Seedlings to bigger pots
How can I tell when seedlings have outgrown 2 inch peat pots?
Wayne County Michigan
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If your seedlings are growing well and the peat pots are moist you can tell that they could use a bigger container if roots are growing through the sides and bottom of the pot. If you do repot move up to the next size pot of whatever kind you choose (make sure it has drainage holes). Do not remove the pot but do remove any of the pot above the soil line. Leaving the peat pot exposed upon transplanting either indoors or out will wick moisture away from your plant drying it out.
That said some plants are slow growers and some are content to be in very small pots. If you are growing seeds such as annuals or vegetables the best way to avoid them outgrowing their pots is to start them at the correct time. Here's a link with some good information.
Seed starting is such a fun activity! Enjoy!