Choosing the Right Credit Card
Let's face it. In today's world, having a good credit score is important. Not only does it help in emergency situations where you may need a loan, but it is also your passport to low rates on long-term investments such as the purchase of a new car or home. Maintaining monthly payments on a Canadian credit card is an excellent way to develop a good credit score, and reward points credit cards are a great way to get something back on the things you would normally purchase.
A credit card is issued after completing the application process. Every lender has their own terms and conditions, and they are carefully planned according to the applicant's credit history and other information. Once these things are established, the applicant is issued a card with a set credit limit. While these details stand true for both standard credit cards and rewards cards, the latter offer special incentives for making purchases that reward the user for using the card. There are various rewards cards available, and Canadians must determine which one best accommodates their individual lifestyles.
An increasingly popular rewards card that more Canadians are taking advantage of is the gas rewards card. When the card is used to make gasoline purchases, the user is rewarded with a predetermined percentage of money back. With the way gas prices are soaring, this can result in a significant savings throughout the year.
Those who travel by air often will not want to miss out on the advantages of miles cards. They are often rewarded with a certain amount of free air miles just for signing up, and specified purchases can add even more.
We all have heard horror stories of the misuse of credit cards, and this has given them a bad reputation. However, when handled responsibly, a credit card can be a beneficial tool. If you have found yourself in a situation with a large balance at a high interest rate, a balance transfer can offer you the relief you need. The credit card company will relieve you of your current debt, and the balance is transferred to the new card at a lower rate.
Cash back cards reward you on most purchases. While the percentage may be lower than a more specified purchase such as only on gas, you can certainly benefit. For example, if you set up automatic billing using the card and pay the balance off every month, you can normally receive around 2 percent back on things you would be paying for anyway.
Competition is high in the world of credit card issuers, and this has caused them to offer incentives to their users. Considering taking advantage of these rewards can be a wonderful choice, but it must be made wisely. For example, if you only travel once or twice a year, the miles card would not be your best choice. The gas card may not be your best option if you work from home and rarely travel far. By carefully considering your lifestyle, you can choose a rewards card that will best benefit you.