If you think you’ve outgrown your current credit card and you’re shopping around for a replacement, consider upgrading instead. Many credit card issuers will let you switch to a better card with minimal effort.
Below, we’ll explain what you need to consider before you upgrade, and how to do it if you decide it’s right for you.
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What does it mean to upgrade a credit card?
Upgrading a credit card means switching your card for another one that’s better in some way. For example, it might have a lower credit card APR, a higher credit limit, or more rewards.
When you upgrade, you’ll receive a new card, which will have different terms than your old one. However, most of the time, it’ll still have your old card number, and your issuer will consider it the same credit account.
Is it also possible to downgrade a card?
Yes, you may also be able to downgrade your card. This refers to trading it in for a card with fewer rewards, but lower fees.
This is a good idea if you’re not using your card enough for its rewards to outweigh what you’re paying to keep it open.
Should I upgrade my credit card or get a new card?
If you’re in the market for a better credit card, there are reasons you might want to upgrade—but also solid reasons to just apply for a completely new card. We’ll cover both the pros and cons of upgrading below.
Advantages of upgrading
There are three main advantages to upgrading your card instead of getting a new one:
1. It’s easier than applying for a new card
Upgrading your card is less hassle than applying for a new one, especially a card from a different issuer. There will be fewer forms to fill out, as your current issuer already has a lot of your information on file.
2. You can often transfer your rewards
If you’ve earned any rewards (such as points) on your credit card, you’ll often be able to transfer them over when you upgrade. Conversely, if you apply for a card from a different issuer, you won’t be able to do this, so you might end up wasting your rewards on the old card if you aren’t ready to cash them in just yet.
3. It protects your credit score
In general, upgrading is better for your credit score than applying for a new card. There are two reasons for this.
- The length of your credit history: The average age of your credit accounts affects your credit score—the older your accounts are, the better your score will be. Opening a new card lowers your average credit age and hurts your credit score, which isn’t a problem when you upgrade an existing account.
- Hard inquiries: When you apply for a new card, you’ll receive a hard inquiry, which is a type of credit check that temporarily lowers your score by a few points. When you upgrade your card, the card issuer will probably only perform a soft credit check, which won’t hurt your score.
It’s worth noting that the damage from opening a new credit card is relatively minor and short-lasting. Definitely take your credit score into consideration, but don’t worry too much if you decide to get a new card instead of upgrading.
Disadvantages of upgrading
Upgrading a card also comes with two significant disadvantages:
1. No welcome bonuses
Many cards offer welcome bonuses in the form of cash back or other rewards. You’ll receive your bonus when you spend over a certain amount in the first few months after opening the card.
You can only earn welcome bonuses by opening new cards; you generally won’t be eligible for one when you upgrade a card you already had. This makes upgrading a less attractive option.
That said, some cards also offer bonuses when you upgrade them as well. Unfortunately, these “upgrade bonuses” are rarer than welcome bonuses (and are typically smaller, too).
2. No reduced-APR intro offers
Many new cards, especially ones for people with good credit scores, come with reduced-APR introductory periods. While this period lasts, you’ll pay less interest if you carry a balance on your card (or even no interest at all; there are a few credit cards with 0% APR periods).
You probably won’t be able to get a reduced-APR offer by upgrading, so factor this into your decision if you have a large purchase on the horizon and you want to pay back the money over time.
How to upgrade your credit card in 6 steps
If you decide you want to upgrade, follow these steps:
1. Contact your credit card issuer
Start by calling your credit card company. You can find their number on the back of your card. Alternatively, check their website to find their customer service information.
Note that if you have a branded credit card (one that’s associated with a retailer, such as Amazon), you should call the bank that issues the card, not the retailer.
2. Ask about upgrading
The credit card upgrade process varies from one issuer to another, so ask about the following:
- Which cards you’re eligible to upgrade to, if any (and how these cards are better than the one you have)
- Whether the issuer will perform a hard inquiry when you upgrade
- Whether your fees and interest rates will change and, if so, how
- Whether anything else will change if you switch cards
We’ll explain the first point (how your issuer will decide what cards you’re eligible for) in more detail further down in this article.
3. Negotiate a deal
Negotiate with your card issuer for the best possible offer. Ask them if they’ll:
- Give you an introductory bonus: As mentioned, welcome bonuses are usually reserved for new cardholders. However, it doesn’t hurt to ask whether your issuer will make an exception and give you one. The worst they can do is say no.
- Increase your credit limit: Ask for a higher credit limit on your upgraded credit card. This will let you make larger purchases and will also benefit your credit score.
4. Decide whether an upgrade is better than a new card
Next, decide whether upgrading your card will be better than signing up for a new account, considering the offer you just got and the pros and cons listed above. It’ll often boil down to which matters more to you:
- Your credit score: If your main priority is protecting your credit score from hard inquiries and other damage, you should probably get an upgrade.
- Getting a sign-up bonus: On the other hand, if getting a lucrative welcome bonus is a bigger priority, you should get a new credit account.
Spend some time shopping around before you decide—don’t limit yourself to looking at cards from the same issuer.
5. Pick the card you want and confirm the upgrade
If you decide to upgrade, tell your issuer that you’re ready to move forward. Occasionally, they may perform a hard inquiry, but it’s more likely they’ll perform a soft inquiry (which won’t affect your credit score).
Assuming there’s nothing in your credit file that alarms them, they’ll confirm the upgrade.
6. Wait for your new card to arrive
At this point, all you really have to do is wait. Your new (upgraded) card should arrive in the mail within a week or two. If it doesn’t, call your issuer to check on it.
What to consider when picking a credit card to upgrade to
When you’re picking a card, consider the following:
1. Which cards you’re eligible for
Certain cards may be off-limits when you’re upgrading (or downgrading). The cards you can get depend on:
- How long you’ve had your card: One major restriction is that you need to have had your current card for more than 1 year before you can upgrade to one with a higher annual fee, as there’s a law that prohibits issuers from allowing such upgrades too quickly. 1
- Your card’s family: Many issuers have “families” of cards. You may only be able to upgrade or downgrade within your current credit card’s family. For example, if you get credit card rewards in the form of airline miles, you may only be able to upgrade to other cards that also have miles rewards programs, and not to cards that offer cash back or points.
- Your credit and finances: Your credit card company will look at your credit score, spending habits, and overall financial health. The better your credit history and finances, the better the cards you’ll be able to upgrade to.
The last factor is particularly important if you’re hoping to switch from a secured credit card to an unsecured one (a secured credit card is one that requires you to pay a security deposit as collateral).
Unsecured credit cards are much riskier for lenders, so to get one, you’ll need to prove that you can manage your credit responsibly.
Again, ask your credit card issuer which cards are available to you.
2. Annual fees
When you’re considering your upgrade options, you may notice that they have higher annual fees than your current card, particularly if they also offer better rewards to compensate.
If this is the case, you have to decide whether the added benefits justify the extra cost.
3. APR
Before upgrading, check what the APR is on the cards you have in mind (i.e., how much interest you’ll pay each year if you carry a balance from month to month).
Note that the purchase APR—which tells you how much interest you’ll pay on typical purchases—may differ from the APRs for credit card cash advances and balance transfers.
4. Rewards
Before you upgrade, review the different types of rewards cards your issuer offers.
Make sure that your upgraded card will maximize your rewards earning potential without you having to change your lifestyle. For example, if you hardly ever travel, a travel rewards card is obviously a bad choice.
5. Other added benefits
Many credit cards include other perks, like free insurance (e.g., travel insurance and cell phone insurance), travel assistance, free foreign transactions, and free access to your credit score. These benefits could save you money in the long term, so be sure to factor them into your decision.
