After using your existing credit card for a while, you may be looking for a new one that offers better rewards, a higher credit limit or has other features, like ATM withdrawal at no charge or a short-term loan. However, closing your existing credit card account and applying for a new one can impact your credit score to a great extent. Here’s how:
- The credit history that you have associated with the existing card will be deleted, which may limit your ability to avail of a new credit card, especially if you have a bad credit score when applying for a new one
- When you apply for a new credit card, the issuers may run a hard inquiry on your credit report, which further lowers your credit score
Thus, your best move is to upgrade the credit cards you want to change.
Tips to upgrade your credit card
Before approaching your issuer to upgrade your credit card, consider these tips to get the best deal.
Your spending habits
Issuers offer various types of credit cards such as travel cards, airplane cards, fuel cards, shopping cards and more. Each of these cards target a specific nature of spending and offer attractive reward points based on the category.
For instance, while a travel credit card offers discounts and cashback when you book tickets and hotel stays, a shopping card extends offers and rewards when you shop for groceries and lifestyle products. If you want to use your credit card in a specific spending category, ask for a suitable credit card to make the most of it and boost your finances.
Credit card fees and charges
When you upgrade a credit card, you may have to bear certain expenses like the joining fees, annual maintenance fees and renewal fees. However, some issuers offer a waiver on annual and renewal fees if your annual spending meets a certain threshold. To avoid paying high charges on your credit card, do a cost-benefit analysis before applying for an upgraded credit card or look for one that offers a waiver of fees.
Reward points and various other benefits
Upgrading a credit card bestows attractive rewards, offers and discounts on your transactions. Once you accumulate such reward points, you can redeem these in exchange for services or merchandise listed on the issuer’s rewards program. To enjoy such accelerated benefits, look for a credit card with suitable rewards based on your lifestyle.
Credit card limit
Typically, the issuer increases your credit limit when you upgrade your credit card. With a higher credit limit, you will be better equipped to meet your financial requirements without worries. Thus, it is beneficial to ask your issuer for a higher credit limit when applying for an upgraded credit card.
Now that you know the tips to upgrade credit cards, let's take a look at how to go about the process.
How to upgrade your credit card?
You can do so easily in one of the following ways:
- Visit your issuer’s nearest branch and request a credit card upgrade
- Contact your issuer’s customer care centre and enquire about a credit card upgrade
- Login to your net banking account and request an upgrade under the relevant tab
If you don’t have a credit card and are looking to avail of one, consider applying for the Bajaj Finserv RBL Bank SuperCard. With this card, you can enjoy a range of benefits as follows:
- 50 days interest-free ATM cash withdrawal
- 90 days emergency personal loan at an interest rate of 1.16%
- Up to 20,000 reward points on joining and more on achieving milestones
- Conversion of purchases into easy EMIs and the Pay with Points feature on the EMI Network
- Discounts and cashback on movie tickets, shopping, fuel spends, dining and more
- In-hand security to control your credit and cash limit via the app
Once you get a SuperCard, you can upgrade your RBL credit card to enjoy special offers, discounts and cashback by one of the following ways.
- Visit your nearest branch and enquire if you are eligible
- Contact the customer care on +91 22 6232 7777 or 1800 121 9050 to do the same
- Login to your net banking account and request for an upgrade under the ‘Service request’ tab
- Write to firstname.lastname@example.org
Be sure to check your offer from Bajaj Finserv to view your customised deal and expedite your financing.
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