As we all know, there are many levels of credit cards, and different banks have different regulations, such as ordinary cards, platinum cards, black gold cards, and exclusive cards. The higher the level, the more benefits you get from the bank. First, the credit card overdraft limit will be greatly increased, and the points earned when spending will also be greatly increased. You can rest in the VIP lounge when traveling or flying, and more welfare measures will be added. So, if you are invited to upgrade your ordinary credit card to a platinum card, should you choose to upgrade?

For credit card holders with good card usage habits, banks will continue to invite them to upgrade to higher levels. This is a strategy for banks to continuously market credit card holders. But we should not only see the increased amount and benefits, but also the financial logic behind it and the cost of the change.

1. At present, the invitation upgrade strategy formulated by most bank credit card centers is actually mainly based on quota increase as a marketing point. But the cardholder must distinguish the cause and effect relationship of who comes first and who comes last. Generally banks will say this: "If you want to increase your overdraft limit, you must turn it into an annual fee card similar to a platinum card." In fact, this means that upgrade comes first and credit comes later. But will credit really improve after upgrading?

2. The bank’s internal risk control logic is actually like this. Credit cards are invited to be upgraded on a large scale, but if the cardholder agrees to become a platinum card, it is impossible to withdraw cash immediately. If the cardholder's basic financial status, such as income, total bank assets, etc., will not change in the bank's internal credit model, then the limit will not be increased temporarily according to regulatory requirements.

3. After the credit card is upgraded to a platinum card, the bank will no longer waive annual fees, and there will no longer be measures similar to "using six times a year to waive annual fees." Other than that, platinum cards and credit cards charge annual fees. The annual fee ranges from 200 to 2,000 yuan and is charged every year. Moreover, some banks will require the amount of card consumption to reach a certain level, otherwise they will charge additional card application fees.

Of course, platinum cardholders will receive many benefits when going out, and the discounts from special merchants given by the credit card center will also be increased several times. But at this time, cardholders actually need to ask themselves three questions to clearly understand whether they should upgrade and whether it will affect their normal life.

1. Will your income change significantly in the future? Can you afford the consumption upgrade after platinum card? The purpose of a credit card is to overdraw, but you still have to pay it back next month. With a platinum card, consumption has not been upgraded and income has not increased. Those added special merchants have great discounts, but they still have to spend money. If nothing changes at this time, just swipe your face when swiping your card, but you will have to bear more costs, so there is no need to upgrade.

2. Can I enjoy the additional benefits on the Platinum Card? Are those benefits outweighed by the increased costs? For example, if you don’t fly once a year, you won’t be able to enjoy VIP treatment at the airport. If you do fly, you may spend an extra 30 yuan and still get access to the VIP lounge. If you don't play golf yourself, you can't take advantage of those driving range free perks. So many times, you will find that the increased discounts are rarely usable.

3. Is your purpose of upgrading your credit card correct? Don’t upgrade just for the sake of your overdraft limit. Indeed, after using the Platinum Card for a period of time, as long as the cardholder's consumption and overdraft situation have significantly improved, the credit card center will indeed make a certain amount of cash withdrawals. That is, in the data model, the cardholder's data changes, so the credit will increase. But is the purpose of upgrading the Platinum Card just for overdraft? If so, it may be that the card has a habit of putting the cart before the horse.

If the purpose of upgrading the card holder is to withdraw money, and then spend more money to withdraw the money, isn't he a slave to the credit card? The real purpose of using a credit card is to facilitate payment during normal purchases. If your income and consumption do not grow naturally, and if your own business does not require more convenient payments, the higher credit limit given after the upgrade is either a waste or a trap that induces you to over-consumption. Related questions and answers: