In a perfect world, you’d obtain a credit card and use it for the rest of your life. However, as the years go by, you may come to find that the credit card you once loved is no longer what it used to be.
There are times when it makes sense to move on to a new credit card. Here are a few situations that often call for a change:
• Variable rate is climbing. The bad thing about a variable interest rate is that you never know where it will land. If your rate continues to climb, it means more money out of your pocket when you carry a balance. Even worse, it makes it more difficult to budget for the future.
• Changing rewards program. A rewards program is one of the best reasons to use a credit card. Unfortunately, if your program has changed for the worse over the years, you’ll want to consider a change. Every credit card company is fighting for your business, so you may be able to find something better.
• Annual fee is too high. Many credit cards carry an annual fee, with most ranging from $100 to $500. While there are times when it makes sense to pay this fee – such as if you’re getting a lot in return – you don’t have to do so. There are plenty of offers with no annual fee, meaning you don’t have to worry about this once a year.
• Too many fees. Some credit cards are good at helping you avoid fees, while others always seem to get you one way or the next. Review your fee schedule, compare it to other offers, and determine if you’re getting what you deserve or being taken advantage of.
• Poor customer service. You hope you don’t have to contact customer service often, but when you do you expect to be treated with respect. If this doesn’t happen, don’t hesitate to make a change. The credit card industry is competitive, so you shouldn’t have to put up with bad service.
Have you ever switched credit cards because of one of the details above?