Match upgraded credit card benefits with spending pattern, beware of costs

Threshold limit for waiving annual fee should not exceed spending capacity

If you have been using a credit card for some time and have maintained a good repayment track record, your lender is likely to offer to upgrade it as a gesture of goodwill. As one’s needs evolve, upgrading one’s card can be useful. Nonetheless, the pros and cons should be weighed.

“Upgrading your credit card can yield better rewards, cashback, and more favourable terms such as lower interest rates or higher credit limits. However, it is essential to conduct a cost-benefit analysis,” says Adhil Shetty, chief executive officer (CEO), BankBazaar.com.

Upgrading your credit card is different from applying for a