Are you pondering what life would be like with a different credit card? Do you have reason to believe that making a change would benefit you financially?
With excellent credit, adding a new credit card to your wallet or purse is typically a simple task. However, before you make a major change, it’s critical to answer a few very important questions. Here are five to address:
1. What’s your reason for wanting to make a change?
You don’t necessarily need a reason, but there’s a good chance you have one. Maybe you’re searching for a credit card with a lower rate. Or maybe you want one that has a better rewards program.
Once you know why you’re making a change, you can then narrow your list of options to ensure that you get exactly what you want in your new card.
2. Will you keep your current account open?
Even if you don’t have plans of using a credit card any longer, it typically makes sense to leave the account open. Closing it will reduce your available credit limit, which can impact your score.
Not to mention the fact that you may decide you want to use the card again in the future.
3. Are you giving up benefits you’ve come to enjoy?
Even if you have a very good reason for making a change, don’t forget that you may be leaving specific benefits and features behind.
If you’re concerned about this, make sure your new credit card offers you just as many benefits and features – if not more. That’s the best way to put your mind at ease.
4. Is now the right time to make a change?
For example, if you’re carrying a large balance on your credit card, it may be best to pay it off before moving on. Paying the minimum each month will eventually eliminate your balance, but not before you pay quite a bit of money in interest. Move as quickly as possible in paying down your debt.
5. Do you know what you’re getting?
Don’t assume that the grass is always greener on the other side. Take your time as you compare offers, both to one another and to what you already have.
If you have questions about a particular offer, reach out to the issuer for answers. They should be more than wiling to assist you. And if they’re not, you’re better off searching for a different card.
Changing credit cards is a big deal, so make sure you do so with a clear mind and an idea of what you want to accomplish.
By answering these five questions – among any others that come to mind – you’ll have a sound understanding of what you want to accomplish by making this change.
When was the last time you applied for a credit card? Did you do so in search of something better? What did you find?