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MMMondayMemo: What is a product change?
Monday, ok Tuesday this week, Miles has decided to drop a tip, hint, tutorial, trick that maybe you’ve missed or haven’t heard before. If you’re an expert in this field, some of these may be things you already know, but there are a lot of beginners out there who are just getting their feet wet. This week the Monkey Miles Monday Memo focuses on understanding a product change and how that can be advantageous. MMMondayMemo: What is a product change?
So…What is a product change?
A product change is when you’ve had one credit card and you convert it into another. I recently utilized a product change with my Barclay Aviator Red by converting it into a Barclay Aviator. The new card loses all of the benefits of the original card and now assumes the new features from that point forward.
Why would you want to product change?
Save on annual fee ( Convert a high fee card to a fee-free card)
Preserve your depth of credit which helps keep a low Credit Utilization
- Low credit utilization equates to a higher score.
Lengthen your account history.
- By Product Changing you’re keeping your accounts open longer. Longer average history equates to a higher score
Specifically with Citi it would keep you under the One Open/Close every 24 month policy
- Citi limits a sign up bonus now to once every 24 months per family of card. That 24 month clock starts from the time you open or close an account. By product changing your card you aren’t technically opening or closing and thus allowing the clock to continue ticking.
With Chase you can product change to allow a new sign up
- Example: You’ve carried a Chase Sapphire Preferred for 24 months. Technically you’re now allowed to get the sign up bonus again, but you can’t carry two of the same card. You can product change that Sapphire Preferred into a Freedom, thus emptying your wallet of the conflict and allowing you to get a new card sign up again.
With Amex I have a strategy
- You can only get a new card sign up once in your lifetime, BUT they have been throwing upgrades all over the place. My thinking is if I were to sign up for a Amex Green or Product Change my Amex Plat to a Green I may get targeted to upgrade to a Gold. Since I’ve already received a sign up bonus for the Amex Business Gold I could only get points by upgrading to the card so I may try this in a year or so when the new annual fee hits.
Derek at Accountyourpoints.com wrote about using a Bank of America product change for free money. Who doesn’t like free money?