Let’s say you’ve had your credit card for a number of months and you’ve been paying it well every single month without fail. Maybe you feel that it’s time to get access to more rewards and maybe even a higher credit limit.
It could be a good time to get a credit card upgrade.
Getting a credit card upgrade can help you earn rewards more quickly. Before you apply for a credit card upgrade, it’s important that you check your credit score.
Keep in mind that it’s always advisable that you apply when you have a higher credit score.
When is it a good time to get a credit card upgrade?
It may be a good time to get a credit card upgrade if you’ve been using your entry level credit card for at least six months and you’ve been paying your credit card bills on time.
It’s unlikely that being switched to a new credit card will damage your credit; however each inquiry has the potential to affect your credit score.
Keep in mind that a score-impacting action can’t occur without your permission.
According to NerdWallet, “If an account upgrade or a shift to a different card comes with an increase to your line of credit, it’s possible that your score will see an impact.”
If you want to improve your overall credit score, you should get a credit card upgrade. By getting a credit card upgrade and not using the new card, your credit utilisation rate will improve because your overall credit limit will increase.
You should also only apply for a credit card upgrade after you’ve thoroughly considered your financial standing. You need to be able to afford to make repayments on your new card.
Don’t apply right before other loan applications. This will raise red flags with credit providers.