For some people, getting a new credit card has little friction at first. We can call them “credit card enthusiasts”. For these people, the only thing standing in the way of getting their next card is having a hard inquiry removed from their credit report.

There are also those who are hesitant to get a new credit card. This person may see a new credit card as responsibilities as buying a new dog. They may argue that it can encourage excessive spending. At least I don’t need two credit cards, some may add.

If you’re in the latter group, I’m not going to persuade you to join the mob of credit card enthusiasts. But I will say that getting a new credit card can also bring additional benefits that will help your finances. In this regard, if you agree with any of these three signs, a new credit card may be worth it.

1. You only earn 1% on the categories you spend the most on

One or two credit cards are usually enough to earn bonus rewards in the categories where you spend the most. However, if you’re currently only earning 1% in the top categories, you’re leaving money on the table.

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

For example, the Wells Fargo Active Cash® Card (see rates and fees) earns an unlimited 2% return on general expenses. It is an extremely easy credit card to manage as you earn the same amount on everything you buy. If you have never received this card before, Find out how you can claim the $200 cash reward with bonus Don’t spend $500 the first time 3 months.

One card that can likewise support this is the Chase Freedom Flex®. This card earns 5% back in bonus categories on up to $1,500 in quarterly spend after activation. He also earns bonus cashback from:

• 5% back on travel purchased through Chase Ultimate Rewards
• 5% refund on Lyft rides through March 31, 2025
• 3% refund on restaurant dining, including orders placed through takeout and eligible delivery services
• 3 percent back in pharmacies

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

2. You can benefit from zero-interest financing

If you don’t have a balance on your credit cards, you don’t have to worry about your card’s interest rate. However, if you are carrying a balance or plan to do so in the future, then APR becomes an important factor to consider.

The problem is that credit card interest rates are high. like, oversized high. St. The average interest rate on credit cards was 21.51% in May 2024, which was significantly higher than the same rate in May 2022 (15.13%), according to data from the Federal Reserve Bank of St. Louis. There’s a reason credit card debt is so common: When you accumulate a high balance, the APR on your card will only add more debt and make it harder to get out from under it.

If your current credit card balance is high, you can benefit from a balance transfer credit card. These cards usually offer a promotional rate of 0% for a specified period of time, such as 15 or 18 months. During this period, you won’t pay interest on your balance, giving you time to pay off your debt.

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

3. Your credit score increased significantly

Finally, an improvement in your credit score may signal that it’s time to start shopping for new credit cards. This is especially true if a low credit score has previously kept you from successfully applying for rewards cards.

Many premium credit cards only accept applicants with a good credit score profile. While credit score isn’t the only factor in approval, it plays an important role in advancing your application.

You may even have a secured credit card right now that helps boost your credit score. If your score has increased significantly since you got the card, a new and improved credit score may allow you to upgrade to better cards with more benefits.

Once again, I realize that most people are not credit card fanatics: They only want one or two cards at a time. But if any of these reasons apply to you, it may be time to replace the old card with a new one.