What is a credit card product change and when does it make sense?

Jul 29, 2021

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Editor’s note: This story has been updated with the latest information.


Let’s say you have a credit card, such as the Chase Freedom Unlimited, and you’re ready for an upgrade to something like the Chase Sapphire Preferred Card.

A credit card product change allows you to maintain your existing account while enjoying the benefits and terms of a different card. But there are pros and cons to doing a product change. Let’s go over all the details.

In This Post

What is a credit card product change?

In the credit card industry, each type of credit card is referred to as a product.

Requesting a product change doesn’t require applying for a new account or performing a credit check, also known as a “hard pull.”

(Photo by John Gribben for The Points Guy)

For example, though the Chase Freedom Flex and Chase Freedom Unlimited have similar names, these are considered to be two entirely different products. You can change your product from one to the other and still retain your old product’s account number, balance, and due date. In fact, you can continue to use your old card before and even after you’re issued a new card with the name of the new product.

For example, if you change your Chase Sapphire Preferred Card to a Chase Sapphire Reserve, you can continue to use your old Sapphire Preferred card to make charges to your account while enjoying the terms and benefits of the Sapphire Reserve.

Within a few days, you should receive a new Sapphire Reserve card with the same number as your old Sapphire Preferred, but both will continue to work.

When should you consider a product change?

Once you know that it’s possible to change products while retaining the same credit card account, it brings up several interesting possibilities for how you could benefit from this technique:

 

Product upgrades

When a new credit card comes onto the market, most people try to apply for a new account in order to earn the sign-up bonus or welcome offer. But suppose you’re unable to qualify for a new account due to having opened too many accounts. In that case, you might consider upgrading one of your existing products to the new one in order to take advantage of its benefits.

Related: Should you upgrade your card or apply for a new one?

Product downgrades

One of the most common reasons for requesting a product change is to avoid an annual fee without closing your account. When you downgrade one of your existing accounts from a card with an annual fee to a no-annual-fee credit card, you may still be able to receive some key benefits while avoiding the yearly payment.

Related: When can you downgrade your credit card account?

Obtaining a product that’s no longer available to new applicants

Credit card issuers sometimes stop offering great cards to new applicants, but these products might still be available when you request a product change. For example, Chase Sapphire Preferred customers may be offered a standard (no-annual-fee) Sapphire, and Chase Marriott cardholders can change to the Ritz Carlton Credit Card.

Related: The ultimate guide to credit card application restrictions

Extending your credit history

When you’ve had an account for just a short time, you might not want to cancel it, as it could shorten the average age of accounts on your credit history and have a minor impact on your credit score.

Instead of just closing your account to avoid paying an annual fee, consider a product change. This way, your account will continue to be open in good standing without reducing the average age of all of your accounts.

Related: 6 things to do to improve your credit in 2021 

Maintaining your credit line

When you close a credit card account, you will reduce the total amount of available credit, which will raise your debt-to-credit ratio.

If you’re worried about impacting your credit, you can request a product change to a no-annual-fee card instead of closing the account. This is especially important for those with just a few credit cards.

Related: How does applying for a new credit card affect my score?

Avoiding new applications

Another reason to perform a product change is to use a new card without submitting a new application.

Each new application results in a check on your credit and can also run afoul of some issuers’ policies, such as Chase’s 5/24 rule. If there’s a credit card that meets your needs better than the one you currently have, a product change can allow you to use it without the impact of applying for a new card or opening a new account.

Related: Can you downgrade and then upgrade the same card?

Disadvantages of product changes

For all the benefits, there are a few downsides to making product changes to your existing accounts.

The biggest one is that you will not receive a sign-up bonus or welcome offer when you make a product change (with the exception of some targeted offers). As long as you’re aware of this going in, you can weigh it against the advantages for your particular situation.

In addition, most card issuers require that your account be open for at least one year before allowing you to make a product change, so don’t try to do it too soon after opening a card.

Related: Cards currently offering sign-up bonuses of 100,000 points or more

Bottom line

A very small percentage of cardholders know about this technique for maximizing your credit card portfolio, but it’s not very hard to do. By considering the best ways to switch products on your existing accounts strategically, you can always hold the best combination of cards for your needs.

Additional reporting by Liz Hund and Chris Dong. 

Featured photo by TravelCouples/Getty Images.

Delta SkyMiles® Platinum American Express Card

Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.

With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.

Apply Now
More Things to Know
  • Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
  • Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
  • Earn 3X Miles on Delta purchases and purchases made directly with hotels.
  • Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
  • Earn 1X Miles on all other eligible purchases.
  • Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
  • Enjoy your first checked bag free on Delta flights.
  • Fee Credit for Global Entry or TSA Pre✓®.
  • Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
  • No Foreign Transaction Fees.
  • $250 Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Regular APR
15.74%-24.74% Variable
Annual Fee
$250
Balance Transfer Fee
N/A
Recommended Credit
Excellent/Good
Terms and restrictions apply. See rates & fees.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.