Maybe the credit card in your wallet is the same one you received the very first time you applied for credit. Or, perhaps you got into a bad situation with your credit, so the card that you currently have is one a lender gave you in exchange for a high-interest rate. Whatever the reason, even if you have not yet thought about it, now may be the time to get a new credit card. So, how do you know if it is that time for you, or if you would be better off staying with the card that you have now? Below are some of the most common signs you can look for to determine if it is time that you get a new card–
Your Credit Score Has Improved
One of the best ways to determine if now is the right time for you to get a new credit card is to obtain a free credit report from either TransUnion or Equifax. If you obtained a credit card when your credit score was low, you may still be paying a high-interest rate that you no longer need to. If your credit score has improved, you can likely apply for a new card that has a lower interest rate or at least ask your credit card issuer to lower your rate.
You Are Receiving Better Offers
Aside from checking with the credit reporting agencies, you can also tell that your credit score has improved if you are receiving better offers from other credit card issuers. Credit card companies typically will not offer you a credit card unless they have already pre-screened you and determined that you are a good candidate for their credit card. Before you make the switch, though, compare the card you currently have with the one that is being offered. If the card you are being offered has a better interest rate, better rewards program, or no annual fee while your current one charges that fee, it may be time to make the switch.
You Are Not Receiving any Rewards
There are hundreds of credit cards available, which means there is a lot of competition for credit card issuers that offer them. To beat the competition, most credit card companies offer some type of rewards on their credit cards. These include Air Miles, cash-back bonuses, and more. If you are currently using your credit card a lot and are faithful about paying back the balance in full every month, you should take advantage of one of the many rewards programs that are offered. If your current credit card does not offer rewards, consider switching to one that does. Just make sure that you are not losing out on other ways, such as paying too high of an interest rate or an inflated annual fee.
You Are Earning Rewards, but not in the Right Places
Some credit card companies offer rewards for making purchases at certain places. A company may offer rewards for every dollar of gas you buy, while others may offer rewards on every grocery purchase. If your credit card company does offer rewards, but not in the areas that you make purchases the most, you should consider switching to one that will get you the most bang for your buck. If there is an area that you spend the most money on, there is likely a card that offers you rewards in that area.
It Has Been Years Since Your Last Credit Limit Increase
Credit card companies want to lend money to people. It is after all, how they make their money. Due to this, as a customer’s purchasing power increases, credit card companies will usually offer them a higher credit limit. Although some credit card companies have a maximum spending limit that applies to all borrowers, if your income has increased, you are not at the borrowing cap for your credit card, and your credit card company has not increased your credit limit, it may be time to change cards. Just remember to call your credit card company first to ask about a credit limit increase. They may just not have realized that you are ready to start taking out more credit, and will likely be happy to give it to you.
Your Credit Card Has an Annual Fee
Generally speaking, there are only two times a credit card company will require that you pay an annual fee. The first is when you have a low credit score and are considered high risk to the lender. The other time your credit card may have an annual fee is when your credit card comes with many perks, such as Air Miles and a hefty cash-back percentage. If neither of these scenarios applies to you, yet your credit card company is still charging an annual fee, it is time to switch cards.
Be Careful Before Accepting Another Card
Even if you want to switch credit cards, it is still best to keep your old credit card account open and use it every once in a while. This is because it will show the credit reporting bureaus that you have more credit and that you are able to manage it quite well. If you want to take on a new card, it means that you will have more credit available. It is crucial that before you take on that new debt, you are certain that you can handle it. If you cannot, you may find yourself drowning in debt and unable to pay it back. When that happens, a credit card company or debt collector may file a lawsuit against you to recover their debt.
In Trouble with Debt? Our Florida Debt Defense Lawyers can Help
If you have found yourself in trouble with debt and a credit card company or debt collector has already taken legal action, do not wait to speak to our Fort Lauderdale debt defense attorneys. At Loan Lawyers, we know the defenses available to these lawsuits and we will use them to give you the best chance of a possible outcome. Call us today at (954) 523-HELP (4357) or contact us online to schedule a free consultation and to learn more about how we can help with your case.
Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.