Why Credit Card Loyalty Is Overrated

When you have a credit card you’ve been using for years, it’s all too easy to hold on to it. Plus, credit card issuer loyalty does have its advantages. But it also might mean you’re missing out on a card that’s a much better fit for you.

The credit card market never stops evolving. The same is true for your spending habits. When you keep the same card for a long time, you might not realize it doesn’t bring you as much value as it used to — or that a different card could offer more.

Here’s why staying loyal to your credit card doesn’t always pay off, and when it’s a good time to reevaluate your card choices.

Card issuer loyalty can benefit you — to a point

Sometimes, it pays to keep all of your eggs in the same basket, or all of your financial products in the same bank.

Often, issuers view credit cards as a way to get you “in the door.” That’s why rewards credit cards offer cash back or points and miles, sometimes in addition to highly appealing benefits. Even if an issuer ends up losing money on such a product, it’s worth it if you end up using its other credit products, such as a car loan or a mortgage.

For you, as a bank customer, this kind of relationship might be beneficial too. If you show that you’re a responsible cardholder, the issuer might approve you for other cards more readily, as well as those other credit products I’ve mentioned. You might get favorable rates — but a positive relationship still doesn’t guarantee the best terms.

While it’s a good idea to check what your bank can offer, you also want to shop around. When it comes to such high-value purchases like vehicles and property, even a small difference in interest rates can mean major savings.

Shopping around for credit cards can be wise too, even if you already have a primary card you’re used to relying on. The credit card world changes quickly and constantly. And unless you’re a card enthusiast on top of every card update, these changes can be easy to miss.

The credit card market moves fast

As a credit card journalist, I love my job because the industry I cover is always changing. Card issuers must innovate to attract and maintain customers. That means existing credit cards rarely remain the same for long, and new cards pop up frequently.

As a hypothetical example, let’s say you travel frequently. In 2019, you got the Chase Sapphire Reserve®. During the pandemic, you were able to rack up plenty of points thanks to limited-time bonus rewards and other promotions. They made the annual fee increase (from $450 to $550 in 2020) worth it. The card also kept adding new rewards and benefits, so you were happy with it.

However, you missed that in 2021, The Platinum Card® from American Express went through a major overhaul. The annual fee jumped from $550 to $695, but the issuer also added a long list of new benefits. Now, the card offers over $1,400 in statement credits annually, many of which perfectly fit your lifestyle.

Or, perhaps it was the opposite. You did know and thought it was terrible. You loved your Chase Sapphire Reserve for its flexibility, including its $300 annual credit that applied to a myriad of travel purchase types. Plus, when you didn’t transfer your points for the best value, you could still redeem them for 1.5 cents apiece through the issuer’s portal.

Later in 2021, the Capital One Venture X Rewards Credit Card came out. It had an even simpler rewards structure, and the $395 annual fee could easily be offset with the $300 Capital One Travel annual credit and the 10,000-mile anniversary bonus. You didn’t apply. The Chase Sapphire Reserve still worked for you just fine.

Fast forward to 2025, and Chase overhauled the Sapphire Reserve. Along with a new and elevated $795 annual fee, it adjusted its approach to benefits, including more than $1,800 in annual statement credits. The redemption values are also changing, and the 1.5X travel redemptions are set to go away.

Perhaps that’s great news for you. Or maybe you’re thinking it’s time to finally say goodbye to your favorite travel credit card. Either way, one thing is true: cards change. What’s best for you today might not be a good option at all tomorrow.

When is it time to ditch your card issuer?

Unless you’re a credit card aficionado (or write about cards for a living like I do), you’re not likely to keep an eye on everything happening in the credit card market. And that’s OK. Instead, I suggest making a habit of evaluating your card situation in the following scenarios.

When your card is changing

As you can see, changes in benefits and terms aren’t rare. Of course, your card issuer won’t implement them in secret, so you’ll be notified and most likely given some time before the changes kick in.

Review the new terms and evaluate whether they work for you. This might involve some math, too. Then, browse other credit card offers and see if there’s a different card that might be a better choice now.

When the annual fee is going up

A good time to consider whether your card is the best match for you and shop around for a new card is when the annual fee is coming up. If there’s a different card that better fits your goals and spending habits, it’s best to switch before the annual fee charge hits your account.

As an annual check-up

Even if your credit card doesn’t have an annual fee, it’s still wise to reevaluate your card selection once a year. Maybe your card hasn’t changed, but your spending might have. Maybe you’d benefit from earning a different type of rewards. This is also a good opportunity to browse other card offers and see if there’s anything new that catches your eye.

The bottom line

Keeping the same credit card for a long time creates a positive relationship with the issuer (provided you’re a responsible cardholder). While this relationship might be valuable, don’t let it stop you from always looking for a better card.

A credit card is an essential financial tool that you probably use for everyday purchases. It should match your lifestyle and priorities. And when there’s a card that can do so better, perhaps it’s time to switch.