Canada is one of the largest credit card markets in the world. The number of credit cards issued here has grown a lot in recent years, as has the number of establishments that accept this payment method. Nowadays, the amount of transactions made with money is decreasing more and more.
Some of the factors contributing to this growth were the greater facility for Canadians to access this type of credit, greater security in transactions and the possibility of shopping online without leaving home.
With so many cards available on the market, it can be challenging to choose the one that best suits our needs. Here are some tips that can help you when selecting the card for your financial needs.
1. How do you intend to use the credit card?
It is essential to know how you intend to use the card. Whether it’s just for high-value purchases, everyday purchases or just situations where you don’t have cash. Regardless of your choice, a credit card is always a great way to pay. However, you must pay the invoice total each month by the due date.
If you believe you may need to delay bills or think you can spend more than you can keep up, the card is not the best financial product for you. The interest charged by cards are among the highest in the market and vary widely among banks. In this case, choose to use a debit card until you are more stabilized and financially educated.
2. Which loyalty programs are most interesting for you?
Most credit cards offer some incentive for the customer to spend as much as possible. For example, you can earn miles or points for travel, discounts at gas stations, discounts on purchasing appliances, invoice credits (cashback) and many others. It’s interesting to know which reward will be most valuable to you.
If you like to travel (who doesn’t?), accumulating points to travel for free is the most exciting thing. My favourite credit card in this category is the American Express® Aeroplan®* Business Reserve Card.
With the American Express® Aeroplan®* Business Reserve Card, you can exchange points for travel, car rentals, hotels and other products.
If you have a high fuel cost, you might consider a card such as American Express® AIR MILES Platinum Credit Card that has a partnership with a gas station loyalty program. These programs offer discounts on fueling or servicing your car.
3. What benefits are attractive to you?
Many cards offer benefits even before you start accumulating points. American Express® Aeroplan®* Business Reserve Cards, for example, offer advantages such as Priority Check-In, Priority Boarding, and Priority Baggage Handling when you fly with Air Canada.
Others may offer more exclusive benefits such as airport transfers and even an international chip when travelling abroad.
In conclusion: Choose the right credit card for your income
As much as the most exclusive credit cards are full of benefits and highly desired, you must choose a card compatible with your monthly income. It may not be worth having a card with a high annual fee if your monthly consumption is low or unable to take advantage of the benefits.
For example, suppose you are a university student, the best option is to choose cards that are compatible with your moment in life, such as credit cards without annual fees like the MBNA Rewards Platinum Plus® Mastercard®. Then, as your income increases, you can fill out proposals for premium cards.