15 Red Flags That You're Using the Wrong Credit Card

Did you know that as many as one consumer in five uses the wrong credit card? This could be a card that causes them to pay more interest, or one that fails to offer the best rewards and perks.

Using the wrong credit card could be a costly mistake, but it can be hard to know if you're among the many Americans with a card in your wallet that's a poor fit.

These 15 red flags can help you decide if your card is a good one worthy of your use or if you should consider switching to a different card that's a better fit.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

If you carry a balance on your card, the interest you pay is always going to exceed the value of rewards you earn -- even if your card's rewards program is incredibly generous. As a result, if you're going to carry a balance, you'll want to look for a card that charges you the lowest interest rate possible.

In some cases, it can actually make sense to transfer your existing credit card debt to a 0% balance transfer card. That could give you some time to pay off your balance interest free. If you know you'll be making a purchase you can't pay off immediately, you may also want to look for a card offering an introductory 0% promotional APR.

Secured cards can be an important credit-building tool. But they require you to lock up some of your money to act as collateral for the credit card. In some cases, they also charge fees. And the rewards programs they offer, if any, usually aren't very generous.

Once you've built up a good credit score and can qualify for a regular card, ditch your secured card and pick a credit card that's a better fit for your upgraded credit status.

ALSO READ: How to Graduate From a Secured Credit Card to a Rewards Card

There are tons of great rewards credit cards available. If your card isn't currently offering any rewards, chances are good that you should switch to one that does.

The only exception is if your card has a very low or 0% APR and you're carrying a balance. Outside of this situation, make sure you find a card that offers cash back, miles, points, or some other kind of payback for your spending.

Some credit card rewards programs are significantly better than others. If your card offers a paltry amount of points for each purchase, you could be passing up on a chance to earn much more for your everyday spending.

This is an especially big issue if you have store cards, which generally tend to offer minimal rewards that sometimes require you to actually spend more money to take advantage of them. But it can be a problem with any kind of consumer credit card that offers only cursory rewards.

Many cards offer extra bonus cash back, points, or miles when you spend on certain types of purchases. For example, it's common to see cards offering 5% back on groceries or gas and 1% back on everything else.

If your card gives you a bonus for things you rarely spend on, then you won't make the most of its rewards program. Consider a different one that gives you extra bonus rewards for the spending you actually do the most.

For example, if you no longer travel but the grocery store has become like a second home, swapping out a card that provides a bonus 5% back for airline or hotel purchases for one offering 5% back on groceries would be a better bet.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

If you're earning a lot of rewards but aren't excited about using them, your card still isn't a good one for you.

Instead, you may be better off switching to a cash back card so you can purchase anything you'd like with the money your credit card spending nets you.

Some cards offer generous rewards in rotating bonus categories -- but only if you sign up for the bonus category each quarter. If you don't ever remember to do that, you won't actually benefit from the best feature these cards offer.

Instead of sticking with a card that requires this extra task that you forget to fulfill, consider a change to one with a simpler rewards program that you can more easily take advantage of.

If your card sets a limit on the amount of bonus rewards you can earn and you frequently exceed that limit, you'd likely be better off with a card that rewards big spenders, rather than penalizing them.

If your rewards expire before you can actually use them, they aren't doing you any good.

Opt for a rewards program that doesn't have a timeline for claiming your rewards. Or switch to a card that allows you to earn rewards faster so you can use them before they're gone.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

Annual credit card fees can be worth paying if the fees are justified on the basis of a generous rewards program or amazing cardholder perks. But if you are paying a fee that's prohibitively expensive for you, consider switching to a no-fee card instead.

ALSO READ: Is Your Credit Card Annual Fee Worth It?

If your card has a low credit limit, you may want to switch to a different one that will offer you a larger line of credit. You can also ask your current card issuer if they'll raise your credit line, although there's no guarantees.

In some cases, your limited spending limit is based on your credit score and history. If that's the case, getting another card won't necessarily allow you to spend more. It's worth checking into, though, if you routinely find yourself wanting to make large purchases on a card with a limit that is too low.

Many cards offer customer perks such as car rental insurance, purchase protection, or airline lounge access.

If you'd make use of these features but your card doesn't offer them, it's worth looking into what else is out there. You may find a card that offers you ample benefits you're currently missing out on.

On the flip side, if your card offers you perks that you aren't actually using, then it also may not be the right card for you. That's especially true if you're paying an annual fee for the cardholder benefits that provide you with no value.

If you frequently travel outside of the U.S., it's important to have a card that doesn't charge foreign transaction fees. Otherwise, every purchase you make while abroad will be needlessly more expensive.

ALSO READ: How You Could Get Stuck With Foreign Transaction Fees While Shopping From Home

Finally, too many people simply get a card and stick with the status quo without exploring what else is out there.

New rewards cards come out all the time that offer generous cardmember bonuses and other perks. If you don't shop around periodically, you could miss out on a card that you didn't even know existed but that's actually the perfect fit for you.

Our credit card expert uses this card, and it could earn you $1,148 (seriously)
As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases until late 2021, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

The right credit card can help you keep interest costs down, earn generous rewards, and enjoy great cardholder perks. With so many options, there's likely a perfect credit card out there for everyone. Take the time to explore credit card offers and find yours.