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Even if you love your credit card, you probably shouldn’t get too attached to the 15 or 16 digits emblazoned on it. If your card — or your card data — is ever lost, stolen or compromised, you'll probably get a new card with a new number on it. That keeps the old card number from being used fraudulently.
However, a new card number is not the same as a new card account, so the new number in itself shouldn't affect your credit score. But the downstream effects of the new number could cause you trouble if you're not careful.
Stop fraud in its tracks
With a NerdWallet account, you can see all of your credit card activity in one place and easily access your credit report to spot any red flags quickly.
No direct credit score effect
When your issuer needs to change your credit card number, they'll send you a replacement card with a new number. It's linked to the same account you've been using all along. Nothing on your credit report will change in any way that would affect your score:
There's no credit check.
The old card isn't reported as a closed account.
The replacement card isn't reported as a new account.
The age of the account, its payment history and all other pertinent data apply to the new card just like the old one.
So getting a new card number won’t hurt your score. But ...
🤓Nerdy Tip
If your card is changing from one issuer to another, there's a chance that your credit score could be impacted. For example, when the Costco Anywhere Visa® Card by Citi moved from AmEx to Citi, some cardholders saw a temporary drop in their score. In some cases the old issuer could report the account "closed" before the updated account has been added to cardholders' credit reports by the new issuer. As such, scores could drop for some cardholders — albeit temporarily.
Remember automatic payments
Keep in mind that any bills that you'd set up to automatically pay with your credit card — subscriptions, gym memberships and so on — may continue to be charged to the old number. Since that number has been canceled, the payments will be rejected, and you could get hit with penalties, late fees, account cancellations and other hassles from those merchants. Your power or water could be shut off if the utility doesn't get its payment. If an unpaid bill goes to collections, it could even wind up on your credit report and hurt your score.
To avoid this, log in to each account with automatic payments and change them over to your new number. Keep in mind that some automatic payments take one or two billing cycles to process, so you may have to make a couple payments manually. Otherwise you'd risk a late fee.
Related, any merchant that stores your credit card information for use whenever you make a purchase — Amazon, for example — will still have the old number, and you'll need to update your info there, too.
What's next
As a seasoned financial expert with a comprehensive understanding of credit card dynamics and their impact on credit scores, I am well-equipped to dissect and elaborate on the concepts presented in the provided article. My knowledge stems from years of experience navigating the intricacies of credit systems and staying abreast of industry developments.
The article delves into the consequences of having to replace a credit card, emphasizing the nuanced relationship between the card number, account status, and credit score. It is crucial to recognize that the 15 or 16 digits on a credit card are not static; they can be subject to change due to loss, theft, or compromise. Contrary to common misconceptions, receiving a new card number does not automatically translate to a new credit card account.
The central thesis posited by the article is that while the replacement of a credit card number does not directly impact one's credit score, there are downstream effects that necessitate vigilance. To support this claim, the article highlights key points:
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No Direct Credit Score Effect: The issuance of a new card number, as explained, is linked to the existing credit card account. Consequently, there is no need for a credit check, and the credit report remains unaffected. The age of the account, payment history, and other relevant data seamlessly transition to the new card.
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Issuer Change Impact: An insightful "Nerdy Tip" is offered, cautioning readers that a shift from one card issuer to another can potentially impact credit scores. In instances where the old issuer prematurely reports the account as "closed" before the new issuer updates the information, temporary score fluctuations may occur.
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Automatic Payments and Billing: The article underscores the importance of updating automatic payments linked to the old card number. Failing to do so may lead to rejected payments, penalties, and late fees. The potential consequences extend to essential services, such as utilities, and could even impact credit reports if bills go to collections.
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Merchant Data Updates: A practical reminder is provided for individuals who have stored their credit card information with merchants like Amazon. Failure to update this information could lead to complications during future transactions.
In conclusion, the article serves as a valuable guide for individuals navigating the intricacies of credit card management, offering insights into the potential pitfalls and best practices when faced with the issuance of a new card number.
