Invest Wisely

New Credit Card – Is It Time to Make a Change?

by Mark Sander5 min read
Should you get a new credit card?

Most of us believe that when we get a credit card, we should keep it for life. According to a study done by, 40% of US cardholders haven’t ever changed their credit cards. Or have had the same card for at least 10 years already. Most of us believe getting a new credit card is a bad idea. And that is one of the big mistakes we made when it comes to credit cards. Keeping our older credit cards may actually be costing us big money. Here are some reasons why it is a good idea to replace your old credit card with a new one.


New credit card - is it time?
Is it Time to switch to a New Credit Card?


Introductory Bonus Offers

Today, most credit cards carry introductory bonus offers which are three times higher than what they were a decade ago. You can get a sign-up bonus of even $500 when you get your new credit card. The caveat here is that you need to spend money on that card to avail of those sign-up bonuses. So read the fine print very carefully before making a commitment.



A New Card Can Help Your Credit Standing in the Long Run

A new card can actually help your credit standing in the long run. This is because it will increase your pool of available credit and also improve your debt-to-credit ratio. You debt-to-credit ration is the most important aspect of your credit rating – after your payment history, that is. You can still keep your old credit card open if you don’t have to pay an annual fee – it will add to your available credit pool. Additionally, today’s credit cards have lower interest rates that the older ones. And you are allowed to transfer your balance from your old card to your new one. Which means you can reduce the amount of interest you pay on your balance.


Can a new credit card save money?
Switching to a new credit card may actually help you save money.


Choose the Right Credit Card

Before you go ahead and get a new credit card, analyze your spending habits. For example, if you like to travel, then you might consider getting a card that awards you air miles with every purchase. There are even cards that offer perks for your grocery purchases. Before you opt for a card, do the math; how can you best save money. If you have a card that offers airline miles as well as cashback options, see which is more beneficial. Sometimes, the air miles work out better than cashbacks.



Exercise Caution before You Get another Card

If you get a new card, please ensure that you don’t have carry a balance. Rewards cards that offer perks also have higher interest rates and bigger annual fees than regular credit cards. So if you are the kinds who carries a balance on their credit cards, a rewards card may not be the right kind of credit card. At the end of the day, you need to make sure you read the fine print and do the math before you commit to getting a new credit card.