How to upgrade your credit card
Spending habits and financial situations change over time. So what do you do when your card no longer matches your lifestyle? One option is swapping it for another card with the same issuer without opening or closing an account.
The industry refers to this process as a product change. But you might also see it called a credit card upgrade. Learn more about how it works and how you might be able to upgrade your credit card.
What you’ll learn:
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A credit card upgrade is a type of product change where you swap your current credit card for a different card with the same issuer.
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You might want to upgrade to a new card if its rewards and benefits better match your spending habits.
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Credit card upgrades typically don’t involve applying for a new card, opening a new account or closing your current account.
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Generally, you keep the same card number and account number when you upgrade a credit card.
What does it mean to upgrade a credit card?
A credit card upgrade is a type of product change, which refers to switching from one credit card to another with the same issuer. A product change isn’t the same as applying for a new credit card. New credit applications involve a hard inquiry and opening a new account, while product changes generally don’t.
It’s also important to note that while people may refer to a product change as an upgrade or downgrade, these terms can be misleading. Switching to a card that better suits your needs and spending habits can still be an upgrade even if the new card offers fewer rewards, for example.
Can you upgrade a credit card?
Each credit card issuer has its own policies and eligibility requirements for credit card upgrades. But typically, cardholders need to be in good standing, meet a certain credit score threshold and have a good payment history.
Some credit card issuers may contact you if you’re eligible for a card upgrade. Other times, you may be able to request an upgrade yourself.
There’s no standard way to upgrade a credit card. But here are a few steps you might take:
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Compare cards. Take the time to research different cards, compare your options and pick a card that’s right for you. Some things to look into include fees, rewards, eligibility requirements, perks and benefits.
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Check for card offers. Find out if you’re already eligible for any card offers. Capital One cardholders can check for offers by signing in to their Capital One account. You can also ask Eno, your Capital One assistant, for help finding your offers.
- Accept an offer and enjoy your new card. If you’re approved for an upgrade, it’s time to accept the offer and officially upgrade your credit card. Remember, you typically get to keep your existing card number and account number. This means you can keep using your account as normal and start enjoying your new benefits and perks right away.
Pros and cons of upgrading a credit card
Here are a few potential benefits and drawbacks you can consider when thinking about a credit card upgrade.
Benefits of upgrading your credit card
If upgrading is an option, it could mean:
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Increased earning potential: If you don’t earn any rewards with your current card, you might be interested in a card that lets you earn cash back or miles for spending you’re doing already.
- More valuable rewards: If your current card offers rewards that don’t sync with how you spend, you may want to look for a rewards card that’s a better match. For example, if you have a travel credit card but find you’re spending more on dining out, a dining credit card might be a better fit.
Drawbacks of upgrading your credit card
Drawbacks could include:
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Fewer benefits: When you upgrade a card, you may lose the benefits that come with your current card.
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No introductory offers: Upgrades may not be eligible for introductory annual percentage rate (APR) offers or welcome bonuses intended for new credit card accounts.
- New or higher fee: An upgrade may come with a new or higher annual fee.
Upgrading a credit card FAQ
Here are some frequently asked questions about upgrading a credit card.
Does upgrading a credit card affect your credit scores?
Your credit scores shouldn’t be impacted if changing your card doesn’t involve a new card application or a card closure.
Is it better to close your card and reapply for a new card?
Whether you apply for a new card and close an old account are really separate questions. It might be better to pay attention to how those decisions affect your credit. Closing and opening new accounts could affect important credit-scoring factors, including credit age, credit utilization and recent applications.
You may decide that having more than one credit card is what’s best for you. If that’s the case, you can compare Capital One credit cards to find one that’s right for you. Then you can see whether you’re pre-approved for card offers before you apply. Pre-approval is quick and won’t hurt your scores.
Can you upgrade from a secured card to an unsecured card?
When you use a secured card responsibly over time, by doing things like paying on time, you may become eligible to upgrade to an unsecured card. That may involve getting back the security deposit you used to open the account. But keep in mind that each credit card issuer has its own policies and requirements for upgrading a secured card.
Key takeaways: Upgrading your credit card
Deciding to upgrade a credit card is a personal decision. And remember, the term upgrade can be misleading. Even if you swap your current card for a card with fewer rewards, it can still be an upgrade if the new card better aligns with your needs and spending habits.
If you want to check your credit before upgrading your card, you can use CreditWise from Capital One. CreditWise is free for everyone, whether you’re a Capital One customer or not. And using it won’t hurt your credit scores. You also may access free credit reports from the three major credit bureaus at AnnualCreditReport.com.
