Should You Switch Credit Cards?
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Do you feel like its time for a change? Maybe not in your wardrobe or diet, or even the type of car you drive, but with your credit card company? Do you feel like there's something else out there for you somewhere- a credit card company that will treat you fairly and with kindness and respect? Maybe even give you rewards that you can actually use for using their card over another? Is there really such a thing?
For most of us, credit cards are a means of purchasing items that we don't have immediate access to the necessary cash. We often promise ourselves that we will "pay off the entire balance as soon as the bill comes in!" But before we know it, the minimum payment (or very close to it) is the amount written on the check and he balance is carried from one month to the next. For these types of people, switching from one credit card to another is a bad idea because the old card will feel like "free money" for you to spend. Before you now it, you'll have 2 cards very close to their credit limits.
On the other hand, there are quite a few of you (please note the "you", not "me") that are very good about keeping their self-made promises and paying off their balances in full. Remember, if you pay off your balance in full each month, you never have to worry about the interest rate you're paying. To you, by all means, find a credit card that has rewards that are useful to you.
Finding the Right Rewards
If you don't have an interest in traveling the world, then airline miles won't be worth their weight in dirt to you. If you never buy only previously owned vehicles, a credit card offering cash off of a new car is a waste. Rewards are only good if you can get use out of them; so keep that in mind when you're searching for the perfect card. The credit card companies are battling for our business, so they have been offering a broader range of rewards (like airline, restaurant gift certificates, points for florist redemption, music downloads, etc.) If you still can't find something that you can use, think of gift giving needs, and beyond anything else- straight cash works well for anyone.
One Final Note…
Open lines of credit can hurt you if you're planning on making a large purchase, like a house, so be sure to close any cards out that you're not using. Plus, the temptation of an open credit line can be a tough one to resist on a rainy day-and we all have one of those every once in a while.
Aaron 2 years ago
This person does not know what they are talking about. Closing accounts will hurt your credit score as your amount of available credit weighs in about 15% of your credit score. So by closing accounts you dont use especially ones you have had for many years will actually hurt you, night right away but in about 30 days from the day you closed the account or on the next reporting cycle. About interest rates this person is well off the mark. Since the Credit Card act issuers are or most likely to remove the "grace period" on credit card purchases. The grace period is the time from the purchase to the time that interest starts to accrue which has usually been 21 days or so. Kiss those days good by as the blood sucking parasites AKA credit card issuers are going to want to suck you dry for every penny they can due to the lame legislation that our moronic government passed. Dont fall for the tale that credit card companies are fighting for our business, they are fighting for their survival and could care less about us, in fact we are the marrow they feed on to survive. When looking for a card stay away from fancy gimmicks and free miles, go with a card from reputable company unlike Chase and focus on balance transfer fees and interest rates, things you are more likely to benefit from rather than a free trip in the baggage compartment.