5 Signs You Should Dump Your Credit Card

Perhaps you’ve been using the same credit card for years. You might even have nicknamed it something cute like “Old Faithful” because you’ve relied on it so much. However, even the best credit cards sometimes deserve to be retired.

Here are 5 signs that you should dump your credit card.

1. The Customer Service Is Lousy

If you’re having trouble getting in touch with your credit card company’s customer service department or the quality of service you receive when you do get through is sub-par, then maybe it’s time to dump your card.

The reality is that if the customer service department can’t help you very well when there’s no emergency, then how bad is it going to be when you need customer service when an emergency does arise?

For example, if your credit card number is stolen and somebody begins making unauthorized charges, you’ll want to get in touch with customer service quickly so that you can cancel the old card and investigate the unauthorized charges. That’s not a point when you want to be put on hold for a long time or stuck talking with an agent who’s rude.

2. You’re Not Receiving Rewards

Welcome to the 21st century. Credit card companies are tripping all over each other in an effort to get your business. One of the ways that they do that is by offering rewards.

If your credit card doesn’t offer you any rewards, it’s time to dump it. Even if it does offer some kind of rewards, though, it might still be time to dump it if those rewards aren’t competitive and they don’t add any value given your spending habits.

3. Your Credit Score Is Better Now

If you got your existing credit card because it was one of the few second chance credit cards you found acceptable that would offer you credit given your low score, then you might be eligible for a much better credit card if your credit score has improved.

Chances are that you’re getting hit with a high interest rate. That’s the way it is with most credit cards for bad credit, because the credit card companies are taking an additional risk when they loan money to people with poor credit.

However, if your credit score has jumped up quite a bit, you’re probably eligible for a card that offers a competitive rate and some nice rewards.

4. You Never Use the Card

If your credit card is just taking up space in your wallet, then you might want to dump it. After all, you’re taking a risk that somebody could steal it and use it to make unauthorized charges.

Keep in mind, though, that your credit score might drop a bit if you cancel a credit card because you’ll be responsible for less debt.

5. You Can’t Pay It Down Every Month

The most responsible way to use a credit card is to pay down the balance every month. That way, you’ll avoid incurring interest on your purchases and effectively paying more for the things you bought with the card.

If you can’t manage to pay the balance every month, dump the card and discipline yourself to use cash only.

A credit card offers a great deal of convenience. However, sometimes even a card that you’ve been using for a while needs to be cancelled. Hopefully, the tips offered here will help you make the right decision about whether or not you need to dump your card.