Page 25 - ARUBA TODAY

BUSINESS Wednesday 4 March 2020
A25

Millennial Money: Credit card loyalty is no virtue

By GREGORY KARP of Nerd- ample. Sometimes the a new credit card, think
Wallet market changes, and the about what you really want
Loyalty is often a good old standby doesn't cut it out of a new relationship.
thing, but not in a relation- anymore — 1% cash back You don't want to fall for a
ship with your credit card. is so 2013. And sometimes rebound card that flatters
It's often better to be like "it's not you, it's me." The you with blingy names —
the "distracted boyfriend" card is the same, but your gold, platinum, diamond
from the internet meme needs and spending habits — until you're certain it has
and use your wandering have evolved since you first the long-term qualities you
eye to see if you can do hooked up. You've simply need.
better. grown apart. Be wooed by things that
The credit card market is So, embrace credit card matter. If you'll transfer
bubbling with useful and infidelity if you can score debt, you want a lengthy
rewarding offers for many a better deal that either 0% period. If you'll travel the
kinds of consumers and saves money — with a low- world, you want to be re-
lifestyles. Yet, many Ameri- er interest rate or long 0% In this Feb. 20, 2019, file photo photo shows credit cards in Zeli- warded for travel spending
cans have the wrong card, period — or makes money enople, Pa. and not be charged a fee
and their loyalty is hurting with better rewards, wheth- Associated Press for foreign transactions.
them financially. er that's cash back, points Besides paying attention
At least 1 in 5 credit card or airline miles. ghost it. out, especially if you want to advertising from card is-
customers are carrying the For example, if you charge With a credit card, that a lower interest rate or a suers, you can also read
wrong card, usually be- $1,500 a month on your means cutting everyday higher credit limit. Those credit card reviews and use
cause fees or rewards are card, you'll earn $540 more ties with the card, maybe are relationship issues you interactive online tools that
misaligned with their pur- from a 2% cash back card sticking it in a sock drawer can overcome. You might help you find your newest
chasing habits, J.D. Power than a 1% card over just and using it a few times a even be able to swap part- wallet partner.
has said in its annual U.S. three years. year. Why? The card ac- ners, with an upgrade to a And you might try a love
Credit Card Satisfaction Granted, some people count is part of your long more lucrative card within triangle of sorts: using two
Study. shouldn't have a credit credit history, which can that issuer's card family or a cards in tandem to find
They're in a dysfunctional card at all because it en- help your credit rating. downgrade to a card with chemistry. A flashier one for
relationship with their credit courages them to get into And keeping a lot of credit no annual fee. outsize rewards on some
card, and it's potentially debt — they just aren't built open, while using little of it, But if you can't downgrade spending — like 5% back
costing them hundreds of for that type of commit- helps your credit utilization to avoid an annual fee, on gas or groceries — and
dollars. ment. But if you use cards ratio, another key factor sometimes that financial a reliable one for all other
REASONS TO DUMP IT properly, you'll be able to in your credit scores. Using baggage just isn't worth it spending, preferably at
Changing circumstances find a match that will com- the card a few times a year anymore. Consider closing least 1.5% back.
can sour a love affair, even plete you financially. means the issuer is less likely the account and making There are plenty of fish in
with a credit card. BREAKUP TIP to cancel the account for a clean break, even if it will the sea and credit cards
Sometimes the card If you want out of a toxic re- inactivity. ding your credit. on the market. By break-
changes for the worse, lationship, canceling your Granted, tenure with your THE RELATIONSHIP YOU DE- ing fidelity with your credit
with a higher annual fee card usually isn't the best issuer might mean you SERVE card, you might ultimately
or slashed benefits, for ex- way to do it. It's better to have leverage to talk things Before swiping right on be more loyal to yourself.q

ECB's Lagarde: 'Ready to take targeted action' on economy

FRANKFURT, Germany (AP) take "appropriate and tar- Christine Lagarde said in a the U.S. on speculation that that have been closed to
— The head of the Europe- geted measures" if neces- statement that the virus "is central banks may step in prevent the spread of the
an Central Bank said Mon- sary to support the econo- a fast developing situation with action to support the virus.q
day that Europe's top mon- my against the headwinds which creates risks for the global economy against
etary authority is ready to from the new coronavirus. economic outlook." She the disruption caused by
said the bank would close- the spread of the virus. That
ly monitor developments is the case even though
and act "as necessary and some economists think
commensurate with the un- central bank action might
derlying risks." only have symbolic value,
Lagarde's remarks come as since lower interest rates
stock markets have risen in cannot re-open businesses