Have you been using the same credit card for ages? If so, a new card may be worth checking out. Here are 5 signs you need a new credit card.
There are many reasons why you should consider getting a new credit card, or at least explore what’s out there. You might want to get a second credit card because you want the added security of a higher credit limit, or you might just be looking for better offers and discounts. But before you start applying for new cards, it’s important to think about whether now is the right time for you to go for it. Here’s a checklist to help you reach the conclusion.
Congratulations on your good credit habits! By paying on time every month and keeping your credit card balance low, you can qualify for a new card that offers premium rewards. These cards usually require excellent credit, and with an excellent score such as yours, there’s no reason you shouldn’t be eligible.
You may be a good candidate for a credit card if you are receiving offers with better discounts and rewards. It is best that you take your time, evaluate all the offers and pick the one that suits your lifestyle the most.
A travel enthusiast’s needs would be different from someone who orders food most of the time. So it’s important that you look for cards that offer better cashback and savings on the categories where you spend the most.
A card with a lower annual percentage rate will help you pay off your big purchases faster. There are cards that offer financing for a longer span of time and would be a perfect fit for purchases such as appliances or furniture.
As your earnings increase over the years, it’s only natural that you need an upgrade in your lifestyle. A credit card with a higher credit limit gives you the much needed flexibility of making larger purchases without shooting your credit score up. (Check whether your current credit card purchases are hurting your credit score here)
Lastly, getting another credit card is a great way to improve your score and make big purchases. But it can also be a problem if you don’t plan your purchases wisely. You should always consider your current paying capabilities and ensure they have a positive impact on your credit score.
To understand the best practices and get personalised tips to manage your credit card better, download OneScore.
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- OneScore , May 17, 2022