At Wasatch Peaks Credit Union, one of our numerous financial services offered is our Visa Platinum Cards, which come with fantastic rates and numerous benefits, including no annual fee and free online statements. These, along with other credit card types, can serve as the foundation for a solid credit history that translates into a high credit score for a car loan, mortgage loan or a variety of other potential needs.
In addition to building credit, credit cards are important items based on the wide range of benefits and rewards they offer. There are numerous such perks out there, from cash back programs to point systems and many in between – but as it turns out, many people who use these cards do not properly capitalize on these perks. Here are some areas we’ve noticed these issues in, plus some signs that you might want to switch to a different card type if you aren’t getting the most out of your current one.
Find the Best Value
In many cases, people take on new credit cards based solely on the fantastic deal they appear to be presenting, such as a great cash back percentage. And while this sort of thing is great, what if it turns out you aren’t ever actually using it?
As a basic example, let’s say you open a new card that provides special cash back rates for very specific purchases: Gas, restaurants and events, let’s say. But what if you’re someone who does not own a car and generally stays at home to eat, plus doesn’t do a ton of regular socializing or attend events? Make sure you consider a different one that offers rewards for everyday purchases and earn better rewards!
Capitalize on Rewards
Down similar lines, many cards come with reward points that build up over time as you make purchases. Many people use these to save up for plane flights or other vacation amenities, for instance. One again, it's important to choose rewards that benefit you and make sure you're actually cashing in on your points.
Credit Score Improvements
In other cases, you may have gotten a certain credit card years ago, when your credit wasn’t great and it was one of your only options. But if you’ve been able to improve your score in the years since, it may be time to find a card that doesn't have the same high rates and fees.
In addition, you may have cards you can update based on the ways they benefit you. If you have only cards that are more than a decade old, or approaching this range, check for newer options with more relevant perks – though you may still want to leave the older account open so as not to damage your length of credit history.
For more on signs you might not be properly utilizing a given credit card, or to learn about any of our credit union services, speak to the staff at Wasatch Peaks Credit Union today.