Can I Combine Two Credit Cards From the Same Bank?

Many individuals manage multiple credit cards, often from the same bank. While banks do not typically merge two distinct credit card accounts into a single new one, specific actions can achieve similar financial goals. These actions involve adjustments to existing accounts rather than creating an entirely new, consolidated one.

Understanding Card Combination

The term “combining credit cards” often refers to distinct financial actions rather than a literal merger of two separate accounts.

Credit Limit Transfer

A credit limit transfer moves a portion or all of the available credit from one card to another card issued by the same bank. This reallocates the overall credit line without changing the total amount of credit extended by the bank.

Internal Balance Transfer

An internal balance transfer involves moving an outstanding debt from one credit card to another within the same financial institution. However, banks generally do not permit balance transfers between two credit cards from the same issuer, especially for promotional offers designed to attract new customers.

Product Change

A product change, also known as an upgrade or downgrade, allows a cardholder to switch their existing credit card account to a different product offered by the same bank. This could be a card with a different rewards structure or annual fee. In a product change, the existing account number and credit history usually remain intact. This differs from applying for a new card and closing an old one, as it typically avoids a new credit inquiry and preserves the account’s age.

Reasons for Pursuing Card Combination

Consumers explore combining credit cards from the same bank for practical financial management reasons.

Simplify Financial Oversight

Reducing the number of active accounts that need to be tracked and managed can help prevent missed payments or overlooked account details.

Optimize Credit Utilization

Optimizing credit utilization, the percentage of available credit being used, is another objective. By consolidating a higher credit limit onto one preferred card, an individual can potentially lower the utilization ratio on that specific card, which can positively influence credit scores. While the overall credit limit with the bank remains constant, strategically adjusting limits between cards can improve the appearance of individual card utilization.

Consolidate Debt

Individuals may seek to consolidate debt, aiming to move balances to a card with more favorable interest rates or promotional offers. Although internal balance transfers between cards from the same bank are generally not allowed for promotional rates, managing existing balances more efficiently can still be a goal.

Streamline Rewards Programs

Focusing spending on a single card can maximize the accumulation of points or miles within a preferred program.

Preserve Credit History

Transferring a credit limit from an unused account to an active one before closing the unused card can help preserve the total available credit and maintain a longer credit history.

The Process of Combining Credit Limits or Accounts

Initiating a request to adjust credit limits or change credit card products typically begins by contacting the bank’s customer service department. This can often be done by phone or through a secure message system within the bank’s online banking portal. When making the request, individuals should be prepared to provide account numbers for both cards involved and clearly state the desired action, such as a credit limit transfer or a product change.

The bank will review the request, assessing the cardholder’s account history and creditworthiness based on internal policies. Approval is not guaranteed and depends on the bank’s specific criteria, which can vary. Some banks may require a minimum period the accounts must have been open, or a card needing a zero balance for certain changes.

Upon approval, the bank will confirm the action, often through mail or an updated online statement. The timeframe for these changes to take effect can vary, ranging from immediate adjustments to a few business days. For instance, American Express allows some credit limit transfers online, while other banks might require a phone call.

Key Information to Consider

Before proceeding with a credit limit transfer or account product change, several factors warrant careful consideration.

Impact on Credit Scores

Altering overall credit utilization or closing an older account can influence credit scores. Credit utilization accounts for a substantial portion of scoring models, typically around 30% of a FICO score. Closing an older account can also reduce the average age of accounts on a credit report, which may temporarily affect credit scores.

Annual Fees and Interest Rates

A product change may lead to new annual fees or different interest rates on the new card. While some issuers might prorate annual fees during a product change, consumers should confirm this with their bank. Balance transfers, if permitted, often come with a fee, typically ranging from 3% to 5% of the transferred amount.

Rewards Programs

Rewards programs can be affected by a product change, potentially altering existing points or the earning structure of the new card. It is advisable to inquire about how rewards will be handled before making any changes.

Account History and Promotional Offers

Account history, including the length of credit history, is preserved with a product change, which is an advantage over closing an account. Any existing promotional offers, such as 0% APR periods, should be reviewed to ensure they are not negatively impacted by the change. Bank policies vary considerably, so direct communication with the issuer is necessary to understand specific terms and conditions.