Just because you’ve had the same credit card since you were 18 years old, doesn’t mean it’s the right fit. In fact, as time goes on, many people can benefit from swapping their current credit cards for new ones. If you’ve had your credit card for years or perhaps even decades, it might be time to consider making a switch – especially if there are better options out there. Keep reading to discover 5 key signs that it’s time to look for a new credit card.
You’re not earning credit card rewards
With so many rewards credit cards available today, there is almost no justification for not having one. If you make frequent purchases on your credit card and never miss a payment, then you should be benefiting from that by earning rewards. Traditional credit cards do not offer any additional benefits, whereas a rewards credit card allows you to accumulate points that can then be redeemed for everything from retail items and flights to cash.
Your interest rate is high
Interest rates vary among credit card providers. If yours is high, or you’re getting offers for cards with lower rates, you should seriously consider a new credit card. Before switching to a new card, try negotiating a lower rate with your current provider. If they refuse, then be prepared to transfer your balance to a new credit card with better interest rates.
Your credit limit hasn’t increased in a very long time
If your income and credit score both increased but your credit limit remained the same, this is another indication that you might want to consider taking out a new credit card. A number of credit card issuers impose a maximum credit limit on all cardholders, irrespective of major factors such as income. If you consider yourself a responsible cardholder but your issuer refuses to increase your credit limit, take your business elsewhere.
You are curious about the benefits of sign-up bonuses
Tons of credit card issuers offer impressive bonuses when you first sign on, or when you spend a specific amount of money in a set period of time (usually around three months). However, you will only reap these benefits if you are a new account holder, which means switching to a new credit card or taking out a second one. If you’re already questioning whether your current credit card is the right one for you, then it’s likely time to make a switch, especially when you consider the advantageous bonuses that often come with signing up for a new card.
You’re receiving offers for better credit cards
If credit card companies are mailing or emailing you with offers for credit cards with better terms, you should seriously consider them. Credit card issuers will only send these offers to candidates they’ve pre-screened and who they think would be a good fit based on their credit information. Take the time to compare the offer you’ve received with the terms of your current credit card. The next step is to get in touch with the credit card issuer directly. They will be able to answer any questions you may have and can help you apply for a credit card with their company, should you choose to do so. Please note that if you haven’t been receiving offers from credit card issuers, it could be because you’ve opted out of mail or email communications. Check your notification preferences to ensure you haven’t opted out of mailing lists.