO card cancellation

Helpful to 0 out of 2 people

I have applied for new AMEX CC (Blue Cash back) card. After I received this, I have called AMEX customer care and cancelled AMEX COST COST card which I have been using for past 3 years. I still dont have idea, whether does this cancellation will have impact on my Credit score. When I read online article, came to know that, its safe canceling card when there will not be much usage in future of this card and with having outstanding balance of 0. With such situation, credit score will not get impacted. 

Results 1-10 of 10Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.