{"id":2084,"date":"2022-11-25T11:39:35","date_gmt":"2022-11-25T16:39:35","guid":{"rendered":"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/?p=2084"},"modified":"2022-11-23T11:48:17","modified_gmt":"2022-11-23T16:48:17","slug":"5-major-considerations-before-upgrading-your-credit-card","status":"publish","type":"post","link":"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/2022\/11\/25\/5-major-considerations-before-upgrading-your-credit-card\/","title":{"rendered":"5 Major Considerations Before Upgrading Your Credit Card"},"content":{"rendered":"\n<p>Getting a new travel or cashback credit card can be an exciting and great way to earn significant bonuses and points. It can play an essential role in subsidizing your daily purchases. If you already hold a credit card, upgrading it might make sense rather than getting a new one.<\/p>\n\n\n\n<p>Some issuers may offer you amazing bonuses when <a href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/does-a-credit-card-upgrade-create-a-new-account\">upgrading your credit card<\/a>. However, you should always weigh the pros and cons of upgrading your existing product or going down a different route. So let\u2019s look at some major considerations before upgrading your credit card.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Assess Your Situation<\/strong><\/h2>\n\n\n\n<p>Before <a href=\"https:\/\/www.experian.com\/blogs\/ask-experian\/should-you-upgrade-or-downgrade-credit-card\/\">upgrading your card<\/a>, it is important to assess your spending habit. Credit card benefits, rewards, rebates, and points are designed for a specific set of audiences that have similar spending patterns. For example, a travel credit card will offer high rewards on flight and hotel bookings that are ideal for those who frequently travel.<\/p>\n\n\n\n<p><a href=\"https:\/\/time.com\/nextadvisor\/credit-cards\/how-to-upgrade-credit-card\/\">Cashback cards<\/a> may be ideal for those who provide decent rewards on regular grocery shopping and day-to-day purchases. Therefore, it is pretty important to assess your situation before you upgrade. Go for a better credit card only if it makes sense to upgrade and the new one offers more benefits on the transactions you conduct daily.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"668\" src=\"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/8-1.jpg\" alt=\"two credit cards with an iPhone. \" class=\"wp-image-2088\" srcset=\"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/8-1.jpg 1000w, https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/8-1-300x200.jpg 300w, https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/8-1-768x513.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Compare Offers<\/strong><\/h2>\n\n\n\n<p>After assessing your situation, the next thing you should do when considering <a href=\"https:\/\/www.moneyunder30.com\/signs-your-credit-card-needs-an-upgrade\">upgrading your<\/a> card is to compare the bonus offers. If your credit card issuer offers an amazing bonus to upgrade your existing product, it may make sense to stick to your current provider instead of going through the hassle of choosing a new one.<\/p>\n\n\n\n<p>On the other hand, if you want to upgrade your card and your current issuer is not providing you with any incentive, it may be worthwhile to explore other options. Comparing both options can be tough when you don\u2019t have a handy comparison tool to help you differentiate between products.<\/p>\n\n\n\n<p>Great Canadian Rebates has designed a comprehensive <a href=\"greatcanadianrebates.ca\/finance-tools\">credit card comparison tool<\/a> to compare offers from various financial institutions and choose the one that fits your unique needs and requirements. They also offer a cash rebate upon approval!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Cost-Benefit Analysis<\/strong><\/h2>\n\n\n\n<p>A credit card upgrade can also come with a higher annual fee. That said, your existing issuer may reimburse you the fee if you meet a particular spending criterion they set during a specific period.<\/p>\n\n\n\n<p>So, it only makes sense to opt for an upgrade if the monetary equivalent of the reward points and cashback is better than the annual fees of the upgraded card. Do a robust cost-benefit analysis before deciding to upgrade.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Take a Look at Your Credit Score<\/strong><\/h2>\n\n\n\n<p>Another important consideration before upgrading your card is closely analyzing your credit score. When you apply for a new credit card, instead of putting in an application for an upgrade, the lender will conduct a hard inquiry which can lower your credit score by several points.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/7-1.jpg\" alt=\"an illustration showing 20%\" class=\"wp-image-2087\" srcset=\"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/7-1.jpg 960w, https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/7-1-300x225.jpg 300w, https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/7-1-768x576.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/figure>\n\n\n\n<p>Therefore, if you put in a lot of applications, it can substantially affect your score and your ability to gain future credit, such as car loans and mortgages. That said, a new card can have a longer-term, positive impact on your score.<\/p>\n\n\n\n<p>It allows you to build a solid credit profile by paying full on time. It will also help you diversify your credit portfolio, which is an important factor impacting your score.<\/p>\n\n\n\n<p>Upgrading your card will have no impact on your score. Your lender may keep your existing account number and upgrade your package to a newer one. This is particularly helpful if you have maintained your account to the best of your ability, made payments on time, and it has contributed significantly to improving your credit score.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Getting an Enhanced Credit Limit<\/strong><\/h2>\n\n\n\n<p>You should also check whether you\u2019re getting an enhanced credit limit with your upgrade, not just better rewards or points. Having a greater limit has many benefits. First, you can do higher transactions which can help if you\u2019re stuck in a bit of a financial pickle.<\/p>\n\n\n\n<p>Second, certain credit card issuers provide a pre-approved loan based on your credit limit. Therefore, a higher limit will help you qualify for a higher loan amount.<\/p>\n\n\n\n<p>Third, a higher credit limit can also positively impact your credit score. When calculating your score, bureaus consider your credit utilization ratio as one of the main factors behind your report. Your credit utilization ratio (CUR) is the amount of credit you have used against the available limit.<\/p>\n\n\n\n<p>30% or lower is considered a good CUR and ideal for maintaining a healthy credit score. Increasing your credit limit automatically reduces your CUR, considering your spending habits remain the same, improving your credit score.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"684\" src=\"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/6-1-1024x684.jpg\" alt=\"credit cards on top of a laptop. \" class=\"wp-image-2086\" srcset=\"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/6-1-1024x684.jpg 1024w, https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/6-1-300x200.jpg 300w, https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/6-1-768x513.jpg 768w, https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/6-1.jpg 1123w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>There are many decisions you should make when considering upgrading your credit card. One of the first things you should consider is switching your credit card provider or getting an upgrade with your existing one.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Where to Apply for Premium Credit Cards?<\/strong><\/h2>\n\n\n\n<p>Now that you know the benefits of either upgrading your existing credit card or switching providers, you might be tempted to apply for one quickly and use the amazing deals and discounts. However, in many cases, upgrading your existing card may not provide you with immediate bonuses, but it can be beneficial in the long run because it may help improve your score.<\/p>\n\n\n\n<p>That said, you still need a platform to compare different credit card options and select the one that fits the bill. <a href=\"https:\/\/www.greatcanadianrebates.ca\/\">Great Canadian Rebates<\/a> is an online platform that lets you compare various cards and issuers available in Canada and apply for the one that best suits your needs and requirements.<\/p>\n\n\n\n<p>We have partnered with some of the leading merchants in Canada and abroad, such as Walmart, Groupon, MBNA, American Express, and more, to provide our customers with plenty of choices. We regularly update our platform with the latest discounts, coupon codes, and sales exclusives. You can look at different travel credit cards and find the <a href=\"https:\/\/www.greatcanadianrebates.ca\/shop\/deal\/75250\/\">best Canadian cashback credit cards<\/a> that add value to your purchases. <a href=\"https:\/\/www.greatcanadianrebates.ca\/AboutUs\/\">Visit our website<\/a> today for more information.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Getting a new travel or cashback credit card can be an exciting and great way to earn significant bonuses and points. It can play an essential role in subsidizing your daily purchases. If you already hold a credit card, upgrading it might make sense rather than getting a new one. Some issuers may offer you [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":2085,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-2084","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-credit-cards"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>5 Major Considerations Before Upgrading Your Credit Card -<\/title>\n<meta name=\"description\" content=\"Planning to upgrade your cashback credit card? 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Here are some major considerations to keep in mind when upgrading your credit product.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/2022\/11\/25\/5-major-considerations-before-upgrading-your-credit-card\/\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/GreatCanadianRebates\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-25T16:39:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.greatcanadianrebates.ca\/finance-tools\/wp-content\/uploads\/2022\/11\/5-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1125\" \/>\n\t<meta property=\"og:image:height\" content=\"750\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Sarah Benson\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GCRca\" \/>\n<meta name=\"twitter:site\" content=\"@GCRca\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sarah Benson\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/2022\\\/11\\\/25\\\/5-major-considerations-before-upgrading-your-credit-card\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/2022\\\/11\\\/25\\\/5-major-considerations-before-upgrading-your-credit-card\\\/\"},\"author\":{\"name\":\"Sarah Benson\",\"@id\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/#\\\/schema\\\/person\\\/8cd0ac34d91b0c4668f59202cb35c37d\"},\"headline\":\"5 Major Considerations Before Upgrading Your Credit Card\",\"datePublished\":\"2022-11-25T16:39:35+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/2022\\\/11\\\/25\\\/5-major-considerations-before-upgrading-your-credit-card\\\/\"},\"wordCount\":1011,\"image\":{\"@id\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/2022\\\/11\\\/25\\\/5-major-considerations-before-upgrading-your-credit-card\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/wp-content\\\/uploads\\\/2022\\\/11\\\/5-1.jpg\",\"articleSection\":[\"Credit Cards\"],\"inLanguage\":\"en-CA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/2022\\\/11\\\/25\\\/5-major-considerations-before-upgrading-your-credit-card\\\/\",\"url\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/2022\\\/11\\\/25\\\/5-major-considerations-before-upgrading-your-credit-card\\\/\",\"name\":\"5 Major Considerations Before Upgrading Your Credit Card -\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/2022\\\/11\\\/25\\\/5-major-considerations-before-upgrading-your-credit-card\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/2022\\\/11\\\/25\\\/5-major-considerations-before-upgrading-your-credit-card\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/wp-content\\\/uploads\\\/2022\\\/11\\\/5-1.jpg\",\"datePublished\":\"2022-11-25T16:39:35+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.greatcanadianrebates.ca\\\/finance-tools\\\/#\\\/schema\\\/person\\\/8cd0ac34d91b0c4668f59202cb35c37d\"},\"description\":\"Planning to upgrade your cashback credit card? 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