Credit Cards How To Use Credit Cards Wisely

4 Reasons to Get a New Credit Card

Written by Aliyyah Camp

If you haven’t looked at the credit card offers available for cardholders recently, you may be in for a shock. Credit card issuers are becoming more and more competitive and are offering generous perks to get you as a cardholder. Whether you got your last credit card simply because it was being offered by your primary bank or because you received a promotional letter in the mail, you may not have gotten a credit card with the best terms. If that’s the case, you may want to consider what’s currently on the market. There are multiple reasons to get a new credit card. Here are four great reasons to consider:

  1. Your Credit Score Has Increased

If it’s been years since you’ve gotten a credit card, your credit score could have dramatically increased. If your credit score was low (less than 580) at that time, you probably got a credit card with unimpressive terms – such as high interest rates. Having a higher credit score now is a valid reason to get a new credit card. Especially if your credit score is excellent (800 and over) now, you’ll qualify for the best credit card offers, such as generous cash back rewards and low interest rates.

When you reach the point of having an excellent credit score, be sure to shop around for the best credit card offer. You’ll probably start receiving promotional materials in the mail from credit card issuers. The best way to compare credit card offers is to determine your spending habits and then match those spending habits with the card that offers the most benefits.

  1. You Want More Rewards

If your current credit card just isn’t cutting it in terms of giving you a noticeable amount of rewards for your spending, it may be time to get a new credit card. If you’re interested in a straight cash back card, you should be getting 1.5% to 2% cash back on all your purchases. If you’re interested in a category-based cash back card, there are credit cards that offer up to 5% or 6% cash back on purchases within certain categories, like groceries.

Rewards aren’t limited to cash back. Credit card issuers also offer rewards in the form of miles and points. Miles can be redeemed towards airline flight purchases. Some branded credit cards offer miles towards flights with specific airlines, while others offer miles that can be redeemed on most flights regardless of the airline. Points are the most versatile form of rewards. Points can generally be redeemed in multiple ways. You can redeem points for statement credit, apply them towards a travel purchase, use them to buy a gift card, or even donate them to charity.

  1. There’s an Attractive Sign-up Bonus

One of the best ways credit card issuers attract new cardholders is by offering attractive sign-up bonuses. Credit card issuers can be very generous when it comes to sign-up bonuses. For example, the Chase Sapphire Preferred Card comes with a whopping 50,000 bonus points for new cardholders. That’s equal to $625 towards travel when you book through the Chase Ultimate Rewards online portal.

There’s a catch when it comes to sign-up bonuses, however. You’ll need to meet the minimum spending requirement in order to qualify. In order to get the 50,000 bonus points offered with the Chase Sapphire Preferred Card, you’d need to spend $4,000 in the first three months of opening the card. It’s important to keep that requirement in mind when applying for a new credit card. It would be a shame to apply and get approved for a new credit card only to find out you didn’t spend enough within the first three months to qualify for the sign-up bonus. One tip is to plan your credit card application around a time when you have a big purchase coming up. For example, if you’re planning on buying a new laptop soon, plan to get your new credit card around that time and put the large purchase on that card. This will help you meet the spending requirement for the sign-up bonus.

  1. You Need a Promotional Financing Offer

Another way credit card issuers attract new cardholders is by offering introductory interest rates as low as 0%. These introductory interest rate periods can be as long as one year. If you have several large purchases coming up within the next year and need financing for them, getting a new credit card could save you hundreds of dollars in interest.

You may also want to get a new credit card if you’re interested in a balance transfer. A balance transfer credit card is used to pay off the remaining amount on an existing debt in order to get a lower interest rate. Balance transfer credit cards are great for paying off high interest debt and consolidating multiple debts into one payment. Many balance transfer credit cards also offer introductory interest rates of 0% for a period of time. The one thing to watch out for is the balance transfer fee. This fee is usually charged as a small percentage of the transfer.

Final Thoughts

Once you’ve decided to get a new credit card, you may be wondering how it’ll affect your credit score. Although new credit (including how many hard inquiries you have), accounts for 10% of your credit score, getting a single new credit card will usually only cause a small impact, if any, to your credit score. On the other hand, getting a new credit card could actually improve your credit score. This is because your credit utilization ratio will decrease when your new credit line increases your total amount of credit available. A lower credit utilization ratio is associated with a higher credit score.

About the author

Aliyyah Camp

Aliyyah Camp is a personal finance writer who specializes in writing about ways to save money, make money, build credit, and invest. She has a Bachelor's Degree in Communication from the University of Pennsylvania.


  • I can’t get a credit card even though I an paying my bills on time all the credit bureaus are reporting me for bad credit they don’t want to see I am doing better my husband and I are paying Honda financial 250.00 every two weeks so we are giving them 500.00 every month the car payment is down to 14 thousand seven hundred and twenty two dollars and I am paying Stephen Einstein and associates 50.00 a month until I pay off the bill for finger hut it went into collections but I have been making my payments 50.00 payments every month and also we have cable we have not been late with the cable company we were late one time and I been paying one financial 169.05 a month towards the bill and we just payed Hudson Valley federal credit union off we owed them 673.00 now we owe them nothing we are going to work on a old bill from sprint soon we owe sprint 14 hundred dollars we are going to start paying them 100.00 every two weeks

    • Contact the Credit Bureau’s and report your recurring monthly bills; home phone, cell phone, electric bill, gas bill, water bill, etc. My score jumped 72 points doint this.

    • Sounds like you need to challenge the stuff that’s on your credit report. Once you get some of that stuff removed from your credit report, your score will go up significantly.

  • We have no problem financing vehicles or being approved for bigger items. My husband is retired military of 24yrs and has now been with Time Warner Cable for 4 yrs. Our credit is right at fair. Some things will fall off this yr and next yr. All 3 credit agencies have different things on them. We just applied for a Shell gas card and was turned down. Any suggestions on a card we can apply for? I constantly get pre-approved offers in the mail but don’t apply. If we can’t get a simple gas card I can’t see being approved for a Visa card. Thanks in advance for any suggestions.

  • There are people using my SS# to open account and to purchase stuff that they need, And that what bring my credit score down??.

  • Hi I have a tax lien that is killing my credit..And I never owed the money and
    it a big one. I have call the IRS still there how do I get it off. Also have proof from them
    that I never owed the money.

  • In 2010 I received a Premier Mastercard. I kept all payments current and in the last few years have received Capital One cards. One Quicksilver and one Platinum. My question is, I want to PAYOFF and CANCEL the Premier card as it was used to re-build my credit AND they charge a yearly fee of $145.00 payable in monthly installments; if I pay it off and cancel will it make my credit look better OR NO?…….THANK YOU FOR CONSIDERATION.

    • I have tried to get a new credit card that was recommended by TransUnion and was denied dropping my score from 688 to 685.I have a stellar payment history for the last 4yrs, I paid off all my depts and only had 1late payments!

    • They say to never close a card, it will ding your credit. However, if you don’t want to pay the yearly fee, close it out, but expect your score to drop a little as a result. Just pay extra and on time with your Capital One cards, and it will bounce back.

  • I have not had a credit card for almost 10 years my credit score is 580 I applied for one at Barclays they would not give me one because of no credit cards and late payments and not enough credit histiory do how can you help me to get a credit card I don’t have a lot of credit just parent school loans

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