Do you have a credit card with not-so-great terms that really don’t suit your spending habits any more? Do you feel trapped in that credit card offer because you don’t know if you can be approved for another card? This is the “bad credit card” trap. And there are steps you can take to get out of it and move onto a better credit card offer.

Here are five things you should do to get rid of your bad credit card and move on to greener pastures.

Steps to Getting a Better Credit Card

1. Check your credit file to see what prospective creditors will see. Is your credit history good enough that you’ll likely be approved or do you have problems or errors in your credit file that you need to take care of first?
2. If you noticed any potential issues that might cause a credit card application to be denied, work on improving your credit history. No, it won’t be a quick and easy process in some cases, but it’s a necessity. Pay down the credit card debt shown there. Get back on good payment terms if you’re behind. And work to fix any mistakes you find (such as an old debt still shown there even though you paid it off).
3. Compare credit card offers. Use a credit card comparison engine to research several credit card offers at the same time. You can’t move on to a better deal without knowing what’s currently on the market. If you don’t find a deal which appeals to you, wait a while. New and changed credit card offers come on the market each month.
4. Choose a new credit card with tolerable long-term features – don’t get sucked in by introductory offers. Those are limited time perks and not a primary reason to apply for a credit card. If you focus too much on introductory offers you might find yourself in the same old “bad credit card” trap months down the line when those introductory offers expire.
5. Apply for your new card.

If you’ve followed these steps, hopefully you’ll be approved for the new and improved credit card offer you applied for. If not, go back to the beginning. It means you still have work to do. Maybe there are still black marks on your credit history that are preventing you from being approved. Or perhaps you didn’t pay attention to the credit card requirements (such as applying for a card with a high income requirement that you didn’t meet).

The last thing you should do is apply for more credit card offers without figuring out what went wrong the first time. Remember that every enquiry stays on your credit file for several years. Having too many because you get rejected and keep applying for new cards makes you appear desperate for funds and makes you look like a higher credit risk.

When you do get approved for a better credit card offer, it’s time to cut ties with your old credit card company. Close the account (you can transfer the balance to your new card first). Don’t hold onto the card for a “rainy day” when you know the trouble those bad credit card terms can get you into. Getting out of the trap means switching cards and / or closing accounts, not adding to your collection.