One of the ways that you can improve your ability to earn rewards with a credit card is to choose cards associated with specific businesses. If you frequent a business, you can reap the advantages of a Canadian rewards card associated with that business. One of your options is the Canadian Tire Cash Advantage MasterCard.
Features of the Canadian Tire Cash Advantage MasterCard
If you use Canadian Tire for your car needs, this credit card might be just the thing for you. You can use this cash back MasterCard at any store, of course, but you get perks for using it as certain stores. The standard is a fairly generous 1.5% cash back on eligible purchases. If you use your credit card at Canadian Tire stores, Canadian Tire gas bards, and Mark's Work Wearhouse stores, you can get 3% cash back on those purchases. You can choose to have cash back applied to your account statement
That's not bad. You also get unlimited cash back -- no limits to the rewards you can earn with this Canadian credit card. Another interesting advantage is that there is no annual fee with this credit card. Many Canadian rewards credit cards feature annual fees; this one does not follow that trend.
Additionally, you get access to the regular features associated with a major credit card issuer that uses the MasterCard logo:
- MasterCard SecureCode online guard
- Free account inquiry online
- Extra cards for free
- 24-hour customer service
The Canadian Tire Cash Advantage MasterCard also features the convenience of four different ways to pay your bill: in person at Canadian Tire stores, transfer or bill pay from your bank, through the mail, or by using a automatic debit.
Avoiding the Pitfalls of Cash Back Credit Cards
While a cash back card like the Canadian Tire Cash Advantage MasterCard can be a great financial tool, it is important to avoid the pitfalls associated with such cards. Even the best Canadian credit cards can become debt traps if you aren't careful. Don't run up the balance on your cash back card just to get the rewards. Even though there isn't an annual fee, the Canadian Tire card comes with a 25.99% interest rate. If you carry a balance on that card, it won't matter that you are getting 3% cash back.
Many cash back cards have interest rates of between 19.99% and 25.99%. If you purchase items with the assumption that you will get cash back, and then carry a balance, you will come out behind -- rather than coming out ahead. Make sure you plan your spending carefully so that you are only purchasing what you have in the budget, and be sure to pay off your credit card balance every month. Then, you will truly be ahead of the game.
This post was included in the Canadian Finance Carnival at the Canadian Finance Blog.
