Originally Posted by
benc2008
Seattlenerd - They automatically upgraded me to a new Signature card, and told me that I can still charge my Platinum card. I was told the Signature card is being mailed to me.
1) Does this mean that since they automatically changed my card to Signature that I won't get the 20k miles from Alaska Airlines?
2) Should I not activate or cancel my Signature card? Will doing this allow me to apply for a new Signature card and get the 20k miles?
3) I didn't really understand your post on how the Signature card affects negatively on my credit rating - can you elaborate?
I honestly can't address the 20K miles part of your 1) and 2); I don't know, since I already had a VISA Signature for which I got the miles when I was sent an "upgrade" VISA Signature (my second) for my VISA Platinum.
Here's the answer to 3), however: Bank of America does not report a credit limit to the credit reporting agencies for a VISA Signature. They DO report a credit limit for a VISA Platinum or VISA Platinum Plus. Since part of your credit score is based on your "credit utilization" (lower use of your total credit available is better for your credit score), not having your limit reported can hurt you. Here's how:
On a VISA Platinum, you had a $20,000 credit limit but never had more than a $5,000 balance. You only utilized 25% of your available credit.
On the replacement VISA Signature, you were told you still had a $20,000 limit but BofA now never tells that to the credit bureau, per standard Signature policy; they only tell them the highest balance you've ever had on the new card (not how much you had available). So if you have a $5,000 balance and never use more credit than that, you are using 100% of your available credit.
The second situation is perceived as you are maxing out your available credit.
If you haven't activated or used your Signature and this is a concern (it is not for everyone), I'd suggest contacting and asking for a VISA Platinum Plus instead. It will still change your credit card number (unavoidable), but will also still report a credit limit to the credit reporting agencies.