For immigrants of Canada, having a credit card is not just for convenience- it’s a necessity. Aside from the safety and simplicity of using a credit card to buy things, it is also an important tool in building personal credit history. If you’re planning to get a Canadian credit card, here are some important points that you need to know.
Build Your Credit History with a Canadian Credit Card
See to it that your Canadian credit card has credit reporting provisions to the three major credit bureaus in Canada (Experian, Equifax, TransUnion). This way, you can start building your credit as you use your card for your expenses. Remember, the only way you can build positive or impressive credit history, is by submitting your payments on time and avoiding unpaid debts.
Choosing Your Canadian Credit Card
With a long list of Canadian credit cards to choose from, making a decision can be difficult. To simplify your task, check out online reviews that feature credit cards for Canadians. This way, you can easily narrow down your choices and go straight to the credit card’s official website without hassle.
However, bear in mind that online reviews do not present complete information about each credit card. To get to know the real deal, you should still find time to study the Terms & Conditions of the card you’re considering.
Comparing Credit Cards for Canadians
A low interest rate is great especially if you plan to carry over balances from one month to the next. But you’ll want to make sure that the low rate would last – and that it is not just an introductory or temporary offer.
Aside from the interest, study all the fees associated with your Canadian card. Examples of these other costs are annual fees, balance transfer costs, late penalty charges, and more. Remember, all these costs can unnecessarily add up to your bill, if you fail to check on them.
Don’t forget to go with a card that offers the most valuable features such as sufficient grace period, fraud liability protection, credit reporting, emergency card replacement, 24/7 customer service, etc.
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