Now that I have no debt I am comfortable enough to get a second credit card. Not so I can max out two- but so I can stop using my other one and to build up some more credit and reap some sweet rewards.
When choosing a credit card, you first need to determine how much you are going to use it and for what. This will help you narrow down what type of card you should be choosing. For example, if you only plan to use it for emergencies, a cash back card won’t be your first choice, but a low interest rate card could be. Along with no annual fee. This is a personal choice, so I won’t go too much into it.
Along with that personal choice comes another one: what do you want out of the card? Flying miles? Cash back? Discounts? Other types of rewards? Along with this, you will decide how much you want to pay annually for this card. The higher the fee the better or more interesting the rewards usually.
There are lots of websites and blogs that have reviews and recommendations on the latest and best cards available. Take a look around and take into account what others are saying.
The MOST important aspect of having a credit card is to PAY IT OFF ! DO NOT carry a balance. If you can’t commit to this simple rule or cannot afford to do so, DO NOT get a credit card until you get a hold on your spending habits and your finances.
As for me, I;m currently debating between these two cards:
Amex Cashback: http://www.greedyrates.ca/blog/simplyacash-americanexpress-cashback/#.VVzLALlVhHw
BMO Cashback: http://www.greedyrates.ca/blog/bmo-cashback-world-elite-mastercard/#.VV4F5LlVhHw
The BMO has higher cashback percentage, but a) I’m over BMO, and b) it does have an annual fee of $120 after the first year which will not make it worth my while.
So I guess I just decided which card I will be getting. I want to use my CC for all my purchases, and pay it off before the due date, that way I can have my salary sit in my savings and accumulate some interest… And also for the cash back and rewards.