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A guide to upgrading your credit card

Does your credit card still cater to your needs? Instead of cancelling, consider upgrading your credit card to one with better features.

There may be several different reasons to change your card. Perhaps your expenses have gone up since you got your first starter card. Or you may want your card to do more for you.

A credit card upgrade may come with additional features, such as a short-term loan or ATM withdrawal facility. 

Read on to see how you can upgrade your card and what to consider before switching cards. 

How to get a credit card upgrade

Changing your credit card can be an issue because it has some limits. 

If you close your current credit card: 

  • It can affect your credit score because the credit history linked to it will be erased
  • There's a chance your credit limit might decrease if the issuer checks your credit report
  • Your rewards points might disappear

Therefore, it's better to go for a credit card upgrade instead. Here's how you can do that.

Check your credit score

Before you upgrade your credit card, remember to check your credit score. You want to ensure that you can qualify for a higher credit limit and better benefits. Improving your credit score will give you a better chance at a credit card upgrade.

Research credit card options

Explore the different types of credit cards available to you and compare them based on their rewards programs, fees and interest rates.

Speak with your credit card issuer

Ask about upgrading your card with your credit card issuer. They may have specific requirements or promotions that you can take advantage of.

Provide necessary information

Your credit card issuer may need you to provide updated information, such as your income, employment status and credit history.

Wait for approval

Depending on the credit card issuer, it may take a few days or weeks to receive approval for a credit card upgrade.

Activate and start using the new card

After receiving approval and the new credit card upgrade, activate it and start using it to enjoy the enhanced benefits and rewards.

Benefits of upgrading your credit card

You can get access to various benefits when you upgrade your credit card, including better rewards, credit limit, credit score and perks. 

  1. Better rewards
    With an upgraded credit card, you may receive better rewards such as higher cash back, points, or miles for every dollar spent. Check out the HSBC credit card rewards to see what your card could get you today.
  2. Increased credit limit
    Upgrading your credit card can result in a higher credit limit, allowing you to make bigger purchases or handle unexpected expenses better.
  3. Improved interest rates
    An upgraded credit card can provide lower interest rates compared to your current credit card. This can help you save money on interest fees if you carry a balance.
  4. Extra perks
    Some upgraded credit cards come with additional perks such as travel insurance, airport lounge access, and extended warranties on purchases.
  5. Better credit score
    If you use an upgraded credit card responsibly by paying your bills on time and keeping your credit utilisation low, you'll likely see a better credit score over time.
A credit card balance transfer can make it easier for you to repay your debt in flexible equated monthly installments.

Tips to upgrade your credit card

When upgrading your credit card, there are a few points you need to keep in mind to ensure you can make the best of the process.

Timely payments: Your payment history is a crucial aspect of your credit score. Late payments may have a significant impact on your credit score. If you pay your bills on time, you don’t have to worry. 

Increase your credit limit: Wondering how to upgrade credit card limit? Check with your credit card issuer if they can increase your credit limit. It will improve your credit utilisation ratio – a comparison of your credit amount to your total available credit limit.

Use your card regularly: Credit card issuers favour customers who actively use their cards. Charge small amounts, such as gas or groceries, each month and promptly pay off the balance.

Pay more than the minimum payment: When you pay more than the minimum payment, you pay down the balance faster, and you'll reduce your overall debt.

Monitor your credit score: Use a service or a free credit report provider to keep tabs on your credit score and receive alerts if there are any significant changes.

Keep your balance low: Credit utilisation is a significant factor in credit scores. Always strive to avoid excessive borrowing and keep your card balance low by making payments throughout the month.

Call your issuer and ask for an upgrade: If you have a good payment history and a high credit score, you may be eligible for an upgrade. Ask your credit card issuer if they have any new credit card offers or upgrade opportunities.

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Disclaimer

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