You might be surprised to learn that for credit cards, sometimes having more is the wiser choice. For the savvy financial consumer, credit is merely a tool you can use to achieve your goals. Here are 10 reasons you could benefit from applying for a new card, plus a few tips to make sure you get the perfect one.
Why Should I Apply for a New Credit Card?
1. Improve Your Credit Score
People often worry that getting a new account will tank their credit score. This is not necessarily true. If you don’t apply for cards on a regular basis, getting a new account might not lower your score. However, it may cut your ratio of debt to available credit, which could raise your score by several points.
2. Secure a Better Interest Rate
If your credit history has improved in the years since you got your last card, you might be up for better benefits. A lower interest rate tends to be a good one, especially if you carry debt sometimes. You could even secure a fixed rate that’s competitive with a personal loan.
3. Keep Your Credit History Fresh
Never applying for credit is almost as bad as applying for too much. If you don’t use cards often enough, companies may stop reporting it or even close your accounts. Periodically adding new cards will help your credit history remain relevant for when you really need it.
4. Discover New Rewards Programs
Do your current card benefits still work for you? Do you wish you could accrue different rewards? With the right credit, you can earn points toward travel, purchases and even cash. Browse CreditSoup’s list of available cards to see what you’ve been missing.
5. Pay Debt Faster
Getting a low interest rate could be even better if you start with a 0 percent introductory rate for purchases and balance transfers. Several months or a year without added interest makes your payments more effective. A new card could become your key to paying off debt much faster than you expected.
6. Take Advantage of Signup Bonuses
Credit card companies are always looking for new ways to attract the best customers. Many feature options to accrue rewards quickly when you open the account. Target your application right before some planned purchases, and rake in the bonuses.
7. Minimize Use of a Less-Beneficial Card
Most of the time, it’s better not to close old credit cards when you open new ones. Shutting old accounts might change your credit history for the worse. That doesn’t mean you’re stuck with that lousy interest rate or boring benefits. With a new card that meets your current needs, you can reserve the old one for unplanned expenses.
8. Increase Spending Flexibility
People who have a handful of credit cards with different advantages can target their spending to achieve what they need. You might decide to spend on the card that’s offering you the best return on that type of purchase for the quarter. You could also choose to keep one card completely open in case of emergency.
9. Make Shopping Easier
Ever hand over a card at a store, only to learn that the store doesn’t accept it? You don’t have to get caught in this situation again. With a handful of choices in your pocket, you can speed through your purchase whether it’s online or in-person.
10. Simplify Your Travel Experiences
Lots of people have a nightmare travel story where their credit card was declined, and they had no way to get cash. Companies have different policies about travel and it’s always possible you’ll end up on the wrong side. Keeping your options open provides the security you need while on the road.
What to Know When Applying for a New Credit Card
Before you start filling out an application, it’s important to be sure that you find the right card for you. This involves reading all the details and looking for these common considerations:
- Introductory and regular interest rates
- Annual fees
- Balance transfer limitations
- Grace period on purchases
- How rewards are accrued and redeemed
- Requirements for signup bonuses and limited-time programs
Keep in mind that applying for too many cards can lower your credit score. As such, it’s better to spend some time researching and then applying for the card you want most. Avoid opening new accounts right before buying a home or car. Make sure that you have a plan for using the card, so you can maintain control over your finances.
When you’re ready to apply for a new credit card, you want to be sure you’re getting the best options. CreditSoup maintains the most updated choices from a variety of companies, so you can make a wise selection. To find out what’s available to you, complete a credit card application today.
Editorial Disclaimer: Information in these articles is brought to you by CreditSoup. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles. The information is accurate to the best of our knowledge when posted; however, all credit card information is presented without warranty. Please check the issuer’s website for the most current information.