Credit cards have become an integral part of the modern lifestyle due to their immense benefits. As a Canadian, you have access to numerous credit card providers willing to issue you with a card with incredible benefits. However, that can also be a negative aspect at times because you might get confused and even choose an unreliable credit card. This is why you have to make a wise decision after considering several key factors about both yourself and the credit card provider.
The Value of Having a Credit Card
A credit card allows you to make purchases even when your bank balance is low. You can then comfortably clear your total debt at the end of each month once you receive your paycheck. Some of the main advantages of having one include:
- The freedom and convenience of shopping as they are widely accepted
- Redeemable points that allow you to get various rewards
- An opportunity to raise your credit score when you pay off your monthly credit card debt without fail
- You can use them to monitor your spending habits and save more
Canadian credit cards are generally advantageous to have and use for transactions especially when travelling to other countries due to the following benefits:
- Worldwide acceptance
- Protection against unauthorized purchases especially when your credit card gets lost or is stolen
- 24/7 support and customer services assistance even if your credit card gets stolen
- Emergency replacement
- Concierge services
- Access to a wide range of deals in terms of incentives
Why you have to Compare Credit Cards Canada
You need a reliable credit card that not only supports your lifestyle but also accords you great shopping convenience. There are numerous types of credit cards that a financial institution can offer you. The most common include:
- Student credit cards
- Low-interest credit cards
- No-fee credit cards
- Cashback credit cards
- Rewards credit cards
- Business credit cards
- Guaranteed credit cards
- Secured credit cards
All the above categories have certain key features and they differ from each other significantly. Their interest rates, usability, fees, and numerous other aspects vary and you need to know which one suits you best. Also, numerous credit card companies offer the cards listed above and their terms or requirements differ. As such, you not only have to know which type of card you need but also which financial institution has the best cards in each category. This then means that it makes a lot of sense to compare credit cards Canada.
How to Compare Credit Cards Canada
The best way to determine the type of credit card you need is to make several considerations. Consider the following aspects:
- Interest Rates
A credit card with lower interest rates allows you to save more when you shop and is also a great choice when you occasionally carry around some cash with you. Different credit card has varying Annual Percentage Rates (APRs) and you should seek to get the best deal. To make such a selection, seek to choose the cards that have the lowest APRs. Reward cards tend to have higher APRs, especially when compared to other types such as low interest cards. However, they also tend to come with more perks.
The APR that might be great for you may fail to fulfill someone else’s expectations. However, it is always advisable to choose the card with the lowest possible APR that you can manage. If you have bad credit, you may get cards that have high APRs because the lender takes a huge risk lending you the money. However, when you improve your credit score, you can get access to credit cards with lower APRs.
- Rewards system
You should consider whether the rewards system fits the expectations you may have. Check for instance the number of points you get after each purchase. Cards that offer more points on each purchase are generally a great choice. The rewards offered need to match your lifestyle enabling you to get the most value. It makes a lot of sense to evaluate how you spend your money and the rewards that would be most practical.
You should aim to get a cashback rewards credit card if you want to be able to use your rewards on any purchase. This is because cashback rewards are in monetary value and their use is less complicated as compared to points-based rewards. Also, check how frequent you can expect the cashback and where it will be deposited. Some credit card issuers allow you to make purchases with it immediately as part of your credit card balance and others put it in your savings account.
Points-based rewards credit cards may require you to redeem specific products or services only. Ensure that you can redeem products that make more sense for your lifestyle. For instance, if you are a savvy traveller, a travel rewards credit card that allows you to enjoy luxurious services as you travel is a great choice.
Over the limit, balance transfer, foreign transaction, and annual fees can vary and determine the total amount it will cost you to use the card you prefer. Some cards require you to pay an annual fee while others are free to use. No-fee credit cards are ideal if you want something basic without any access to rewards but you will not have to pay an annual fee to use the credit card. Most student credit cards are also offered without any annual payments being required. They might be a great option if you are still studying and have zero sources of income to enable you to afford an expensive credit card.
- Introductory offers
Make sure you find out the amount of time that the interest rates will last for. In general, introductory rates should last for at least 6 months. However, some credit card issuers may extend the rates up to 12 or even 21 months. The longer the extension the better because you will have a prolonged period to enjoy the promotion. When you know their expiry date, you will never get surprised when they expire. When you take a card with 0 % transfer fees, you will save money on any existing balances you have.
There are different things that credit card issuers look out for before approving your credit card application. They can include details that prove your creditworthiness and also your personal information. A low credit score may hinder you from accessing certain credit cards or also make some lenders turn down your application.
Your income status is also an essential aspect that numerous financial institutions use to verify your creditworthiness before approving your credit card application. Your eligibility might be affected by your other financial liabilities such as current loans or other credit cards you may own. This is because all of them take money out of your pocket each month decreasing your potential to afford a new credit card.
- Other perks
There are numerous types of benefits that different credit card companies offer. Some of the most common types include insurance policies, fraud protection, price protection as well as extended warranties. Check the terms and verify if the perks align properly with your lifestyle.
The Credit Card Application Process
Once you have used the above factors to compare credit cards Canada, it is time to make an application to your credit card of choice. The process involves filling a form on the credit card issuer’s website. Some of the details you may have to offer include:
- Personal details such as name, address, and age
- Employment details
- Sources of income
- Details of other credit cards
- Details of current loans
Depending on the financial institution, you might have to wait for several days to get a response. The lenders use that time to review your details and check your credit score. However, numerous modern credit card issuers can access credit reference bureaus faster and give you an instant response. This allows you to know whether your application was approved or rejected on the spot and is as such highly convenient. After your application has been approved, you have to wait for several days for your credit card to arrive via mail. If it was rejected, avoid doing multiple applications as this could severely hurt your credit score but seek to know why it was rejected or also try raising your credit score.
The above information goes to show that you have to research widely to make a credible credit card choice. It will be hectic to compare all such details on different platforms. As such, it makes sense to rely on a web tool that has comprehensive details like the one we offer on our website. Our information is properly curated to help you make a well-informed credit card choice. Visit us today to compare credit cards Canada and choose the best card fit for your modern lifestyle.
Here are some other interesting articles from out website:
You’ll Always Win When You Compare Credit Cards Canada
Why You Need To Compare Credit Cards Canada