When you see a great credit card offer with a balance transfer or introductory interest rates, your gut may tell you to open a new credit card immediately. However, before deciding to sign up, consider a few things to help make sure you’re getting the right account for you:
Lower annual fees
Look at your current credit cards to see how much you are paying in annual installments if any. If the credit card you are considering has lower rates, it might be a good time to switch. However, it is important to also consider what you get for those fees. If the new card has lower fees but fewer benefits, it may not be worth making the switch.
Best rewards programs
Rewards programs allow you to earn miles for travel, discounted purchases, hotel stays, or even cashback simply for making purchases. These programs can be complicated, so you should consider how many dollars you would have to spend with your credit card to earn each point. Then see how many points it takes to get something simple, like a $ 50 gift card, a $ 100 cashback, or another reward that interests you.
Be aware that opening and closing credit cards too often can affect your credit score. Every time you open a new credit card a creditor checks your credit report, which can affect your credit score. So, ask yourself if a new credit account is really worth having before deciding to apply.
