How to upgrade your credit card

Credit card rewards, features, benefits and annual fees change from time to time. It pays to evaluate your credit cards on a regular basis to determine if you should upgrade any of them. One major way to do so is with a product change, which allows you to change your account to a different card with the same issuer.

We’ll explain how to upgrade your credit card, reasons why it might make sense and the pros and cons.

How to upgrade your credit card

There are several different paths you can take to upgrade your credit card. These five scenarios explain how the upgrade process works for customers in a variety of situations.

1. Upgrade to a premium version

Many credit cards have multiple versions offering various levels of benefits, earning power and annual fees. Customers may start out with a lower version until they need more premium benefits or rewards and can afford to pay a higher annual fee. Here are a few examples of cards and their premium versions:

These are not the only upgrades that may be available if you have one of the cards on the list, but are rather our takes on which options make the most sense if you want a more premium card with similar features. 

To start the process, contact your issuer’s customer service team by phone or secure message. Explain to them what version you want to upgrade to and accept the terms of the new card. This is called a product change. Note, unless you’re targeted for an upgrade bonus, you won’t receive a welcome bonus by going this route.

2. Upgrade to a different type of card

Some banks allow customers to change card types when upgrading credit cards. You may be able to switch from a cash-back card to a travel rewards card, for example.

As with the process for upgrading to a more premium version of your current card explained above, this is a product change. And you typically won’t receive a welcome bonus.

This upgrade route also requires contacting customer service to start the process. In some cases, the customer service agent may help you pick a new card based on your goals and spending habits.

Be aware that whether you can do this depends on your issuer. Some issuers only allow you to upgrade or downgrade within the same “family” of cards — for example, from one cash-back card to another.

3. Apply for a new card and close the old one

Since converting your existing card to another card doesn’t earn a welcome bonus, you’re missing out on a big opportunity to earn rewards. Applying for a new credit card with the same bank allows you to enjoy the more premium benefits you’re seeking and earn a welcome bonus at the same time.

Once approved for your new card, you’ll close your existing credit card. Before closing the old card, ask your bank to transfer its credit limit to your new card. This will help minimize the impact on your credit score since credit utilization is 30% of your FICO Score — and a higher credit limit means lower utilization as long as your spending doesn’t increase.

Be aware that applying for a new card will in most cases generate a hard inquiry, which can drop your credit score by a few points. By contrast, upgrading your card through a product change as described earlier typically does not result in a hard inquiry.

4. Get a new card from another bank

Your current bank may not offer credit cards that have the earning power, benefits or type of rewards that you’re looking for. When this happens, evaluate options from other banks to find the best credit card for your needs. This also enables you to earn a welcome bonus from this new credit card.

Once you’ve found your new card, complete your application. After approval, you can cancel your old card or keep it to continue taking advantage of its benefits.

5. Graduate from secured to unsecured

When you’re using a secured credit card, which requires you to submit a security deposit to the issuer in the amount of your desired credit limit, it’s ideal to eventually upgrade to an unsecured credit card and get your security deposit back. Some banks review your usage, credit history and other factors and will automatically upgrade you to an unsecured card if they determine you’ve demonstrated that you can manage credit responsibly. For example, Discover starts automatic reviews of your eligibility after seven months with the Discover it® Secured Credit Card * The information for the Discover it® Secured Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. .

Many secured cards include free credit scores each month so that you can track your progress. Additionally, they often provide free credit education resources to learn positive financial and credit behaviors. If you think you’ve improved your credit and may qualify for an unsecured card, but your security deposit hasn’t been automatically refunded yet, you can try contacting your issuer and requesting an upgrade.

Not sure where your credit stands? Here’s how to check your credit score.

What does it mean to upgrade?

When you upgrade your credit card, you are switching it out for another card to gain access to better benefits. Typically, upgrading a credit card requires paying a higher annual fee in exchange for the new card’s perks and earning power.

In most cases, you’ll retain your existing credit card number and payment history, at least when you’re upgrading via a product change. However, some banks issue a new card number, which may count as a new credit card on your credit report. For this reason, it may make sense to consider all options instead of focusing solely on just the premium version of your current credit card.

Why switch your credit card?

There are numerous reasons why someone would want to switch their credit card. They typically revolve around these reasons:

• Earning higher rewards. Higher-level credit cards often earn more points on purchases. For example, the Hilton Honors American Express Aspire Card * The information for the Hilton Honors American Express Aspire Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. earns double the points per $1 spent on eligible Hilton purchases compared to the Hilton Honors American Express Card (terms apply).
• Accessing different bonus categories. Premium credit cards may also include additional bonus categories so you can earn more rewards on your daily purchases. The Citi® / AAdvantage® Platinum Select® World Elite Mastercard® * The information for the Citi® / AAdvantage® Platinum Select® World Elite Mastercard® has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. earns elevated rewards on dining and gas, whereas the American Airlines AAdvantage® MileUp® * The information for the American Airlines AAdvantage® MileUp® has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. earns elevated rewards at grocery stores.
• Enjoying better benefits. Upgrading your credit card often unlocks additional benefits that aren’t available with lower-level credit cards. The Chase Sapphire Reserve includes a Priority Pass Select membership (enrollment required) for airport lounges, while the Chase Sapphire Preferred doesn’t offer any lounge access.
• Affording the annual fee. Many customers may want a premium credit card, but apply for a lower-level card because they cannot afford the more premium card’s annual fee. But either due to an increased income or a change in lifestyle (such as traveling more frequently), they may later find it easier to justify the cost.
• Switching from secured to unsecured. A secured card requires a security deposit, which ties up your money. Upgrading to an unsecured card after you’ve improved your credit standing releases this cash back to you.

Pros and cons of upgrading your credit card

Pros

• Increasing earning power. By upgrading your credit card, you may be able to unlock new bonus categories or increase the earning rates you already have.
• Accessing new benefits. Upgrading to a new card can unlock premium benefits, like elite status, airport lounge access and free checked bags.
• Getting your security deposit back. Secured credit cards require you to submit a security deposit to your issuer, which are returned if you upgrade to an unsecured card.

Cons

• May require higher annual fees. Upgrading to a more premium card often results in higher annual fees. Make sure that the earning power and benefits are worth the cost.
• Account number can change. Depending on how you upgrade and what issuer you’re dealing with, you may get a new credit card number. If you have recurring charges, you may need to update each merchant with the new card number.
• Can impact your credit. Some upgrades are treated as new accounts, which can affect your credit history. A new account lowers your average age of credit and may also ding your credit score slightly.

Should you upgrade your card?

The decision to upgrade your credit card is a personal one. While upgrading your credit card often unlocks higher earning power and better benefits, it also typically involves paying a higher annual fee. Before upgrading, think about how often you’ll use those benefits and how much they’re worth to you. That will help you determine if the card’s benefits can justify the cost.