One of the benefits of achieving credit card nirvana is not having to devout a lot of time maintaining that state once you have the correct combination of credit cards to maximize your cash back rate. However, it is always a good idea to periodically check how your credit portfolio is doing in regards to your spending habits and general life changes. Below are some examples of what to do during a credit checkup:
Large Upcoming Purchases
It is always a good idea to forecast any potential large purchases you might be making in the near future. Anything from car repairs, new furniture, or a vacation can all be applied to a new credit card with a lucrative sign up bonus. If a large purchase doesn’t fall in a high cash back category for you, opening a new credit card with a nice bonus can maximize your money. You will most likely get a few hundred dollars for the bonus which will significantly soften the blow of that major purchase. I recommend, however, applying for a new card that can complement your overall credit portfolio in some fashion so it can stay useful beyond its sign up bonus.
Change in Purchase Trends
It is not uncommon for someone to change their spending habits as the years go on. When major life events happen like marriage, children, owning a home, etc. your types of purchases will vary. Identifying these changes can be key in ensuring you are maximizing your cash back potential. The longer you wait, the less cash you will get back!
The credit card world is always changing and there are always new cards and updates to older cards coming out. Taking a few minutes every once in a while is a good way to see if there are any better options that have come out since the last time you looked at your credit portfolio. There are all kinds of blogs and forums out there that can quickly get you up to speed on the latest and greatest in the credit card world.
There is a lot you might find out about yourself, your spending habits, and any new credit card offers out there when you do a credit checkup. I recommend doing one at least once a year, but the more often the better because you never know what you might discover each time!