As you review your finances, you may come to realize that your one and only credit card is no longer getting the job done. And for that reason, you begin to consider adding another credit card to your finances.
While this isn’t the right move for every individual, it could benefit you in a variety of ways.
Here are three times when it makes sense to apply for another credit card.
1. To Get More in Return
Maybe you’re the type of person who likes to travel a lot. Or maybe you use your credit card often, but don’t get anything in return in the form of rewards.
This alone is reason enough to consider another credit card. For instance, you could begin to use a cash back credit card for your monthly expenses, which effectively reduces the amount that you’re actually spending.
In today’s day and age, you should get something in return for using your credit card. The industry is competitive, so learn more about your options and then decide what makes the most sense for you.
2. To Assist a Loved One
There could come a time when a loved one, such as a child, doesn’t qualify for a credit card on their own. However, if they find a co-signer, someone who is also responsible for the debt, they’re eligible.
If you trust this person to always do the right thing with the card, you may find yourself signing on the dotted line. You may never use the account, but you will have access to it should it be necessary.
3. To Phase Out Another Credit Card
You’ve been using the same credit card for an extended period of time, but have come to find that there are better options out there.
Here’s an example. For five years, you’ve had a cash back credit card that gives you 1 percent back on every dollar you spend. Good deal, right?
You could stick with this card, or you could look for something that’s better. If another card offers 1.5 percent cash back, you’re making out every time you make a purchase.
As you phase out your current credit card, such as by paying down the balance, you can apply for another. This gives you the opportunity to make a seamless transition when the time comes.
As noted above, there are many times when you should consider applying for a second credit card. While the three situations above are common, they’re not all-inclusive.
If the time has come to apply for another credit card, research your options, ask and answer key questions, and decide what you want to do next. You may soon find yourself with another piece of plastic in your wallet or purse.