Could your credit card be doing more for you? It’s a question you likely haven’t considered – as reaching for our plastic to pay for everyday purchases has become so commonplace, it may seem surprising that a credit card could be used for more than funds accessed at your fingertips – and quickly racking up debt
What many don’t realize is that the right credit card, when used correctly, can actually help you control your spending habits; however, many Canadian consumers are in the dark when it comes to annual fees, rate of return and lower interest options. This lack of insight can be costly, and poses the question – if switching to another credit card meant paying down your debt faster, taking a vacation sooner – even minimize your daily expenses – would you switch today?
Put Your Debt Needs First
Picking the right card starts with a little consumer soul searching; if you’re in the habit of carrying a credit card balance, a luxe travel rewards option won’t do you any favours. It’s this failure to identify financial requirements that leads to many people carrying the wrong plastic.
A recent RateSupermarket.ca poll found that Canadians do care about the credit card debt they’re incurring – 38.7 per cent said it topped their causes for anxiety, outweighing even monstrous mortgage debt. Yet, when it came to their credit card preferences, 67 per cent said rewards points and miles were the greatest incentive for choosing a card. Only 24.6 per cent said they’d be best off with lower interest, and 5.5 per cent saw the value in a low balance transfer option.
Special Offer Alert: Today is the LAST CHANCE to switch and save with one of two fabulous credit card offers on our site – plus score a FREE $100 gift card! Choose between 5% cashback on all grocery and gas purchases OR score 1 year with ZERO interest on balance transfers. Click here to switch and save.>
The Payoff From Daily Points
Now it’s time to be honest – are you really good at paying off your card regularly? If you’re truly disciplined enough to keep interest from growing on your balance, then a practical rewards card can be a great way to earn perks on daily purchases like gas, grocery and drugstore buys. These cards often feature steeper interest rates, but they shouldn’t be a worry if you’re committed to paying off your card – so go ahead and pick your favourite reward type, whether it’s cash back, travel rewards, or even specialty points from specific retailers.
This post is also available in: French