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It can happen to everyone – you’ll probably have the best credit card for your lifestyle and spending patterns, but only to know that it’s a time for change. Switching with the issuer, also known as product change, is a great way to turn a card that isn’t working for you into a card that offers the rewards, perks, or fees you want. Get better fitting products without adding additional accounts, Strict enquiries It affects your credit score (in most cases).
Fortunately, switching your credit card to a bank or credit card issuer is usually possible and easy. In many cases, you can upgrade or downgrade your credit card online, or simply call the issuer. Here’s what you need to know about switching your credit card:
Why do I need to switch credit cards?
If your credit card is not in line with how you spend your money and how you use your rewards, it might be a good idea to explore other cards from the issuer. If you find something that works for you, we recommend considering changing that card.
In some cases, it is recommended that you upgrade to a card with better perks and perks, even if it means paying an annual fee. Maybe you applied for a reward credit card when you could only afford the free or low-paid version of each year, but now you want to upgrade.
Now that you’ve made the starter card bigger, you can also switch cards. Secure credit cards. That’s what Anna Staples, the bankrate credit card lead writer, did.
Staples explained that the upgrade process was smooth as she was already pre-approved for the card’s unsecured version. she Increased credit limit Just a few months after the change.
There are several benefits to changing your current card, rather than applying for a new card.
- It won’t be a card that’s not suitable just for you to sit in your wallet.
- Your credit score is not usually attacked by hard credit inquiries that come with your new card application.
- You can keep you Account History While adding cards that are suitable for your wallet.
How to change your credit card
Changing your credit card at a bank is relatively easy. Once you have decided which card you need, it’s time to contact your bank or credit card issuer. Sometimes you can see upgrade offers on your online account. However, you can answer all your questions before switching by contacting the credit card issuer via phone or chat.
Credit card issuers often send target offers encouraging users to upgrade to a higher reward credit card. You can also take advantage of those offers when they come in your path.
Ask the correct question before switching
Ask the correct questions before switching your credit card to the bank. Here are some topics you want to bring up during your conversation:
- my Credit limit Is it different after switching?
- what interest rate Would you like to receive it with a new card?
- Does the switch include a? Hard pull or credit enquiries?
- What will happen Rewards I’ve earned With my existing credit card? Do they transfer to a new card or do they need to redeem the reward before switching?
- What is your current card balance? Do I need to pay it back completely before switching, or do I transfer it to a new card?
- Do I qualify for either? Sign Up Bonus?
- Do you want to get a new account number?
The answer you get should help you decide whether you prefer to switch credit cards or open a new credit card instead. Ultimately, your credit card issuer wants to keep you as a customer, so if you don’t like the answers to some of these questions, try negotiating in this process.
Talk to a customer service representative over the phone to encourage you not to offer bonuses or perks if you start the process online.
Things you need to know before switching credit cards
Make sure you have a plan before switching from one credit card to another. You should consider how the Switch affects your credit score, how to handle the teaser interest rates offered, and whether you can transfer rewards from one card to another.
Understand how that affects your credit score
Credit card switching may not affect your credit score. Or it may have an effect that is more important than you notice. Here’s how credit card switching will hurt or help your credit score:
Know what happens to your credit card rewards
If you are upgrading or downgrade your credit card within the same reward structure (for example, moving from a travel card with an annual fee to one without a fee), switching cards may help you maintain your reward. If you are switching between Reward structure (For example, you will be redirected from your cashback card to your travel card), talk to your credit card issuer about what will happen to your current reward.
Conclusion
Switching credit cards can seem like a hassle that you don’t want to bother you. But if your current card doesn’t meet your needs, whether you’re paying an annual fee, or missing out on better compensation that will help you achieve certain financial goals, that makes sense. Once you know how easy it is to switch between them and the questions you want to ask, you can be sure that the credit card you choose will work for you.
