Does your existing credit card still fit into your lifestyle? If not, here's how you can make the switch
Credit card companies are pros at reeling us in with flashy offers—and once they’ve got us, they’re not too worried about keeping the perks flowing. But here’s the thing: The best value you’ll ever get from a credit card is almost always right when you sign up. Think about it. Is your current card offering you 0% interest for 12 months on your existing balance? Are they handing out 25,000 miles just because you’ve been loyal? Waiving your annual fee as a thank-you? Probably not. Once you’re in, the bonuses tend to dry up.
That’s why it pays to keep your options open and never settle for less than you deserve. There’s always a better offer out there—you just have to know when to make the switch to a new credit card.
💳 How to switch your credit card in Canada
Ready to make the big switch to a new credit? Follow these steps to ensure a smooth transition:
- Do your homework: Compare new credit card offers to find the best fit for your needs—whether it’s better rewards, lower interest rates, or no annual fee. Instantly compare the best credit cards using our credit card comparison tool.
- Check your eligibility: Use an eligibility checker to see your chances of approval before applying. This can help you avoid unnecessary credit inquiries.
- Apply for the new card: Online applications are fast and convenient, but calling customer service might unlock extra bonuses or answer specific questions.
- Wait for approval and activation: Most approvals take 5–7 days, but some can take up to 30. Once approved, activate your new card as soon as it arrives.
- Update automatic payments: Make sure to switch over any recurring charges from your old card to your new one, especially if the card number, expiration date, or CVV has changed.
- Close your old account (if needed): Consider keeping your old card open to maintain your credit utilization ratio, but if you decide to close it, make sure you’ve redeemed any remaining rewards and paid off the balance.
- Monitor your credit score: Keep an eye on your credit report to ensure the transition hasn’t negatively impacted your score.
Switching your credit card doesn’t have to be stressful—just follow these steps to make the move with confidence!
Thinking about switching your credit card? You’re not alone! Life changes—and so do your financial needs. Whether your credit score has improved, your lifestyle has shifted, or you just spotted an irresistible sign-up bonus, it might be time to make the switch.
Here are five great reasons to upgrade your credit card:
- 1.
Your financial game has leveled up: If your income or credit score has improved since you got your current card, congrats! You might now qualify for one with killer rewards, lower interest rates, or better perks. Don’t let your old card hold you back from earning more.
- 2.
Your perks don’t match your lifestyle: Maybe that travel card used to be your go-to, but now your jet-setting days are on pause. Or maybe you’ve welcomed a new baby, and cash back for diapers and formula sounds way more appealing than earning miles. If your card isn’t working for your current situation, it’s time to rethink your options.
- 3.
You’ve got bonus FOMO: Let’s face it—credit card companies are always trying to win you over with juicy sign-up bonuses and irresistible rewards. If you’re seeing better offers out there, it might be worth jumping ship to cash in on those perks.
- 4.
You’re trying to save money: Annual fees and high interest rates can eat into your budget. Switching to a no-fee or low-interest card can help you keep more cash in your pocket—perfect if you’re focused on saving or paying down debt.
- 5.
Paying down debt: If you’re carrying a balance on a high-interest card, switching to a balance transfer credit card with a 0% intro APR can be a game-changer. This gives you a window of time (usually 6 to 18 months) to pay off your debt without racking up extra interest—just make sure you have a solid repayment plan in place before the promo period ends!
Switching your credit card can feel like a big decision, but it doesn’t have to be stressful. We’ve got you covered with a step-by-step guide to help you make the smartest move.
💡 Tip: Check our great credit card welcome offers.
Switching isn’t always straightforward. Many credit card companies make it tricky to leave without losing something valuable. For example:
- Losing points: Some points don’t expire as long as your account remains open, but if you close it, they could disappear within 60–90 days.
- Impact on your credit: Closing an account doesn’t directly harm your credit score, but reducing your total available credit could increase your credit utilization ratio. Ideally, your new card’s limit should replace your old one.
👀 Are there hidden fees or terms?
Credit card terms can be confusing, but Canadian regulators now require clear, standardized information (known as the Schumer Box) on every application. Here’s what to watch for:
- Annual fees: Always make sure you know what you’re committing to.
- Interest rates: Be aware of rates on balance transfers, new purchases, cash advances, and penalty interest if you’re late.
- Rate change clauses: Some cards reserve the right to change your rate unexpectedly.
- Balance transfer fees: These can range from 0% to 3%.
- Foreign exchange fees: These typically range between 0% and 3%.
- Supplementary card fees: Sometimes as high as the primary cardholder fee.
The bottom line
Don’t settle for less—keep playing the field. It’s all about getting the best value for your money. Switching credit cards can unlock huge economic benefits, especially through sign-up bonuses. For example, a 25,000-point bonus on a card that earns 1 point per dollar would take $25,000 of spending to achieve. But when you sign up, it’s handed to you for free! Now that’s a winning strategy.
Lubna Umar is an experienced writer and editor specializing in personal finance, with over six years of expertise. Her portfolio includes comprehensive guides on personal finance, mortgages, car insurance, and credit card reviews. She has worked with several prominent finance brands, including RATESDOTCA, LowestRates, InsuranceHotline, and the Financial Post.
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