Want to Upgrade Your Credit Card? Here's the Best Way to Do It

Many of us carry several credit cards in our wallets. There may come a time when one of your credit cards no longer meets your needs, and you may decide to upgrade it to a different one that better aligns with your spending needs and goals.

Before you upgrade to a different credit card, take the proper steps to take advantage of the opportunity to earn bonus rewards if they're available to you. I'll share the best way to upgrade your credit card to a better alternative so you can earn more rewards.

Don't rush to upgrade through your credit card issuer

Most credit card issuers don't extend a welcome offer to cardholders who upgrade existing cards. That means you won't be eligible for a welcome offer if you call your credit card company and ask it to upgrade your current card or accept an upgrade offer through your existing credit card account.

Instead, the best approach is to complete a credit card application and apply for the new card you want. Be sure to use an application that mentions the welcome offer. Doing this will allow you to take advantage of the chance to earn bonus rewards.

This strategy is a wise way to maximize your credit card rewards. Earning more rewards can help you reach your redemption goals faster. When applying for a new credit card, keep in mind that you must meet the requirements to earn the welcome offer.

To qualify for a welcome offer, you'll also likely be required to meet the minimum spending requirements within a set timeline. Make sure you time out when to apply for a new card so you can easily meet the welcome offer spending requirements. Never spend beyond your means to earn a welcome offer. Otherwise, you could rack up costly credit card debt.

You can ask your card issuer if it will extend a welcome offer

While it's less common, some card issuers may extend a welcome offer to cardholders who upgrade their account to a different card. But you'll want to ask about this and verify the details before upgrading. If your card issuer doesn't offer this, applying for a new card is your best bet.

Review application rules and welcome offer restrictions

Before taking this approach, reviewing the credit card issuer's application rules is wise. Some card issues have application requirements that could make you ineligible for card approval.

One example is Chase's 5/24 rule. Consumers who have applied for five or more credit cards within the last 24 months could be automatically denied when applying for a Chase credit card.

It's also worth mentioning that some card issuers have welcome offer restrictions that apply to specific cards. You may be ineligible for a welcome offer if you received a similar offer recently. Look into such rules so you don't miss out on a valuable welcome offer due to ineligibility.

Get rewarded when you spend with your credit cards

You're missing out if you're not yet using rewards credit cards. You'll earn valuable rewards when you pay for everyday purchases with a credit card like this. Various rewards cards are available, like travel credit cards, cash back credit cards, and dining rewards credit cards.

When choosing a new credit card, pick one that fits your spending habits and aligns with your rewards goals. Check out our list of the best rewards credit cards to learn more.