What to Expect When Your Credit Card Issuer Gets Purchased
Credit card issuer changes can catch you off guard, but being aware of the process can make it easier to navigate, protecting your account and your credit.
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Finding out your credit card company was purchased can make you feel a little nervous. Naturally, you have a lot of questions about what's to come. Will you keep your credit card? Will you have new terms? Knowing what to expect can help alleviate some of your fears and help you navigate the transition.
You'll receive a notice from your card issuer.
Make sure to watch your mail and email carefully for news about the transition. The notice will give you some important details about whether you'll keep your existing card (and for how long) or be issued a new one, the terms of the new agreement, and where to send your payments.
Expect to receive advance notice about changes to your online account access or potential interruptions to online and mobile banking during the transition. It may be worth logging into your existing account and downloading previous billing statements before you lose access to your old account.
If you're getting a new credit card, watch for it in the mail and look for instructions to activate it so you can start using it. Your old credit card will eventually be deactivated. Your new card will likely be comparable to your old one. For instance, if your old card offered flat-rate cash rewards with no annual fee, your new one should offer the same.
You may need to redeem rewards.
Your credit card rewards may not move to the new credit card issuer. Find out whether any credit card rewards will transfer to the new company or whether you need to redeem them by a certain date to avoid losing them. If your credit card rewards are part of another loyalty program, like airline miles on a co-branded airline credit card, your rewards should remain with that program.
You may need to change your card and payment information in a few places.
If you get a new credit card number—or even just an updated expiration date and security code—you'll need to update your payment information with any monthly subscriptions. Reviewing one of your previous billing statements can help you confirm your subscriptions so you don't miss any.
Be sure to update your card information in your mobile wallet and anywhere you have it stored for faster purchases, like online stores, ridesharing, or grocery delivery.
Add or change the details for your monthly autopay if you had it previously set up. Depending on how you set up autopay, you'll either log into your new online account to add your bank information or change the payment information with your bank.
Consider leaving your account open and using it periodically. Or, check to see whether your new card issuer has a more attractive credit card that you can switch or upgrade to—if you qualify, of course.
Moving Forward
Every bank acquisition is different, so it's impossible to know exactly how the process will unfold for you. Pay attention to notices you receive and reach out to your card issuer for any questions. It's a good idea to keep a backup payment method in your wallet during the transition so you have an extra option in case of any unexpected issues.
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LaToya Irby is a financial writer with over 14 years of experience. She's been quoted and published as a credit expert in several major publications including USA Today, U.S. News and World Report, TheBalance.com, and The Chicago Tribune.