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When you consider changing trends—whether it’s the clothes you wear, the gadget you use, or the car you drive—what’s fashionable today will, in all probability, be termed “out-of-date” tomorrow. A credit card can work much the same way.
While you may have found your current card some time ago after a long and hard search along with plenty of groundwork, it just may not fit your needs today. There could be plenty of reasons why a credit card that was good enough before isn’t worth it now.
Here are a few common reasons why your credit card may not cut it anymore. If you can relate to any of these points, it’s time that you made a change right away:
The First Credit Card
Whenever you applied for your first credit card, it’s more likely that you’ve got one that isn’t very high on rewards. Banks need to know your credit history and that you’re dependable when it comes to repayments.
For this reason, most first credit cards have a low credit limit, don’t offer a lot in terms of rewards, and may even have an annual fee associated with it. Although such cards are useful tools to build your credit score, you’d definitely want more value as time passes.
The Card is Too Expensive
When you consider the cost of having a credit card, your focus is mostly on the annual fees and interest rates. However, a card can turn out to be too expensive when it doesn’t offer value that’s proportional to its associated charges.
No matter what amount you’re paying as an annual fee, you need to be getting enough benefits—cashback, reward points, rebates, or air miles—to make up for this fee. If this isn’t the case, then it means this card is costing you too much to carry around.
A Change in Lifestyle
There’s no right age to get a credit card as long as you’re aware of how it works and how best to use it. More often than not, your habits and lifestyle change constantly as time passes. Shopping and travel perks that were invaluable to you earlier on could no longer be that appealing now that you’ve settled down with a family.
Maybe a card that offers cashback on fuel or grocery spends would be more useful now. It’s never a good thing to have a card whose rewards you’re no longer interested in. Keep in mind to always have a credit card whose rewards programme is in line with your spending habits and lifestyle needs.
Large Unpaid Balance
If you’re carrying a large balance on your current credit card and are unable to keep up with high-interest repayments, a balance transfer card can seem like a welcome option.
Once you find a new card with low balance transfer fees, transfer the outstanding balance on your current card to your new card and repay the amount in low-interest monthly instalments.
Extra Perks That Matter
A number of new credit cards in Malaysia offer an array of attractive features, such as price guarantee, e-commerce purchase protection, low-interest cash advances, travel insurance cover, airport lounge access, and zero-interest payment plans among others.
These extra perks are available over and above what your card usually offers. If your current card doesn’t have even one of these features, then it’s time you think about making a change.
Prefer to buy only a certain brand’s fuel, do all your shopping at a big-name departmental store, or fly all over the world with a particular air line? Your loyalty to a specific brand can be more rewarding with a co-branded credit card.
From higher rewards to exclusive deals, these cards help you get more value whenever you shop or make a transaction at your favourite brands. So, if your current card offers little value across multiple categories, it’s time you shifted to a co-branded card if you like to play favourites.
To sum things up, what works for you today may not always work for you tomorrow. Although you have a perfectly good credit card that does the job for you today, it may not remain the best option forever. With your constantly changing lifestyle and spending pattern, you’re bound to change your credit card one way or another. But what truly matters is that you find the right card every time.