Which Credit Card is More Beneficial in Canada?
Sep 26, 2023
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Canadians have plenty of credit cards available to them. These cards can be grouped into broad categories. For example, some help you earn many rewards for your shopping habits. Others focus more on helping you reduce debt or build your credit.
Picking the best credit card entails determining what you need from your card, selecting a type that matches those needs, and researching options before you apply for a credit card online. This article will cover some of the major types of Canadian credit cards to help you find the best choice for your situation.
Gas rewards credit card
If you commute daily to work with a car, you likely have to fill up your tank several times per month. A gas rewards credit card can help you save money on your fuel or earn points toward other purchases. The more you use the card, the more you can save.
Canadians use an average of 143 litres of fuel per month. They could earn money back each month simply just by using a gas rewards card on their gas purchases.
Shopping rewards credit card
Shopping rewards cards can suit a variety of people based on shopping habits. Some pay more for specific categories, like groceries or sporting goods, while offering a lower rate on other expenses. Others provide no categories but pay a slightly higher flat rate on everything. As a result, you can quickly accumulate rewards regardless of where you shop. Depending on the credit card, you may be able to redeem your points for cash, statement credits, or shopping.
Balance transfer credit card
Balance transfers involve moving outstanding balances from other cards onto a balance transfer card. That new card then offers you a period of time to pay off the transferred balance at 0% interest.
Balance transfer cards can be helpful if you’re trying to pay down credit card debt. You can split the balance up into manageable chunks and reduce interest costs by a significant amount. That said, these cards tend to charge a balance transfer fee worth a small percentage of the transferred balance. Ensure this fee is less than the total interest you’d pay if you didn’t transfer the balance.
Credit-building credit card
Whether you’re brand new to credit cards or working on repairing your credit score, a credit-building credit card can be helpful. These cards tend to have less strict criteria for qualifying and simple features. Some credit card issuers may not check your credit or, at least, emphasize your income and employment situation more.
Credit-building cards also tend to be secured cards, meaning you must put down a deposit on the card. This deposit becomes your credit limit. Secured cards can offer a path to an unsecured card if you keep up on payments and remain in good standing. That said, some unsecured credit-building cards exist as well. Shopping around can help you find these cards.
The bottom line
There is no official best credit card type out there. Every type works for different circumstances. Gas rewards cards can work well if you own a vehicle and drive a lot, whereas a shopping rewards card could be a suitable option depending on the categories you tend to spend in.
A balance transfer card could be your best financial move if you want to consolidate credit card debt. Meanwhile, if you don’t have a lot of debt but need to build your credit, consider starting with a credit-building card.
Compare cards within the broad card type you choose before filling out an application online. This will help you find one that offers the features you need to make the most of your card.
URL : https://www.iquanti.com
Contact Information:
Name: Carolina d’Arbelles-ValleEmail: href="mailto:Carolina.darbellesv@iquanti.com">Carolina.darbellesv@iquanti.com
Job Title: Senior Digital PR Specialist
(201) 633-2125
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