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Switching Credit Cards: A Guide from O1ne Mortgage

At O1ne Mortgage, we prioritize your financial education and well-being. While this post may reference our partners, our goal is to provide you with an objective view to help you make the best decisions. For more information, see our Editorial Policy.

Did you know you can switch between credit cards from the same issuer without applying for a new one? This process, often called upgrading or downgrading, is broadly known as a product change. Switching to a card that better suits your needs can be a smart move, especially if you plan to close your current card. Here are five steps to consider before making the switch.

1. Learn How Switching Can Affect Your Credit Score

When you perform a product change, your account generally remains open. You might keep the same account number, credit limit, and interest rate, but switch to a new card with different rewards, fees, and benefits. This means:

• Your account history continues uninterrupted, which is beneficial for your credit score.
• Your balance and credit limit stay the same, so your credit utilization rate remains unchanged.
• There’s usually no hard inquiry, which means your credit score won’t take a hit.

2. Understand What Happens to Your Old Card

While some aspects of your card stay the same, significant changes can occur. Keep these points in mind:

• You generally won’t lose rewards if you switch between cards within the same rewards program.
• You might lose promotional APR offers, such as 0% APR on purchases.
• Your cardholder benefits could change, including access to airport lounges and statement credits.
• New fees may apply, including changes to foreign transaction, late payment, and annual fees.

3. Browse New Credit Cards

Consider your options before switching cards. Review the following:

• Annual Fees: Switching to a card with a lower or no annual fee can be beneficial. However, be aware of potential restrictions during the first year.
• Intro Offers: Many cards have introductory bonuses, but you might not be eligible for these when switching cards.
• Restrictions: Switching cards can help you avoid restrictions on the number of cards you can have or recent applications.

4. Call Your Card Issuer to Discuss Your Options

Card issuers have different requirements and processes for switching cards. Some may not allow switching at all, while others offer changes by invite only. Often, you’ll need to call your card issuer to discuss your options. Use this opportunity to confirm the process, including whether there’s a hard inquiry and what terms or benefits will change.

5. Update Your Saved Payment Information

If you switch cards, your new card will likely have a different expiration date and security code, and possibly a new card number. Some companies can automatically update your stored payment information, but it’s a good idea to double-check any websites or services where you use your card for automatic payments to avoid missing a bill.

For any mortgage-related needs, feel free to call O1ne Mortgage at 213-732-3074. We’re here to help you make informed financial decisions with confidence.

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