3 Signs You're Using the Wrong Credit Card

Don't keep using the wrong credit card forever.

Are you using the best credit card for your situation? This isn't a question many people think about. In fact, it's common for people to just sign up for a credit card and continue using it indefinitely even when many other things change in their lives.

Using the wrong credit card can cost you the chance to take full advantage of cardmember benefits and perks. You should watch for these three signs that your card isn't really right for you so you can make a change to a card that's a better fit. 

1. Your card doesn't reward your spending very well

If you don't have a rewards card, chances are good you're using the wrong credit card. Unless you have bad credit and thus have a very limited choice of available cards, you should have a rewards card. There is no reason to pass up the chance to earn points, miles, or cash back for purchases you make.

There are also many different choices of rewards cards with different bonus structures. For example, some give extra rewards for gas purchases, others for buying groceries, and others for travel purchases. Your card should offer bonus rewards for things you actually buy. Otherwise, it may be the wrong one for you. 

2. You don't take advantage of any of your card's perks

Most cards offer perks beyond rewards. This might be things like rental car insurance or trip interruption insurance or an extension of the manufacturer warranty on items you purchase with the card.

If you haven't used any of the perks your current credit card offers and if you don't intend to do so because they don't excite you, it may be worth looking into a different card that has perks you would actually benefit from.  

3. Your card has an annual fee that you're not getting enough value from 

Some credit cards have annual fees. In fact, these can be quite expensive. If your cards do, that doesn't necessarily mean they aren't the right cards for you. If you are getting enough value from the card to cover the fee and then some, then there's no problem.

But, if you are paying for a card and not actually benefiting from its unique offerings, then you are just wasting money. For example, if you have a travel credit card with an annual fee that offers airline lounge access but you always drive instead of flying, you are probably wasting money on that card and might be better off with a different one. 

If you spot any of these signs, you should start looking into some other credit card offers to see what else is out there. You may discover you're actually happy with your card compared with other offerings on the market, in which case you can continue to use it. But, you may also find there's another card that makes more sense for your current lifestyle, in which case a switch would be in order so you can get the full value associated with having a credit card.