How to Upgrade a Credit Card
7 Min Read | Published: August 5, 2024
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Upgrading a credit card can help you access better features and rewards. Learn how to upgrade your credit card.
At-A-Glance
- Upgrading a credit card means choosing a higher-level option with the same issuer, generally granting you access to better benefits and rewards.
- Since you’re not technically applying for a new card, there’s typically little to no impact on your credit score when you upgrade your credit card.
- Talking to your card issuer is the best way to confirm details like what will happen to your existing card number and rewards points, and which benefits you’ll be eligible for with the new card.
Getting a credit card is one of the stepping stones on your journey into adulthood. And for many people, it happens young. According to one study by the Motley Fool, 20 is the average age at which most Americans get their first card.1 But by the time you’re in your late 20s or early 30s, that card might no longer meet your financial needs.
As your life circumstances change and your income likely rises thanks to annual raises, promotions, or job changes, you might be looking to upgrade your credit card to one with better rewards, benefits, and features. You may also finally be able to afford a card with a larger annual fee. The good news is that the upgrade process is simple if you want to stay with the same card issuer.
In this article, we’ll review what a credit card upgrade is and how to upgrade your credit card.
What’s a Credit Card Upgrade?
A credit card upgrade means switching from one credit card to another in the same product line with the same issuer. The new card may have expanded benefits and perks, often for a larger annual fee. For example, you may have selected a no annual fee credit card when applying for the first time. But now that you have an established credit score, more disposable income, and want to spend more money on travel, choosing the best rewards credit card for travel may better align with your spending habits and financial goals.
Considerations When Upgrading Your Credit Card
Before you upgrade your card, think about its impact on a few key things, including:
- Existing Rewards
If your current credit card tracks rewards through points or cash back, talk to your issuer to see if rewards expire or transfer to the new card. If rewards expire upon upgrade, you’ll know you have a certain period to use or lose them. - Existing Card Number
Ask your card issuer what happens with your existing credit card number and account number when you move to the upgraded card. Some issuers will deactivate your existing card number and issue a new one, while others may keep the card number the same. Either way, you’ll receive a new physical card in the mail that reflects the upgraded product line. - Welcome Offers
Since you’re not technically a new applicant with the card issuer, you may not be eligible for welcome offers. However, it’s smart to contact your credit card company and ask, just in case. - Credit Limit
If you’re looking to boost your buying power, you may want an upgrade with a higher credit limit than your current one. Since a higher credit limit can lower your credit utilization, switching cards could end up being a net positive for your credit score.
Does Upgrading Your Credit Card Impact Your Credit?
Since you’re not technically applying for new credit, upgrading your credit card doesn’t typically impact your credit. That’s because the issuer doesn’t need to trigger a hard credit inquiry, which would appear on your credit report. However, if your upgraded credit card has a higher credit limit, you may benefit from the shift by lowering your overall credit utilization ratio.
Did you know?
The average American has 3.9 credit cards, with Gen Z holding an average of two cards and Millennials having 3.5, based on data from Experian.2 If it feels like you’re juggling too many, learning whether you should cancel unused credit cards or keep them can help you make the best decision for your credit score and financial future.
How to Upgrade Your Credit Card
Upgrading your credit card requires only a few simple steps.
- Make Sure You’re in Good Standing
Upgrades may only be available to a card member with a history of on-time payments or those with a certain credit score. If you’ve missed payments recently, you may want to establish a stable payment history over the next few months and then contact your issuer to apply for the upgrade. - Review Card Options
Check your credit card issuer’s website to see the different types of cards they offer, or contact a representative via phone who can share card options and assess which might be best for you. - Contact Your Card Issuer
You’ll need to contact your card issuer to apply for an upgrade. You can typically do so by calling the number on the back of your current card. Based on your history with the issuer, they can allow or deny your request to upgrade. - Negotiate
While you’re discussing upgrading the card, it makes sense to ask your issuer if you can get any other benefits. After all, you may be paying them a hefty annual fee to upgrade cards, so they might be receptive to your request for a welcome offer, higher credit limit, or waived annual fee. - Receive Your Card and Update Your Payments
Once you receive your new card information, you’ll want to update it for any services where you’ve set your current card as the payment method, including any recurring subscriptions or services. Reviewing your prior three months of credit card statements is an easy way to determine which accounts you’ll need to update.
How to Choose an Upgraded Card
As you review options for cards to upgrade to, you’ll want to check a few key things.
- Card Rewards and Benefits
Different credit card levels have different benefits. Be on the lookout for extras like airport lounge access and other travel perks, rental car insurance, and purchase protection, which can add value to the new card. - Annual Fee
Especially if you’re upgrading from a card with no annual fee, it’s essential to ensure that the annual fee amount makes sense for the benefits you’ll receive. If you believe you’ll get more value from the card by leveraging its benefits than you’ll pay for the fee, it’s likely worth upgrading. - Annual Percentage Rate (APR)
If you plan to carry a balance from month to month, the APR you’ll pay on purchases is a factor in choosing a card. When you contact your credit card company about the upgrade, ask if the APR will change for the card you want. The same goes for APR on balance transfers and cash advances if you use either option.
Did you know?
Looking for a credit card? You can get matched with a personalized set of card offers from American Express.
What Is a Credit Card Downgrade?
Downgrading a credit card is the process of trading in your existing credit card for one with a lower fee that’s considered more affordable but may also have fewer benefits. Similar to an upgrade, a credit card downgrade means you’re staying with the same card issuer, which typically won’t impact your credit score.
At certain times in your life, you might decide your current card is no longer meeting your needs, and a downgrade is the best next step.
For example, if you’re expecting a child, you might find the annual fee travel rewards credit card you’ve had (and loved) for years is no longer worth the price. Instead, you may choose a no annual fee credit card with cash back on everyday purchases. Rest assured, as seasons change, you can always upgrade your card later.
Considerations When Downgrading a Credit Card
Before you downgrade a credit card, you’ll need to consider the impact it may have on:
- Your Current Points or Cash Back Balance
Moving from one card to another could mean you lose valuable points or cash back associated with the current card. Speak with your insurer to confirm if points will expire or move to the new card. - Lounge Access, Rental Car Insurance, or Other Benefits
Since downgrading to another card often means fewer benefits, you’ll want to confirm which benefits you’ll retain and which ones are a thing of the past. - Welcome Offers
Since you’re an existing card holder, you likely won’t have access to welcome offers. However, you may be able to negotiate this with your issuer if you’ve been a loyal customer with a history of on-time payments.
How to Downgrade Your Credit Card
To downgrade your card, you’ll need to contact your card issuer. You can typically find their number on the back of your current card or get it from the website where you manage your account online. Your card issuer can advise on which cards you’re eligible to downgrade to based on your current card.
Frequently Asked Questions
Whether or not upgrading a credit card is a good idea depends on your financial situation and spending habits. An upgraded card might offer benefits or perks that you’ll be able to take advantage of, but you’ll need to make sure they’re worth the cost of the card’s annual fee.
Since you’re changing cards with the same issuer, there isn’t a hard credit inquiry like there is when you apply for a card for the first time. A credit card upgrade may help your credit score since you’ll retain your length of credit history on the account and potentially have a higher credit limit on the new card, which could reduce overall credit utilization.
The Takeaway
Upgrading a credit card is a simple way to access the benefits and perks of a higher-level card without having to go through the application process again. Since an upgrade may come with a higher annual fee, you’ll want to assess your financial situation to ensure it makes sense. Keep in mind that at certain stages of your life, you might find that downgrading your card to a more basic option makes the most sense.
1 “Study: When Does the Average American Get Their First Credit Card?,” The Motley Fool
2 “What Is the Average Number of Credit Cards?,” Experian
Brooke Joly is a writer on a mission to unravel the mysteries of personal finance and make them accessible to the everyday reader. When she’s not behind the keyboard, you can find her enjoying the outdoors in Charleston, SC.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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The material made available for you on this website, Credit Intel, is for informational purposes only and intended for U.S. residents and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.
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