Are your credit cards more expensive than they could be?

Credit cards can be a flexible way of borrowing money, but they can also be the more expensive option. There are ways to lower the costs of credit cards.

Many people have credit cards they’ve carried for years, which they continue to use. While this is sensible, it can be a potential issue. Credit card companies tend to be complacent about their long-term customers, as shown by the fact that zero per cent interest rates and other introductory offers aren’t offerred to existing credit card customers.

This complacency with existing customers is shown in other ways, as well. It’s likely the credit card companies are slowly increasing the interest rate and fees charged to long-term customers, who have shown by their steady usage that they aren’t prepared to move. Attractive offers are concentrated on attracting new customers and even if overall credit card interest rates are going down, they’re provided for new cards rather than existing ones.

There are other reasons staying with one’s current credit cards may be more expensive than getting new ones. Over time, many people improve their credit scores as their careers advance and they become financially more responsible. While the credit cards they currently carry may have been the best they could obtain on their old credit scores, they’re unlikely to be the best these card holders can get based on their current credit scores.

For all these reasons, customer loyalty toward a credit card company is an expensive option for the customer. While constantly changing credit cards can be damaging to one’s credit score, a part of any financial management program should be an annual or twice-yearly examination of one’s credit cards. This examination should consider interest rates, terms and conditions, annual fees, and any rewards programs, while comparing these features to those of other credit cards currently on the market. Often, the card holder may be pleasantly surprised with the new options that are now available.