Here are 5 times you should upgrade your credit card

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You upgrade your apartment, your wardrobe, your hair — but when was the last time you upgraded your credit card?

Reviewing the credit cards in your wallet can save lots of money, and yet millions of Americans have never changed their primary card.

Your financial needs change over time — as do your income, credit score, and even your spending patterns. Keeping the same card could be a lost opportunity to earn more valuable rewards or even lower your interest rate.

Here are some of the common signs that it’s time for a credit card upgrade.

1. Your rewards are limited

If your current card offers limited rewards or doesn’t align with your spending habits, it may be a good time to upgrade.

Many credit cards have different rewards — like cash back, points, or miles — that can help you earn benefits from everyday spending. Upgrading to a card with better and more versatile rewards can maximize your benefits and potentially save money.

“Spending patterns can change — maybe you’ve moved away from frequent travel to home improvement projects — making some benefits like travel rewards or specific cash back categories less relevant,” says Rachana Bhatt, head of credit cards for PNC Bank.

Some cards offer higher earning rates for specific spending categories such as travel, dining, or groceries. This means you can accumulate rewards faster and enjoy better value for your everyday expenses.

“It’s essential to refresh your card choice to maximize value from newer, more relevant rewards that better suit your current lifestyle,” says Bhatt.

2. Your credit score increased

Has your credit score recently gotten a boost? You may be eligible for a higher-tier credit card with enhanced rewards and better perks.

The top premium cards today have lucrative rewards programs and higher rewards on certain types of spending, like travel or groceries. You may also get access to exclusive benefits like airport lounge access, concierge services, or travel insurance.

If you previously had poor credit, an increased score may mean you can graduate from a secured card to an unsecured card with a higher credit limit or lower interest rates. This offers more flexibility and gives you a greater buffer for unexpected expenses or larger purchases.

“As your score and income increase, you can become a candidate for cards offering greater rewards, exclusive privileges, and higher credit limits,” says Bhatt.

Upgrading to a higher-tier card rewards your financial growth and amplifies spending benefits.

3. Your spending habits changed

If your spending habits have shifted, upgrading your credit card can allow you to choose a card with a rewards program that better aligns with your new lifestyle. For example, if you now spend more on groceries or dining out, you can look for a card that offers higher rewards in those categories. This way, you can maximize your rewards and earn more value for your everyday expenses.

Upgrading your credit card can provide access to additional perks and benefits that fit your new spending behavior. This could include travel credits, airport lounge access, concierge services, or discounts on specific categories like entertainment or shopping.

“Your card should match your spending habits,” says Renee Jones, vice president of consumer products at Georgia’s Own Credit Union. “If you tend to stay at hotels often, have a new child, or have started a business, your rewards should reflect those needs. Upgrading to a card with hotel rewards, business rewards, or rewards at stores you use most will benefit you more than a card with rewards that aren’t tailored to your needs.”

4. You’re unhappy with your current card

Not all credit cards are created equal. If you find that you're constantly disappointed or frustrated with certain aspects of your card, it may be time for a change.

For example, if you're unhappy with the fees or interest rates associated with your current card, upgrading can provide an opportunity to find a card with more favorable terms. Look for cards with lower annual fees, no foreign transaction fees, or even introductory 0% APR offers.

Customer service can also vary significantly from one card issuer to the next. Plus, if you've had negative experiences with customer service on your current card, upgrading to a higher-tier card can provide access to better customer support.

5. You only have one card (or no card)

Maybe you’ve kept the same first credit card. Or you don’t have a credit card at all. But having multiple credit cards can provide several benefits, including increased financial flexibility, improved credit utilization, and enhanced rewards opportunities.

With the right credit card combination, you can mix and match rewards, maximizing your total spending. Multiple cards also increase your overall credit limit, which keeps your credit utilization ratio low, which is beneficial for your creditworthiness.

“Depending on your lifestyle and spending habits, having multiple cards that are used for differing purposes can be a great way to maximize rewards, build your credit, and help you achieve your financial goals,” says Jones.

The bottom line

Before you upgrade your credit card, it's crucial to evaluate your current finances and credit habits. If you have been consistently making timely payments, maintaining a low credit utilization ratio, and have a good credit score, it might be a good time to upgrade. A higher credit score can qualify you for better credit cards with improved benefits, such as higher credit limits, lower interest rates, and rewards programs.

Plus, if you find that your current credit card doesn't align with your spending habits or offers limited rewards, it may also be time for an upgrade. For example, if you frequently travel, a credit card with travel rewards and perks like airport lounge access might be more beneficial. Similarly, if you frequently shop at specific retailers, consider a card that offers cash back or discounts at those stores.

Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.