Friday, 13 November 2015

Credit Cards: Best Bang for Your Buck

In the market for a new credit card and want to make sure you get the best possible deal? Here's a look at some of the best cards in the Canadian market and what makes them so great. You'll first want to decide which category will work best for you. If you carry a balance you'll want to go with a low rate card but if you're pretty good at paying them off every month you'll want to start reaping those rewards. If you travel a lot you should look at a card that pays out in travel rewards, otherwise a cash back card is likely the best option. 

Best Low Rate You should try as hard as you can to not carry a balance on your credit card but if you absolutely must (I get it, things happen) you should look into a low rate card. Even paying a small annual fee can be worth it if you carry a balance. The TD Emerald Visa will cost you $25/year but you'll get an interest rate as low as 4.2% depending on your credit rating. Just remember, if you're paying off your card every month don't even consider a low rate option, move right on down to something rewarding.

Best Cash Back If you spend a lot on your credit card but are on top of paying off your balance it can be worth it to fork over some money for a fee card because you'll likely make it all back and then some. The MBNA World Elite Card will cost you $89/year but can get you 2% cash back. The interest rate is 19.99% though so pay off those balances (yup, I'm a broken record). Another good option if you spend a bit less is the SimplyCash Card from Amex with 1.25% cash back and no annual fee.

Best Travel Rewards The best option for travel really depends on what airline you prefer to travel with as the cards for specific airline rewards tend to be a better value than others (like Airmiles). If you like Westjet you'll want to look at the Westjet RBC World Elite Mastercard for $99/year. If your in the Air Canada/Aeroplan club you should look at either the Amex Gold Rewards card.

Best Retail Rewards If you're not much of a traveller you can instead earn rewards to use at places you spend money. The PC Financial World Mastercard will earn you PC points to save money on your grocery bill. If you shop at Superstore (or other Loblaws stores) and already collect PC points this no fee option might be a good choice for you. Another good option, if you're a Rogers customer, is the Rogers First Rewards Mastercard. This is another no fee option that can earn you money off your phone bill. The Scotiabank Scene Visa is also a good option if your a frequent movie goer but they did just increase the number of points you need to get into imax or other premium movies so keep that in mind.

If you want more details on these or some other good options check out this article from Moneysense.

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