"Be Careful When Converting"

PayPal Extras Credit Card® Review
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Written by: roughdraft on 2016-09-28

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roughdraft's review: I've card the Paypal smart connect account since 2011. It started with around $800 and about twice a year I had been getting automatic CLI's to the point of about $6000 where it is now. Using a Paypal debit card and with the smart connect account as backup funding, I was able to use the credit line anywhere I wanted. Earlier this year I recieved a letter saying that my card was upgraded to the Paypal Extras credit card. I accepted the offer. The benefits seemed good and they change their promos a lot to where you get $25 cash back when you spend $75, and such. Well, I checked my credit score last month and it had dropped about 19 points. I couldn't tell why until I noticed that on my credit report, Syncrony is reporting my Smart Connect credit line as closed and my Paypal Extras as a new account. Had I known, I would've left it the same. Now it's bringing down my average age so I will most likely have to close it. Just giving everyone a heads up if you ever decide to upgrade your card. Was very happy with the smart connect account, by the way.

8 Comments

Comment 1 by wanderer
Re: Be Careful When Converting on 2016-09-29

Glad you shared your experience. Note, closing it will not offset what already happened at the credit bureaus so if it serves your needs you already have taken the CB hit. Might as well enjoy the change. Understand your surprise. Chase change accounts for me only to find one account showed closed with another new one showing opened and yes, the CB score took the hit.
Comment 2 by roughdraft
Re: Be Careful When Converting on 2016-09-29

Thanks Wanderer! Yes, the damage has been done already. I guess I want to close it to spite them, but also I don't use this card for much. The interest rate is high and the only real advantage is it has a pretty good credit limit, should I need it but I want to scale down to just 5-6 cards that I use on a regular basis. That's for the tip with Chase. I have been contemplating doing a product change with Citi. I have one of their old cash back cards, but I'd rather not risk it for fear of it looking like I closed my oldest account.
Comment 3 by wanderer
Re: Be Careful When Converting on 2016-09-29

Roughdraft my experience with doing product changes with Citi is they write over the previous credit card at the CBs saving the credit history. Works well and it is like I just keep on "Truckin" with my credit history. Done the P/C with Citi at least three times with no problems..
Comment 4 by breakinger
Re: Be Careful When Converting on 2016-10-01

I switched over to this card a few months ago and I was wondering, at the time, why my credit score lowered. I had no idea that it was because of this card switch. How long do you think it will take to recover from this? My score has been really good so it seems like it won't take too long to be back up to where I was previously.
Comment 5 by roughdraft
Re: Be Careful When Converting on 2016-10-02

Yeah, isn't that a bummer, Breakinger! It just depends on the average age of your accounts. It will come back slowly. See, for me, this was one of my oldest cards so my average comes down significantly. The older your average, the higher your score, but it depends on the scoring system. This is the reason why you want to open credits cards one at a time, or stop opening new accounts altogether once you've found some that you like. I didn't have a single inquiry in the last two years and my newest card is just over 2 years old, so by closing this one, it should bring my average back up a little. Not to the old average because I've lost 6 years worth of credit history, but at least I won't have one card counting for just one year. I guess I have to look at my credit report and calculate my average with and without this card. If closing it brings it up just six months or so, it's not going to make a big difference to my score, but if the average becomes much higher, say, a 1.5 years or more, it would be worth closing to me. Just remember that this will bring down your available credit as well, if you were carrying balances.
Comment 6 by wanderer
Re: Be Careful When Converting on 2016-10-02

Roughdraft ... you could close the account but the new account opening and inquiry will remain and their effects to your score will remain. Note, closing a reporting good account could remain for ten years as a positive and with time the inquiry has less affect on your score (told starting at around six months with almost no affect after one year). Your score improves but it is all about time.
Comment 7 by roughdraft
Re: Be Careful When Converting on 2016-10-03

Thanks Wanderer! You always have great advice to offer. Wasn't aware that the average also took closed accounts into configuration. I always assumed it was only based on open accounts. I don't think they did a hard pull, it's just reporting as a new account for now. Either way though, I don't have much use for this card and the APR is still a store card APR so I tend not to use it very much.
Comment 8 by russnaudreymiller
Re: Be Careful When Converting on 2019-06-01

You should be able to dispute the fact that they closed one and opened the other without your consent (unless it’s in fine print) they’ll remove the closed one from your reports
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