Here's Why a Yearly Credit Card Review Is Important
by Natasha Gabrielle | Updated July 21, 2021 - First published on Feb. 15, 2021
When was the last time you looked at all of the credit cards in your wallet?
Credit cards tend to offer different incentives and rewards. So it's not uncommon to apply for and then have to manage multiple cards. Can you remember the last time you took a closer look at all of the cards you own? Most people forget to do this regularly.
It's a smart idea to get into the habit of doing a yearly credit card review. This gives you a chance to review each card's perks, remind yourself of annual fees, and make sure that you're getting the most out of each card that you own. Keep reading to see why a yearly credit card review is essential.
Refresh your understanding of your card benefits
You probably have a mix of cards with different benefits, and it can get confusing keeping track of each card's perks. In addition, credit card benefits can change over time. A yearly review will allow you to get the most out of your cards.
Analyze your spending
Many people charge their credit cards without giving it much thought. If you don't look at each credit card balance side by side, you may not realize just how much you're spending. An annual review of your balance can provide you with the chance to analyze your spending thoroughly. You can cut out unnecessary spending and pay down any cards that still have a balance so that you don't get yourself in a difficult financial situation.
Check on annual fees
Some cards charge annual fees, and if you have more than one card, those fees can add up fast. A credit card review can make it easier for you to spot when an annual fee charge is approaching, so you're not caught by surprise. It can also help you keep track of all the annual fees you're paying on your cards. That way, you can decide if it may be better to downgrade any to a no-annual-fee card. Some cards with fees have perks that make the fee worthwhile, but it depends on how you're using the cards you have.
Rework your credit card strategy
Taking a look at your credit cards each year can also allow you to rework your credit card strategy. You can figure out if you're spending too much on one card or not charging other cards enough. Plus, you can prioritize your spending to maximize credit card rewards. If you don't do this yearly, you may be making mistakes that will cost you money, or you may miss out on points that you could be earning.
Make sure that you're taking a look at your credit cards at least once per year. You may not be using all of your card benefits, might be overpaying for a card that you don't even use, and may find that you're spending a lot more than you realize. A credit card review is a good way to see your financial picture and rework your credit card strategy. It's also an excellent way to make sure that you're making responsible financial choices.
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