From welcome benefits to reward points, cashbacks to movie tickets, a credit card with such unmatched features is a necessity these days. A credit card, often referred as ‘plastic money,’ is considered a main item in one’s wallet. It is easy money on the go and gives extreme convenience with jaw-dropping discounts and cashbacks. Whatever be your lifestyle or spending habits, a credit card company has a plan for you! Many financial institutions have launched newer credit cards such as Super Premium, Co-Brand, Professional, Premium Travel, Premium Women, Commercial, Cash Back, etc.
Many banks offer a basic starter card, often referred as ‘silver’ card, to beginners. You can later upgrade from the silver card to another, provided your credit history is well maintained. Also, if you have been using your credit card every month and have been consistent in paying your credit card bills at least for six months, it may be a good time to upgrade. However, upgrading from a basic credit card to another, for instance from a basic to a gold, platinum or titanium, can affect your credit score slightly.
We have outlined some points below in order for you to know the right time to upgrade from your basic credit card:
- Credit Score
A credit score is a mandatory feature in the issuance of a credit card. If you have a fairly decent record, you may consider an upgrade. However, for any card conversion request, your existing card should have been set up for at least 180 days. Also, credit score and earnings determine your credit limit enhancement. There are many sites that can help you keep a track on your credit score for which you would have to buy a credit report.
- Basic is Plain
A basic credit card is your plain Vanilla card with limited or no extra benefits or features. These usually do not offer cash backs and have very less conversion rate for reward points. Once you have crossed the 180-day window with your existing basic card, you can definitely consider an upgrade by contacting your credit card company. An upgraded credit card will offer many premium benefits such as travel and lifestyle privileges, exclusive dining and best-in-class rewards programme. Also, many upgraded credit cards offer complimentary travel vouchers, hotel discounts and reward points to be redeemed for airline tickets. So it will always be a good option to upgrade from your basic credit card to a premium one!
- Financial Need
Depending on your monthly or annual income, individual needs and lifestyle, any bank can offer you a credit card. But, your financial need is a great indicator of what kind of credit card will be suitable for you. If you purchase a lot using your credit card then having a basic credit card may not be wise. You will need a premium or above category card as per your purchasing habits/history and credit score.
A lot of banks have a huge range of credit cards to complement your lifestyle. Keeping the above points in mind, you can reach a conclusion if you need an upgrade on your existing credit card or not. A credit card company assigns you a credit allowance/credit amount based on your annual earnings and credit worthiness. So it is always better to do a thorough research before upgrading your credit card, and compare credit cards for all the benefits of balance transfer and reward points before updating from your basic credit card.