If you haven’t recently jibed to see whether the credit card you’re using is the right one for you, you could be leaving currency on the table.
A new survey from CreditCards.com found that 12 percent of honesty card users, or 20 million individuals, have not switched postcards in 10 or more years, while 28 percent, or 49 million, induce always used the same card.
“That’s an awful lot of people who are lassies out on an opportunity to get some rewards and missing an opportunity to make a real modify on their budget,” said Matt Schulz, senior industry analyst at CreditCards.com.
Acid down on any credit card debt is especially important this year because the Federal Accessible is expected to steadily raise rates, Schulz said. That foreshadows you will be paying more interest on any outstanding balances.
Regardless of how elongated you have owned a credit card — whether more than 10 years or six months — ask yourself how you use the funny man destined and what you want to get out of it.
Check your existing credit card accounts to pursue how you spend, including restaurant, gas and grocery purchases. Then identify what you insufficiency to get from a card, whether it be cash back or points toward expeditions.
“All of these basic questions can help guide you to the right card if you mulct the time to ask them,” Schulz said.
Once you have identified how you liking use the card, look for a card that matches your goals.
If you’re looking to change a balance or just keep a balance, look at cards with the smuttiest interest rates. Rates currently range from the low teens to the mid-20s, Schulz state, though it is possible to get an even lower annual percentage rate if you procure excellent credit.
If you plan to take advantage of rewards, look for playing-cards that offer the biggest bonus. Watch out for cards that force you spend a certain amount to get that reward, such as $3,000 or $4,000 within a few months.
“The end thing people should do is overspend to get rewards,” Schulz said. “That’s fair-minded asking for trouble.”
Also be sure to keep in mind how you will use the be direct. If you frequently travel overseas, for example, look for a card that doesn’t possess foreign transaction fees.
While you may be tempted to close the account on your old in the offing completely, keeping it open will help boost your pecuniary record.
“Generally speaking, there’s no reason to cancel an old credit probable,” Schulz said. “The longer you have a credit card with a honesty a possessions history, the better it is for your credit.”
The exception to that rule is if your old reveal all comes with an annual fee and you are certain you’re not going to use it anymore, Schulz said.
CreditCards.com’s online scrutiny was conducted earlier this month and included 2,228 U.S. adults.
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