TORONTO, ON / ACCESSWIRE / September 30, 2024 / The right credit card can earn a cardholder significant cash back, rewards, or travel points. With so many cards to choose from, choosing the right one depends on each individual's circumstances. Here are some considerations when choosing a credit card to apply for.
Assess Spending Habits
Knowing one's spending habits is an important first step in choosing the right card. This involves analyzing where most of the money goes each month. Once a potential cardholder knows how and where they spend, they can go about looking for the perfect card. Some questions to ask:
Will the card be paid off in full each month or will it carry a balance?
Will it be used regularly or only for emergencies?
What is a reasonable (and affordable) credit limit?
Will the card often be used in special circumstances (such as foreign transactions)?
The results of these questions can help narrow down the ideal benefits and features, such as high credit limits, low annual fees, or no foreign transaction fees.
Determine Credit Card Needs
Everyone has different needs and expectations for their personal credit cards. Setting goals and budgets and knowing exactly what they want from their card can aid cardholders in the selection process.
Someone who carries a balance regularly might find a low interest card best for their needs.
Someone who pays in full monthly and loves to travel might opt for a travel rewards card.
Someone who prefers straightforward rewards might want to consider a cash back card.
Compare Rewards and Benefits
The best cash back credit cards in Canada are the ones that offer high cash back rates on relevant purchases for each cardholder. For example, foodies might want a card that offers cash back on dining experiences, while commuters might get more benefit out of a card that offers cash back on gas and transportation purchases. There may be additional rewards to consider, as well: some travel rewards cards often offer benefits such as concierge services and airport lounge access in addition to cash back. It's a good idea to read up on all the benefits to learn about hidden perks.
Consider Interest Rates and Fees
The Annual Interest Rate (commonly referred to as AIR) is crucial in choosing a credit card, especially for someone who will carry a balance. Other fees-such as over-limit, late payment, and foreign transaction fees-may also weigh into the decision.
Annual fees might be a deal breaker for some. For others, a fee might be worth it for the possible benefits, such as companion airplane tickets or high bonuses in certain categories. Weighing the fees and rates against the perks and rewards can further help narrow the selection.
Evaluate Sign-Up Bonuses
Many cards offer attractive sign-up bonuses or special introductory offers. Sometimes, these are permanent offers, other times they are limited-time-only offers. Those bonuses can result in significant reward earnings, but there are often spending requirements that must be met to earn them. While the bonus isn't crucial, it can make an important difference in whether the card is worth it, so it's a good idea to plan for the spending requirements and make sure they're within budget.
Choosing the right credit card requires a thoughtful assessment of one's spending habits, financial goals, and the specific benefits and features that align with their lifestyle. By analyzing where and how they spend, determining whether they will carry a balance or pay off the card monthly, and considering additional perks such as cash back, travel rewards, and low fees, individuals can find a card that maximizes their financial benefits.
Contact
Sonakshi Murze
Manager
sonakshi.murze@iquanti.com
SOURCE: iQuanti
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