All round the year the credit card issuing companies are coming up with more lucrative signing up bonuses thereby alluring more prospective clients. So the question is should you continue with your existing card or opt for new ones with lucrative offers.
Opinions on this particular issue vary from person to person. While some regard it as the sheer waste of time, on the contrary others are of the opinion that it is the best way to save some cash and get some additional bonuses. To be honest, there is hardly any harm in closing the existing credit card and opting for new ones owing to the rewards that are tagged with it. Those who are opposed to this construct, oppose it because they believe in some myths associated with this concept. Here are the top five myths that are associated with signing up new credit card frequently.
The bonuses are not precious enough
This is one of the primary arguments put forward by the clique who are opposed to getting lured by signing up bonuses. In some cases their case might be strong, but not under all circumstances. It actually depends on the offers of the company. If the credit card company offers you cash back rewards or bonus points, then it will be worth accepting the latest offer and closing up the existing one.
It negatively impacts the credit score
Some people argue that frequent change in credit card might result in serious consequences to the credit score of the individual. But in reality it is not so. A change over from one credit card company to the other might result in minimal drop in the credit score like about 10 points which is absolutely acceptable.
It would mean waste of precious time
Starting from initiating the process of applying for the new card, to activating it on your own and canceling the existing one is not going to take more three-forth of an hours’ time. Therefore, you can understand how easy and user friendly the whole procedure is. Furthermore, if you are used to the whole procedure then it is going to take even lesser time to get a new credit card along with its lucrative signing up rewards.
What if you are denied for the new credit card?
The faction that believe it is not a good idea to change the credit card frequently owing to the alluring signing up bonus are of the opinion that in case your appeal is denied, then it would have a bad impact on the individual’s credit history. But this is another myth associated with this concept as there is nothing wrong with it. All you need to do is wait a bit before reapplying for the same.
The credit score is affected due to frequent change of credit card
This is also myth as the credit scores are measured in scales and not in numbers. Thus even if you lose some credit score due this change over, it is not going to effect the interest rates applicable at any cost.
These were some of the myths that are commonly associated with utilizing credit cards for getting signing up rewards. You should always compare the benefits and disadvantages to understand whether it is worth changing over to a new credit card or not.
