Discover cards are currently not available on CNBC Select and links have been redirected to our credit card marketplace where you can review offers from other issuers like American Express or Chase. You can also check out our list of best credit cards for alternative options. Terms apply to American Express benefits and offers. Visit americanexpress.com to learn more.
Unless you're a credit card enthusiast, you might not give much thought to whether the credit card you carry is the best choice for you. You're used to it and it works fine, so why worry? But if you've stuck with the same card for a while, you might be missing out on rewards and benefits that can add up to hundreds of dollars in value every year.
Below, CNBC Select explains how you can upgrade your credit card — and four signs it may be the time to take this step.
How to upgrade a credit card
First things first, let's define what it means to "upgrade" a credit card. Upgrading your existing credit card means requesting a "product change" — not closing your card to open a new one.
When you apply for a new credit card, the application typically results in a hard inquiry which may knock a few points off your credit score. Closing your existing card could further negatively affect your credit score (and it's not worth paying an annual fee for a card you won't use).
Upgrading your card allows you to keep the same account on your credit report, but now, that account will be tied to a new card product. Credit card issuers have different rules for product changes. For example, Capital One makes it easy to switch from a travel card such as the Capital One Venture X Rewards Credit Card to a cash-back card like the Capital One QuicksilverOne Cash Rewards Credit Card (and vice-versa).
On the other hand, American Express only allows you to upgrade (or downgrade) to a card that offers the same rewards currency. That means if you want to switch from the Blue Cash Preferred® Card from American Express, which offers users cash-back on U.S. supermarkets, select streaming services, and gas station and transit purchases, to the American Express® Gold Card, which earns users Membership Rewards® points, you're likely out of luck. Terms apply.
The Blue Cash Preferred® Card from American Express is a low-fee card with generous cash-back rewards and useful ongoing benefits, such as a monthly Disney Bundle credit. (Enrollment required for select benefits mentioned)
- High cash-back earnings for U.S. supermarkets and streaming services
- Intro-APR offer for purchases and balance transfers
- No annual fee for the first year
- It's less rewarding after the first year because of the annual fee
- Bonus rewards for U.S. supermarkets are capped
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply and find out your welcome offer. As High As $300 cash back* after you spend $3,000 in purchases on your new Card within the first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply, and if approved: 1. Find out your offer amount 2. Accept the Card with your offer 3. Spend $3,000 in 6 months 4. Receive the cash back. *Cash back is received in the form of Reward Dollars that can be redeemed for a statement credit or at Amazon.com checkout.
- $0 intro annual fee for the first year, then $95.
- Enjoy 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.49%-28.49%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don't have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you'll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at DisneyPlus.com, Hulu.com, or Stream.ESPN.com U.S. websites. Subject to auto-renewal.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7% of each transaction after conversion to US dollars
The American Express Gold Card is great for earning valuable Membership Rewards® points at restaurants worldwide and U.S. supermarkets.
- You can earn $400+ in dining and rideshare credits every year (Enrollment required for select benefits mentioned)
- Exceptionally rewarding for eligible restaurant and U.S. supermarket purchases
- No foreign transaction fees
- Larger annual fee
- Credits are more complicated, you earn them monthly or semi-annually
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you're approved and find out your exact welcome offer amount – all with no credit score impact. If you're approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You'll know upfront exactly how much you'll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That's up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
- See Rates & Fees
Foreign transaction fee
None
The easiest way to find out about the issuer's product change policy is to get in touch with customer service. Give your credit card issuer a call and ask whether you're eligible for a product change and if so, what card options you have.
One drawback to upgrading your card with a product change is that you likely miss out on any welcome bonuses that come with the new card. Typically only new applicants can earn these welcome bonuses, so make sure you factor in their value before deciding between a product change or applying for a card as a new user.
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When you should (probably) upgrade your credit card
Now, let's talk about the signs that might tell you it's time for a credit card upgrade.
1. Your card is a starter card
If your first credit card has been the only credit card in your wallet for years, you might want to give your credit card company a call. This is especially true if that card is a student credit card or one offering unimpressive rewards.
Let's say, for example, you have the Discover it® Student Chrome Credit Card, which is a solid student card offering 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter), automatically. But if you upgrade to the Discover it® Cash Back, you'll earn 5% back in rotating quarterly categories after you activate bonus categories (on up to $1,500 in purchases each quarter, then 1%). That's more than triple the potential cash-back value.
Information about Discover cards has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.
Switching from your first card gives you an upgrade that better matches your current income and spending habits. This way, you'll also get to keep your oldest credit card account open, which likely benefits your credit score.
Did you get your first credit card from a cashier at a store to get a discount? Then you probably won't be able to upgrade it. Often, store cards only work at the stores they're associated with and are issued by companies specializing in this type of card. It's unlikely you'll be able to request a product change — applying for a new credit card might be your only option.
2. Your credit score has improved
Secured credit cards and other cards tailored for users with poor or non-existent credit can help you gain a foothold in the world of credit. But once your score improves, you should seriously consider ditching these cards for more rewarding ones.
Say you have the Capital One Platinum Secured Credit Card and it has helped you build a good score (670 or higher). Give the issuer a call. At the very least, you may qualify for an unsecured version of the card and get your deposit back. Or, you might have even better options available, such as the Capital One Quicksilver Cash Rewards Credit Card which earns 1.5% cash back on all purchases. While there's no guarantee you'll get such an upgrade, the only way to find out is to ask.
The Capital One Quicksilver Cash Rewards Credit Card has no annual fee, cash-back rewards and a generous intro-APR offer, which make it a great option for saving on interest while earning rewards.
- No annual fee
- Low spending requirement for the welcome bonus
- Redeem cash back for any amount at any time
- No foreign transaction fee
- 3% balance transfer fee during the first 15 months your account is open
- No bonus rewards categories
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase, every day
- $0 annual fee and no foreign transaction fees
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases and balance transfers for 15 months; 18.49% - 28.49% variable APR after that; balance transfer fee applies
- Top rated mobile app
Balance transfer fee
- 3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time
3. You're spending differently
Your spending patterns can fluctuate, adjusting to your changing priorities, income dynamics and lifestyle adjustments. Ideally, your credit card should match your current spending habits.
Let's look at another example. Maybe a few years ago, you were a casual traveler and signed up for the Chase Sapphire Preferred® Card (see rates and fees). It helped you earn flexible and valuable rewards to save on your trips without paying hundreds of dollars in annual fees.
The Chase Sapphire Preferred® Card packs a punch for a $95 annual fee card, offering annual travel credits, comprehensive travel protections and more.
- You can transfer rewards to all of Chase's travel partners including World of Hyatt, Southwest Rapid Rewards and many more
- Long list of travel and shopping protections
- $50 annual Chase Travel hotel credit
- Has an annual fee
- Requires a high credit score
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
- Enjoy benefits such as 5x on travel purchased through Chase TravelSM, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases
- Earn up to $50 in statement credits each account anniversary year for hotel stays through Chase TravelSM
- 10% anniversary points boost - each account anniversary you'll earn bonus points equal to 10% of your total purchases made the previous year.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Complimentary DashPass which unlocks $0 delivery fees & lower service fees for a min. of one year when you activate by 12/31/27. Plus, a $10 promo each month on non-restaurant orders.
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Now, however, you travel much more frequently and spend more as a result. You decide to upgrade to the Chase Sapphire Reserve® (see rates and fees). You know you can easily offset the $795 annual fee with the $300 annual travel credit, more valuable rewards and perks like up to $120 credit toward Global Entry/TSA PreCheck fee every four years and a complimentary Priority Pass — little luxuries that make your travel experience more comfortable and convenient.
4. Your credit card has been discontinued
As issuers look for new ways to woo new and existing cardholders, even once-beloved card products might get discontinued to make room for more exciting offers.
If your credit card issuer has discontinued your credit card, it may be a sign they now have something better to offer. As a current cardholder, you might not always get switched to the new product automatically — but a product change may be an easy option.
When the Chase Freedom® credit card was closed to new applicants, existing cardholders had several options. They could continue to use the card without any changes if they wanted. Or, they could switch to either the Chase Freedom Flex®, which was new at the time, or the Chase Freedom Unlimited® (see rates and fees). Since the Flex came with four additional year-round bonus categories (activation required) that the old Chase Freedom lacked, the upgrade made sense for many cardholders.
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus.
- Users get a high rewards rate and strong welcome bonus
- Purchases and balance transfers get long intro APR
- No annual fee
- Travelers face a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
Bottom line
A well-chosen credit card is a useful financial tool that can offer valuable rewards and benefits. If your card no longer fits your spending habits or if you know your issuer has a more exciting product, it may be a good idea to request an upgrade. And remember: you don't always have to trade up. You can product change to a card with a lower or no annual fee as well by getting in touch with your card issuer. And would it really be a "downgrade" if you're getting something that works better for you?
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Read more
For rates and fees of the Blue Cash Preferred® Card from American Express, click here.
For rates and fees of the American Express® Gold Card, click here.
For rates and fees of the Discover it® Student Chrome, click here.
For rates and fees of the Discover it® Cash Back, click here.
