There is no “one credit card fits all” approach to credit cards. If you currently have one or more credit cards, it may be time to evaluate your cards to decide whether you need a new one or not. Here are 4 reasons why you should start looking for a new credit card:
High Interest Rates
When you first applied for a credit card, you would have received an interest rate based on your credit score. If you've since improved your credit (you can check your credit report for free at www.annualcreditreport.com), there is a good chance you are paying a higher interest rate than necessary. The higher your interest rate, the longer it takes to pay off your credit card balances. If you only have a small amount of debt, call your credit card company and ask for a rate decrease. The worse they can say is no.
However, if you have a substantial amount of credit card debt, you could move your high interest debt to a 0% credit card. This can help you save money on interest and repay your debt much faster, as some companies are offering 0% balance transfers for 24 months.
Need to Make Payments
You need a new credit card if you know you have to buy something you can't pay for all at once. If you don't have the cash to make a purchase, and don't think you can pay it off within a month or two after putting it on a credit card – you would benefit greatly from a credit card with 0% interest on new purchases. This will give you six months to a year of interest free repayments before regular rates kick in.
You Use a Credit Card Without Rewards
If you are using a credit card each month to make the majority of your monthly purchases and paying them off in full when your statement arrives, you should be using a credit card with a rewards program. You should never buy more than you would normally just to try to earn rewards, but there’s no reason not to take advantage of these programs. Credit card companies are offering very generous deals these days and with some cards you can get a $100 cash back bonus just for signing up.
You Have a Credit Card With a High Annual Fee
If you already have a rewards credit card, but you are paying a high annual fee for rewards you don't use often enough, you should look for a new credit card without an annual fee. Many people sign up for airline rewards cards, but then realize they don't travel the same airline each time and end up either wasting their earned rewards, or having a hard time earning enough to qualify for the rewards. If you fall into this category, you can save an extra $50 to $100 a year in a matter of minutes.
If you decide it is time to seek out a new credit card, don't simply jump at the first offer that arrives in your mailbox. Spend some time comparing credit cards so you can find the best deals before applying.