Today, more people are using credit cards to make everyday purchases than ever before. Many of us obtained our credit cards when we were younger and we continue to use it because it is a convenient payment option for us. However, as time goes by, the credit cards we hold may stop being the best credit card for our needs. Here are some of the signs that indicate it may be time for us to switch credit cards.
Your Credit Score Has Increased
If your credit score has increased significantly since the last time you applied for a credit card, you may be able to get a better deal when you apply for a new credit card. The interest rate that you are charged for credit card purchases is directly linked to how high your credit score was when you first applied for the credit card. If your credit score is higher now, you should qualify for a new credit card with a lower interest rate and lower or no usage fees.
Your Credit Card Does Not Offer Relevant Rewards
Because the credit card industry has become very competitive with many new players entering the market, many credit card companies are offering attractive rewards for obtaining and using their credit cards. Some credit cards offer cash back on purchases while some others offer points that can be redeemed for travel or other things that you want. If you use credit cards frequently, these rewards can be lucrative. If the credit card you are currently using does not offer relevant rewards that you can use, it may be a sign that it is time to switch credit cards.
Your Credit Card Has A Low Limit
Credit cards issued to those with less than optimal credit generally have lower limits than credit cards offered to those with higher credit score. If you obtained your credit card before you were able to build up a good credit profile, there is a good chance that you are holding a credit card with a low limit. Obtaining a credit card with a higher limit will give you more purchasing power and may raise your credit score by altering your credit usage ratio. It is important to remember to only spend what you can afford to pay off when obtaining a credit card with a higher limit because you can quickly get in over your head overspending on a credit card with a high limit.