Capital One often asks, “What’s in your wallet?” More than just a slogan, it’s a helpful question to ask yourself. Are the credit cards in your wallet still serving you as they should? Or is it time for a change?
When to Upgrade or Downgrade Your Credit Card
If your spending habits have changed or you’ve experienced a life event that has your finances a little strained, upgrading or downgrading could be the right move for you.
When to upgrade:
— Your credit score improved. Usually when your credit score improves, you tend to outgrow the credit cards you started with. For example, maybe you started with a plain-Jane credit card but are now eligible for rewards credit cards.
— You want to earn more/better rewards. Just be aware this might come with an annual fee. Usually, cards with annual fees have better rewards than their no-annual-fee counterparts.
When to downgrade:
— You can no longer justify the annual fee. If the annual fee no longer fits in your budget or you’re not earning enough rewards to outweigh the fee, it might be time for a downgrade.
[SEE: Best Capital One Credit Cards]
Capital One Eligibility Requirements
Capital One doesn’t explicitly lay out its eligibility requirements for upgrading or downgrading one of its card products. But it’s best if your account is in good standing and you have a positive payment history for at least six months.
Requesting an upgrade or downgrade with Capital One shouldn’t ding your credit score. The bank doesn’t run a hard inquiry when it checks your eligibility. But you can always ask (if you’re on the phone) to double-check.
How to Upgrade a Capital One Credit Card
I’ve actually been able to do this twice now with Capital One. When I started working on rebuilding my credit, I applied for the Capital One Platinum Secured Credit Card and gave a $200 security deposit, which served as my credit limit.
After about a year, Capital One upgraded my card (without my asking) to the Capital One Platinum Credit Card. This is a common occurrence with Capital One when it comes to upgrading customers’ portfolios from secured to unsecured — as long as you make on-time payments and have a low credit utilization rate.
I held onto the Platinum card for a number of years, making it one of my oldest credit cards. I hardly used it, though, because it no longer suited my needs. I was all about the rewards already. So, thinking of you, dear reader, I upgraded to the Capital One VentureOne Rewards Credit Card to get better acquainted with the process. It was fairly simple and straightforward; it only took me a few minutes!
The VentureOne earns 1.25 miles per dollar on every purchase. So it’s definitely a step up from my Platinum card. And I’ll probably upgrade it again sometime down the line. You can keep upgrading until you reach the highest-tier card.
Here’s how to do it:
— Sign in to your Capital One account on the website. You can do this process in the app, but you run the risk of not seeing all of your available offers. So I recommend using the website. You can also call the customer service number on the back of your card if you’d prefer to talk to a real person.
— Check your offers. After logging in to your account, click on the card you want to upgrade and then click on “I Want To…” At the very bottom of the pop-up, you’ll see “View Offers and Upgrades.” You’ll be redirected to a new page where you can click “Explore Upgrades.”
— Request an upgrade. If you’re presented with an offer you like, you can do everything online. Remember, these offers update daily. So if you don’t see a card you want to upgrade to, you can always check again later.
How to Downgrade a Capital One Credit Card
If you want to downgrade instead, the process is fairly similar. Here’s how to do it:
— Call Capital One customer service. You won’t see downgrade offers in your Capital One account — on the website or the app. So the best method of contact is calling the customer service number on the back of your card.
— Ask what your options are. I recommend doing your research beforehand so you know what card you want to downgrade to. But also ask what your other options are.
— Choose the card that best aligns with your spending habits. After hearing all of your options, choose the card that best fits your lifestyle.
Want to Upgrade Your Platinum Card?
One upgrade option you could consider is if you have the Platinum Credit Card, but your score has improved and you’re ready to earn rewards. Upgrading doesn’t always mean having to pay an annual fee, either. Here’s how the Platinum compares with a no-annual-fee rewards card.
Want to Downgrade Your Venture X?
Let’s say you have a rewards card with a rather high annual fee. If you can’t justify the expense anymore, you can always downgrade to a similar card with a lower annual fee.
More from U.S. News
The Difference Between Hard and Soft Inquiries
What Former Capital One Walmart Cardholders Should Do Next
How to Upgrade and Downgrade Your Capital One Credit Card originally appeared on usnews.com
