Just because you’ve had the same credit card for years, doesn’t mean that it’s the right one for your lifestyle today. So, how do you know if you’ve outgrown your credit card?

Are you paying off your balance?
When you first signed up for a credit card, the interest rate may have been well above 15% or as much as 20%. If you are paying off your balance each month, the interest rate isn’t that important. However, as soon as you start to accumulate credit card debt, interest payments will begin to offset your disposable income and certain activities (i.e. shopping, traveling) you used to do will no longer be affordable. It is best to prepare for the worst and try to get a lower rate from the credit card company now, while you have the leverage to do so.

Are you building up your credit profile?
If you’ve been using your credit card and meeting the debt obligations, it may be time to upgrade to a card with a lower rate and better terms. You can easily check your credit report for free by ordering it at www.annualcreditreport.com. However, you will have to pay for a copy of your credit score at myfico.com unless you just signup for the trial period and then cancel it. Review your report and score which should be 650 or higher. If it’s clean, it’s probably time to get a new card with a better rate and terms.

Are you paying a fee?
Today, many new credit cards do not come with an annual fee like in the past. If you are paying an annual fee, you need to ask yourself if the benefits of the card are outweighing the annual cost. Are you taking advantage of the concierge service, gas discounts, or frequent flyers programs? Don’t be afraid to shop around as many other cards offer great benefits with no annual fee.

Are you wasting your miles?
Many credit cards offer rewards programs with certain airlines. If you find yourself hardly traveling or rarely using those miles or points for that airline, it may be better to switch to a card that offers rewards that you actually would use. Perhaps, consider a credit card that offers a cash back program and other discounts.

More credit card questions? Browse answers or ask your personal finance questions online.