As you’re going through your receipts for filing your taxes, one of the things that you might want to consider looking at, along with everything else, are your credit card statements for the past year… How much are you paying for interest? How many annual fees do you pay? Has your credit changed? Do you have the available credit that you need to cover any emergencies that might crop up in the new year?
If you’re not sure of the answers to these questions, now is the best time to sit down and study those bills. Make a detailed list of each credit card that you have, showing the balance on the card, the interest rate that you’re being charged, any fees that you pay, any rewards that the card offers, and how much available credit that you have on each one.
Then, take a look at your credit score over the past year. Has it changed? Is your credit score better now than it was six months or even a year ago? If so, you might qualify for a better credit card, with a lower interest rate, more rewards, and a low or even no annual fee. If you don’t have a credit card, and your score has improved, now might be the best time to apply for a credit card. (If you can only get a secured card, you might want to consider using a little bit of your tax refund to get started with a secured card!)
Once you’ve listed all the details of your current credit, then you might want to consider upgrading one or more of your credit cards to a card with features that are more aligned with your needs and your current credit score.
Here are our best picks for credit cards to give you an idea of what’s out there: