Just like your electronics require an upgrade once in a few years, so does your credit card. Try to upgrade a credit card to get more benefits, especially if you have been paying bills regularly and manage your card well.
This helps enhance your spending power and gets you more features. With an upgraded card, you can upgrade your lifestyle and save more too.
Guide to Upgrading a Credit Card
Switching from your current card to a more premium one is all that upgrading means. The main advantage is that you can enjoy better features like:
- A higher credit limit
- A better rewards progam
- A lower interest rate (APR)
- More promotions and deals
- Better emergency services
- A higher loan amount against the credit limit
Sometimes, an upgrade means you spend more on annual fees. But it also means you get more rewards.
How to Get an Upgrade
It’s easy to upgrade a credit card with the same financial company provided you have been responsible and diligent with your usage.
Step 1: Check Your Options
See the different types of cards you can get and compare their features. If you had some benefits you want to get, list them down and zero in on the right card.
Step 2: Contact Your Issuer
Reach out to your issuer to know about upgrading your card. They may need you to show your updated income proof or take time to check your payment record.
Step 3: Complete the Formalities
To start the process after choosing the card, you need to complete the formalities. You may need to share updated details, like your credit score, income and employment, etc.
Step 4: Await the Nod
Once you send all the information from your end, the credit card company will verify it from its side. Find out how long the process can take by talking to the customer support team. Usually, you will know if you qualify for an upgrade in a few weeks.
Step 5: Activate and Use Your Card
Once you get approval and receive your card, activate it and use it for transactions.
When Should You Upgrade Your Card?
Here are some reasons you can consider upgrading your card:
- For Better Rewards
Upgraded credit cards come with enhanced rewards. Whether you’re spending on groceries, travel, or entertainment, this can help you save more money.
- When Your Spending Patterns Have Changed
If you are expecting a child or have just gotten married, you may need a card that offers a different range of features. As such, your current card may no longer align with your needs.
- When You Need a Higher Credit Limit
If you need more financial flexibility, increasing your credit limit is a must. You can easily achieve this and enhance your spending power by upgrading your current card.
- To Get Access to Premium Perks and Services
An upgraded card comes with premium perks, extended purchase warranties and a plethora of other perks. Many issuers provide cards that include benefits like airport lounge access, discounts and offers on shopping, increased cashback on specific purchases, and more.
- To Manage Your Finances Better
Many premium cards come with tools that help you manage your finances better. This includes detailed spending reports, budgeting tools, and enhanced security. You can consider upgrading your current card for better management.
Things to Keep in Mind Before Upgrading Your Credit Card
Before upgrading your credit card, there are a few key factors to think about:
- Features and Benefits
Different credit cards offer specific perks. It’s important to evaluate where you spend the most and what kind of rewards you’re after. Ensure that the card you’re getting comes with the perks that are usable for you.
- Fees and Charges
Upgrading a card often comes with higher fees and charges. Some of the most important fees and charges you need to consider are the interest rate, joining and annual fees. Be sure to assess whether the added costs make sense for you financially, and ensure you’ll be able to manage them.
- Reward Points Program
Check out the rewards program that comes with the upgraded card. The points you accumulate can be redeemed for various products or services through the bank’s rewards platform, so it’s worth reviewing the benefits.
The One Credit Card is a great choice if you are a new user. You can begin with a fixed deposit credit card by depositing just ₹5,000, and as you build your credit, you can upgrade to an unsecured credit card with premium benefits.
You can also earn 5X rewards on the top two spending categories. With this credit card, you can earn points and rewards when you book travel or dine out. You can also pay your bill in instalments without extra cost using the One Credit Card app. Apply now to earn premium benefits that align with your evolving needs.