If you're looking to change things up with your credit cards, you might be wondering how to upgrade your credit card. In simple terms, this could mean either increasing your credit limit or upgrading your current card when your issuer launches a newer version. There are both pros and cons if you decide to upgrade your credit card, so it's important to factor in all the information when deciding whether it's the right next step for you.
What is a credit card upgrade?
Raising your credit limit is one way to upgrade your credit card. This means that the amount of money you're able to spend on your credit card increases. Another way to upgrade your credit card is by switching to a different card within your card issuer's portfolio. This means your new card would have different benefits and rewards, but might also come with a higher annual fee. If you are interested in upgrading your card, you should review the other cards on your issuer's website to find one that would be a better fit for your needs. Then, call your issuer to request the upgrade. One thing to consider is that if your upgrade is granted, you won't be eligible for sign-up offers as you're not a new customer. Additionally, be sure to ask your issuer what will happen to any current rewards you might have.
Does it hurt your credit to upgrade your credit card?
If you're thinking about upgrading your card it might be natural to wonder: “Does it hurt your credit to upgrade a credit card?" The short answer is no, it likely won't have any lasting effect on your credit score. If you were to upgrade your current card, there would be little impact to the credit history of the account. Increasing your credit limit may decrease your credit utilization percentage, which in turn could raise your score a few points. However, requesting a credit limit increase could require a hard credit check, which could cause a short-term dip in your score.
What to do with a credit card once you've upgraded
If you do decide to upgrade your credit card, it's important to securely dispose of your old card if a new one has been issued.
If you have a metal credit card, call your issuer to see if you can send your card back to them for proper disposal. Of course, before destroying or sending away an old card, be sure you've paid the balance off and canceled any recurring payments that might be scheduled automatically.
Deciding whether to upgrade a credit card is largely a personal decision. It could be something to consider if your account is in good standing, you have the means to pay a higher annual fee or you're looking for additional benefits and rewards, if applicable. If you have specific questions about upgrading your credit card, contact your issuer for more information.