Things You Should Know Before Upgrading Your Credit Card

Information verified correct on September 27th, 2016

When you find yourself climbing swiftly in your career, you may also find that you need a credit card that will allow you to make the purchases that are necessary and that may reflect your new economic standing.

Upgrading a credit card is easy enough to do but you will have to consider what you need from your card.

If your circumstances have changed and you need an upgrade then there are a few things that you should first think about. You need to understand exactly what your new needs are before you enquire about making a switch. Once you have that information, you can figure out how to upgrade.

Your current credit card issuer may have special discounts that you can benefit from. Usually a provider will have standard, silver, gold, and platinum credit card offers. If you are now earning more money then you could be looking to upgrade to a silver, gold, or platinum credit card. Upgrading a credit card does have its downsides however.

One of the potential disadvantages to upgrading is that there will usually be increased annual fees. Platinum credit cards in particular can have high annual fees of over $100. However, as you are earning more money it could be worth paying this extra fee. After all, you will receive plenty of rewards and exclusive offers if you do upgrade.

You should get a good understanding of what the next upgrade is. Look on your creditor’s website and see which cards they currently offer. That way, you will get a good idea of which one is most suited to you and you can enquire about that particular upgrade.

One thing to keep in mind is that even if you are currently earning more money, you still might not be able to upgrade. Have you paid all of your monthly repayments on time? Do you have bad credit history? Both of these things will make a difference to whether you are accepted for an upgrade.

Upgrading a credit card often gives you a higher credit limit. If you are not a responsible borrower then the creditor is unlikely to give you more money!

How to Upgrade your Credit Card

If you would like to upgrade your current credit card then you should first contact the issuer. Explain to them your new circumstances and they should tell you which type of card you are now eligible for. Platinum cards are the most exclusive and they do typically require you to earn quite a high minimum annual salary in order to qualify for one.

You may not even have to call your credit card provider. You might be able to upgrade online. Log on to the website and see whether there is an option to apply for their silver/gold/platinum cards online. Usually it will ask you whether you are a current customer of the company and if you are the application process will be sped up.

If you do call the company, they will be able to tell you exactly what offers they can give you. If they don’t have anything that you like the sound of then don’t worry – you can always apply for an upgrade with a different lender.

There may be several reasons why someone may want to upgrade. You may have received a promotion and want to increase your buying limit or maybe you simply want to have the ability to purchase more if you need to. Regardless of your circumstances, if you are reliable cardholder and you make your payments on time then you are more than likely able to gain access to a better credit card. Here are some things you will need to do in order to upgrade your card.

  1. Contact your credit card provider – Your credit card provider will probably not offer you an upgrade to your current card right out of the blue. So, the perfect choice is to contact them directly and let them know of your intentions to change your card up to the next level.
  2. Identify what type of card you want – There are many different types of cards that are available. There are standard cards, silver cards, gold cards and finally, platinum cards. These cards have a range of benefits. Some will have rewards programs that you may have particular interest in or maybe there are some complimentary insurances you have wanted to include in your credit card plan. Whichever the choice, be sure the card you are seeking has the features you are in need of.
  3. Fill out an application, if needed – The easiest way to upgrade your credit card is to go directly to your credit card provider and ask them up front for the next level card. If this proves to be unsuccessful then you could apply through another provider. You may find that your current provider asks you to apply directly with them. The reason for this may be that your payment history leaves them with some questions about your reliability. The stronger your credit, the better options you will have. It is important to be a responsible credit card user.

If you follow these steps, you will more than likely be able to get your hands on a better card. If you know exactly what you need, you will be able to better express to the credit card company the type of card that you are looking for. Upgrading a credit card is a piece of cake if you know precisely what to do.

Overall upgrading your credit card can be a good idea as long as you know what you are letting yourself in for. It’s easy to apply for an upgrade and upgraded credit cards do come with many more benefits than a standard one.

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2 Responses to Things You Should Know Before Upgrading Your Credit Card

  1. Default Gravatar
    Don | October 24, 2014

    I got an offer to upgrade my credit card to platinum one , does this affect my credit scores?

    • Staff
      Elizabeth | October 24, 2014

      Hi Don,

      Thanks for your question.

      Every time you open a new credit account it will appear on your credit file, as will any changes to your credit limit, but it shouldn’t negatively impact your credit score.

      I hope this has helped.

      Thanks,

      Elizabeth

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