“How to Upgrade or Downgrade Your Credit Card: A Comprehensive Guide”

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Switching Credit Cards: What You Need to Know

At O1ne Mortgage, we prioritize consumer credit and finance education. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more information, see our Editorial Policy.

Understanding Credit Card Product Changes

You may be able to switch between credit cards from the same issuer without applying for a new card. This process, often called upgrading or downgrading, is broadly referred to as a product change. Switching to a card that better suits your needs can be beneficial, especially if you plan to close your current card. Here are five steps to consider before making the switch.

1. Learn How Switching Can Affect Your Credit Score

When you do a product change, your account generally remains open. You might keep the same account number, credit limit, and interest rate, but switch to a new card with different rewards, fees, and benefits. As a result:

• Your account history continues uninterrupted, which is good for your credit score.
• Your balance and credit limit stay the same, so your credit utilization rate remains unchanged.
• There’s usually no hard inquiry, which means your credit score won’t be affected by a new credit check.

2. Understand What Happens to Your Old Card

While some aspects of your card stay the same, there could be significant changes to its terms and benefits. Keep these points in mind:

• You generally won’t lose rewards if you switch between cards within the same rewards program.
• You might lose promotional APR offers, such as 0% APR on purchases.
• Your cardholder benefits could change, including access to airport lounges and statement credits.
• New fees may apply, including changes to foreign transaction, late payment, and annual fees.

3. Browse New Credit Cards

Consider your options before switching cards. Compare cardholder benefits and rewards, and review these factors:

• Annual Fee: Switching to a card with a lower or no annual fee can help you avoid paying your current card’s fee.
• Intro Offer: Many cards have intro bonus offers, but you might not be eligible for these when switching cards.
• Restrictions: Switching cards can help you avoid restrictions on the number of cards you can have or recent applications.

4. Call Your Card Issuer to Discuss Your Options

Card issuers have different requirements and processes for switching cards. Some issuers don’t allow switching, while others offer changes by invite or limit changes to cards within the same rewards program. Often, you’ll need to call the card issuer to discuss your options. Use this opportunity to double-check the process, including whether there’s a hard inquiry and what terms or benefits will change.

5. Update Your Saved Payment Information

If you switch cards, your new card will likely have a different expiration date and security code, and it might have a new card number. Some companies can automatically update your stored payment information, but it’s a good idea to double-check any websites or services where you use your card for automatic payments to ensure you won’t miss a bill.

Compare Current Credit Card Offers

Although your credit score might not affect your options when changing cards, it is important when applying for a new card. Check your credit report and credit score for free, and use features from Experian to see your card offers based on your credit profile. Compare options that you might be able to switch to and see if there are any appealing intro offers on new cards instead.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you make the best financial decisions.

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