There are hundreds of Canadian credit cards in the marketplace. As a consumer, you likely receive tons of credit card offers in your mailbox every week. How do you know which one works best for your personal circumstance? In this article, we’ll explore why you shouldn’t necessarily take the first credit card offered.
- Credit Card Rewards
Many credit card companies offer rewards and other benefits when using their credit card. Whether that be a low introductory interest rate, cash back, airplane miles, or some other benefit, there are numerous options to pick from. Consider what types of rewards work best for your situation. A credit card comparison tool can help you to narrow down your options.
- Best Interest Rate
If you are a person who carries a balance on your credit card from month to month, the interest rate you pay will likely be an important factor when making your final decision. Look carefully at the interest rate disclosed by the financial institution to ensure that you are not simply receiving an introductory “teaser” interest rate. Selecting the credit card with the best interest rate can help to save you lots of money interest over time.
- Personal Financial Circumstances
Your personal financial circumstances will greatly impact not only the credit cards that you want, but also those that you are eligible for. If your credit score is not perfect, you may have to consider a credit cards with a higher interest rate or ones that do not have reward incentives.
Many places such as hotels, car rental services, and other institutions require a credit card in order to business. If you are a person who prefers not to carry debt or have limited options based on credit score, a prepaid credit card could be another consideration. Here’s a look at a list of some of the best prepaid credit cards that are available to consumers.
- Credit Card Fees
Consider the credit card fees that could be charged to you over your time as a customer with your credit card company. Do they charge an annual fee for using their card? Will you be charged foreign transaction fees when you travel abroad?
Take a look at the fine print and consider what fees may be assessed as part of using the card.
- Impact on Your Credit Score
Credit cards usage can have a huge impact on your credit score. Applying for too many cards at the same time can lower your score. Utilizing too much of your credit limit can impact your credit score. As you are deciding which credit card(s) to apply for, you should have a gameplan ahead of time to avoid negatively impacting your credit score.
There are thousands of credit cards in the marketplace to choose from. Accepting the first offer you receive from your bank or other personal financial institution may not necessarily be in your best interest.
Take the time to shop around and learn what types of credit cards are best for your financial circumstances.
This content is a joint venture between our publication and our partner. We do not endorse any product or service in the article.
