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Switching Credit Cards: A Comprehensive Guide by O1ne Mortgage

At O1ne Mortgage, we prioritize your financial well-being and aim to provide you with the best advice to make informed decisions. Switching credit cards can be a strategic move to better align with your financial goals. This guide will walk you through the process, its impact on your credit score, and how to make the best choice for your needs.

1. Understanding the Impact on Your Credit Score

When you switch credit cards, often referred to as a product change, your account generally remains open. This means you keep the same account number, credit limit, and interest rate, but switch to a new card with different rewards, fees, and benefits. Here’s how it affects your credit score:

• Account Continuity: Your account history continues uninterrupted, which is beneficial for your credit score as it maintains the average age of your credit accounts.
• No Hard Inquiry: Since you’re not applying for a new credit account, there’s usually no hard inquiry, which means your credit score won’t take a hit.

2. What Happens to Your Old Card?

While some aspects of your account remain the same, there are significant changes to consider:

• Rewards: You generally retain your rewards if you switch between cards within the same rewards program.
• Interest Rate Offers: Promotional APR offers may be lost, and you might not be eligible for new offers with your new card.
• Cardholder Benefits: Benefits such as statement credits and airport lounge access may change immediately.
• Fees: New fees, including foreign transaction and annual fees, will take effect.

3. Browsing New Credit Cards

Before making a switch, it’s crucial to compare your options. Consider the following:

Does It Have a Different Annual Fee?

Switching to a card with a lower or no annual fee can be beneficial. However, be aware of potential restrictions during the first year and the possibility of losing rewards or bonuses.

Is There an Intro Offer?

Introductory offers such as promotional interest rates and bonus rewards may not be available when switching cards. Check if there are separate intro offers for product changes.

Will Switching Help You Avoid Restrictions?

Switching cards can help you navigate issuer restrictions on the number of cards you can hold or recent applications. This can be a strategic move if you’re eyeing a specific card.

4. Discussing Your Options with Your Card Issuer

Card issuers have different requirements and processes for switching cards. It’s best to call your card issuer to discuss your options. Use this opportunity to confirm:

• Whether there’s a hard inquiry
• If your account will be closed
• What terms or benefits will change

5. Updating Your Saved Payment Information

After switching cards, your new card will likely have a different expiration date and security code. Ensure you update your stored payment information on websites and services where you use your card for automatic payments to avoid missed bills.

Contact O1ne Mortgage for Your Mortgage Service Needs

At O1ne Mortgage, we are committed to helping you navigate your financial journey. Whether you need advice on switching credit cards or any other mortgage services, our team of experts is here to assist you. Call us today at 213-732-3074 for personalized support and guidance.

Conclusion

Switching credit cards can be a smart move to better align with your financial goals. By understanding the impact on your credit score, the changes to your old card, and carefully comparing new card options, you can make an informed decision. Remember, O1ne Mortgage is here to support you every step of the way. Contact us at 213-732-3074 for any mortgage service needs.

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