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What Is The Best Type Of Credit Card To Have

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Do I Need A Credit History To Apply For A Discover Card

What Credit Card Should I Get? How to Find the Best Credit Card

Discover markets specific cards to people with little-to-no credit history or credit history in need of repair. Students can consider the Discover it Student Cash Back Card which is geared toward people with short or non-existent credit history. The Discover it Secured card is also a good option to consider if you have a short credit history or need to improve your credit.

Top Travel Credit Cards

Pc Financial World Elite Mastercard*

Due to its association with Loblaws stores and Shoppers Drug Mart, the PC Optimum program offers members access to a wide variety of ways to earn PC Optimum Points, including gas, drug store and grocery purchases. With an earn rate of 30 points per $1 in Loblaws-owned stores , 45 per $1 at Shoppers Drug Mart, and 10 everywhere else, this card is one of the best no-fee cards for gas and groceries on the market. Its simple to redeem points. You simply show the card at checkout anywhere PC products are sold and get $10 back for every 10,000 points. Theres even an included package of travel and car rental insuranceand it carries no annual fee.

  • Annual fee: $0
  • Earn rate: 30 points per $1 in Loblaws stores and PC Travel 45 points per $1 spent at Shoppers Drug Mart 30 points per litre at Esso and 10 points everywhere else
  • Income requirement: $80,000 or $150,000 , as well as a $15,000 minimum annual spending requirement
  • Additional perks: Travel insurance car rental coverage

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Why Are My Fico Score And Vantagescore Different

A score is a snapshot, and the number can vary each time you check it.

Your score can vary depending on which credit bureau supplied the credit report data used to generate it. Not every creditor sends account activity to all three bureaus, so your credit report from each one is unique.

Each company has several different versions of its scoring formula, too. The scoring models used most often are VantageScore 3.0 and FICO 8.

Also, FICO and VantageScore weight scoring factors slightly differently.

The 15 Best Credit Cards In Canada For 2021

Best Credit Cards for Every Type of Purchase

Reading up on credit cards? Wondering whatâs the best card for me? In under 60 seconds, CardFinder narrows down your top matches without impacting your credit score, no SIN required

Every year, Ratehub.ca rounds up the best credit cards in the country to help Canadians wade through the financial weeds to find the card most suited to their spending habits and lifestyle.

Like clothing, credit cards arenât one-size-fits-all. Weâve said this before â the best one for you depends on your financial situation and maybe one that saves you money via a low interest rate, balance transfer offer or cash back, or provides value through rewards points that can be redeemed for travel and merchandise.

Alongside a few standout new mentions, several of the best credit cards in Canada for 2020 have also made it on our list for 2021 because they continue to offer great value.

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Apply For The Card That Offers You The Highest Overall Value

Narrowing your choices is the easy part, but deciding between two or three similar cards can be quite difficult. If you’ve already found a clear winner after Step 3, go with that one. If not, its time for a tiebreaker round.

Look closely for differences. All other values being equal, here are some factors that might set a card apart:

Comparing Credit Card Features

Every credit card delivers value in its own way, through its own unique combination of features. And there are trade-offs involved. If you want rewards, for example, you’ll probably have to accept a higher interest rate. If you want high-value perks, you’ll likely pay an annual fee. If you want a low interest rate and no fees, you shouldn’t expect much else from the card. In other words, you’re unlikely to find a single card that offers a high rewards rate, a long 0% period, a rock-bottom ongoing interest rate, generous perks and no annual fee.

Here are the main points of comparison when looking at credit cards.

Annual fee

Some people are dead-set against paying a fee just for the privilege of carrying a credit card. But paying an annual fee is worth it in certain circumstances. For example:

  • To earn significantly better rewards rates.

  • To unlock valuable perks, such as airport lounge access or free checked bags.

  • To get a card when you might not otherwise be able to, such as by avoiding a credit check.

With any annual fee, the math comes down to whether the value you get from the card exceeds the dollar amount you pay. Still determined not to pay? See our best credit cards with no annual fee of 2021.

Other fees

Depending on what you plan to do with the card, you’ll want to take these other fees into account:

» MORE:

Introductory interest rate

Ongoing interest rate

What’s the lowest interest rate on any credit card?

Rewards

SIGN-UP BONUS

Perks

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Best No Foreign Transaction Fee Credit Cards

One of just two credit cards from Canadaâs big banks to waive its foreign transaction fees , the Scotiabank Passport Visa Infinite also offers impressive lounge access benefits and is issued by Visa so itâs more widely accepted when travelling outside of North America.

In terms of everyday rewards, the Scotiabank Passport Visa Infinite will earn you two Scotia Rewards points for every dollar you spend on eligible grocery stores, dining, entertainment , and daily transit purchases . For all your other purchases, youâll get one point per dollar. As a new Scotiabank cardholder, you can also earn up to 30,000 bonus points when you make at least $1,000 in everyday purchases within the first three months and another 10,000 points when you spend at least $40,000 on the card annually. 1 Scotia Rewards point is worth $0.01 when redeemed for flights on any airline.

Why we like it:

The cardâs lack of foreign transaction fees is the cherry on top of a number of perks including a $300 travel points bonus and Priority Pass membership with six free visits per year to over 1,200 lounges worldwide. As with other Visa Infinite cards, cardholders have access to the Visa Infinite Luxury Hotel Collection and Visa Infinite Dining Series.

Additional perks:

If You Want To Build Or Rebuild Credit: Student Or Secured Credit Card

Top 3 Best Credit Card Types – Good Credit or Bad Credit

Student credit cards, unsecured cards meant for college students who are new to credit, are easier to qualify for than other types of credit cards. So are secured credit cards, which generally require a security deposit of $200 or more. Your deposit is returned to you when the account is upgraded or closed in good standing.

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What Type Of Credit Card Carries The Most Risk

When compared to the alternative payment methods of our past namely cash and checks credit cards provide an unbeatable level of purchasing security. For instance, given the extensive fraud protection offered by credit card companies, you rarely need to worry about your credit card being stolen and used to put you in debt, as many issuers cap your liability.

Chip-and-PIN cards require a four-digit PIN for purchase verification.

At the same time, no payment method is 100% secure, as fraudsters and thieves are constantly looking for new ways to get their hands on your money. Thankfully, you can look for a few security features that will help prevent unauthorized use of your credit cards.

The most important thing you can do is ensure your credit card is sporting the latest processing technology the EMV microchip rather than relying on outdated magnetic-stripe technology. While the old mag-stripe cards carried static information about your account that anyone could duplicate, the newer EMV-chip cards generate a unique code for each transaction that makes duplication difficult.

But even in the EMV world, not all chip cards are the same. Although most chip-card purchases in the US are verified via a signature, this is often considered to be less secure than the four-digit PIN verification utilized in many areas of the world, including the majority of Europe.

Top Credit Cards For Fair Or Average Credit

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What Is The Difference Between Fico Score And Vantagescore

Two companies dominate credit scoring. The FICO score is the most widely known score. Its main competitor is the VantageScore. Generally, they both use a credit score range of 300 to 850.

FICO and VantageScore pull from the same data, weighting the information slightly differently. They tend to move in tandem: If you have an excellent VantageScore, your FICO is likely to be high as well.

Capital One Platinum Secured Credit Card: Best Secured Credit Card

10 Best Credit Card Malaysia Review (MUST HAVE)

Why we picked it: The Capital One Platinum Secured Credit Card is one of the best secured credit cards on the market, given its low security deposit requirements , reasonable fees and a feature that lets cardholders be considered for a higher credit limit with responsible use by making their first six monthly payments on time.

Pros: This card is decidedly low fee, even for non-secured credit cards. Cardholders pay no annual fee, no foreign transaction fees, no balance transfer fee and no returned payment fee. Plus, Capital One doesnt impose a penalty APR if you dont pay a bill on-time.

Cons: The cards 26.99% APR is one the higher side for this category, though you can avoid it by paying your balances off in full. There are no rewards, though you may consider that a boon if you want to focus solely on improving your credit or you feel rewards might encourage overspending. There are secured credit cards out there that offer higher maximum credit limits to qualified applicants at the onset.

Who should apply? Secured credit cards are designed specifically to help people with bad, fair or no credit to build or rebuild a credit history. This card is a top option for people with bad credit who arent likely to qualify for a non-secured credit card.

Read our full Capital One Platinum Secured Credit Card review or jump back to this cards offer details.

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Choosing Between Low Interest Credit Cards

If you need to carry a balance month-to-month, your best bet will be looking for credit cards that minimize the interest you pay. If you don’t pay your balance in full from time to time, you can still probably profit off a reward credit card.However, if carrying a balance is something that you do more often than not, these are the types of cards youll want to get. There are two main types of low interest credit cards general low interest cards and balance transfer cards.

Balance transfer credit cards

Balance transfer credit cards are intended for those who are already dealing with , and wish to pay it down quicker. This type of credit card works by allowing you to move outstanding balances from other card accounts to this one. A balance transfer credit card will waive interest fees for the first few months the account is opened, allowing you to apply the full amount of your monthly payments towards the principal balance. Such a strategy will typically lead to paying down a loan much faster.

Over a 24 month period, for example, an individual with a $10,000 balance and 15% , making $500 monthly payments can save $1,481.34 in interest by using a 15 month balance transfer card with the same APR.

Mbna Rewards Platinum Plus Mastercard*

The MBNA Rewards Platinum Plus Mastercard offers a strong sign-up bonus for a no-fee card, and the 10,000 points on offer are easy to earn. All you need to do is spend $500 in grocery and restaurant purchases within 90 days of getting your card to receive the first 5,000 points. Sign up for paperless e-statements to receive the rest. MBNA Points are flexible and easy to redeem for a variety of things including travel, where you get the most bang for your buck at 100 points to claim $1 in travel. For reference, it takes 200 points to claim $1 in cash back.

  • Annual fee: $0
  • Welcome offer: For the first 90 days, you can get up to 10,000 points : 5,000 for registering for paperless e-statements, 5,000 for spending $500 in purchases with the card. Plus, earn 4 points for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases.
  • Earn rate:Earn 2 points for every $1 spent on eligible groceries and restaurants and 1 point per $1 on everything else.
  • Additional benefits: Purchase assurance and extended warranty

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How To Apply For A Credit Card

  • Check your credit score: Before you apply for a credit card, you need to know where your credit stands and which credit cards you qualify for. A quick glance over your credit report will also help you spot any errors or potential hurdles and give you an opportunity to correct them before you apply. You can access your credit for free at AnnualCreditReport.com, or visit the FICO® Score website for more info on where to view your score.
  • Find a credit card that matches your needs: Once you have a sense of the type of cards available to you based on your credit score, it becomes a little easier to narrow down the search. The card you choose should match your spending habits, budget, and financial goals. For example, will you carry a balance month to month? Will you use rewards primarily for travel or would a more flexible rewards card suit you best? Once youve determined exactly what it is youre looking for in a credit card, its time to apply.
  • Receive a decision: In many cases, your online application is processed right then and there, giving you an answer in a matter of seconds. Once approved, your new card will typically be mailed out to you within a week or two. Other times, the process may take a bit longer and you may receive a later decision by email, snail mail, or telephone.
  • If You Want To Earn Rewards: Rewards Travel Or Cash Back

    Choosing among Credit Cards | What’s Best for You?

    A rewards credit card is a good match for you if you pay off your balance in full every month and never incur interest. These cards typically have higher APRs, but offer larger sign-up bonuses and give you points, miles or cash back on every dollar you spend.

    » MORE: Find the best rewards credit card with this flowchart

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    What Kind Of Credit Card Is Right For You

    Casey Hynes

    May 2018

    Credit cards are surprisingly powerful. Not only do they allow you to purchase all kinds of goods and services, but they can also help you manage debt, build your credit, earn rewards, and pay for your next vacation. But knowing what kind of credit card is right for you can be challenging – especially when there are so many on the market.

    While a card that lets you rack up travel points when you shop may sound tempting, look beyond the advertised bonuses to decide which one best suits your needs. If you’re just beginning to build credit, you might want to start with a more basic card before diving into the world of rewards cards and their potential fees. Let’s take a closer look at what kind of credit card user you are and how to best maximize your cards’ usefulness.

    How To Choose The Right Credit Card

    The first step in choosing a credit card is identifying the exact type you need. Credit cards are like any other tool you should get them with a purpose in mind. You wouldn’t buy an electric drill if your plan was to plant tomatoes in your home garden and credit cards operate on the same principle.

    First, take inventory of your current financial habits and needs, then decide whether you need:

    • A rewards or non-rewards credit card
    • A card that facilitates balance transfers
    • A card with no annual fee
    • Other card features relevant to your personal spending habits

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