First, congratulations on showing one full year of financial responsibility! Keep up the good work, and when we ride out this "recession", you'll be happy to have your good/excellent credit to show off.
The best thing for you to do is to call Capital One and ask them what your options are for upgrading your account. Oftentimes, credit card issuers will tell you they're going to upgrade your account, but what they essentially do is close your old account and open a new one (while of course running a credit check). If that is the case, then you're better off just applying for a new credit card. That way you'll still have your first card, which you should keep for a LONG time if you are charged $0 in annual fees, and you'll have a new rewards card. Your available credit will increase, which means your credit utilization will decrease if your spending remains the same (low credit utilization is a good thing! Calculate credit utilization by dividing your monthly balance by your total available credit on all cards, should not be more than 30%). Most important is that you do not end the history of your first card!
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