Although I have a number of credit cards in my name, there is one card in particular that I consider my card of choice. It’s the card I use for most purchases, big and small, and the card I put my recurring bills on. You might have a similar card that you use frequently. But if the following things apply to you, it might be time for you to get a new card.
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1. You don’t accumulate a lot of rewards
What I love about my favorite credit card is that it comes with generous cash back on the purchases I make a lot, like groceries and gas. But if you are unable to rack up a lot of reward points or get money back on your card, it might be time to exchange it for a card with a better program or better match. your lifestyle.
2. You pay an annual fee but you don’t get much in return
Sometimes it makes sense to get a credit card with an annual fee. Often, paying these fees will earn you even more reward points or other benefits that will save you money. A travel rewards card that charges a fee, for example, can also give you free checked baggage on airlines. And if you travel frequently, that expense could be more than worth it. However, if you are currently paying an annual fee but are not getting a lot in return, maybe it’s time to consider a new credit card with no annual fee – or one that offers rewards that make its fees worthwhile.
3. Your credit card company is difficult to reach or the customer service is poor.
Years ago I was a few days late making a credit card payment because something was wrong and the monthly email I would normally receive informing me that my bill was due failed. is never displayed in my inbox. Rather than working with me – an account holder in good standing who had never made a late payment in many years – my credit card issuer decided to keep my late fees in place. So I immediately ditched that card and got a new one because poor customer service wasn’t something I was ready to deal with. Likewise, if you have a credit card where customer service is hard to come by or not helpful, it could cost you to get another credit card as well.
4. The interest rate on your card is very high
Credit card companies earn money when you maintain a balance over time and accumulate interest charges on it. But if your credit card charges a higher interest rate than other cards, that alone might be a good reason to switch. After all, why pay more to borrow when there are cheaper cards? In an ideal world, you would pay off your credit card in full each month and not carry a balance to begin with. But the reality is that you can have situations where maintaining a balance becomes necessary, and that’s when a lower interest rate could be crucial.
Keeping the same credit card for a long time could help your credit score improve or stay in good shape. But at some point it might pay off to get rid of a card and replace it with a new one, especially if the above situations apply to you. That said, if you don’t pay a fee for your favorite credit card, you might as well keep it even after you’ve replaced it. Keeping that account open could help your credit score avoid being hit, and it never hurts to have a backup card in case you run into your new card’s spending limit.