What Is Credit Card Product Change?

There are times when you need a new credit card because your credit rating has changed, you want to earn more rewards, or get access to additional benefits, but you do not want to open a new credit account or to have your credit score take a hit when you submit an application. That's when a credit card product change comes in handy.

A credit card product change involves swapping one credit card for a different card from the same issuer. Sometimes it is called a credit card upgrade or downgrade. A product change doesn't typically involve closing a current credit card or opening a new one. Instead, your existing credit line is transferred to the new card. Your credit history from the old card typically remains on your credit report, which is important when you've had that card for a while and have used it responsibly.

To request a product change, call your credit card issuer and tell them you are interested in a product change and want to know what credit card options you have.

Do not expect that you will be given a lot of options to switch to. A product change usually occurs within the same credit card "family," like Capital One's Venture or Savor family of cards, Chase's Ultimate Rewards cards or United credit cards, or Citi's Strata cards or American Airlines cards. So, for example, you can swap one Citi Strata card with another, but not move from a Strata card to an American Airlines credit card.

Here are some reasons when you would want to get a product change:

• You want to avoid triggering a hard inquiry with a new credit card application.
• You want to upgrade from a secured credit card to an unsecured credit account.
• You aren't using your credit card enough to justify its annual fee.
• You want a card with benefits more suited to your lifestyle.
• You want to earn more rewards in a specific spending category.

But before you request a product change, there are a few factors to consider. Issuers do not usually allow earning welcome bonuses when you're changing products as you are not considered a new cardholder. The same applies to various introductory annual percentage rates (APRs). If you are interested in earning a welcome bonus offer or need a 0% intro APR, you might want to apply for a separate credit card.

Another thing to consider is what will happen to your rewards when you change your old credit card. Issuers may handle remaining rewards differently: they might be transferred, redeemed automatically to your bank account, or you will simply lose them. If your rewards cannot be transferred to your new account, then you may want to redeem them first before requesting a product change.