When Should You Get a New Credit Card?

When applying for a credit card, you often have to answer questions about your personal and financial situation. This can be the moment when your application hits a roadblock. In some cases, you may not get the credit card you want because of your unique circumstances, such as having little or no credit history or being a student with little income.

In other cases, you may be declined because the issuer doesn’t feel that you are a good candidate for their card. However, there are times when getting a new credit card is actually in your best interests. You might want to get a new card if:

You want to increase your credit limit

Credit card issuers will monitor your account, looking at your payment history, the amount you have borrowed, and your overall credit history. Based on this information, they decide what your credit limit will be. If you apply for a new card, you can ask for a higher credit limit. 

This can be helpful if you have a larger purchase that you want to put on the credit card. If the purchase is too large to fit on your other card, you can use the new card to take care of it.

You want a card with no annual fee

Credit cards can have different fees, including annual fees. Some cards charge a fee for having the card, and others charge a fee for carrying a balance on the card. However, you can avoid paying an annual fee by applying for a card that doesn’t have one. 

This is a good idea if you plan to use the card regularly and if you pay your balance in full every month. If you want a card with no annual fee, you may want to apply for a new card rather than asking your current issuer to remove the fee on your existing card.

You want to rebuild your credit score

If you have had a history of credit problems, you may need to start from scratch to build a strong credit history. Once you have a few years of positive credit history, you can apply for a mortgage or car loan at low-interest rates. Re-applying for credit and opening a new card could help to boost your credit score.

You want travel benefits and rewards

Credit cards with travel rewards and benefits are often designed for people with excellent credit. If you have excellent credit and want a card with travel rewards and benefits, you may want to get a new credit card. Nonetheless, you have to be careful to ensure that the credit card you get has travel benefits that are important to you. You can start by researching credit cards and checking what kind of benefits are available.

Credit cards can be very beneficial if used responsibly. However, you should only apply for a credit card if you know you can handle your payments on time. Before choosing a card, think about the credit card expiration date, how you will use it, and make sure it suits your needs and lifestyle. According to SoFi, “Credit card expiration dates are typically printed as a two-digit month followed by a two-digit year. The last day of the month printed is the last day that you can use your credit card to make new purchases. If you try to make a purchase on the first day of the following month, the transaction will be declined.”

When you are in the market for a new credit card, make sure you do your research. Make a list of the card benefits you want, and then find the card with the most of them.