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Planning your financial future

3 reasons to choose a new credit card

Be sure your credit card is working hard for you. With so many credit card options to choose from, search for the card that offers the most benefit to you.

Did you know that credit card companies are competing for your business? In fact, it's rare not to find some kind of rewards or cash-back program associated with a credit card in order to win you over and keep you as a loyal customer. For these reasons, it simply doesn't make good budgeting sense to stay with a credit card company that isn't willing to go the extra mile for you.

The following are three reasons why you may want to consider ditching your old credit card and go looking for a new and improved one.

Reason #1: You're not earning cash back on your purchases.

If your current credit card isn't earning you some type of cash back, you could be missing out on a savings opportunity. Cash back credit cards can be an easy way to earn extra money just by paying with your credit card. A good rule of thumb would be to look for a credit card offering at least 2 percent cash back.

Reason#2: Your travel reward points are useless.

Did you sign up for a specific credit card primarily to save on travel expenses? Do you find that the majority of the time you can't use the points you've already earned due to blackout days? Then ditch the losing card and look for a travel card with the flexibility that allows you to travel whenever and however you'd like.

Reason#3: You're still paying an annual fee.

If you're willing to pay an annual fee for the privilege of using your credit card, then make sure it's worth it. In other words, are the perks worth the cost? Are you taking advantage of them? Review your statements over the past year and see if it might be more beneficial to your budget to find a card that doesn't charge you a fee every year.



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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

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