Picking the right credit card “can be a powerful financial tool,” according to interest rate comparison site RateSupermarket.
It all depends on how you spend money and what you are trying to achieve with your finances.
“Whether Canadians are looking to earn high-value rewards, offset daily spending, or control lingering debt, it’s important to select a card with features that will aid in achieving those financial goals,” says the site’s editor, Penelope Graham.
So if you fly a lot, a travel rewards card is a good bet, but if you carry a high balance on your card, it may be worth it to switch to a low-interest rate card instead. (“Low” by credit card standards, anyway.)
But while credit cards used properly can help your financial situation, they are hardly a solution to a serious cash flow problem.
And Canadians may be getting a little too happy with debt these days.
Credit rating agency Equifax released a report this week showing that non-mortgage debt in Canada jumped another 7.4 per cent in the past year, well above income growth, GDP growth, inflation or any other comparative measure.
But loan delinquencies are actually in decline in Canada, Equifax noted, meaning Canadians are handling all this debt like adults — for now.
RateSupermarket released a ranking of the best credit cards in Canada, broken down by card type.
The site compared cards by looking at 24 months’ worth of interest rates, promotional rates, cash-back offers and so on, to determine which cards gave consumers the most savings or the most earnings.
If you’re really carrying a lot of debt, a new credit card isn’t the solution. Talk to your bank or a financial advisor about debt consolidation.
But if you’re just looking for a better deal from your credit card, here are the best options, according to RateSupermarket.