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7 Signs You Should Break Up with Your Credit Card

By Nicole Bustamante

Download the Zip app to check out the better way to pay and start splitting your payments in 4 anywhere you shop.


So you’ve been together for two years. Or maybe you just hit a milestone of 5+ years together, and now you’re thinking, “Did I settle down too early?” 


Our answer: Yes…at least when it comes to your credit card. 


Managing your finances can be extremely overwhelming, and as a result it’s tempting to put off your financial wellbeing indefinitely. This is a gentle reminder that there’s no time like the present to take a beat and re-evaluate. 


The primary question to tackle today: is it time to break up with your credit card?


There are many factors that will impact this decision, such as your current credit score, your spending habits, and your overall financial situation with debt. If you’ve tried talking to your current bank about changes and there’s no wiggle room, you can choose to go your separate ways—and either meet someone new, or continue the journey solo. 


Whether you want to open a new credit card or stick to debit only, here are seven signs that you should be asking your credit provider, “Can we talk?”


Download the Zip app to check out the better way to pay and start splitting your payments in 4 anywhere you shop.


1. Your credit has improved since you took out the card.


So you did some self-reflection, maybe even got some financial counseling, and look at that—you’ve truly improved. If your credit score was poor when you opened with your current provider, we’re willing to bet that it’s time for you to start seeing someone new. Look into opening a new card that will take your current credit situation into consideration for better rates and perks.


2. Your interest rates are high.


Is your credit card a little too interested in you? If you’re facing high interest rates, shop around to see what other providers’ rates are. Or consider the benefits of going debit-card only and using Zip to pay off your purchases in four installments. You’ll never have to stress about any hidden fees again!


3. The card comes with lackluster rewards.


Are you getting what you want out of this relationship? Take some time to evaluate whether you are actually reaping the benefits of any rewards or cashback options that your credit card offers. 


If you spend more on groceries than traveling, seek out a card with benefits targeted towards those purchases. And if your card doesn’t offer any rewards, it’s time to say sayonara. You should absolutely get extra benefits that suit you if you’re using your credit card often and paying it off consistently.


4. Your annual fees are steep.


Just like long-distance relationships, annual fees aren’t for everyone. Before your next annual fee is due, make sure that this kind of credit card is what you can afford at the moment. Are you really taking advantage of the perks that come with an additional fee and earning back more than the amount you’re paying? If you find that you just can’t justify the additional expense, consider switching to Zip as an alternative to credit.


5. Your credit line is too low.


A relationship goes two ways: you only get out of it what both parties put in. Is your credit provider really doing the work


If your credit provider has a maximum limit that is too low for you, or they will not raise your limit because you started out with a poor credit score, it’s time to look for new options. You want to avoid spending up to your credit maximum each month, so opening a new card with a higher limit will allow you the space to spend without hurting your credit score. Another great way to avoid maxing out your card while staying on budget is by using your available Zip balance to cover some of your expenses.


6. You’re enticed by a sign-up bonus with another provider.


It’s always exciting to start fresh with someone new. While you should always be careful about opening a new credit card, it’s worth considering if they are offering an amazing sign-up bonus that you know you’ll benefit from. Just be sure that you read the terms and conditions carefully and know exactly what you’re getting into, to avoid being surprised by high interest rates or annual fees down the line.


7. Your income has increased.


Who you were back then is not who you are now. People (and incomes) inevitably change. If you’ve moved up the income ladder, look into providers who can give you higher credit limits. This is also a perfect time to consider a card with an annual fee that offers perks that greatly outweigh the monthly amount.


Everyone is on an independent financial journey, and whether you are ready to break up with your credit card depends on a number of factors. So take these signs into consideration if you’ve been on the fence, and do your research to learn what options are available to you. 


And remember: don’t sleep on buy now, pay later! If you’ve been burned by credit and want to start fresh with a payment alternative that actually encourages smart spending and budgeting, Zip could be the one for you.


Download the Zip app to check out the better way to pay and start splitting your payments in 4 anywhere you shop.

Get started with Zip today

Zip’s editorial content is not written by a financial advisor. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.

About the author
Nicole Bustamante

Nicole Bustamante is a writer and journalist passionate about storytelling and the art of fashion. She has written for The Zoe Report, Angeleno Magazine, Modern Luxury Interiors California, and more in addition to writing for her personal blog.