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What is the best Credit Card ?

Discussion in 'Settlement Issues' started by max101, Feb 21, 2010.

  1. what is the best credit card for first time applicants in Canada?
    looking for no annual fees, low interest. any suggestions?
  2. You mean if you will even be able to get a credit card as a first time applicant in Canada?

    It depends a lot where you shop. There are many free credit cards. My favourite ones are Canadian Tire and Presidents Choice.

    The Canadian Tire card, you apply for at Canadian Tire. There is no annual fee and you collect Canadian Tire money on your card as you use it. There are no restrictions to how you can spend this money or when (except at Canadian Tire). You can use it towards everything in their stores and you can use it however little or much you have, just apply it to your purchase as you pay with your card. Canadian Tire if you don't know is a chain of stores that sells automotive products, garden products, tools, small appliances, hardware and many other things.

    Presidents Choice is owned by Superstore, a chain of stores that sell food, small appliances, electronics, clothes and many other things. This cards allows you to collect PC points and you can later redeem these points for groceries or other stuff at Superstore but there is a restriction that you can not redeem unless you have at least $20 worth of points and the amount you can redeem goes in increments of $10. Superstore also offers a free bank account but since they are not a real bank, it might not be a good account to have as your first one when you arrive because transfer of money between countries etc. is complicated if not impossible. Once you are settled in Canada and do not have to transfer money and are able to do your banking completely online or over the phone, it's fine to have as your only account.
  3. Thanks for the information.
    Seems like normal interest rate is about 19.5%. is that true? is there any Credit card that may have lower interest rates?
  4. Yes, it's not a good idea to owe money on your credit card because the interest rates tend to be high. If you plan to owe money, you can look for a card with lower interest rates. Capital One sometimes offers cards with Prime + 1 or 2% and I have seen MBNA cards with 12% or so which is a bit higher.

    If you pay off the amount every month, you pay no interest on purchases but if you use the credit card to take out money, you pay interest from the first day. If you do not pay off the card in full, you also pay interest on purchases from the day you made them and not from the day when you could have paid them interest free.

    When you get a special offer to transfer balance to a card and get only 1% interest rates for 3 months or something like that, you have to make sure that you pay this card off before you use that offer and that you do not use the card while you are making use of this offer. The reason for that is that when you make payments on the card, they will automatically go towards the amount with the lowest interest rate. That is, if you transfer a $1,000 balance to a credit card on such an offer and in the next month after that, you use the card also to make purchases for $200 but you make a $200 payment on the card when it is due, then the credit card company will put your $200 payment towards your $1,000 balance that is on the low interest rates and leave you with the $200 purchases that are on 19.5% interest. You have to read the small print you know.

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