4 signs that it is time to let go of your credit card

Last updated on November 25th, 2021
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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You have been through the good times of swiping away at your own convenience and through the rough times when you were scared to see the credit card bill showing you the amount you owe on your credit card. But there comes a time when you have overdrawn the relationship with your credit card that it is time to let go. These are the four signs that it is time to let go of your credit card.

Your financial status has changed

There comes a time when a credit card might have done the works a few years back. However, you have come to realise that you have had a change in financial situations for the best or for the worst. This is when you need to start looking at your credit card features, and payment plans to check If it is still applicable towards your financial situation. If you are feeling a tight squeeze in terms of making your credit card repayments, then it is time to look to where the grass is greener towards something that allows more financial freedom.

The interest rate has lost its luster

When you first saw the interest rate on your credit card you could have heart-shaped eyes, but over time this flipped to something that is making your repayments hard to do. Lenders can change the interest rate on the credit card over a period of time making a card that was once affordable unaffordable.

If you have signed up for a 0% interest rate credit card this is when you should keep your eyes peeled, because the rates usually spike after a selected period. This is why it is important to constantly check the interest rate that you are paying on your card. Furthermore, you should see if the payment plans are still flexible for those times where you have more month than money.

Get a card that gets you

If your current card is unable to adapt to every season of swiping that you have then it is time to let go. You might not have been interested in things like rewards, frequent flyer points, or even a card that comes with a higher limit that you can afford to make life a tat bit comfortable, but your circumstances have changed and you are growing, therefore you need a card that will grow with you. This also applies if you have improved your credit score out of the bad credit rating that only offers you cards with limits and at time additional fees to have.

You were not aware of the hidden fees

Fees for any credit card holder is a make or break deal. Before you get dazzled by a good interest rate or its amazing features that offer you free travel insurance and concierge services, always look for hidden fees. When searching for a credit card it is good to compare its features and fees that come with it before signing up for it. If you don’t take your time in doing this you and your wallet could end up feeling as though you have been catfished into a raw deal.

If you think staying loyal to your credit card despite the high interest rate is doing an injustice to yourself to finding deals that are most likely to be better and help you save in many ways.

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