How do I switch my credit card?

If you are a credit cardholder stuck with a deal that isn’t working for you anymore or the card is costing you too much, and you’re just not satisfied, then it could be time to make a stress free switch to a more worthy and valuable piece of plastic.

Although it might seem daunting, switching credit cards can be a relatively straightforward process. We’ve broken it down into 7 simple steps to make it even simpler

• Check out the top questions you need to ask yourself while switching cards.

Where do credit card rates sit now compared to when I took out my original card? What can I afford to pay in fees? These are important questions to consider before beginning your search for a new credit card.

• Decide on a credit card type.

Finding a card that suits your spending needs is the first step. Ultimately no one card will be right everyone, so you will need to consider what will suit you and your finances best.

If you pay off your balance in full each month and are looking for more perks, you could benefit from a rewards credit card. If you only use a credit card occasionally, then finding a card with a low or no annual fee could be more suitable. If you think you’re likely to carry a balance on the card occasionally, you’ll want a card with a low interest rate, and if you travel often, you’re likely to want a card with low or no foreign exchange margins.

If you're struggling to decide, check out the best credit cards in Australia this month for Mozo Experts Choice Award winners and editor’s picks.

• Consider balance transfer options.

If you’re already changing cards, it could be a great opportunity to clear a lingering debt. Find a card with a great balance transfer offer to help clear your old balance faster and save on interest repayments.

• Search for a card that meets your needs.

Once you know what you’re looking for, it’s time to research and compare. The Mozo credit card comparison hub lets you compare over 200 credit cards from 60 providers, so you can search one with the features you’re looking for.

• Cancel your old account.

Just because your credit card might have expired, this doesn’t mean your account with the issuer has closed. To avoid any extra charges on a credit card you don’t plan to use (such as annual fees), it’s a good idea to cancel that account. It’s important to keep in mind that you need to make sure your balance is paid in full and there aren’t any pending transactions on the account before you close your account.

• Activate your new card.

Before you start spending, go online or follow the prompts provided by your credit provider to activate your card. Generally, this can all be done online, allowing you to use your new plastic in no time.

• Update any old information.

Once you’ve activated your new card, you need to update the credit card information on any direct debits, such as Netflix or gym memberships, so they don’t go to your now cancelled account.

TOP TIP: Every time you apply for a credit card, it goes on your credit history, so you should take the time to ensure you meet the eligibility requirements before making an application.

Feel like you know what you want? Start comparing credit card options right now below. Or if you’re looking for more info, head over to our credit cards hub for more guides and comparisons. Also, check out the Mozo credit card best page for the best credit card deals in Australia this month, highlighting Mozo Experts Choice Award-winners^ and editor picks.