Why Get a Credit Cards for Canadian?
Have you just moved to Canada? Are you studying in Canada? If you’re a new immigrant in Canada, have you considered opening a credit card account? Reports show that the average Canadian owns at least one to three credit cards.
Although acquiring multiple credit cards is not bad, it isn’t recommended for everyone. Before applying for more than one credit card, carefully consider your lifestyle, spending habits and your purpose for getting a credit card.
Why Get a Credit Card?
Using credit cards is certainly a more convenient way to shop. Shopping with credit cards is simpler and safer than paying with cash. In case your card gets lost or stolen, you can easily call your credit card issuer to have your account blocked and prevent unauthorized use of your card.
Now that internet shops have become popular and more people prefer to shop online, having a credit card is certainly an advantage. Credit cards also come in handy when making reservations such as on purchasing airline tickets, getting hotel accommodations or renting a car. For people who frequently travel, carrying a credit card is surely a big help.
Canadian credit cards can also help you build your personal credit history. How? Find one that reports your payments to the three major credit bureaus in Canada: Equifax, Experian and TransUnion. By opening a credit card account, and by wisely managing your account, you can build a solid credit history in your name.
Research Before Making A Choice
Just like in the US, there are many companies and banks that issue credit cards in Canada. Don’t just pick a card out of popularity or gut feeling. Instead, do your own research and compare your choices.
When comparing credit cards, don’t just focus on the low interest rate. Check out all the fees that could be associated with your card. For instance, annual fees may range from $15 to as much as $150. Consider this, would you be willing to pay $150 a year just to keep your card active?
Aside from the fees, study the features offered by each card. Does it provide a liability protection in case of fraudulent use? Can you be assured of 24/7 customer service? Does the features of the card complement your needs and lifestyle?
Bear in mind that advertisements generally present the best points about the card. However, if you want to know everything, including the weak points about a card, you’ll need to spend time reading and reviewing the contract.
If you’re having difficulty in choosing, you can check out websites that offer reviews on Canadian credit cards. List down your possible choices and once you’ve narrowed down your list, you can go back to each one and examine the complete Terms & Conditions.
Irish Taylor is a bussiness loan consultant with Startup Business Loans and has been providing consumers and business owners with startup business financing since 1992. For years she has helped people with credit and loan problems especially pertaining to business start up, SBA loans and Unsecured loans.
Copyright 2008.
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