Financial Education

Choose your credit card in Canada: see the best tips!

If you need a card to help you with your finances and get the best rewards for your needs, read on to learn how to choose your credit card!

Advertisement

by Victória Lourenço

Published on 09/20/2022

Find out how to choose your credit card with the best perks in Canada!

You deserve the best credit card! This post will help you to find it. Source: Adobe Stock.
You deserve the best credit card! This post will help you to find it. Source: Adobe Stock.

When you choose your credit card, it is important to consider your spending habits and needs. This way, you’ll find the best credit card to keep your finances in good standing.

So, you need to think about a few different things when choosing a credit card for you.

Royal Bank of Canada

Royal Bank of Canada review: banking with perks

If you're looking for a bank that has it all, such as accounts, investments, and credit cards, read our Royal Bank of Canada review to learn more!

For example, do you tend to spend a lot on travel? If so, you might want to choose a credit card that offers rewards points that can be redeemed for travel expenses.

Are you interested in cash back or other perks? There are many different credit cards available with different perks, so choose the one that best fits your needs.

You can even compare credit cards side-by-side to see which one offers the most value. Whatever your needs, there is a credit card out there that is perfect for you.

So take the time to do your research and choose the best credit card for your spending habits and needs.

Moreover, you start researching right now by continuing to read our post to get the best tips for choosing your credit card!

Advertisement

How should you choose your credit card?

Choosing a new credit card is an important decision, so pay attention to these tips. Source: Freepik.
Choosing a new credit card is an important decision, so pay attention to these tips. Source: Freepik.

Canadians have a lot of options when it comes to choosing a credit card. There are cards with great rewards programs, low-interest rates, and even cards that offer cash back on purchases.

So, how do you choose the right credit card for you? First, consider your spending habits. If you carry a balance on your card from month to month, look for a card with a low-interest rate.

Also, if you pay off your balance in full every month, you may want to choose a card with a rewards program that fits your spending habits.

For example, if you spend a lot on groceries, choose a card that offers cash back or points at grocery stores.

However, you need to consider the perks that are important to you. Some cards offer travel insurance, extended warranty protection, or even purchase protection.

Therefore you should choose a card that offers the perks that are most important to you. Finally, read the fine print and make sure you understand the fees and penalties associated with the card.

Once you’ve considered all of these factors, you’ll be well on your way to choosing the best credit card for your needs! So, below, you’ll find more essential tips on how to choose your credit card!

Consider your goals

As we mentioned above in this topic, you need to know what are your financial goals before choosing your card.

So, if you have a goal to travel, choose travel rewards cards, and if you like getting cash back, find the best cash back cards for your needs.

Advertisement

Check your credit score

Your credit score has an important impact on the way you choose your credit card. So, you need to regularly check your score to know if you can qualify for the credit card you need.

See the fees and interest

Another very important aspect of choosing your credit card is checking the fees and credit card APRs. This way, you’ll need to make sure you can pay these fees while you use the card, so you don’t get into debt.

Advertisement

Read the credit card terms

This can be the most important tip for you to choose your credit card. You need to read the card’s rates and fees and know about the terms.

This is because you need to know what you’re getting into before you sign any credit card agreements.

What should you avoid when choosing a credit card?

Picking the right credit card will help you to be a better credit user. Source: Freepik.
Picking the right credit card will help you to be a better credit user. Source: Freepik.

If you want to choose your credit card, you need to weigh a few factors before settling on a course of action.

Experian reports that the average consumer has three or more credit cards, raising the stakes when comparing the various rewards, bonuses, interest rates, and fees associated with each card.

Cutting through the “big sell” promises of luxurious living and vacations to the nitty-gritty of how the advertised advantages measure up against the predicted costs is essential for making an informed decision.

So read below some of the main factors you should avoid when choosing your card!

Not reading the card’s terms

When you don’t read the card’s terms and conditions and apply anyway, you can be surprised at how many spending caps and rewards caps there are.

So, be sure that you find a card with higher or no spending caps or fine prints on bonuses and rewards programs.

Moreover, if you sign the card’s agreement without reading it carefully, you’ll need to accept any terma that may not be good for you later down the road.

Not being able to pay the fees

This is one of the most common mistakes people make when applying for a new credit card. They overestimate the card’s fees and find it hard to keep up with paying them in the future.

So, make sure you know all your card’s fees and APR. This way, you’ll never get surprised with higher fees you can’t pay for only after you’ve already got your card.

Choosing a card with rewards that don’t relate to your finances

As we mentioned in this post, you need to find a credit card that fits your lifestyle.

If you spend with travel often and get a card that rewards you more for everyday purchases, you won’t make the best out of the card’s features.

So, you need to see how the card works and how to redeem your rewards. This way, you’ll know that you get the best rewards according to your spending.

Therefore, now that you know more about how to choose your credit card, you will find it easy to get one that fulfills your spending needs!

Need to get a fast loan? We have three lenders to recommend!

Sometimes we need extra cash for an emergency. That happens. If you have already topped your credit card limit, you can consider applying for a fast loan.

But not all lenders are reliable, and not every fast loan is advantageous. To give you a helping hand, we have made a list with 3 of ht e best fast loans to apply to in Canada.

So, if you need this recommendation, just check the following content to get it.

woman smiling and typing on a laptop

Best instant loans in Canada: 3 good options

Are you looking for cash to pay for an emergency? If so, this post can help you learn all about the best instant loans in Canada!

About the author

Victória Lourenço

Victória Lourenço is part of the finance writer team for The Mister Finance website. She is a translator and copywriter, having worked on finance topics for over four years. She has a goal to keep studying finances to help people learn more about how to use their credit cards, make loans, and use other money-related products in a way that they can find a more meaningful and healthy financial life!

Reviewed by

Aline Barbosa

Senior Editor

Trending Topics

content

How to apply for the Avant personal loan?

Are you looking for a personal loan but do not have a high credit score? The Avant loan can help you. So, read more to know how to apply!

Keep Reading
content

How to apply for the Freedom Gold card?

The Freedom Gold is a catalog card that offers you a limit of $750 to buy at Horizon Outlet. Learn how to apply for it and enjoy its benefits!

Keep Reading
content

How to apply for the CIBC Aventura Visa Infinite?

Learn how to apply for the CIBC Aventura Visa Infinite and enjoy the generous welcome bonus and other exclusive benefits this card offers.

Keep Reading

You may also like

content

Upgrade Cash Rewards card application: how does it work?

You can apply for an Upgrade Cash Rewards in a couple of minutes without leaving your house to do it. Learn how to apply online for your new credit card.

Keep Reading
content

How to earn extra money online: your guide to getting started

Do you want to know how to earn money online? You're in luck. There are lots of different ways to earn money without leaving your home. So read on and see which method is the best fit for you!

Keep Reading
content

Learn to apply easily for the AutoLoanZoom

Applying for an auto loan doesn't have to be difficult. Learn how to apply easily for the AutoLoanZoom and get your car today. Read on!

Keep Reading