How to Choose the Best New Credit Card: Upgrading, Swapping, and More  

It can be hard to determine how to get the best new credit card when you’re looking to upgrade, swap, or apply for one for the first time. With so many different options and terms on the market, it’s important to do your research to find the right card for you. Here, we explore the pros and cons of upgrading, swapping, and applying for a new credit card so that you can find the best option for your needs.

Understanding Credit Card Upgrades  

If you have an existing credit card, you may be able to upgrade it to get access to new features, rewards, or better terms. Credit card upgrades are offered as a way to reward loyal customers who have shown responsible payment behavior, so if you’re current on payments and have a good credit score, you may be offered an upgrade by your card issuer.

Pros of Upgrading Your Card

There are several benefits to upgrading your credit card, such as:

• There’s no need to reapply, meaning it’s fast and easy.

• You may qualify for a higher credit limit.

• You may get access to new benefits, such as rewards points or other perks.

• You may get a better interest rate.

• You may get access to a more competitive balance transfer deal.

Cons of Upgrading Your Card

Equally, there are some disadvantages to upgrading your card, including:

• You may have to pay an upgrade fee.

• You may have to pay an annual fee if you move to a rewards card.

• Your interest rates may still be higher than other offers on the market.

• You may have lower limits or fewer features than what you would get if you applied for a new card.

Understanding Credit Card Swapping  

If you already have a credit card and are considering getting a new one, you may want to swap your existing card rather than upgrading or applying for a new one. Credit card swapping (also known as ‘card churning’) involves cancelling an existing card and using the credit available from that card to apply for a new one.

Pros of Credit Card Swapping

Credit card swapping often has several benefits, such as:

• You may be able to take advantage of a better deal than the one you currently have.

• You may get access to a 0% introductory offer, allowing you to save on interest payments.

• You may qualify for a better rewards program.

• You may get access to more features, such as contactless payments.

Cons of Credit Card Swapping

However, swapping your existing credit card does come with a few drawbacks, including:

• You may be charged a balance transfer fee.

• You may not be eligible for the same kind of reward points or other features that you currently have.

• You may have to apply and go through a credit check to qualify for a new card, which could affect your credit score.

• You may be required to pay an annual fee if you switch to a rewards card.

Understanding Applying For a New Credit Card  

It’s always an option to apply for a new credit card if your current one isn’t meeting your needs or you’re looking to take advantage of better terms. When applying for a new card, it’s always important to do your research and compare different options to ensure you choose the best one for your needs.

Pros of Applying for a New Credit Card

Applying for a new card could give you several advantages, such as:

• You may qualify for features and rewards that you wouldn’t have if you upgraded or swapped your current card.

• You may get access to a better interest rate than what you currently have.

• You may get access to contactless payments and other features.

• You may get access to higher credit limits.

Cons of Applying for a New Credit Card

However, there are a few drawbacks to applying for a new credit card as well, such as:

• You may need to go through a credit check, which could negatively impact your credit score.

• You may have to pay an annual fee if you choose a rewards card.

• You may not be able to keep the account balance from your current card if you apply for a new one.

• You might not qualify for all the features and rewards you want, depending on your credit score.

When you’re considering a new credit card, it’s important to weigh up the pros and cons of upgrading, swapping, and applying for one to find the best option for you. Ultimately, the best choice will depend on your own individual needs and financial situation, but if you do your research and compare different cards, you should be able to find the right card for you.