Credit cards are awesome. When used properly, they can be a great asset for you. Sure, there are a lot of options for you when it comes to getting a new credit card. But you need to do your research before getting one because some cards provide more benefits than others. Therefore, it is necessary that you shop around, compare prices and benefits if you’re looking to get a new credit card. With that in mind, let’s discuss why you need a new credit card.
You need to build your credit history
A new credit card is an excellent way to show your prospective lenders that you are responsible with your finances and that you are capable of handling several bank accounts, which will improve your credit rating. The best way to do this is by having more than one credit card. One that is already established, and a new or second card that you use regularly and pay off regularly. Responsible spending and repayment habits will, over time, yield great rewards such as increased credit limits, great benefits and, of course, a healthy credit score. A good rule of thumb is not to use more than 30% of your available credit in one go.
Your current card charges high interest rates
While most responsible credit card owners pay their balances in full every month, sometimes we can’t avoid carrying a balance on our cards, for instance, because we’ve had to make large purchases or because of a financial emergency such as sudden high medical bills. But if your current card charges high-interest rates, this can cost you substantial amounts of money in the long run. In order to save as much money as you can, add a second, lower interest card to your collection, and see if you can find one that doesn’t charge any annual fees. If you have credit card debt, you can consider debt consolidation loans. Please read Barron Advisors reviews before going for such plans. It’s always nice to do your research first.
Your credit rating is stagnating
You will find yourself in the ideal situation when your credit scores get better with time. This is, however, not always the case. Sometimes they can be sitting around the same number for a couple of years. If this is the case, getting yourself a new credit card may be a good idea. Provided you are responsible with the monthly repayments, a second card can significantly improve your credit rating. Don’t be in a hurry to cancel your existing cards, however, as the longer you’ve had your card and the more responsible you have been in terms of your monthly repayments, the better it will be for your credit score.
You just love your rewards
We can’t mention this often enough: Be diligent when it comes to making your monthly payments and you will be rewarded with all kinds of wonderful perks. These often include hotel upgrades, loyalty rewards, airline miles, cash back benefits, travel insurance, and charge-back protection which make the choice between using plastic and actual cash an easy one.
There are many different credit cards available for building or improving your credit score. Do some research, compare fees, benefits and interest rates and you will be well on your way to get the best card for you.