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Top Credit Cards Canada Guide
29 Mar 2019

First Timer Guide To Top Credit Cards Canada

As a first-time credit card user, it is important to choose among the top credit cards Canada as they not only allow your credit score to grow but offer worthwhile rewards.

Finding a credit card that best suits you as a first-time credit card user may be tough, let alone finding a credit company issuer ready to give you the credit card. Also, chances are that you are planning to use the card for a very long time. Therefore, choosing the right card is of absolute importance. First, you need to understand the credit cards available among the top credit cards Canada in order for you to be able to choose one that takes care of your needs. Below are a few of the credit cards available in Canada.

  1. Purchase credit cards

They are many purchase credit cards available, however, the most appropriate for a first timer is the long interest-free period card. This is a card that offers extended periods of 0% rate. The card allows you to make purchases without paying the interest rate for an extended period. This allows you to learn the ins and outs of using credit cards before the card issuer start charging you the interest for using the card. If you use the card for a given period then realize that you might not be able to pay for the interest once the free period is over, you can move the balance to a 0% balance transfer credit card. Alternatively, you can take a low APR credit card.

  1. Reward and cash back credit cards

These are the cards that allow the card user to get rewards in the form of redeemable points when they purchase using the cards, discounts on flights and cashback on any purchases made. These rewards may be from specific products, brands or stores. When considering to take these reward cards, you need to weigh whether the rewards are worth as compared to the interest rates you will be paying. In addition, if you want rewards that are not specifically attached to certain stores or airlines, consider cashback cards that guarantee cash back on any purchase you make. To get the best out of reward cards, always make sure you clear the balance in full for every month otherwise the interest charges may outweigh the rewards, impacting negatively on your credit score.

  1. Cards for overseas use

If you recently landed a job that requires you to travel a lot, this is the card for you. Credit cards offer the best security for your money, therefore, you do not have to worry about financial deficiency on your account when traveling. You need to look out for the fee you pay for purchasing items using the card and cash withdrawal fee. In addition to this, you need to make sure that you get a card with the lowest APR.

  1. Credit builder cards

Credit builder credit cards tend to have high APRs compared to other cards. It is therefore important to consider this when looking for a credit builder card. After getting one, make sure you pay off all the monthly balance in full in order for you to successfully raise your credit score.

  1. Balance transfer credit card

The balance credit cards are the cards used in reducing the interest rate one needs to pay for an existing credit card. As already mentioned, this is the card you need when you have doubts on your ability to pay the interest of a credit card. There are two types of balance transfer card. These are:

    • Short 0% interest rate period- These are the cards that offer very short periods of zero interest rates. The good thing about them is that they charge a low balance transfer fee at the outset. If you choose these cards, you need to make sure that you pay off the entire balance otherwise you might face very steep interest rate charges once the 0% rate period is over.
    • Long 0% interest rate period cards- These cards offer a longer period of 0% interest rate as compared to the short ones. This gives you enough time to pay back the entire balance. The only thing you need to worry about is the outset balance transfer fee. Unlike the short period card, these cards charge steep outset fee.

With the right understanding of credit cards however, the balance transfer credit card will not be necessary.

The right top credit cards Canada decision

For you to choose a credit card that is right for you, you need to ask yourself whether you have a good credit score or not and the purpose of the card. After this, you will be able to look for the top credit cards Canada confidently.