People have a natural reluctance to change, and credit card owners are no exception. Admittedly it is convenient to have memorized a card number so it can be quoted instantly without having to rummage through purse or wallet in a frustrating search. Nevertheless this comfortable familiarity doesn’t really justify keeping a credit card when there are a number of good reasons for dumping it. All credit card owners should reassess every so often if keeping a card is justified.

1. Well Past the Starting Line

First time applicants for credit cards have not had any chance to establish a credit rating. The credit card companies need to be cautious so they will only issue cards with low spending limits and high rates of interest and steep annual fees. Sometimes the rates of interest are over 30%. A few years down the line this credit card owner may be well established with a good credit rating. They can certainly now find a better credit card deal. Continuing to use their “starter card” makes no financial sense.

The only good reason to hold onto it a little longer is a pending application of a mortgage or car purchase loan. Older credit cards with good records help boost the owner’s credit rating and get a better loan deal. If this is not the situation, dumping the old credit card is now justified.