When its time to upgrade credit card?

As soon as you get you get your new credit card, there might not be much options available. The credit card companies generally expect to have a decent credit score and credit history to offer a credit card. Sometimes, if you don’t have an existing credit history you apply for an entry level credit card, which of course may not have large varieties of features. However, if you have used your entry level card for quite a good amount of time (from about six to 12 months), you are likely get approved for your new and enhanced credit card based on your repayment history.

Upgrading your credit card can do wonders in your credit life. The first thing is you build a confidence on your credit profile and try being more credit worthy. This sense of satisfaction and fulfillment develops a high level of wisdom and conscience to deal with your finances. Secondly, your get your new card with latest and best features. On the first go, enjoy all the benefit it offers to you like joining bonus, cash back, reward point, restaurant offers etc and later be responsible dealing with your card.

Why to upgrade your starter credit card?

A starter credit card offers only the basic feature of a credit limit which can be utilized anytime you want to make purchases. They are basically the introductory cards which doesn’t hold much features on it. You may not have an option gain higher rewards, discount on sponsored outlets, restaurant and hotel cash back and rewards, paying back in equated monthly installments, transferring balances, withdrawing cash, utility payments, increase credit limit and low interest rates.

In addition, if you have a secured starter card, your assets would be retained with bank despite you having good credit score by now and regularly paying all your bill on time.

Upgrading the starter credit card lets lot many features join in and turns it to a completely modern and matured credit card.

Done with six months from getting your starter card??? Don’t wait any long to upgrade– Most credit card companies look at your credit score and reports which are retrieved from credit beauro. An account which is active for minimum six month is sufficient to re-produce all the details required to develop a healthy credit report. However, if you have missed on any repayments within this period, a little postponing to about another six months would be a good choice.

Planning to upgrade your card with same financial institution?

Usually, most credit card holders build trust on the financial institution they are enrolled with. Also, you find it easier and quicker to approach your current financial institution to request and get approval.

It’s not a bad idea to approach the same bank or company for upgrading your card. However, looking other market variants may change your decision. Look for alternatives available with you for upgrading your card and later analyses all the product carefully. Fees, charges, penalties, joining bonus, reward points, offers and cashback are few examples of components which should be considered while deciding the options to upgrade your current card.

Generally, if you maintain a good credit record, credit card companies record your profile the list of future prospects and approach you time and again with various discounts and offers. So, its not bad to wait for extra time to let credit card companies approach you and offer best products available with them.

We all know have an emotional attachment with our first credit card. However, upgrading it would bring wings and fuel to it. You can literally fly using credit cards offers and rewards. Low interest rates, higher reward points and more cashback are those come handy with your credit card upgrade.

How about upgrading your credit card from different financial institutions?

Generally, most financial institutions follow same stranded practices and offer almost similar products. However, you may easily make a good amount of extra cash through switching your banks or company.

Most banks are likely to pay an additional joining bonus to all new customers, you can easy enroll with any one of them to get hundreds of dollars without much effort. Carefully observe if the products offered in the other bank are truly superior to the one which you are using currently. List down all the below factors to decide the best financial institution for your new credit card:

Annual percentage rate: An APR is the overall rate applied on your utilizations made against your credit card, This comprises all the financial parameters like interest rates, penal rates, late payment fees, charges, tax and annual maintenance fees.

Cash back points or rewards: A cash back points or rewards are gift points offered on every purchase that you make though your credit card. Earnings may differ based on the type and category of purchase that you make through it.

Joining Bonus: List down joining bonus offered with opening a new account Don’t forget to look at terms and conditions, for example a flat bonus of $ 100 or $ 50 on first 5000 utilization and next $ 100 after additional 10000 utilization within six months. These conditions may sometime be difficult to materialize and you would later lose your joining bonus. Watch for realistic offers based on your requirements.

Credit limit: Credit limit is one of the biggest factor to decide your credit card company. Different financial institutions may offer different credit limit on your card. Find the one which offers maximum credit limit as the utilization percentage is directly linked to your credit score. Higher the utilization percentage of your card, greater would be the downfall of your credit score. Ideally, you should not exceed your credit card utilization beyond 30% to build a good credit score.

A step by step process of upgrade your credit card:

  1. Figure out your eligibility for credit card upgrade:

 

Find out if you are eligible for an upgrade now. Go, through all the eligibility criteria of the product you are looking for. If you find that all the criteria are met successfully, look for your credit score online and recall if you made all your repayments in time.

  1. Kill all the outstanding amount in your starter credit card:

Repay all amount in full before submitting application for upgrading your credit card. Higher would be dues on your starter credit card, greater would be the chances of rejection.

 

  1. Compare the eligible credit card products and read through terms & conditions carefully

Comparing products across the market would let you decide if you should go with your current banks or apply in another bank. Find the most suitable product based on your requirement and a positive score to each based on all the factors that you find attractive and  a negative score for those which you find expensive. Now, get the difference and conclude which one is best for you.

 

  1. Approach the credit card company and submit your application

 

After all the above analysis, you are like succeed in getting your credit card approval. Get your new card and enjoy all its befits.

 

  1. Last but not the least: Don’t miss on repayments and maintain lower utilization ratio.

A lower utilization ratio and timely repayment of dues keeps your credit score crowing upward,  so never miss on these two important factors.

 

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