Credit Card Upgrade FAQs (2024)

FAQs

How does a credit card upgrade work? ›

A Credit Card upgrade is when you upgrade your Credit Card with specific stipulations in question for better Reward Points, offers and promotions or increase your Credit Limit itself. A Credit Card upgrade occurs when the Bank launches a newer version of the current Card or a completely new Credit Card.

Upgrading your credit card won't typically hurt your credit score because it doesn't usually require a hard credit inquiry, and it doesn't create a new credit account.

What happens to my existing Credit Card in case of an upgrade? You can continue to use your existing card until the new card reaches you. Your existing card will be disabled once you start using your upgraded card or within 60 days of card upgrade or on the date of existing card's expiry, whichever comes earlier.

Compared with applying for a new card outright, upgrading or downgrading an existing card requires less effort. There's no application to complete, and usually there's no hard credit inquiry. And compared with closing a card, switching can be a much better move for your credit report.

You must make installment payments each month in full. During your next statement period, you can continue to make purchases on your Upgrade Card up to the amount available in your credit line. At the end of any new period, purchases are lumped into a new installment plan with your current rate and terms.

The Upgrade Card combines the flexibility of a credit card with the predictability of a personal loan. Use the Upgrade Card online and at retail locations or have funds sent to your bank account.

Credit card issuers often offer credit card upgrade or credit limit increase option to their credit card customers. While there are many benefits which an upgraded card or a card with higher limit may offer however it comes at a cost and may have some additional risk.

You might want to upgrade to a new card if its rewards and benefits better match your spending habits. Credit card upgrades typically don't involve applying for a new card, opening a new account or closing your current account. Generally, you keep the same card number and account number when you upgrade a credit card.

You can also make a draw from your account online to have funds sent directly to your bank account. Except for Upgrade OneCard, you cannot receive cash through an ATM or receive cash back with purchases made using the Upgrade Card at retail locations.

How long should you keep a credit card before upgrading? ›

If the card you want to upgrade to has an annual fee, you might have to have your account open for a full year before you can upgrade. That's because the Credit Card Accountability Responsibility and Disclosure Act forbids credit card companies from increasing your annual fee within a year of opening your account.

Do the Upgrade cards report to U.S. credit bureaus? On-time payments are reported to the credit bureaus, which can help you build your credit score over time. However, Upgrade doesn't report your total credit limit, so credit utilization isn't a factor in the case of these cards.

Upgrading a card, on the other hand, will generally have zero impact on your credit score. In many cases, you'll even keep the same account number. And since the account remains active, it'll retain all of its past glory — including its payment history and age.

You can also check to see if you pre-qualify for the Upgrade Cash Rewards Card by using the Upgrade pre-qualification page. Checking if you're pre-qualified does not affect your credit score, as it only involves a soft pull.

If most of your spending is on dining and supermarkets, the Amex Gold Card's 4X rewards can be immensely valuable. However, if you have substantial travel expenses, the Amex Platinum Card might be a better choice with its 5X rewards on direct airline purchases, prepaid hotels, and Amex Travel bookings.

What is the credit limit with the Upgrade Visa? The Upgrade Visa offers personal credit lines from $500 to $25,000, depending on your credit history.

It is not hard to get the Upgrade Cash Rewards Visa® card, though it's not especially easy, either. The Upgrade Cash Rewards Card is available to people with fair credit or better, which means that most people should have a shot at approval but there are also plenty of people who won't qualify.

The annual fee is $0 for this card. With responsible usage, the Upgrade Cash Rewards Visa^® could offer you access to a higher credit limit than a traditional credit card and a less expensive way to pay down the balance.

Upgrade's borrowing requirements

Minimum credit score: 580. Upgrade uses FICO score version 9 from TransUnion. Minimum number of accounts on credit history: One account. Minimum length of credit history: Two years.