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Wealth Solutions

Will my credit score be damaged when I upgrade my credit card?

May 5, 2025 7 Min Read
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Will my credit score be damaged when I upgrade my credit card?
Overhead view of a young asian woman talking in the living room with customer service, credit card, credit card in hand, laptop in front of her.

NicolasmCcomber/ Getty Images

There are many reasons to upgrade your credit card, but not all of them have to do with getting more perks. For example, if you have the same credit card since college but are currently graduating and do not want a student credit card, that’s why you upgrade your card.

Or maybe there was only fair credit when applying for your current credit card, but since then I’ve improved my score enough to unlock premium credit cards with top perks. This is another reason to look into other top credit card offers. This will reward good credits with generous bonus offers, airport lounge access, increased rewards such as annual travel credits, and increased profits.

Upgrading your card should not affect your credit score

Upgrading a card typically requires a “product change” and the card issuer moves an existing line of credit to another card product. This rarely leads to a rigorous investigation into your credit report. Additionally, it does not add or subtract debt, which does not affect credit utilization. As a result, upgrading your credit card to a better card will usually not affect your credit score.

Also note that if you downgrade your credit card or for any reason requesting a switch from the same issuer to another card, the same rules apply. For example, if you have an annual credit card and are tired of paying it, you may be able to switch from the same issuer to a no annual fee card that does not affect your credit score.

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Missing credit card signup bonus

The biggest problem with credit card upgrades and signing up for a new card is that you missed out on earning a credit card sign-up bonus. To earn a credit card sign-up bonus, you must apply for a new account and meet the minimum spending requirements as a new card customer. This applies to changes to credit card products you request, whether upgrades or downgrades.

For example, if you have Chase SapphirePreferred® Card For five years, you decided to ask Chase if you could upgrade to Chase Sapphire Reserve® You do not qualify for a new card member bonus to access the airport lounge.

Meanwhile, if you apply for Chase Sapphire Reserve individually, meet all the required approval requirements and earn a bonus: You earn 60,000 points after spending $5,000 on purchases in the first three months of opening an account..

Keep application limitations in mind

For example, most people know that Chase’s 5/24 rule means that if you open five or more new credit cards from the issuer in the last 24 months, you will not be approved for one of the issuer’s cards.

Chase also has a “card family” rule. One such rule is that you can become the primary account holder for one sapphire card at a time. This means that in the previous example, if you want to get Chase Sapphire Reserve as a preferred cardholder, you must close your preferred account before you qualify for a bonus with Chase Sapphire Reserve.

However, the Chase Sapphire Aliserve application states that the card’s welcome bonus will not be available to “previous or previous card members of Sapphire Credit Cards who have received new card member bonuses within the last 48 months.” If you have a priority card held for less than four years, you may not be eligible for the sanctuary welcome bonus even if you close your account before applying.

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American Express says some of them have a “once in life” rule, and that you can only get a welcome bonus with a card once in your lifetime. (Some sources say that this rule is reset every 7-8 years, but that number has not been officially confirmed). With an Amex card, upgrading to a card you’ve never seen before means you’re not entitled to earn a welcome bonus on that card in the future.

As an example, consider the detailed printing of American Express Platinum Card® as follows: “If you have or have this card, a Platinum Card from American Express Charles Schwab, a Platinum Card from Morgan Stanley only, or a Platinum Card exclusive to earlier versions of these cards may not be eligible for a welcome offer.”

When to apply for a new card instead

As long as you follow application restrictions, it is almost always better to apply for a new credit card, rather than upgrading your existing credit line to a new card with product changes.

There are two reasons for this:

  • As long as you are eligible, you will have the opportunity to win a generous welcome bonus.
  • Applying for a new credit card will allow you to use more open credit.

The latter can reduce credit usage. This is an important factor that makes up about 30% of your FICO score.

Applying for a new card has some short-lived drawbacks.

  • A rigorous investigation into credit reports can have a slight negative impact on your credit score for several months.
  • Credit history length is reduced with each new account, and this factor accounts for 15% of your FICO score.
See also  How Card Experts Like to Use Chase Sapphire

Conclusion

You can upgrade your credit card if you wish, but there may be some compelling reasons to apply for a new card instead. The choice is yours. Knowing the pros and cons of each approach will prepare you to make an informed decision to find the best credit card for your spending habits.

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