5 Steps for Switching Credit Cards

5 Steps for Switching Credit Cards 1

There are many different reasons why you may want to switch credit cards. An introductory offer or low rate period may have come to an end, you may simply feel you are paying too much interest on your credit card, or you may want to make the overall cost of your debts cheaper by switching to a 0% balance transfer card.

Whatever your reason for wanting to switch, you need to know the right way to do it. The first thing to know is that you can’t simply cut up your existing credit card and apply for a new one. Cutting up a card does not cancel it and the provider will consider the account still open. Instead of switching from one card to another, you will simply have two credit cards.

So, to make the switch and do it correctly, you need to follow these steps.

Step 1 – Research credit cards and choose the best one for you. Before you can switch, you need to find a better alternative to the card you have already. Make use of the Which? website and other independent advice services, as this is where you will find up-to-date comparisons of different credit cards.

Step 2 – Apply for the credit card. If there is an option to apply online, this can often be the quickest and easiest way to start the process. The only to make sure of during the process for credit card applications is that if you want to transfer a credit card balance, you should tick the relevant box or let the provider know some other way.

Step 3 – Contact your credit card provider to arrange the balance transfer. Once credit card applications are approved, it is usual for credit cards and accompanying PIN numbers to be sent in separate documents through the post. Sign and activate your card once you receive both of these documents and then contact your new provider with details of the card or multiple cards you wish to transfer a balance from. It is best to let the provider handle the transfer for you, as doing it yourself can be complicated and time-consuming, and it can also result in you paying higher interest rates.

Step 4 – Close unwanted credit card accounts. Once you receive confirmation of a successful balance transfer, you can take a look at your old credit cards and close down any accounts you think you will no longer need or use.

Step 5 – Cancel payments from old credit cards. The last step is to get in touch with any companies which receive regular payments from you via old credit cards and let them know your new details as soon as you have them.


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1 Comment

  1. These are some really good tips. We currently only have one credit card, but I will have to remember this for the future for sure!

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