Tuesday, 6 August 2019

How To Upgrade Your Exiting Credit Card With New Product Change

How To Upgrade Your Exiting Credit Card With New Product Change

In this article, I will be going over a product change. What is it and when is it convenient for you to do it, when is it not convenient for you to do it. The main thing you need to know about a credit card product change is that every single credit card company is going to have a bunch of different types of credit cards available. Different products as they call it.

For example

There is a Chase freedom card. Chase also offers chase freedom unlimited.

 chase freedom unlimited.

Those sound very similar but the company chase bank considers those to be 2 different products that chase freedom and the chase freedom unlimited. That is because they have different terms, different conditions, different rewards, different perks, and so on.

If you have a card that you really have not been using for a long time you attempted to cancel the card. Most people know that if you cancel credit it is going to hurt your credit because of the fact that it's going to reduce your amount of credit available by however much money you had available on that card

  • Whatever your credit limit was, is going to reduce the amount of credit available to you and also all those years and months that you had used that card are going to be removed from your age of credit which is going to remove years off of your credit history and that really hurts your score because the longer you have had credit, the better your credit score is.

The lower the number of years you have had credit, the worse your score is going to be, I always recommend on this site not to cancel any credit card even if it's your first card and you never use it anymore. You shouldn't cancel it, find a way to use it.

  • If you want to cancel a credit card, let's say for example, you have an annual fee and you don't want to pay it, so that is why you want to close a card or it's a card that doesn't offer you any perks, no rewards, no cashback, no gas, no restaurant point, etc. That is a totally legit point to cancel a credit card.

Good Option For Cancelling An old Card

But instead of canceling the card, if you understand that it's going to hurt your score is to do a product change.

This is something that a lot of people who have credit cards don't even know that this option exists. This is what a product change allows you to do, you could either upgrade or downgrade with the exact same company that has the credit card that you no longer use.

As for me my option would be to call up chase and do a product change which means I would either upgrade to another card that they offer me that is better than the chase freedom or I would downgrade to another card that is maybe doesn't have an annual fee, but if my goal is to get perks and rewards then I might want to find out what cards do they have that do offer rewards.

  • This is a big idea here, is that you are going to stay with the exact same credit card company but you are going to change the product, the specific type of credit that you have might change even though the company is the same.

  • You might go from a chase freedom card to chase freedom unlimited card.

The Downside of Upgrading your Credit Card

If you are going to change your credit card to a different product from that same company. You will not be eligible for the new client special. Whatever the new bonus sign up reward or bonus that they are offering. Is not going to be available to you.

Because you are not a new customer. You have already had an account with them and you are just changing the details about which account you have.

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