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On Oct. 11, 2019, Walmart’s huge bank card portfolio is because of transition from Synchrony to Capital One. And for current Walmart cardholders, this main change raises an enormous query: Will altering issuers have an effect on my credit score?

The brief reply: In all probability not, due to credit score reporting conventions that issuers comply with.

A transition of account possession doesn’t usually have a big impression on an individual’s credit score historical past or credit score scores if any in any respect,” Rod Griffin, director of client training and consciousness at Experian, one of many three huge credit score bureaus, mentioned through e mail.

Whereas Capital One and Synchrony each declined to remark straight on whether or not cardholders’ credit score scores can be affected within the change, right here’s what to learn about these kind of transitions, together with what the issuers did say.

Not thought of ‘an utility for credit score’

When Walmart bank cards transition from Synchrony to Capital One, current cardholders will get a brand new card and new rewards — however they received’t have to use for it and it received’t be handled like a brand new account.

That’s excellent news should you’re searching for a mortgage or auto mortgage, for instance, and attempting to keep away from dips in your credit score scores. While you apply for credit score and issuers pull your credit score experiences in the midst of making a call, it typically triggers a tough inquiry, which might quickly ding your credit score scores.

However in circumstances like these, the place you’re not actively opting in for modifications, you shouldn’t get hit with a tough inquiry.

“The transition of the account to Capital One won’t be thought of an utility for credit score,” Daniel Mouadeb, senior vice chairman and head of the Walmart partnership at Capital One, mentioned in an e mail when requested when if the transition would set off a tough inquiry.

Two entries, similar open date

When Walmart cardholders have a look at their credit score experiences after the change, they will anticipate it to be a bit longer than earlier than.

“There might be two tradelines on the credit score report — the previous Synchrony account and the brand new Capital One account,” Lisa Lanspery, senior vice chairman of public relations at Synchrony, mentioned in an e mail. A tradeline is a credit score account reported to credit score bureaus that features particulars about your fee historical past.

Though the brand new Capital One Walmart bank card will present up in your credit score report as a separate tradeline, the details about when your account was opened might be reported with the identical date offered by the earlier issuer, Capital One confirms.

For instance, should you opened your Walmart bank card in January 2017, the brand new Capital One tradeline in your credit score report would additionally present that you just opened the account at the moment. That’s reassuring for longtime cardholders involved about dropping their card’s historical past within the transition. Size of credit score historical past is among the many main components that decide your credit score scores.

It’s additionally according to credit-reporting conventions. Underneath the present reporting format, issuers are required to report accounts which have been bought with the identical “open date” and fee historical past as reported by the previous lender, assuming the previous issuer converts cardholders’ account historical past to the brand new issuer’s system. Moreover, the earlier issuer is required to report such an account as bought.

In such transitions, “the common age of accounts would seemingly not change,” Griffin of Experian says.

The place to search for assist

When an enormous bank card portfolio strikes from one issuer to a different, the transition might be extremely difficult. There’s an opportunity you would possibly run into some hiccups — or maybe one thing about how your account is reported simply doesn’t make sense to you. However when two issuers are concerned, which one do you have to flip to for assist? It relies upon.

“Cardholders ought to contact the establishment who reported the credit score information,” Mouadeb mentioned through e mail. “For details about the Capital One account on their credit score file, they need to contact Capital One.”

Likewise, “any questions relative to account reporting previous to the switch might be dealt with by Synchrony,” Lanspery of Synchrony mentioned in an e mail.

Remember that through the first few days of an enormous transition, customer support strains is likely to be overwhelmed. Until your query is pressing, think about calling at a later time; you would possibly be capable of get a quicker reply.

NerdWallet employees author Kimberly Palmer contributed to this text.

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