Look, I’m not Great With Credit Cards But Want to Upgrade and Receive Travel Benefits. What Are Some Good Next Steps?

It’s a real-world truth that your first credit card, especially if you get it while in high school or college, will likely be a fairly basic card. Yes, some rewards might be available, but they will be limited compared to the type of cards you can get today. 

If you have a more basic credit card, the good news is that if you have a good payment history and are looking to get yourself something that can offer you more travel benefits, you should absolutely take that step. You could easily be on your way to more travel rewards. 

What To Know

One of the most important things to know is that you are likely to have the best luck upgrading your card to another option in your issuers current lineup. For example, if you have a more introductory Chase card, you might consider upgrading to another card in the Chase lineup that focuses more on travel. 

The benefit of doing so is that you can avoid having a hard credit hit on your credit card, which can temporarily lower your credit score. Most people experience this when they apply for new credit with a new bank, and it’s a definite annoyance. 

However, the downside might be that you don’t get to take advantage of any signing bonuses that are available. Many credit cards, especially travel cards, will offer you bonus number of miles or points if you spend a certain amount in the first 90 days. This is usually a very attractive offer, and losing it can be a shame, but you have to balance this against the hard credit inquiry. 

How To Upgrade

Same Issuer

Once you have settled on a new credit card to consider, the next step is to determine whether you want to stay with the same issuer or another issuer. Depending on the option, your next steps will be slightly different.

If you stay with the same issuer, you just have to call the number on the back of your credit card and ask about upgrade options. The benefit of calling and talking to someone might be taking advantage of new card sign-up bonuses, as you might get lucky. 

On the plus side, if you stay with a current issuer, you might get a slightly higher credit limit if you have a good payment history. This credit history could be utilized to determine whether your issuer feels you qualify for a higher balance, which could also result in a hard inquiry. 

New Issuer

If you don’t want to use the same issuer, it’s as simple as applying for a new card online after you settle on which card you want. The hope is that you have narrowed down whether you want a credit card that focuses on miles, hotels, or just general travel points that can be used for any type of travel. 

Another good reason to go with a new issuer is that many websites will let you know via a pre-approval link, something you may get in the mail or through email. This will help you know which credit card might approve you with better perks and a higher balance. 

There is also the bonus of using a pre-approval link as a soft credit inquiry. If you don’t get approved, you don’t have to worry about a hard hit on your credit when you try to apply for another credit card from another issuer.

What To Do With Your Old Card 

Once you apply for and receive a new card offering better travel benefits, you must decide what to do with your old card. In most cases, you should pay off the balance and leave it alone, which translates to just throw it in a drawer. Unless you plan on applying for a mortgage, rent, car, or anything requiring a credit inquiry, you can pay off the balance and not worry about canceling the card anytime soon. 

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