Choosing between upgrading your existing card and applying for a new one can be challenging. Most of the credit card issuers will offer welcome bonuses while others have various rewards once you upgrade your card. If you find yourself asking; Should I Upgrade My Existing Card or Apply for a New One? Here are some factors that will help you make the right decision.
Compare the bonuses
Before you make your decision, understand, the offers in the new card and when upgrading. In most cases, you will find that the welcome bonus is more than the upgrade bonus. You should, therefore, consider applying for a new card.
Are card issuers targeting you for more bonuses?
It is good for credit card issuers to target you with their upgrading bonuses, but you should look for other offers. Amex Platinum targets their customers with increased bonuses for new cardholders.
Consider the benefits of the upgrade
While upgrading your card, you will be required to use your card in a certain way. It is important to ask yourself whether the earnings you get are worth the upgrade requirements. If they are not worth it, you should consider a welcome bonus with new cards.
Effects on your credit score
Getting a new card may temporarily drop your credit score, but in the long term, your credit score will increase. Upgrading your card does not have any effect on your credit score.
Are you interested in Chase cards in the future?
Your application for cards such as Chase Sapphire Reserve might be unsuccessful if you own more than five new credit cards in the last two years. Upgrading your card does not have any limitations on the number of cards that you should have.
The decision, on whether to upgrade or apply for a new card depends on the individual’s preference. Make sure that you put the above factors into thought before you make a decision.