How To Choose The Best Credit Card

Choosing the best Canadian credit card can be confusing, and finding the right credit card for you will largely depend on what you intend to use the credit card for. It’s difficult to find one credit card that will rank #1 in every category you want to use it for. What you’ll find is that the best credit card offers tend to be designed to be used in a very specific way.

For example, if you already have credit card debt, and you’re looking to reduce your interest payments, a 0% balance transfer credit card is likely the best choice, as it would reduce your interest costs to 0% for up to 12 months.

If you plan on making a large purchase and want to spread your payments over several months, than a low interest credit card for purchases is probably the best choice, as it would give you the lowest interest rate on new purchases.

Applying for the best credit card available is a great way to earn extra cash or access affordable debt. But with tons of credit card offers on the Canadian market, how can you make sure you get the best credit card deal?

If you’re looking to get a credit card for everyday spending and intend to pay off the balance in full every month, then you should compare credit cards that offer some form of rewards, whether it be a cash back, points or air miles credit card. If you intend on carrying a balance month to month, or have a habit of doing so, finding a low interest credit card is your best bet.

Deciding what you want from your card before you start searching is critical in order to get the best card, as it allows you to narrow down your search to a manageable number of cards.

Get the best credit card deal

Once you’ve decided how you intend to use your credit card, you should then begin a complete credit card search and  comparison, focused on the product features you’re interested in.

If you’re looking for a balance transfer card, make sure you not only take a look at the promotional rate, but also at the term of the rate (is it for 3 months or 12 months), and the balance transfer fee (is it at 1% or 3%).

If you’re looking for a low interest credit card, understand whether you’re looking at a promotional rate, a fixed or variable rate, whether there’s an annual fee and what happens to your rate if you make a late payment.

Sometimes you’ll notice that what appears to be the best credit card on looks alone, is actually a lot more expensive when you dig a little deeper into the fees and fine print. Canada actually has some very helpful regulations that force credit card issuers to disclose their rates and terms in similar fashion from one card issuer to the next to make comparison easy – take advantage of the information in the disclosures.

When looking for a rewards credit card, make sure you find the type of reward that interests you first and foremost. Second make sure you can earn enough points from the program to redeem for an item that you value in a reasonable amount of time. Too may people get a travel rewards card, only realizing later that they’ll earn enough point for a free flight within 3 years. For most, that’s just too long. Also, understand how to maximize your rewards. Get a card with a large sign-up bonus, use your card where you get double points, etc.

If you look for a credit card in this way, that is, based on your needs first, you’ll maximize the effectiveness of your search process. What’s the point in getting for a 2% cashback card, if you want a credit card with the lowest balance transfer rate?

Use the GreedyRates credit card comparison engine to find the best credit card deals all in one place, and search by card type, and get your results ranked by the credit cards that give the most value back to you based on your personalized spending habits, including cash back, rewards and travel card. Once you’re happy with your credit card choice, apply online, secure in the knowledge that you’ve found the best credit card for you!