With many credit cards, you have the option of upgrading if you want more benefits and don't mind paying a higher annual fee. The card issuer may even send you upgrade offers from time to time. For example, if you have the Chase Sapphire Preferred® Card, you might eventually want more travel perks. You could call Chase and ask about upgrading to the Chase Sapphire Reserve®.
Upgrading makes sense in theory, and it's the easiest option. It's usually not a good idea, though, because when you upgrade your credit card, it can actually end up costing you money.
The problem with upgrading your credit card
Rewards credit cards often have welcome offers for new cardholders. If you open the account and meet the terms, which is usually a spending requirement, then you earn bonus rewards. For example, a card may offer $300 in bonus cash back when you spend $3,000 in the first three months. Or a card may offer 60,0000 bonus points when you spend $6,000 in the first six months.
Featured offer: save money while you pay off debt with one of these top-rated balance transfer credit cards
When you upgrade your credit card, you're normally ineligible for the new card's welcome offer. You miss out on those bonus rewards by upgrading instead of applying for the card. That's a big loss, because welcome offers are one of the most valuable perks that credit cards have.
Now, there are a couple of exceptions when it could make sense to upgrade:
- The new card doesn't have a welcome offer. In this case, you won't be missing out on anything. This isn't likely if you're upgrading to a card with an annual fee. Most cards that charge an annual fee have welcome offers.
- The card issuer is offering a bonus for upgrading. Card issuers will sometimes do this to encourage you to upgrade. Make sure to check how the upgrade bonus compares to the card's welcome offer to see if it's a good deal. Often, the welcome offer is still a lot better than the upgrade offer.
- You're otherwise ineligible for the card or the welcome offer. If you can't get approved for the card you want, then upgrading may be the only way to get it. Or, you may be eligible for the card, but not the welcome offer. American Express is known for doing this with some cardmembers. They receive a message before they apply for a card letting them know that they won't be eligible to earn the welcome offer.
It's usually better to apply for a new card instead of upgrading
Welcome offers are why I've never upgraded a credit card -- and I've had over 20 of them. When I want a new credit card, I always apply for it so I'm eligible to earn the welcome offer.
The downside is that you'll end up with more credit cards. You may not want that, especially if the card you were planning to upgrade has an annual fee. If you upgrade it, you're only paying one (larger) annual fee for your new card. If you keep it and apply for the new card, you're paying two annual fees.
There are some easy ways to avoid this. Here's what you can do with your old card instead of upgrading it:
- If it has an annual fee, downgrade it. Call the card issuer and ask for a product change to a card with no annual fee. You still keep the account open, and you won't need to pay an annual fee anymore.
- If you don't want the card, close it. Call the card issuer and explain that you want to cancel your credit card. This is a good option if you don't want to end up with too many credit cards, or if the option to downgrade isn't available.
Downgrading is generally considered the better option. You'll still have the card and its credit line, and you'll continue building its account history. But if you'd rather close it, that's fine, too.
Considering how valuable welcome offers can be, you don't want to miss out. If you've been thinking about upgrading your credit card, see if you could earn a bonus by applying for it instead.
Alert: our top-rated cash back card now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.
FAQs
Upgrading your credit card doesn't typically hurt your credit score. Replacing your current card with a new one from the same issuer is known as a product change, and the account history from your existing card transfers to the new card.
Why do credit card companies want you to upgrade your card? ›
You're being offered a limit increase
Taking advantage of an upgrade offer could mean a credit limit increase in some cases and more spending power for you. What's more, access to a higher credit limit will reduce the percentage of your credit that you're already using, therefore lowering your credit utilization ratio.
Should I upgrade from Capital One Platinum to Quicksilver? ›
The Quicksilver has rewards, a sign-up bonus and an intro annual percentage rate (APR) period on purchases and balance transfers, all for a $0 annual fee. The Platinum doesn't have any of those perks. Of course, the Quicksilver's rich benefits come at a price: your credit score.
What happens if I upgrade my oldest credit card? ›
The good news is that upgrading, downgrading or changing your credit card shouldn't have a lasting effect on your credit score. If there's a new account, it will essentially inherit the history of the old one. In some cases, there won't even be a new account.
What are the disadvantages of an Upgrade card? ›
Depending on your credit history, your APR may not be any better than the rate you'd get on a traditional credit card. This card has limited redemption options — you won't be able to stock up on rewards. No intro APR offers means you won't have a save on interest if you have to carry a balance.
How many credit cards are too many? ›
Owning more than two or three credit cards can become unmanageable for many people. However, your credit needs and financial situation are unique, so there's no hard and fast rule about how many credit cards are too many. The important thing is to make sure that you use your credit cards responsibly.
Does upgrading your credit card increase your credit limit? ›
In the case of upgrading your Credit Card, you may upgrade the credit card you current owe, in order to take advantage of the benefits that come with it. However, it may not come with an enhanced credit limit. In such a case, you may opt to use multiple credit cards even if you upgrade a single credit card.
Is it better to upgrade credit card or open new? ›
New accounts may be eligible for perks like an intro APR and welcome bonus offers. With an upgrade or downgrade, you may not be eligible for these benefits. And if you use your credit card responsibly, adding another line of credit could potentially help you improve your credit scores.
Can you negotiate credit card upgrade? ›
Negotiate
For example, ask if you qualify for an offer that could get you a welcome bonus on the new card, a higher credit limit or waive your annual fee for the first year. Depending on your history with the issuer and your credit, you may get a great deal.
What is better than Capital One Quicksilver? ›
The Chase Freedom Unlimited® has a much broader, richer rewards structure than the Capital One Quicksilver Cash Rewards Credit Card. It earns both a decent flat rate on non-bonus purchases, and elevated rewards in common categories.
Carmen Peters, Member. The Capital One Quicksilver credit limit depends on your income, creditworthiness and payment history, which are evaluated once you apply for the card. According to anecdotal reports, the card's credit limit can be as low as $750 and as high as $10,000.
Which is better, Capital One Platinum or Quicksilver? ›
If you can get approved for both, the Capital One Quicksilver card is better than the Platinum card. The Quicksilver card will give you a welcome bonus, 0% APR for the first 15 months and 1.5% cash back. The Platinum card offers no rewards or bonuses, but it also comes with no annual fee.
Can you Upgrade a credit card without hurting your credit? ›
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.
Does Upgrade credit card verify income? ›
Yes — if you apply for a personal loan, Upgrade will verify your income to be sure you can afford your minimum monthly loan payments. Upgrade does not specify a minimum income requirement on its website.
Which credit card is the best to have? ›
Best credit cards of May 2024
- Best for point value: Chase Sapphire Preferred® Card.
- Best for dining and entertainment: Capital One SavorOne Cash Rewards Credit Card.
- Best overall: Wells Fargo Active Cash® Card.
- Best cash back on everyday spending: Blue Cash Everyday® Card from American Express.
New accounts may be eligible for perks like an intro APR and welcome bonus offers. With an upgrade or downgrade, you may not be eligible for these benefits. And if you use your credit card responsibly, adding another line of credit could potentially help you improve your credit scores.
Is the Upgrade card worth it? ›
Upgrade Cash Rewards Card Review
The Upgrade Cash Rewards Card is a good option for people with fair credit who want to borrow money and build credit at a reasonable price. But if you plan to pay your monthly bills in full or you have good-to-excellent credit, there are better, more rewarding options available.
Does upgrading your credit card affect credit score capital one? ›
And remember, Capital One will notify you if your secured card is upgraded to an unsecured card. Does unsecuring impact my credit scores? Upgrading to an unsecured card doesn't typically involve a hard inquiry into your credit. That's why unsecuring on its own likely won't impact your credit scores.
