As we progress through different stages of life, our financial needs and spending habits inevitably change.

For Canadians, this means that the credit cards you relied on a few years ago might not be the best fit for your current situation. Regularly reassessing your credit card choices is a vital step to ensure you’re maximizing benefits and aligning your financial tools with your goals.

Here’s how to effectively reassess your credit card needs and consider potential changes.

Understanding the Need for Reassessment

Reassessing your credit card annually allows you to align your card benefits with your evolving spending habits. Perhaps you’ve started traveling more, or your online shopping has increased.

Your current credit card might not be offering the best rewards or cash back for your new spending patterns. By conducting a review, you can identify whether your existing card still meets your needs or if there are better options available.

Steps to Reassess Your Credit Card

Here are the steps to reassess a credit card.

Analyze Your Spending Habits

Look at your spending over the past year. Categorize your expenses to see where most of your money goes. Are you spending more on groceries, travel, dining, or online shopping? This analysis will help you understand what kind of rewards or cash back would be most beneficial for you.

Evaluate Your Current Card Benefits

Examine the rewards and benefits offered by your current credit card. Are you earning enough rewards on your primary spending categories? Consider whether the annual fee (if any) is justified by the rewards and benefits you receive.

Research Alternative Cards

Once you have a clear picture of your spending habits, research other credit cards that might offer better rewards, lower interest rates, or additional benefits like travel insurance or purchase protection. Pay special attention to cards that offer cash back on online shopping with credit cards, rebates, or specific rewards that align with your spending.

Consider Your Financial Goals

Your financial goals should guide your choice of credit card. If you’re looking to save more, a card with high cash back on everyday purchases might be ideal. A travel rewards credit card could provide significant value for those who travel frequently.

Assess the Impact on Your Credit Score

Before switching cards, consider how applying for a new card might affect your credit score. Multiple hard inquiries can temporarily lower your score, so you must time your applications wisely.

Make the Switch Today!

Regularly reassessing your credit card can make sure that you get the most out of your financial tools and align them with your current spending habits and financial goals.

At Great Canadian Rebates, we can help you navigate the myriad of credit card options available, highlighting those that offer the best cash back, credit card rebates, and rewards on credit cards.

Visit our website for comprehensive comparisons and expert advice tailored to your needs.