Credit cards offer a range of facilities including discounts on various brands, movie tickets, reputed restaurants, electronic items and so on. A cardholder enjoys exclusive offers seasonally and can reap the added benefits of a credit card. However, a basic credit card is just like a vanilla ice-cream, plain and simple. It offers absolutely little or no added benefits, discounts or reward points to the customer. All one can do is pay his bills by using the card. If a customer uses the basic card in a manner that affects his/her credit score positively, the bank itself would offer an upgrade to the customer after a certain period of time. Different banks and financial institutions have different upgraded versions of credit cards like gold, platinum, titanium, super premium, etc. You can know more about the advantages of credit cards.
The question is, “when you should upgrade your basic credit card?” There are 4 ways for you to know the right time for upgradation.
- Good or Excellent credit score – A basic credit card is provided to an individual who has a decent credit score of around 600. With consistent usage and proper utilisation of a credit card, one can increase his credit score. When a cardholder achieves a good or an excellent credit score, which is usually said to be above 650, he can upgrade his basic credit card. Keep a check on your credit score and try to improve it so as to avail the benefits of an upgraded card.
- Learn the usage of a basic card – A lot of people either do not understand the proper way of using a credit card or somehow misuse it which not only affects them but their credit score. One should learn how to utilise the interest-free period of a credit card, how much credit should be availed by using it and then pay the dues without any failure. Once you have understood the terms and learnt the usage of your basic card, you should look for an upgrade to it. Enjoy the advantages of credit card by upgrading your basic one.
- Financial requirement – It is the most important indication that tells you the right time to upgrade your card. With an increase in your financial needs, the credit limit and benefits of your credit card should also increase. From medical stores and hospitals, shopping malls and movie theatres to electronic goods, an upgraded credit card will offer you a host of discounts, cashback and more, that would help you to save on your expenses. The list of advantages of credit card also includes many more facilities that are provided by banks.
- Change in lifestyle – If you have upgraded your lifestyle then why leave out your credit card? The change in your lifestyle is also an indication to reckon that it is the right time to upgrade your basic card to an advanced one. If you have started to go on shopping sprees, movies and restaurants more often than before, it is the time for you to upgrade your card so as to avail maximum advantages of credit card. A credit card can also be your travel companion and provide you facilities at airports and other places.
There are many banks that have a range of credit cards to customers. The better card you choose the more perks you enjoy. After all, the several benefits and advantages of credit card are too good to miss out! Increase your pace with the ever-changing lifestyle and churn most out of feature-rich credit cards.