People love to stick with what’s familiar to them. While this can be great with clothing and blankets, it can be bad when it comes to credit cards. Many people are using the same credit cards that they have been using for many years and are missing out on numerous benefits because of it. The credit card industry has become extremely competitive in the race to gain the largest number of consumers using their products. New credit cards often have better rewards and lower interest rates and fees than the cards issued five or ten years ago. Here are some of the signs indicating that you should switch to a different credit card.
Your Credit Score Rose
If your credit score has improved by a significant amount since you opened your last credit card account, it may be time to search for a new credit card with better terms. The interest rate that you pay on your credit card is based on your credit score at the time you applied for the credit card. In some cases, credit card companies make periodic reductions in the card holder’s interest rate after reviewing the account information associated with the card, but in other cases, the credit card company won’t reduce your rate unless you ask and that isn’t guaranteed. To get the best rates, apply for a new card with better terms and store the old card in a secure place.
Your Rewards Aren’t Competitive
With today’s widespread use of credit cards, the value of earning competitive rewards cannot be overlooked. If you use your card regularly and pay off the balance each month, the rewards can actually make it beneficial for you to use your credit card to pay for purchases. Credit card companies that use to give 1 percent cash back on purchases are now giving up to 6 percent cash back on certain types of purchases. Check out several different types of rewards credit cards to see which ones would provide the most benefit with your current spending habits.
You Leave The U.S. For Travel
If you leave the U.S. for travel regularly, you will want to have a credit card that you can use easily overseas without excessive fees being levied on your account. Many credit card companies have surcharges for foreign transactions, typically about 3 percent of the charge, which can add up quickly when you are using your card to pay for everything. It is important to choose a new credit card that is compatible with the payment terminals used overseas and that has a foreign transaction fee that is lower than most others.