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Tips for Comparing Credit Cards

In today’s society, a credit card is almost a necessity. A credit card can help you build up a good credit history, which is useful when you want to save money on interest when borrowing, and when you are ready to make large purchases. However, you don’t want just any credit card. It is important to compare credit cards and choose the one that is best for you.

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Comparing Credit Cards

When deciding on the best Canadian credit card for your situation, it is important to consider a few factors. Some items to compare include:

  • Interest rate: While you should try to avoid carrying a balance, sometimes financing some purchases makes sense. In such cases, it’s best to have a credit card with a low interest rate. If you know that you will be occasionally carrying a balance, you can save money by choosing a credit card with a lower rate.
  • Rewards program: Does the rewards program fit your needs? Look at your redemption options, as well as what sort of cash back or points you can earn. If you travel a lot, choosing a miles card can be a good idea. Cards that give you extra points or cash back for gas purchases are a better choice for those with commutes. Think about your life, how you spend your money, and what rewards you are likely to use.
  • Fees: Look at the balance transfer fees, over limit fees, and foreign transaction fees. If you make a lot of foreign purchases, or travel abroad, a card that waives foreign fees, or that charges lower fees, can be a good choice.
  • Introductory deals: Compare introductory offers. Find out how long the low credit card interest rate will last. There are some low interest credit cards that offer intro rates for up to 1 year or longer. Others offer 0% balance transfer rates that can help you save money on your existing balances. Be sure to read the fine print so there are no surprises when the intro rate expires.
  • Perks: Look for other perks from the credit card issuer, such as travel insurance, car rental insurance, fraud protection, extended warranties, price protection, and other perks. Find out what terms are available, and choose a card with the perks that fit your lifestyle.

It’s important to note that even though you found the perfect credit card for your lifestyle, you still need to apply for and be approved for the card. In some cases, you might be declined for the credit card you want. For example, you may not have sufficient credit history or income requirements for the card, or you may have made credit mistakes in the past.

Bottom Line

You need to consider your lifestyle and your habits. The best credit card for you may not be what is best for someone else. As you compare credit card offers, it is a good idea to apply for what will work best for you. Look at the different options available from different credit card issuers before making your choice. If you have good credit, you should be able to get whatever card you want in most cases. However, if you have poor credit, or a short credit history, your choices might be more limited.