Green America Resources 

Switching to a new credit card may not be as onerous as switching to a new bank, but it can still be a process depending on how many automatic payments are on your current card.  

To switch to a new credit card, follow many of the same steps as breaking up with your megabank: 

1. Choose a new responsible credit card. 

2. Open a line of credit with your new card. 

3. Make a list of automatic payments on your old card. 

4. Move your automatic payments to the new card. 

5. Get or download copies of your old credit card statements. 

6. Make sure you have received and used any points, rewards, or cash back. 

7. Pay off your old credit card balance or transfer it to your new card. 

8. Close your old credit card account – or leave it open but stop using it. 

9. Tell your previous credit card issuer why you are leaving. 

10. Encourage organizations you are involved with to make the switch. 

Credit Rating 

Unlike your bank account, a credit card is essentially a loan, so switching credit cards may temporarily affect your credit rating. When you apply for a new card, the company will likely do a hard inquiry into your credit history, which could temporarily lower your credit score. Likewise, closing a long-held credit card may also temporarily lower your credit score.  

In the long run, however, how you use your new credit card is more important than switching to a new card for your credit rating. Taking these steps will help minimize any impact: 

• Get a climate-friendly card with a credit limit equal to or higher than your old card. 

• Do not use more than 30% of your credit limit on your new card – less is better.  

• Pay your credit card bills on time. 

• Follow these steps to cancel your old card – or keep it but stop using it.  

If you are planning a major purchase such as a new house, or if you are a renter looking to move soon, you might want to wait until these processes are complete before canceling a long-held or high-limit credit card. 

Sample Break Up Letter to Send to Your Megabank 

Need some help telling your megabank why you are switching to a new card?  Use our sample letter.  

FAQs on Green Credit Cards 

Before switching credit cards, many people have questions. Find answers to questions such as: 

• How does a community development bank or credit union benefit if I use their credit card? 

• If I end my airline credit card, will I lose my miles? 

• Can I use a responsible credit card overseas? 

Bank and Credit Cards Services Checklist 

Credit cards may offer a lot of different services. Our friends at This! Is What We Did have developed a checklist to help you determine which services are most important to you. 

Still need more help? 

This! Is What We Did offers Move Your Money Office Hours. Trained peer facilitators have daily 30-minute sessions that you can sign up for to ask questions and get personalized assistance in switching to a new bank or credit card. Sign up for a time here 

Next: Responsible Insurance 

Despite their position on the front lines of the climate crisis, many large insurance companies are canceling policies and raising rates, even as they continue to insure fossil fuel projects and invest in fossil fuel companies. Learn how you can find responsible home and auto insurance.  

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