Credit Cards Made Easy
When Should You Get a New Credit Card? |
When you first get a credit card, you may think that it will be the perfect card for you for the rest of your life. In reality, you will most likely outgrow your card within three to five years. There are several signs to look for that suggest that it is time to get a new credit card. These signs include your credit limit is not high enough for your spending habits, your interest rate no longer is in step with your FICO score and you want more from your credit card than what it is delivering.
Your Old Credit Card has a Low Credit Limit
One of the most common factors that leads people to apply for a new credit card is that their old credit card's credit limit is not high enough to support their current spending habits. For example, the first credit cards that you receive tend to have very low credit limits. This is fine for establishing your credit history, however, within five to six years you will want to either request a credit line increase or apply for a new credit card with a higher credit limit.
Get a New Credit Card for Better Interest Rates
Another factor that may cause you to look for a new credit card is if your APR is too high. Since your FICO score is continuously evolving, you will periodically want to check it to see if you have moved up in the credit rating spectrum. When you do move up in the credit rating spectrum, you will want to apply for better credit card programs with better interest rates and terms.
Find a New Credit Card With Features You Want
The final factor that may entice you to shop around for a new credit card is if your current credit card is not offering you the features that you are interested in having. For example, if you currently have a plain credit card, then you may want to apply for a credit card with a rewards program. You may also want to look for a credit card that will allow you to earn gift certificates for your favorite retailer like The Home Depot or Barnes and Noble.