4 Warning Signs You Desperately Need a New Credit Card
KEY POINTS
- As your spending habits change, so should your credit card -- don't make the mistake of thinking the first card you got is still the best one for you.
- If your rewards don't outweigh your annual fee, you need a new card.
- The best credit cards earn rewards on your everyday spending.
Have you ever felt like your credit card just isn't working for you anymore? Maybe you're paying fees that don't make sense, or you're missing out on valuable perks. If that sounds familiar, you're not alone.
Many people stick with the same credit card for years without realizing they could be getting better rewards, lower rates, and benefits they didn't even know existed. Here are some clear warning signs that you need a new credit card.
1. You're paying an annual fee without getting value
Credit card annual fees can unlock the most generous rewards. But those cards aren't the best option for everyone. If you're shelling out $95 or more each year and not taking advantage of cash back or free flights, it's time to reconsider.
Consider switching to a no annual fee credit card that better suits your spending habits. The best no annual fee cards still offer welcome bonuses worth hundreds of dollars and cash back on popular spending categories.
2. You're not earning rewards on everyday spending
If you're spending money but not earning points, miles, or cash back, you're leaving money on the table. There are cards that pay 5% cash back -- or more -- on popular spending categories like dining, groceries, gas, and travel.
Consider upgrading to a rewards credit card that aligns with your spending habits. Some of the best rewards cards can earn you free flights or hundreds of dollars in cash back per year.
3. Your card offers few or no perks
Many newer cards come with valuable perks like travel insurance, purchase protection, and extended warranties. If your current card lacks these benefits, you're missing out.
Consider cards that offer extras. Travel cards like the Chase Sapphire Preferred® Card provide trip cancellation insurance and rental car coverage, while some cash back cards include purchase protection.
Questioning if your credit card is the best option for you? Check out our list of best credit cards and start earning more rewards today.
4. You're struggling to manage multiple cards
Juggling multiple credit cards can make it harder to track spending, manage payments, and maximize rewards. If your current lineup feels overwhelming, then you may want to streamline it with a card that earns rewards for most or all of your spending.
Look for a versatile rewards card that covers multiple spending categories. The Capital One Venture Rewards Credit Card offers straightforward rewards with flexible redemption options.
Finding the right card for you
If you're dealing with one or more of these issues, switching to a new credit card can improve your financial life. Start by identifying your biggest pain points -- high fees, weak rewards, or confusing terms -- and choose a card that better fits your needs.
Compare top credit cards now to find one that offers better rewards, lower fees, or improved perks. Your wallet will thank you.
Our Research Expert
Jake is a full-time Editorial Strategist for Motley Fool Money. He specializes in product ratings and all things credit cards, and wants to make sure each person has the best card for them.
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