Credit card upgradation: Consider benefits, needs before you do that

Before deciding to upgrade your card, it's crucial to check the benefits it offers

You're not the only one to be inundated with offers to upgrade your credit card or receive additional benefits. However, upgrading your credit card is a significant decision that requires careful consideration.

 

Assess your spending habits:

 

Before upgrading your credit card, it is essential to assess your spending habits. Different credit cards cater to specific spending patterns, such as for fuel expenses, groceries, and travel and dining. Ensure that the upgraded card aligns with your spending habits.

 

Rewards and perks

 

Evaluate the rewards programme of the upgraded card. Look for bonuses in categories you frequently spend in, such as travel, dining, or groceries. Also, consider additional perks like airport lounge access, travel credits, or concierge services.

 

Fees and charges

 

It's critical to review all fees and charges associated with the upgraded card, not just the annual fee. Look out for:

 

Interest charges

 

Grace period

 

Cash advance fees

 

Other hidden fees or charges

 

Credit score impact

 

Upgrading may involve a credit history inquiry, which can temporarily lower your score. Check the eligibility requirements of the new card to make sure you'll be approved.

 

Comparison with other options

 

Compare the upgraded card with other available options in the market to ensure you're getting the best value for your needs.

 

Your current card

 

Upgrading might not be necessary if your current card meets your needs.

 

By assessing your spending habits, reviewing reward points and benefits, conducting a cost-benefit analysis, opting for a higher credit limit, maintaining timely payments, being aware of fees and expenses, and monitoring your credit utilisation ratio, you can make an informed decision that aligns with your financial goals.