Should You Close Your Old Credit Card
Its generally best to keep your old credit card open because the account age benefits your credit score. So, even if you switch to a new credit card, use your old one periodically to keep it active and included in your credit score. On the other hand, you may close your old credit card if its charging an annual fee that you no longer want to pay. Make sure you pay off any outstanding balance before you close the credit card to avoid spiking your credit utilization.
Foreign Currency Conversion Charges
Financial institutions calculate foreign currency charges in different ways. Some transactions are converted directly into Canadian dollars. Others may be first converted to U.S. dollars and then to Canadian dollars. The foreign currency conversion charge is applied after the purchase is converted to Canadian dollars.
Example: Foreign currency conversion charge calculation
Suppose you made a 1,000 purchase with your credit card. The exchange rate is 1.42 to convert euros directly to Canadian dollars. Your credit card agreement shows a conversion charge of 2.5%.
After your financial institution converts your 1,000 purchase to Canadian dollars, it will cost $1,420. The 2.5% foreign currency conversion charge is applied to the $1,420 for a fee of $35.50. The total amount of your purchase is $1,455.50 in Canadian dollars.
Read the terms of your credit card agreement for the total foreign currency conversion charge. Ask your financial institution about anything you dont understand.
Is It Bad To Have A Lot Of Credit Cards With Zero Balance
It is not bad to have a lot of credit cards with zero balance because positive information will appear on your credit reports each month since all of the accounts are current. Having credit cards with zero balance also results in a low credit utilization ratio, which is good for your credit score, too.
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How Can I Get A Credit Card If I Have No Credit History
There are cards designed for people who are new to credit. Sometimes, their issuers want you to have a checking account, and they may require a refundable deposit of at least $200. Here is what you need to know about getting a card when you dont have a credit history.
Capital One Platinum Secured Credit Card: Best For Flexible Security Deposits
Why we picked it: The Capital One Platinum Secured Credit Card is one of the only secured cards that allows your initial credit limit to be higher than your security deposit . The required refundable security deposit ranges from $49 to $200, depending on your credit. Your initial credit limit ranges from $200 to $1,000, depending on your deposit.
Pros: Theres no annual fee and, after six on-time monthly payments, youll automatically be considered for a higher credit line, which could boost your credit.
Cons: The variable 26.99% APR is on the high side, so youll want to avoid carrying a balance on this card. There are no rewards, which is common among credit cards for bad credit. However, there are a few secured cards on the market that offer modest rewards.
Who should apply? If youre looking to minimize the costs associated with getting a credit card with bad credit, this is a great option. On top of the low security deposit requirements, the card doesnt charge an annual fee or foreign transaction fees.
Who should skip? If you have your heart set on earning rewards, consider alternatives like the Discover it® Secured Credit Card or the Credit One Bank® Platinum Visa® for Rebuilding Credit.
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Know What You’re Looking For
Everyone has different needs when it comes to credit cards. For frequent travellers, a credit card with a travel points system can help them save money on flights and accommodations. For those who use their card for everyday items like gas and groceries, a category-specific cash back card with a great earn rate can make their lives much easier.
Think about your spending habits and what you ultimately want this card to do for you. It may even help to make a short list of your must-haves all the way down to the “would be nice, but not essential” type of features. This will help you choose a card that’s right for you.
High Limit Credit Cards
Some credit cards tend to offer higher credit limits than most. These high limit credit cards let you spend more, and they can also help you protect your credit by making it easier to keep your low. You typically need excellent credit to qualify.
Compare more picks: Check out The Ascent’s best high limit credit cards
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City Union Bank Collaborates With Npci To Lauch Rupay On
On Wednesday, December 8, 2021, City Union Bank and National Payment Corporations of India announced a ‘RuPay On-the-Go’ keychain. Customers of the bank would be able to make payments up to Rs.5000 simply by tapping the keychains and not having to enter any pins. Customers can expect a fast and efficient payment method with this contactless option.
09 December 2021
Key Information You Should Get
When you are given information about a credit card, it should include a summary box with standard key information about the card. This should include the interest free period, interest rate and other charges. This is so that you can easily compare different cards.
You can find more information about the credit card summary box including an explanation of what all the terms mean, on the UK Cards Association’s website at: www.theukcardsassociation.org.uk.
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What Happens To My Credit Score If I Dont Activate My New Credit Card Or Cancel It
When you close a credit card account, your credit score may be affected slightly. With credit cards and credit of any kind, the length of time the account remains open is a key factor in determining your credit score.
So, if youre cancelling your oldest card, this may be something to consider. Though, the account will stay on your credit history seven years after you cancel it. When you cancel a card, you are also decreasing your overall available credit, which could impact your score depending on how much credit you use.
To maintain a good credit score, you should keep your credit utilization ratio below 30% meaning you should use less than 30% of your total available credit. So, if you have two cards with a limit of $5,000 on each, you have a total limit of $10,000. And, if you generally have a $2,000 balance every month, you are currently using 20% of your total available credit.
But if you cancel a card, you will lose that available credit. Your credit utilization ratio will become 40% if you continue to carry a $2,000 balance per month on the single card. Again, automatic charges will continue unless you terminate them with the merchant.
Best Store/retail Credit Card
If you regularly cross off your shopping list at Shoppers Drug Mart and Loblaws banner grocery stores , then the PC Financial World Elite Mastercard is a no brainer.
The premium, no-fee retail credit card earns between 45 to 30 PC Optimum points per dollar spent at affiliate retailers , and 10 PC points per dollar everywhere else you swipe the card . With over 4,500 retail and gas locations affiliated with the PC Optimum program, thereâs no shortage of opportunities to rack up bonus points.
PC Optimum points can be redeemed for purchases from Shoppers Drug Mart and Loblaws banner grocery stores in increments of 10,000 points for $10.
To qualify for the PC Financial World Elite, youâll need to earn an annual income of $80,000 . If you donât hit those minimum income requirements, the good news is you can still qualify for PC Financialâs other great no fee retail credit cards.
Why we like it:
Thanks to its impressive earn rates of between 4.5% to 3% and its partnership with some of Canadaâs largest grocery, pharmacy, and gas station brands, the PC Financial World Elite stands out for being one of the best no fee credit cards for purchasing household essentials.
It also doesnât hurt that the PC Optimum Points program is extremely easy-to-understand and flexible .
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Home Trust Secured Visa*
You might be new to Canada, have a problematic credit history, or are just starting out on your own financially. There are many reasons why you might need to build or rebuild your creditbut whatever the case, youll want to take steps towards achieving a healthy credit score. Thats where the no-fee Home Trust Secured Visa can come in. Unlike with conventional credit cards, its easy to be approved for a secured cardyou just need to be a resident of Canada and have a deposit. The Home Trust Secured Visa tops our list for its low minimum deposit and $0 annual fee. With this card, building your credit score is simple and affordable.
- Annual fee: $0
Top Cash Back Credit Cards
Wells Fargo Active Cash Card: Enjoy 2% cash back on purchases, plus a great bonus offer and intro APR period. Read our review of the Wells Fargo Active Cash Card.
Citi Custom Cash Card: Bonus rewards that adjust automatically, making sure you earn the highest cash-back rate in the category where you spend the most money. Read our review of the Citi Custom Cash Card.
Chase Freedom Unlimited®: Bonus cash back in popular categories and a solid 1.5% back on everything else. Read our review of the Chase Freedom Unlimited®.
Citi® Double Cash Card 18 month BT offer: Earn 2% cash back on every purchase 1% when you buy it and another 1% when you pay it off. Read our review of the Citi® Double Cash Card 18 month BT offer
Blue Cash Preferred® Card from American Express: Perhaps the ultimate family card, with outstanding cash back on a lot of the necessities of modern life. Annual fee: $0 intro for the first year, then $95. Read our review of the Blue Cash Preferred® Card from American Express.
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Why Improving Your Bad Credit Is Important
Just as bad credit hinders what you can do, good credit can open doors to new possibilities. These include:
- Interest savings. When taking out a loan to finance a home or car, the slightest difference in interest rate can cost thousands over the lifetime of the loan. The better your credit score, the more likely you are to be approved for the best rate.
- Better terms. A good credit score can also earn you more generous payment schedules and credit limits.
- Access to top credit cards. Cards with lucrative rewards, friendlier interest rates and cant-miss sign-up bonuses are available to people with good credit.
- Save on insurance. A good score may qualify you for lower premiums on car insurance.
- Better financial reputation. Some landlords, rental management companies, utility companies and potential employers look at your credit score. Your score is meant to show how financially trustworthy you are, so being in good standing will protect you from any hassle.
How Credit Card Interest Works
When you borrow money from a bank, you usually have to pay interest, which is the cost to you of using the bank’s money. Credit cards are unusual in that there is a way to avoid interest entirely. Most cards offer a “grace period”: If you pay your balance in full on each statement meaning you don’t roll over any debt from one month to the next you won’t be charged interest. If you carry debt, though, you’ll be charged interest. Interest works like this:
Your card issuer sets your interest rate. In general, the better your credit, the more likely you are to qualify for lower rates, but credit card interest rates tend to be significantly higher than rates on other consumer debt.
Your interest rate is listed on your credit card statement. It’s expressed as an annual rate, but in most cases it is charged on a daily basis. So if your interest rate is 17.5% a year, it’s actually charged at about 0.048% per day.
When your billing cycle ends, your issuer calculates how much interest you owe. Your interest charge is based on your daily balances and your daily rate.
The interest charge is included in your next month’s minimum payment. Credit card interest generally does not compound meaning, it does not get added into your balance. You have to pay your full interest cost each month. Read more about minimum payments.
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A New Credit Card Application Could Interfere With The Process
Its a delicate set of equations that determines the amount you can afford to borrow, says Karrina Brown, an associate broker at Northern Virginia real estate services firm RE/MAX Executives. A big part of that calculation is your credit score, which can be negatively affected by new credit applications.
Brown confirmed that prospective homebuyers should avoid new credit card applications. Credit score would be one reason that you wouldnt want to take the risk, she says.
It helps to know a bit about the factors that affect your credit score. A new card could boost your score by adding to your overall credit limit, which helps lower your credit utilization. But it also can hurt, by lowering your overall age of accounts.
Applications can hurt your score, too, because each one can take a few points off your score. A lot of applications in a short time can add up to a lot of damage.
This should be of particular concern to credit card churners. Churners frequently open and close new cards to take advantage of discounts or limited-time promotions. Although most have good credit and may not be in danger of getting denied for a mortgage altogether, their hobby could translate to paying higher rates.
Churning cards could affect your scores by 100 points or more, Dan Green, publisher of online mortgage information source TheMortgageReports.com, says. He estimates that could bump up the rate you get by as much as a percentage point.
Why Establishing A Credit History Matters
Unless you live on a plot of land you own free and clear in a tiny house powered by propane, your credit matters.
Thats because the list of people who care about your credit score goes beyond just credit card issuers and lenders. Employers, landlords, even utility companies make decisions based on how you handle credit.
Here are some primary ways credit can affect your world:
- Insurance. Your insurance company looks at your credit when deciding how much your premiums should be.
- When you are on the hunt for a credit card, your first stop needs to be a card that will likely accept your credit score anything above will only set you up for rejection.
- Mortgage or car loan. Perhaps the best-known reason for why credit matters, lenders look at your credit to decide which product, if any, to grant you, as well as product terms. That means the higher your score, the better the terms, usually.
- Job. While potential employers cant check your credit without your approval, companies are increasingly studying job applicants credit history before making a final decision.
- Apartment. Landlords are increasingly looking at potential renters credit when making a decision on which renter to accept.
- Utility and cellphone accounts. Utility and cellphone companies check your credit before making a call on whether to require a down payment and in some cases, even whether to accept you as a customer.
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Why The Chase Sapphire Preferred Is A Family Favorite Of Mine
However, what makes the Sapphire Preferred a favorite of mine, is that you can also transfer the points at a 1:1 ratio to several different popular airline and hotel loyalty programs. When you do this, you can utilize the various loyalty programs awards charts to book awards rather than at a fixed 1.25 cents per point if you book through Chase.
The Chase Ultimate Rewards transfer partners include:
- United MileagePlus
- Korean Air SkyPass
Some of these programs are extremely simple to use, such as the Southwest Rapid Rewards program, and others require a little more research to truly maximize. Still, having the option to use your points at a fixed value to book travel through Chase and having the option to transfer them to more than a dozen different programs makes this card a perfect match for beginnings and old timers alike.