How to Upgrade from a Basic to a Premium Credit Card in Canada

Want to earn more points, get a higher credit limit, or take advantage of exclusive travel perks? Upgrading your credit card can help unlock a range of additional benefits.  

Many credit card companies offer different tiers, or levels. Basic credit cards are generally a good fit if you’re trying to establish or build your credit. They typically have a lower credit limit and more limited perks. Premium credit cards may be an option if you’ve established a strong credit history. A premium card typically offers a higher credit limit and access to top-tier rewards and benefits.   

To upgrade from basic to premium credit cards in Canada, you’ll need to follow these steps. 

How to upgrade to a premium credit card 

Upgrading your credit card isn’t very different from applying for any other kind of credit card. You’ll need to meet eligibility requirements, do your research, and submit an application. Here’s how: 

Build your credit score  

You’re more likely to qualify for a premium credit card if you’ve established a strong credit score. A high credit score is a green flag for lenders. It suggests that you practice responsible credit habits. A good credit score can help you qualify for credit cards with more favourable terms and additional perks and benefits.  

Your payment history accounts for the largest portion of your credit score, so work on paying your bills on time every time.  

Also, aim to keep your credit utilization at or below 30%. Your credit utilization is the amount of available credit you’re using. For example, if you have access to $10,000 in credit, you want to keep your balance below $3,000.   

Research premium credit cards 

Research the premium credit cards available to see which features and benefits are most important to you.  

If you are a frequent traveler, you may want to focus on premium travel credit cards that offer access to airport lounges and comprehensive travel insurance. If you plan to make a large purchase, look for a premium credit card that offers a high credit limit.  

Other key features to consider when comparing premium credit cards include: 

• Interest rate 
• Annual fees 
• Foreign transaction fees 
• Rewards rates 
• Welcome bonuses 

As you’re researching your options, make sure the benefits of the card outweigh any fees or interest costs. 

Meet the eligibility criteria  

Once you’ve narrowed down your search, review the minimum qualification criteria for each card. Many premium credit cards require a strong credit score and a minimum individual or household income.  

Submit an application  

If you meet the minimum qualification criteria, you can submit an application. You can typically apply for a premium credit card online, by phone, or in person at your bank or credit union.  

If you’re approved, you can start taking advantage of your premium card benefits. If you’re denied, you can ask the credit card company what went wrong so you can address the problem and try again in the future.  

Pros and cons of upgrading from a basic to a premium credit card 

As with any financial decision, there are a number of factors to consider before you apply for a premium credit card, including:  

Pros:  

• Higher credit limits: Compared to basic credit cards, premium cards typically offer a higher credit limit.  
• Higher rewards rates: Some premium credit cards let you earn rewards faster than lower-tier credit cards.  
• Other perks: Premium credit cards often offer perks that you won’t find with a basic credit card, such as premium travel insurance, higher credit limits, or a generous welcome bonus. 

Cons:  

• Higher annual fees: Many premium credit cards come with a higher annual fee in exchange for bigger rewards.  
• Higher credit score requirements: While eligibility criteria vary, many premium cards require a good to excellent credit score to qualify.   
• Minimum income requirements: Some cards have minimum individual or family income requirements. This helps lenders feel more comfortable about your ability to afford your payments.  

Are you ready to upgrade?  

If you want to accelerate your rewards rate, take advantage of luxury travel perks or improve your travel days with access to the airport lounge, consider upgrading to a premium credit card. To increase your chances of approval, work on boosting your credit score and make sure you meet the qualification criteria. When you’re ready, apply for the credit card that best aligns with your travel preferences and spending habits.   

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