Best Credit Card in Canada: How to Choose and Maximize Your Rewards
Credit cards have become an essential tool in the financial arsenal of Canadians. They offer convenience, security, and the ability to earn rewards on every purchase.
However, with so many options available, it can be challenging to choose the right credit card for your needs.
In this article, we'll take a closer look at some of the best credit cards in Canada, how to choose the right one, and how to maximize your rewards.
Choosing the Right Credit Card
Before you start shopping for a credit card, it's essential to understand your spending habits and financial goals.
Here are some things to consider when selecting a credit card:
Rewards: Credit cards come with various reward programs, such as cash back, travel points, or merchandise rewards. Consider which rewards program aligns with your spending habits and financial goals.
Fees: Credit cards come with an annual fee or no annual fee. Decide whether the rewards you'll earn justify the annual fee.
Interest Rates: Credit cards come with various interest rates, such as a promotional rate, regular rate, and cash advance rate. Consider the interest rates you'll be charged for carrying a balance, making cash advances, or transferring a balance.
Credit Score: The credit card you qualify for may depend on your credit score. Check your credit score before applying for a credit card.
Top Credit Cards in Canada
Here are some of the best credit cards in Canada based on their rewards programs:
Scotiabank Gold American Express Card: This card offers excellent rewards on everyday purchases such as gas, groceries, dining, and entertainment.
Cardholders earn 5x the points on these purchases and 3x the points on gas, groceries, and dining.
The card also comes with comprehensive travel insurance, including trip cancellation, trip interruption, and emergency medical coverage.
BMO World Elite Mastercard: This card offers premium travel rewards such as points that can be redeemed for flights, hotels, car rentals, and experiences. Cardholders earn 3x the points on travel, dining, and entertainment purchases.
The card also comes with travel insurance, including trip cancellation, trip interruption, and emergency medical coverage.
Tangerine Money-Back Credit Card: This card offers cash back rewards on everyday purchases such as groceries, gas, and recurring bill payments.
Cardholders earn 2% cash back on two categories of their choice and 0.5% cash back on all other purchases. The card has no annual fee and no limit on the amount of cash back you can earn.
Maximizing Your Rewards
Once you have selected the right credit card, it's essential to maximize your rewards. Here are some tips to get the most out of your credit card:
Understand the Rewards Program: Understand the rewards program and its redemption options. Some programs offer more value when redeemed for specific rewards, such as flights or hotels.
Use Your Card for Everyday Purchases: Use your credit card for everyday purchases to earn rewards. However, avoid overspending and carrying a balance that accrues interest charges.
Pay Your Balance in Full: Pay your balance in full every month to avoid interest charges. Interest charges can quickly outweigh any rewards you've earned.
Take Advantage of Sign-Up Bonuses: Many credit cards offer sign-up bonuses when you meet specific spending requirements. Take advantage of these bonuses to earn more rewards.
In conclusion, choosing the right credit card can help you maximize your rewards and achieve your financial goals.
Consider your spending habits, financial goals, and the rewards program when selecting a credit card.
Finally, use your credit card responsibly and take advantage of its rewards program to get the most out of it.
