Be Wary of Credit Card Upgrades

At first glance, getting an exclusive invitation to a premium credit card may sound enticing, but make sure you read the fine print.

Sometimes when I log-in to my various credit card issuers’ websites I get offers to be upgraded to a new platinum card or a similar upper-echelon piece of plastic.

Typically, these credit card offers are reserved for card holders who have solid payment history while also charging a substantial amount each month on their credit card.

The offer usually comes with a ton of bonus points, with my latest offer yielding 25,000 bonus points to sign-up and upgrade to the new credit card.

But before I click and accept their offer, I looked up the credit card profile of the offer and found that it carried a significant annual fee around $400, and most of the benefits were only useful for the mega rich, jet-setting elite.

Does being part of the “Ritz-Carlton” club or getting invitations to “exclusive events” make much sense to me or the average consumer? Probably not.

But if you do travel a lot, and enjoy the finest things in life, it may be the right move for you. Just make sure you review all the terms and conditions before upgrading to a new credit card.

Because you’re not only upgrading, you’re essentially using a different credit card which may have completely different terms than what you enjoyed with your old card, and likely at a much higher cost.

If nothing else, be flattered that your credit card issuer selected you to be upgraded, and take confidence in the fact that they probably see you a solid borrower with good credit history and a stellar credit score.