For some people, getting a new credit card involves little initial friction. We can call them “credit card enthusiasts”. For these people, the only thing stopping them from getting their next card is having a hard inquiry removed from their credit report.

Then there are those who are hesitant to get new credit cards. These people might consider a new credit card to be as fraught with responsibilities as buying a new dog. This could encourage excessive spending, they would say. At least I don’t need two credit cards, some might add.

If you belong to the latter group, I’m not going to convince you to join the crowd of credit card enthusiasts. What I will say, however, is that getting a new credit card could also come with additional benefits that would improve your financial situation. Speaking of which, if you agree with any of these three signs, a new credit card might be worth it.

1. You only earn 1% on your main spending categories

One or two credit cards are usually enough to get bonuses on your main spending categories. That said, if you’re currently only earning 1% on your top categories, you’re leaving money on the table.

The best credit cards will earn at least 2% on general spending, while others can earn 5% or more on certain spending categories. If you don’t want to carry a lot of cards, I recommend getting a card that earns a competitive flat rate on all spending (like 2% cash back) and a card that earns 3% to 5% on your main categories of expenditure.

For example, the Wells Fargo Active Cash® card (see rates and fees) allows you to benefit from an unlimited 2% discount on general spending. It’s an extremely easy credit card to manage, since you get the same rate on everything you buy. If you have never had this card before, find out how to get a $200 cash reward bonus with $500 spent in the first 3 months.

Likewise, a card that can support this one is the Chase Freedom Flex®. This card earns 5% back on bonus categories up to $1,500 in quarterly spending after activation. It also earns bonus cash back on the following:

• 5% back on travel purchased through Chase Ultimate Rewards
• 5% off Lyft rides through March 31, 2025
• 3% back on dining at restaurants, including takeout and orders through eligible delivery services
• 3% discount in pharmacy

All of these rates, combined with the Wells Fargo Active Cash® Card’s 2% cash back, could create a steady stream of cash back rewards. Check out the other best cash back credit cards to see which combination will give you the best results.

2. You could benefit from zero-interest financing

If you don’t have balances on your credit cards, you have no reason to worry about your card’s interest rate. However, if you carry a balance – or plan to in the future – then APR becomes an important factor to consider.

The fact is that credit card interest rates are high. As, extremely high. The average interest rate on credit cards was 21.51% in May 2024, according to data from the Federal Reserve Bank of St. Louis, which was significantly higher than the same rate in May 2022 (15.13 %). There’s a reason why credit card debt is so pervasive: once you’ve accrued a high balance, your card’s APR will only add more debt, making it difficult to get out of. to go out.

If your current credit card has a high balance, you may benefit from a balance transfer credit card. These cards typically offer a promotional rate, such as 0%, for a certain period of time, such as 15 or 18 months. During this period, you will not pay any interest on your balance, giving you time to pay off your debt.

However, transferring your balance is not free. You will pay a balance transfer fee to move debt from one card to the balance transfer card. The fees are generally 3 to 5% of the amount to be transferred. Even with the fees, it may be worth initiating the transfer to save on interest.

3. Your credit score has improved significantly

Finally, an improvement in your credit score could indicate that it’s time to start looking for new credit cards. This is especially the case if a low credit score has prevented you from successfully applying for rewards cards before.

Many premium credit cards will only accept applicants with a good credit profile. Although credit score is not the only approval factor, it plays a major role in moving your application forward.

You may even currently have a secured credit card, which has helped improve your credit score. If your score has increased significantly since you had the card, the new improved credit score could allow you to get better cards with more perks.

Again, I understand that most people aren’t credit card fanatics: they only want one or two cards at a time. If any of these reasons appeal to you, it may be time to replace an old card with a new one.