Ghost cards

What happens to your store cards when the store is no more

Thousands of brick-and-mortar stores are expected to close their doors this year. But just because a store turns out the lights, it doesn't necessarily mean the end of your store credit card.

Its fate depends on the retailer and the bank that issues the card. Here’s a bit more on what might happen to your card, and more importantly, your credit:

1Online only You may have to shop online to use the card. If a store moves sales online only, you can continue using your private-label store credit card on its website and making your payments online, by phone or mail. Of course, this also means you may incur shipping costs. If your card is co-branded, it should still be accepted by most merchants.

2New card The card issuer offers you a new credit card. When a retailer goes out of business entirely, the rewards program eventually goes with it. Most issuers will attempt to find a replacement product or reward value proposition for the customer, said David Boone, head of U.S. partnerships at TD Bank.

3Closed card The issuer closes your card. You store card may be shuttered completely along with the store. In this case, you might be notified about a rewards expiration date. Private-label credit cards are more likely to be closed because they can't be used anywhere else.

4Card sold The issuer sells your credit card account. Most banks would prefer to retain relationships with existing customers, Boone said. But the issuer does own your debt and can therefore sell it to another issuer.

If that happens, the new issuer is required by federal law to alert you to any significant changes to the terms with a 45-day advance written notice, according to Nessa Feddis, senior vice president for consumer protection and payments at the American Bankers Association. Credit impact Regardless of what happens to your favorite store, you must continue making payments on your card or risk damaging your credit score.

Your credit can suffer if you or the issuer close the account, but the impact depends on how long you've had the card and how much of its available credit you're using. Both are factors in popular credit-scoring models.

If an issuer closes your account, check your credit report to make sure it's documented correctly.

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