Credit Cards

Best Credit Cards in Canada

Best Credit Cards in Canada

If you are currently in the market for a Canada credit card, the information provided in this article will make the process easier and less stressful.

Although it is exciting that so many different credit cards are available in Canada, with the vast number trying to choose just one can be a little overwhelming.  However, the advantage to consumers is that with the internet, they can compare as many Canada credit cards wanted and at leisure.

Considering that Canadian credit cards have different rewards and points systems, interest rates, fees, penalties, introductory periods, balance transfer capabilities, and so on, it is no wonder that so many people cringe when it comes to finding the best personal credit card.

One of the most important things about looking for a personal Canada credit card is the interest rate.  For this, it is not only regular interest charged for purchases, but also interest charged during the introductory period, interest for balance transfers, etc.

For instance, when looking for a personal Canada credit card that has balance transfer options, interest would need to be understood on several levels. Most Canadian credit card companies and banks that issue cards will provide an introductory period during which time no interest or extremely low interest is charged.

The length of this period varies dramatically although on average it lasts 12 months.

During this time, it is common for interest to be at 0%. However, once the introductory period ends, the APR (Annual Percentage Rate) would increase to a prime or subprime rate.

One of the important things to understand for this feature of a personal Canada credit card is whether the 0% or low interest rate is on just the balance transfer feature or regular purchases too.

Unfortunately, many people will secure a balance transfer credit card believing the 0% being advertised during the introductory period is for everything. However, after transferring the balance over from a high interest rate card to the new card, and then using the new card for purchases, the statement comes only to shock the cardholder.

Yes, this person was provided 0% interest on the money transferred over from the other credit card. However, the individual had no clue that interest being charged for purchases was at 24%. Therefore, when the statement came, the person realized that a mess had been created. For this reason, anyone looking for a personal Canada credit card, especially one that would be used for both balance transfers and purchases needs to know if two different interest rates would be applied, or just one.

It would also be important for a person with less than perfect credit who was looking for a personal Canada credit card to know if the interest rate would ever decrease.

Typically, someone with bad credit would automatically be charged higher interest but as that person’s credit improves and card payments are made on time, the high rate would start to decline.  However, this would not be something to assume. Instead, the individual should talk to a representative of the issuing company to make sure.

What factors you need to look for while selecting best Canadian credit card for your needs?

Informed consumers will find the best deal among credit card offers, but only if they know what to look for. Consumers are offered a variety of benefits for using credit cards. Low interest rates, travel points, accident insurance, cash advances. Yet how are consumers to ensure they are receiving the credit card and benefits that they need?

Responding to Mail Offers

Most consumers will receive offers and information from specific credit card companies such as CIBC or Capital One through the mail. Usually, credit card companies present their most appealing benefits through offers of low balance transfer rates. Often these offers are from credit card companies that you do not presently use. Therefore, you need to understand that these “limited time” offers will come again and again — they are not a once-in-a-lifetime offer. Take the time to weigh the benefits and costs carefully before you opt for one.

Official Credit Card Issuer Web Sites

The interest rate on a credit card is the most important feature to consider when choosing a new credit card. You want to get the lowest possible annual percentage rate for which you qualify (higher risk customers tend to get higher interest rates), preferably without an annual fee. Online lists of credit card interest rates will include the credit card issuer, interest rate, brand name, any annual fee and grace period. What’s important to know is that not all credit cards are included on these sites. Do your credit card shopping at a site with a broad range of different types of cards or visit card issuing bank websites directly.

Phone Solicitations for Canadian Credit Cards

Some credit card companies will call you to make initial credit card/lower interest rate offers. MBNA asks what benefits you look for in a credit card. At the time of this writing, if a consumer answers that the lowest interest rate is preferred, MBNA will actually set your interest rate to 7.99 percent, which is lower than any of its advertised rates online.

Consider the Most Useful Benefits

Consumers should take advantage of deals on credit cards when the interest rate is as low as they can get at another bank. They should also find credit cards that offer benefits that are valuable to them. Different cards allow you to earn points toward merchandise, travel or cash.

College and university credit cards for students offer low annual introductory interest rates for students at 26 different universities across Canada. Career and professional credit cards offer benefits to nurses, physicians, lawyers and physiotherapists.

If consumers are properly informed, then they will find credit card offers  and apply for best credit cards in Canada that are the best fit for their lifestyles.