All cards have some validation period. After which, the card becomes lapses, and the cardholder is unable to use that card anymore. In such a scenario, the cardholder must require a new card. Sometimes, people with the existing card are also required to upgrade it.
There is no other option instead of applying for a new card when the validation period of the existing card has lapsed. But if you are willing to upgrade the card, try to do it at the right time. Many people perform mistakes during this time, and especially they are not able to choose the perfect time.
However, to help those people, we are here to suggest the right time for changing or upgrading the existing credit card. So, if you are unable to make out whether he should change the card now or not, follow these signs. Perhaps you may find any of them, and if you find any, then it is sure that you must change the card.
Before coming to that point, let us know what the possible benefits of upgrading the existing credit card are?
Benefits of upgrading or changing your existing credit card
There are many benefits of upgrading credit cards. At least people who have transformed most of them have claimed so.
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New reward points
In most of the cases, the cardholder gets new reward points due to upgrading his existing card. Different credit card companies used to provide various offers during updating cards. When you get extra reward points, you may redeem them to get some extra bucks into the wallet.
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Increased credit limit
The only common reason to upgrade the card is to increase the credit limit. Basically, card users may utilise the given credit limit, and for this reason, they may wish to increase the credit limit. By upgrading their existing card, one can increase the limit.
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Good credit score
After upgrading the credit card, the chances of enhancing the credit score becomes more than before. Usually, people with good repayment backgrounds are offered the option of upgradation. When the cardholder upgrades it, then the credit score increases, and you will get a guaranteed loan more than before.
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Lots of facilities
While a credit card company offers upgradation to the existing cardholder then it provides lots of new offers to its consumers. To bring them under the list of facilities, Credit Card Company offer such upgradation. Sometimes a company can offer lifetime free credit cards just to attract more consumers.
9 Signs which will give you hint to change your existing credit card
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Having a bad credit score
Credit score plays an important role in borrowing money. It may remain negative if you have not borrowed a loan ever. Even if there is any gap between systematic repayment, your credit score can also come down. Due to a bad credit score, the scope of getting a new loan becomes lower.
However, being a cardholder, one can change his credit card then and apply for a new one so that he can begin with a stable credit score.
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When your existing credit card is not giving any offers
Instead of plain borrowing, people like to become credit cardholders because of lots of offers. While direct lenders run in shortage of rewards and discounts, a credit card company never ever failed to provide discounts. But there are some times when an existing credit cardholder cannot get new discounts due to holding an old card.
In that case, to get discounts like in past times credit card companies to offer upgradation of the card. So, if this is the scenario, you can switch over to a new card. While credit card borrowing seems simple for many cardholders, some people like to borrow quick loan from a direct lender.
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Unable to bear a high rate of interest
Some finance companies charge a really high amount of rate of interest. Compared to other credit card companies, if your card provider is asking for really high interest, you may either upgrade or change the card. However, people often compare the interest rate and only then they can understand which company is offering what rate.
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Lack of reward points
Your credit card is not offering any reward point, so stocking into the same card is no question. Rather, you can upgrade the card or change the credit card company. Reward points play a very important role in purchasing products, and a lack of reward points can bring loss.
By redeeming the reward points, one can enjoy more money in his account. Sometimes redemption may offer you some extra credit limit also.
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Not getting reward points at necessary category
Perhaps your credit card company is offering enough reward points. But you may not get the reward point at the desirable section. For instance, you require reward points in the electronics gadget section to purchase a gadget. At the same time, your company offers reward points to other categories like garments, accessories, etc.
In this case, you may switch the credit card to another one that offers a reward point to the suitable category.
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Unable to get increment in credit limit
Basically, cardholders who have been using a credit card for a long time cannot get the desirable credit limit. Finance companies that offer credit card facilities are generally reluctant to increase the credit limit of the existing cardholders. Day by day, people cannot purchase high-value things using the same card when the credit limit is stuck.
While you have enough financial potency, it is better to change your credit card. A new credit card will increase the limit of the card by evaluating your source of income.
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Inspite of paying yearly charges not getting special benefits
Many such credit card companies do not show any gratitude to their consumers. Only they are earning profit out of them. Even after not paying any extra benefit, credit card companies are charging high fees.
As a result, many cardholders may wish to switch over to other financial companies which offer credit cards. So, if you are also facing such issues, then it is better to upgrade the card by switching over to another card company.
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When you wish to get the registration bonus
Perhaps you have been using the card for a long time. You do not have any such outstanding amount. At this point, you may require to get a registration bonus by applying for a new card. Many new credit card companies offer registration bonuses to new consumers.
If you also want to enjoy this benefit, fill out your application for those cards that offer registration benefits.
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Losing your existing credit card
If you have lost the card and cannot find it out, apply for a new credit card after blocking the existing one. It will again offer you cashless facilities. However, if you have lost the card and are willing to borrow money on an emergency basis, then taking out guaranteed car finance for bad credit, you can arrange for the money.
So, these are some signs that will give you a hint to apply for a new credit card. If you are facility any of these issues, it is the ideal time to have a new card.
