Thinking Money | Free Financial Advice and Tips

When Is It Time to Get A New Credit Card?

Posted on 03. May, 2010 in Credit cards

Holding on to your credit cards may mean that you are not getting the best deal. This would be especially true if you have a balance on them. There probably are a number of better choices available and here are some things that you could get with a new credit card.

Lower Interest Rate

Interest rates on credit cards have been fluctuating some lately, which means that if you look around you could probably get a better deal than what you have now.

There are actually two ways you can get a low APR credit card deal. The first one would be to get a new card that offers a better rate. The second way is to call your credit card company and ask them for a better one – they will often do this.

Before you apply for a new credit card looking for a better rate, however, you want to make sure your credit report is correct. Get a copy of your credit report and look it over for errors. If there are any, get them corrected if possible. Having as high a credit score as possible will give you the best interest rates available.

0% Interest Rate on Balance Transfers

If you already have some credit card debt, then it only makes a lot of sense to transfer them to a credit card where you can get 0% interest for up to one year. This will enable you to reduce your debt faster. In a time when money is tight, why should you waste it on interest? Look for a credit card that offers balance transfers without any fees attached to it.

If you want to be able to save thousands of pounds over a couple of years – this is the way to do it. By not putting other debt on the credit card, you can have your debt paid off much quicker. Just remember to get a new credit card with balance transfer options before your new one expires.

Lots of Rebates

Credit cards come in many types but are usually directed toward a particular area. This could be a gasoline credit card, and airline credit card, and many more. These credit card offers will give rebates of up to 5% for purchases that are related to its focus, and lower percentages for other things.

This means that you could reduce some of your largest expenses each month by charging those purchases. This allows you to save money in more than one way.

No Interest If Bill Paid in Full Each Month

A great benefit of any credit card is that you do not pay any interest at all if you pay it in full when the bill is due. Care must be taken to pay the bill on time each month, though, or you could lose whatever interest rate you had – with any credit card.

Tags: balance transfer, Credit Card, Credit cards