Loyalty is usually a good attribute, but 67% of Australians have opted to ditch their loyalty when it comes to their credit cards. n return it has also helped people cut ties with things that end up costing them in the long run, and here are five other reasons you should too.
The grass can be greener on the other side
You could be using the same card issuer ever since you have been introduced to cards in general, but your loyalty can come back to bite you with exorbitant fees. According to reports, 72% of credit card owners in Australia have considered switching their providers in the last two years, but only 67% followed through by shopping around. The beauty of comparing and shopping around for a new credit card means that you could get the same features you love about your current credit card with a lower interest rate and annual fee.
Handle debt effectively
Australians are currently dealing with credit card debt that is costing the nation $45 billion which feeds into the debt spiral many Aussies are trying to get out of. The type of credit card you have effects how your financial wellbeing. Therefore, assessing your current relationship with your card can help you evaluate whether your card is still the right one for you. Keep in mind that if you are unable to make more than the minimum repayments on your card then it is time to move on.
You can find a card that comes with more flexibility
The type of features your credit card has is one of the second most important things that you need to check. It will help you see the amount of flexibility you have when it comes to repayments and whether you can meet more than the minimum repayments. Some cards become expensive when you carry over your balance into the next month which will not be ideal for staying atop of your payments. ABC found that if you are only able to make the minimum payments you will only be able to pay a $2,000 debt off in 17 years.
Your introductory rate is about to expire
If you have taken a card with an issuer due to the low or 0% interest rate and realised that your introductory period is soon to end, then it will be best to look for another card. Introductory credit cards are good when it comes to dealing with large expenses for a low rate or to consolidate your debt. However, these tend to revert to a higher interest rate once the introductory period is over. The research by Credit Card Compare revealed that this is the reason why 26% of credit card holders switched to a new card to avoid this looming increase.
You can find something to better compliment your spending
If you are one of the many Aussies who tends to use their credit cards frequently to handle their expenses, finding a card that blends well with your spending habits is essential. More so if you are a keen tracker of your frequent flyer and reward points. Finding a card that offers you more value for your money is the best thing that you can do for yourself. Shopping around and comparing cards can help you find a credit card that comes with stronger points and a low annual fee which can work in your favour.
Credit cards are supposed to be a handy way to effectively manage your expenses instead of digging you deeper into debt. Always keep in mind to find a card that matches the way you spend and is within your financial reach.