Although the pandemic affected consumers’ spending habits, it did not significantly change their credit card usage. A study conducted in 2021 by JD Power revealed that credit card usage remained the same as it has been in the past.
The study also noted that credit card companies and travel credit card brands maintained their steady growth rates. John Cabell, a JD Power official, said that these companies responded to the changing spending habits of their consumers.
It’s time to start focusing on your financial goals for the new year. There are a few good reasons to start focusing on these items now while looking for a new credit card.
1. You Want More Perks and Rewards
Consider the number of rewards that are available to members of a given credit card. If you’re not getting enough rewards, it’s time to look for a new card.
Not having a travel rewards card could prevent you from taking advantage of some of the money-saving features that are offered by these cards. For instance, if you use a travel rewards card, you could save up to 25% on checked baggage fees.
Depending on the credit card company, there are some great perks to enjoy. With a SoFi credit card, you can earn a decrease in your interest rate for paying on time for a full year. According to the experts at SoFi, “It pays off to pay on time.”
2. You Are Looking for a Cash Back Sign-Up Bonus
If you have large purchases coming up, it could be worth it to get a new credit card before making those purchases. If your monthly charges usually go up to $700, then you’ll be short of meeting the spending requirement within three months of getting a new credit card.
If you’re planning on buying a new laptop or a cell phone, then it’s possible to meet the spending threshold without carrying a large balance if you just hold off until your new card arrives.
3. You Want to Increase Your Credit Limit
If you are using a lot of your credit limit and cannot afford to pay the balances down, you may want a new credit card to increase your credit limit. You might have accumulated a large credit card bill between holiday spending and unforeseen bills.
It’s time to get a new card to help pay off that debt and preserve your credit score. One of the most critical factors that you can do is keep your credit utilization ratio low. For instance, if you have a total credit limit of $8,000 and a balance of $3,000, your utilization ratio would be 37.5%, and that is a good number to be at.
4. Your Credit Rating Has Improved
Bad credit is the chief reason why people carry a limited number of credit cards. After reviewing all the available options you have with an improved score, it’s time to rebuild your credit even more by getting a new card with better terms and lower interest rates.
You are Getting Enticing Offers for Better Cards
If credit card issuers are offering better terms with their cards than the one you’re currently using, then consider taking advantage of that offer. You can compare the offers on the internet before applying.
Although it’s possible to get a new card that will increase your spending, it’s also worth taking the time to look into the benefits it can bring. It could help you improve your credit score and lower your balances down the road.