Is It Time To Change Your Card?

The recent changes that are making waves in the credit card industry may be the signal you need to investigate a new card. Many cardholders have become frustrated and even damaged by their current credit card agreements. Before the new regulations were passed, many were ambushed by jacked up interest rates, changes to their grace periods, or even having their credit limits slashed for seemingly no reason. Many of these actions were levied with very little time to react, leaving credit cardholders essentially stuck with what they had. Now might be a good time to start rethinking your credit card options.

Here are some tips for getting a better deal:

First and foremost, before you make any decision regarding your credit cards, you should check your credit score first. Due to the changes in credit limits and especially if you have had a credit card account closed through no fault of your own, your credit score could have been lowered. Order a copy of your credit history and request your credit score on the report. If your credit score could use improvement, it is wise to work on rebuilding it first (pay off debts, correct mistakes) before applying for new cards.

Before you zero in on just any credit card, you should look online first to see what kind of deals are out there. If you still receive credit card offers in the mail, take a look and compare them to what you find online. While traditionally these offers may be considered junk mail, there may be a few offers worth your attention.

Shop wisely by first writing down what matters most to you so you can prioritize when checking the terms on each card.  Are you most concerned about low interest rates, promotional offers, or rewards programs? Look at different cards and make your decision based on your financial needs. Keep in mind what you are currently paying and receiving from your credit card company and see how many cards can beat what you are currently getting from your old credit card company.

Once you have sufficiently done your homework and have found a few cards that meet your criteria, don’t rush out and apply for all of the cards. Instead, give your old credit card company the benefit of the doubt and contact them. Let them know you are thinking about leaving. If you have been a long-time customers with a great history, chances are good they will work to beat the other offers you have found. This may be convenient for you since you won’t have to make a switch. The trick is to do your research first so you know what you are talking about. If your credit card company won’t budge, politely thank them and move along.

Remember if you end up opting to go with a new card issuer, don’t randomly close out your older accounts. A majority of your credit score is based on the length of your credit history and if the account you are thinking about closing is the longest running one you have, you can end up hurting your own credit history.

Remember also to never close a credit card account that still has a balance on it. Doing so can give the credit card company liberties to raise your interest rates and take away your rewards earned since they no longer have an obligation to make you happy.

Apply for only one new card. Applying for too much credit at one time can damage your credit score. Each time you apply for any kind of new credit, the information will show up on your credit history and other creditors may not see it positively when reviewing your credit.

Related Posts:

• Can You Close A Credit Card Account That Still Has a Balance? - There are many rules and regulations that you people need to follow to maintain good credit and keep their finances in good...
• Your Credit Card Company Can Change Terms On You - When you sign up for a new credit card you will hopefully read through the terms and agreements of the credit card...
• Be Careful When Consolidating Your Debt - When paying off credit card balances by consolidating debt or using a balance transfer, be sure to utilize caution. Although you may...
• Closing Out Your Credit Card Accounts Properly - You’ve decided that you want to close some of your credit card accounts. This is generally a wise move since it’s a...

This entry was posted on Monday, August 24th, 2009 at 6:15 pm and is filed under Credit Card News, New Card Offers, Tips & Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.