Costco to stop taking AMEX cards

  • Thread starter Thread starter jmoney74
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A lot of Amex cards are charge card so the rate hike does not affect them.  However the rate increase affect the credit card holders and the rate are close to 13%!! 

If you have an American Express credit card, carries a balance and pay the absurd 13% interest rate, you're a dummy.




 
Looks like my next credit card will be a Costco Citi Visa.  Hopefully Citi can handle the transition well, cashing in my annual rebate check at Costco has always been a highlight. 
 
This deal means that you can use any Visa at Costco right? The Citi membership one will have the Costco benefits attached but I think I can use my Southwest Visa (yes... 99%er card).

Maybe SPG will brand a Visa one too. :)
 
let's hope they will accept any Visa Card and if so I will apply for BOA's cash rewards CC; with platinum honors I get 75% bonus cash rebate -> 5.25% gas, 3.5% grocery and 1.75% everything else.

perhaps will try to covert Citi Double Cash MasterCard to Visa, 0.25% more cash back at Cosco....
 
irvinehusky said:
Looks like we'll automatically get a replacement Citi Visa card for Costco?  That'll make it painless.  Hopefully, same benefits and rebates?

>>> The retailer expects the existing portfolio to be sold, spokesman Bob Nelson said. When that happens, existing Costco members will have their new cards sent to them.

>>> ?The details of that will come out down the road,? he said.

http://www.latimes.com/business/la-fi-costco-visa-20150302-story.html
Click to expand...

going to cancel my AMEX after this.. I don't shop at Costco enough to really reap benefits but would be nice to roll up everything into my VISA card.
 
BUT when they automatically send you a new card, will they run a credit check? (Most likely)

[quote author=irvinehusky linked=topic=12730.msg254005#msg254005 date=1425416276]
Looks like we'll automatically get a replacement Citi Visa card for Costco?  That'll make it painless.  Hopefully, same benefits and rebates?

>>> The retailer expects the existing portfolio to be sold, spokesman Bob Nelson said. When that happens, existing Costco members will have their new cards sent to them.

>>> ?The details of that will come out down the road,? he said.

http://www.latimes.com/business/la-fi-costco-visa-20150302-story.html
[/quote]
 
I'm not sure I understand what you are asking?  Will they run a new credit check on a member before sending him/her a replacement Citi Costco card?  If anybody's been charging up a storm and not paying on time then they shouldn't get an automatic replacement.  :P  Just good business?  Or, are you thinking that the additional credit check might affect someone's credit score and shouldn't be done automatically?  Either way, if I don't have to line up to take my picture again, it'll be o.k.  I want to keep reusing my younger picture.  :P

eyephone said:
BUT when they automatically send you a new card, will they run a credit check? (Most likely)
Click to expand...
 
1. I wish they give me an option to get a new card or not.
2. It is industry standard to run a credit check before issuing a credit card.
3. Regarding your picture. It is what it is.
4. I want my credit spotless for BP. ;)

irvinehusky said:
I'm not sure I understand what you are asking?  Will they run a new credit check on a member before sending him/her a replacement Citi Costco card?  If anybody's been charging up a storm and not paying on time then they shouldn't get an automatic replacement.  :P  Just good business?  Or, are you thinking that the additional credit check might affect someone's credit score and shouldn't be done automatically?  Either way, if I don't have to line up to take my picture again, it'll be o.k.  I want to keep reusing my younger picture.  :P

eyephone said:
BUT when they automatically send you a new card, will they run a credit check? (Most likely)
Click to expand...
Click to expand...
 
If a credit card is going to change your chances for bp... You wont stand a chance.
 
one credit check will not kill your score. The more important question is does it change the age on that trade line. If the age resets, your score is going to be adversely effected. Likewise, closing the Costco AMEX card will affect your average age of account, and your credit utilization rate. For the latter usually it is adverse as your utilization rate would be higher. the former obviously depends on the age of your Costco AMEX card relative to all your other credit cards.

eyephone said:
1. I wish they give me an option to get a new card or not.
2. It is industry standard to run a credit check before issuing a credit card.
3. Regarding your picture. It is what it is.
4. I want my credit spotless for BP. ;)

irvinehusky said:
I'm not sure I understand what you are asking?  Will they run a new credit check on a member before sending him/her a replacement Citi Costco card?  If anybody's been charging up a storm and not paying on time then they shouldn't get an automatic replacement.  :P  Just good business?  Or, are you thinking that the additional credit check might affect someone's credit score and shouldn't be done automatically?  Either way, if I don't have to line up to take my picture again, it'll be o.k.  I want to keep reusing my younger picture.  :P

eyephone said:
BUT when they automatically send you a new card, will they run a credit check? (Most likely)
Click to expand...
Click to expand...
Click to expand...
 
eyephone said:
2. It is industry standard to run a credit check before issuing a credit card.
Click to expand...
Not without your consent.  If they are selling the portfolio, as the article indicates, then it should include the history you have with Costco/Amex, including the original credit verification, your credit line and payment record.
 
daedalus said:
eyephone said:
2. It is industry standard to run a credit check before issuing a credit card.
Click to expand...
Not without your consent.  If they are selling the portfolio, as the article indicates, then it should include the history you have with Costco/Amex, including the original credit verification, your credit line and payment record.
Click to expand...

Um - a bank is not going to issue you a credit card before checking your credit. So when you apply for a credit card you consent for them to run a credit check. You tell me what bank will issue a credit card without running a credit check. (Don't give me a sub prime rate credit card)
 
If a bank assumes your account, I don't think they check your credit.

When BofA took over MBNA, the next time my card renewed, I got a BofA card (and I don't think they ran my credit). When banks buy your mortgage loan, do they re-run your credit?

This may not be the same happenstance but it sounds like Citi is going to buy the Costco Amex portfolios.
 
eyephone said:
daedalus said:
eyephone said:
2. It is industry standard to run a credit check before issuing a credit card.
Click to expand...
Not without your consent.  If they are selling the portfolio, as the article indicates, then it should include the history you have with Costco/Amex, including the original credit verification, your credit line and payment record.
Click to expand...
Um - a bank is not going to issue you a credit card before checking your credit. So when you apply for a credit card you consent for them to run a credit check. You tell me what bank will issue a credit card without running a credit check. (Don't give me a sub prime rate credit card)
Click to expand...
Now we have the answer.
Citi has announced that it will be sending out its new Costco Anywhere Visa credit card, beginning in May. The card is replacing the TrueEarnings Card from Costco and American Express. The bulk retailer ended its long-term exclusive partnership with Amex back in March 2015.

You won't need to apply for the new card and Citi won't be pulling your credit report as part of the account transfer process. (In other words, you don't need to worry about a hard inquiry dinging your credit score.) You can continue using your Amex card in stores until June 19. After that, you'll need to have your new Citi card ready to go to shop at Costco stores or online. Citi said on its website anyone who changed their address since applying for the card should call the number on the back to update their contact information.
Click to expand...
http://finance.yahoo.com/news/citis-costco-credit-card-coming-170000900.html

Amex must be hurting over this, unless they can get a lot of existing customers to convert.  I've been getting a lot of offers to replace my Costco Amex.  No thanks.  Even if they only got 1% from merchants for what I charge, they will be losing hundreds of dollars a year from me alone, which will now go to Citi.
 
eyephone said:
1. I wish they give me an option to get a new card or not.
2. It is industry standard to run a credit check before issuing a credit card.
3. Regarding your picture. It is what it is.
4. I want my credit spotless for BP. ;)

irvinehusky said:
I'm not sure I understand what you are asking?  Will they run a new credit check on a member before sending him/her a replacement Citi Costco card?  If anybody's been charging up a storm and not paying on time then they shouldn't get an automatic replacement.  :P  Just good business?  Or, are you thinking that the additional credit check might affect someone's credit score and shouldn't be done automatically?  Either way, if I don't have to line up to take my picture again, it'll be o.k.  I want to keep reusing my younger picture.  :P

eyephone said:
BUT when they automatically send you a new card, will they run a credit check? (Most likely)
Click to expand...
Click to expand...
Click to expand...

You can just cancel your Costco Amex if you do not want the new card.  I am sure you can call Citibank to tell them not to send you a new card.

You don't have to use the Costco Visa...you can use any Visa card at Costco starting on 6/20.
 
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