Choosing the Right Credit Card
Rewards credit cards are growing in number and popularity. Different credit card companies are now offering a myriad of reward options or incentives, which may include the latest gadgets, appliances, tickets to popular sporting events or whatever appeals to customers.
When you make credit card purchases, rewards credit cards help earn points, cash back, airline miles or other special awards depending on the card. In the case of accumulating points, rewards credit cards award you a certain number of points per dollar you spend (or specified amount of money), and then allow you to use those points towards things such as airline tickets, major appliance purchases, retail goods and a variety of items, which, of course, will vary according to the card you choose.
If it's air miles you are collecting, those miles may be applied towards airfare, travel incentives or other merchandise; cash back may be paid back onto your card or as a cheque or applied as payment towards a purchase you choose - it depends on the credit card provider.
Since there are numerous rewards cards options available, you'll have to get answers to several questions, such as:
So while researching the different rewards credit card options, it is necessary to not only find rewards and incentives that make sense to you but also a card that suits your spending habits and then weigh that against any annual fee you might have to pay and the rate of interest that's being charged. Generally speaking, if you do not purchase a lot on your credit card, it is best to keep to a Canadian credit card with no annual fees. There are many credit cards with no annual fees that still offer plenty of reward points.