Credit cards can offer a wealth of benefits. Cash back. Travel rewards. They may even include hidden perks like mobile phone insurance and wine tastings.
Your APR is Too HighCredit card debt wouldn't exist in a perfect society. No one is flawless, and most of us carry a balance and pay interest (although we strongly encourage you to pay off your credit card bill in full each month).
2. You’re Not Earning RewardsMany credit cards provide 1% cash back on purchases. Chase Freedom FlexSM and Discover it® Cash Back give five times the earnings in certain areas.
3. Your Spending Habits have ChangedEven if your credit card includes a rewards programme, it may not fit your purchasing habits.
4. Your Annual Fee Cancels Out Your BenefitsIf your credit card has an annual charge, assess your earnings to see if it's worth it.
5. You’re Not Claiming Your RewardsSome credit cards offer excellent rewards, but the steps cardholders must take to redeem those perks are so complex that you never take advantage of them.
6. When There’s a Special Sign-Up BonusMany credit cards offer some sort of intro bonus, often worth hundreds of dollars, to incentivize new customers to apply
While this alone may not be enough to warrant applying for a new card, it could be a wise decision if you have a large upcoming expense.