How to Upgrade a Credit Card
Updated
If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
If you want to take a step up in the credit card world, it may be time to upgrade a credit card. This is a simple way to swap your credit card for a new one with more perks -- without having to actually apply for a new card.
A credit card upgrade has its benefits, but there are also some notable drawbacks. Here's a complete look at how to upgrade a credit card and decide if it makes sense for you.
Upgrading a credit card is when you change your current credit card to a better card in the card issuer's lineup. This typically means you get a new card with better benefits, a higher rewards rate, and a more expensive annual fee.
You could also upgrade a secured credit card, which requires a security deposit, to an unsecured credit card. If your card issuer lets you upgrade your secured card, then your security deposit will be refunded.
The technical term for an upgrade is a product change, which covers both upgrades and downgrades. Downgrading a credit card is a move in the opposite direction, often done to save money on a card's annual fee.
When you're ready to upgrade a credit card, it boils down to two simple steps:
Your card issuer will then approve or deny the upgrade request. If the old and new credit cards are both aimed at consumers in the same credit score range, then you have a good chance of approval.
It may be more difficult if you're trying to upgrade to a card with stricter application requirements. The most common example would be upgrading from a secured to an unsecured card. Secured credit cards tend to be the easiest cards to get. If you previously only qualified for a secured card, you'll need improved credit and a solid payment history to upgrade to an unsecured card.
The benefits of upgrading a credit card are:
The drawbacks of upgrading a credit card are:
You should consider upgrading your credit card if you want to move up to a card in the same product line without a new credit card application. Just make sure you won't miss out on a high-value introductory offer in the process.
Here are a few examples of when it's a good idea to upgrade a credit card.
If the credit card you want has a sign-up bonus, it's usually better to apply for it instead of upgrading. These bonuses offer so much value that you shouldn't pass them up. If there's no introductory offer you're interested in, then an upgrade is the better choice.
Upgrading a credit card won't affect your credit score as long as the card issuer doesn't perform a hard credit check. Most card issuers don't, in which case you can upgrade your credit card without any impact to your credit.
To see if your card issuer will perform a hard credit check to upgrade your card, you can contact the company to ask. Even if your issuer does, a hard credit check lowers most consumers' FICO® Scores by less than five points, so it won't be a big drop.
After you upgrade a credit card, your old credit card should continue to work. The card number usually doesn't change, so you could continue using the old card if you wanted to.
The more secure decision, however, would be to destroy your old credit card. You can do this with a pair of scissors if it's a plastic credit card. If it's made of metal, the card issuer will handle the disposal process -- just ask for a prepaid envelope so you can mail it back.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.