Is It OK To Be Changing Credit Cards Frequently?

Credit card companies know that in today’s very competitive market, the only way to stay ahead of the competition, and win new business is to attract customers with great deals.

Nowadays customers have become a lot more savvy when it comes to financial products and most people will shop around before deciding on which deal to go for.

What do lenders do to draw us into the habit of changing our credit cards frequently?

Low Balance Transfer Deals

Something that has become very popular amongst consumers is the credit card balance transfer. This is where the customer moves one credit card debt onto a new credit card with a very low, or even 0% interest period.

That way the customer saves money on their debt, and the lender hopes that either the odd purchase on the new credit card, or even a couple of months at the full interest rate will pay for the low rate promotional period the customer had.

What some customers do is keep switching credit cards, at the end of these low rate deals to secure what is in effect a long term loan at low or 0% interest. This is a popular tactic which can save you money if used correctly, and is a positive use of changing credit cards frequently.

Rewards Cards

These schemes that reward customers each time they spend money can also lead to people having more than one credit card. It is in our nature to try and stay ahead of the game, and secure ourselves the best deals available, and this is what leads us to constantly swap and change our credit cards.

Side Effects

There some downsides to changing credit cards frequently, and that is the effect it can have on your credit rating. Having many different applications for credit over a fairly short period of time, can suggest to companies that you are a serial borrower, and can sometimes impact negatively on the way you are viewed.

If you have done a couple of credit card changes in the past, you should check to see if any of the old cards you had are still open. Even if you have not used a credit card for a while it may well be that the account is still open.

Having many open credit accounts active on your credit file may also not do you any favours, so you need to make sure any accounts you are not using are shut down.

Check out today's featured offers:

Westpac Low Rate	Citibank Clear Platinum	Qantas AMEX Discovery	ANZ Platinum
0% p.a. for 6 months on purchases & balance transfers	2.9% p.a. for 12 months on balance transfers	$0 annual fee Up to 10,000 Bonus QFF Points	0% p.a. for 6 months on purchases & balance transfers

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Popular Credit Card Offers

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Westpac Low Rate Card - 0% Offer	A credit card with a low rate offer on both balance transfers and purchases, plus a low annual fee.	0% for 6 months (reverts to 13.49% )	0% for 6 months	$45	21.49%
	Citibank Clear Platinum Card	Competitive interest rate on purchases and balance transfers offer.	11.99%	2.9% for 12 months	$99	21.74%
	St George Vertigo	Take advantage of this great offer from St.George with a low rate on purchases and a low balance transfer offer.	13.24%	0.99% for 12 months	$55	21.49%
	ANZ Platinum Credit Card	An introductory interest rate offer on balance transfers and purchases, plus a $0 first year annual fee.	0% for 6 months (reverts to 19.24% )	0% for 6 months	$0 annual fee for the first year( $87 thereafter)	20.99%