Why review your Credit Card?

The article concerns the question – Why review your Credit Card? Almost all of us have credit cards but how many of us really know if the credit card that we currently have is the best option for us? In truth very few people have the ideal credit card because they never bother to check and see if there are better options available.

If you take the time to review your credit card periodically to make sure that it meets your needs you will likely find that you save a lot of money. There is really nothing to lose and potentially a lot to gain by reviewing your credit card so it is something that everybody should do.

Why review your Credit Card

The main reason that you might want to review your credit card is that there is a pretty good chance that you can get yourself a better deal if you do. This is especially true if you have been paying your bills on time. In large part the interest rate on a credit card is determined by your credit history. As a result a lot of people with less than perfect have to settle for cards with higher interest rates.

However after a few years of on time payments your credit score will have improved and there is a good chance that you will be able to qualify for a new credit card with a better interest rate. Being able to get a credit card with a better interest rate is a big deal and if you have the opportunity to do so you definitely should. Over the course of the period that you have a credit card the amount you pay in interest will be huge, often far more than the initial purchase.

Even if you can only lower your interest rate by a point or two it will still result in savings of thousands of dollars. This is why it is a good idea to review your credit card from time to time in order to see if you can get a better rate. This doesn’t necessarily mean you need to get a new credit card; you may be able to negotiate a better interest rate with your current provider.

Another reason that you might want to review your credit card is the prevalence of low interest balance transfers available. This is especially valuable if you have a lot of debt. Being able to transfer your balance to a card with a low interest rate will not only save you money but it will also make it a lot easier to pay off your card.

You do have to be careful when you do this. The low balance transfer rate is a huge help but you also need to look at the regular interest rate, if it is higher than the rate you are currently paying it probably isn’t a good idea to transfer your balance. The money you save will be more than eaten up by the higher interest rate on future purchases.

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