Credit Card / Store credit card (Kohls) changing to Capital One Visa
I have had a Kohls Store credit card for 20+ years and I have not used but for a few Christmas purchases in the last 10 years. I got tired of all the rules and reward program got to complicated. There is no fee for the card. I received a notice last week that the card is being changed to a Kohls Visa card via Capital One, which would allow me to use the card other places then Kohls but I really don’t want it at all. I called and tried to cancel it being sent and they said I had to receive the Capital One Visa first then can cancel. Since I have had the card a long time I don’t want to affect my credit rating. What is the best solution? Should I even activate it if I don’t intend to use it? I am sure many listeners are in the same situation. Seems to be a new trend with store cards.
Terry Says
Store cards are either upping their finance charges to 30 percent, or “selling” their inactive customers to major card issuers in a co-branded deal that relieves them of billing costs and gives them a cut of the interest charged.
It remains to be seen whether the new Capitol One Kohls Visa will list your “beginning date” as the date you first held that card. If it is your oldest card, you probably want to hang on to it as longevity is a key component of your credit score. And you’ll have to check your credit report at www.AnnualCreditReport.com to see how they list the new card’s “starting date”.
If there is no annual fee, you can keep it. But if they are charging, you’ll have to decide whether it’s worth the few extra points on your credit score if you cancel. And if you’re not planning to buy new insurance, refinance your mortgage, etc, it shouldn’t be an issue.
