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4 Signs You Should Get A Better Credit Card
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4 Signs You Should Get A Better Credit Card

by programmerAugust 4, 2015

You’re constantly developing as a person, so it shouldn’t come as a surprise that what once fit you is now a thorn in your side.

Despite the drop in credit rating and credit utilisation ratio you’ll suffer from closing an old credit card, sometimes it’s better to start afresh. Here are some warning signs that should tell you when it’s time to jump ship.

1. Your interest rates are soaring

Interest rates are important if you seldom fully pay off your balance every billing cycle. The interest will be charged on the remaining balance, so if your balance keeps climbing, the amount of interest you have to pay will, too.

credit card interest rates
Your bank may even raise the interest rate if you’ve defaulted on payments for two months, or if you’ve had your card for a while, so you might want to switch credit cards if you can’t get your interest rates to go down.

Some cards offer interest-free repayments for a limited amount of time, so if you’re looking to kick-start your debt-killing habits, a new credit card with such a feature is a good way to start.

2. Your credit score is getting better

You’ve been steadily paying off your debt, and your credit card slate is wiped clean before your balance statement comes out every month. That’s good; it means that your credit score is climbing up.

With a better credit rating you will be able to qualify for a credit card that offers lower interest rates and usage fees, if any for the latter, because you’ll be seen as a reliable personal financially.

Your credit limit, which will determine a healthy credit utilisation ratio for you, will increase. And why’d you pass up a chance to get lower interest rates?

3. You aren’t reaping competitive rewards

Your consumption habits may well have changed since your fresh-grad status days, and the rewards that sounded great back then because you use them so often suddenly don’t seem great anymore.

credit card rewards
You probably don’t go for movies every few days anymore, but you do pay for petrol and groceries. Banks are constantly out-pacing each other to offer better deals and snag new customers. If you’ve not checked out the credit card market for some time, now’s a good chance to find a better, more competitive card that suits your lifestyle.

4. Your needs have changed

Transitioning from young adulthood into your 30s will see you through many changes in life. It’s when you stand a higher chance of going out with someone, getting married, getting a family, and getting a new car and home.

All of those cost money, and sometimes you’ll have to resort to loans or credit cards to get them. Maybe rewards points and cashback are no longer as important to you as, say, lower interest rates. If you can no longer pay off your full balance every month, you’d better look for a credit card with the lowest interest rate available, compared to one that offers good rewards but high interest rates.

Conclusion

There’s no one card that’s a life-long match for you. Don’t be stuck with a card that doesn’t bring enough advantages to you. Heed the warning signs, subtle as they are, and review your lifestyle from time to time to see if you may be better off with a new card.

Check out our credit card guide for some pointers on choosing the perfect card for the current you.

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