How To Choose The Right Credit Cards

What To Look For When Choosing Credit Cards

First Published Date : December 23, 2010 ADawnJournal.com

When it comes to picking a credit card, you will be bombarded with a wide array of options and an overload of information. This will make you even more confused, even if you are not confused enough yet. Today, I will discuss some factors you need to consider before making your decision.

Annual Percentage Rate or APR

Annual Percentage Rate or APR is the interest you pay to your credit card company for carrying a balance. In other words, this is your cost of not paying balances in full every month and using the credit card company’s money. If you pay off your balance in full, you don’t need to worry about Annual Percentage Rate or APR that much. This will give you more flexibility to pick credit cards with other features. If you carry a balance, pick a credit card with the lowest APR possible. Make sure the APR is not a promotional one and available only for a limited time. Picking the lowest APR credit card will save you tons of money for the lifetime of the loan.

Annual Fee
In general, try to avoid any annual fee. However, if you carry a balance some credit cards with annual fees offer lower interest rate or APR than those cards with no annual fee. Do the math and if you find out that an annual fee credit card will save you more money in terms of carrying a balance, pick an annual fee card with the least interest possible.

Balance Transfer

Some credit cards will give you a balance transfer option with a low introductory APR. You need to make sure of a few things before you jump into this feature to save some money. I have discussed this in another article and I recommend you read it here: How to Use Your Credit Card Balance Transfer to Your Advantage

Grace Period

Grace period is the time you have to pay off your balance after making a purchase without paying any interest. If your credit card does not have a grace period, you will start paying interest as soon as you make a purchase. In many countries, there are credit cards with no grace period. In Canada starting in 2010, due to the federal government’s new credit card regulations, federally-regulated financial institutions are now required to provide at least a minimum 21-day grace period on new purchases, and this is applicable on new purchases when you carry a balance as well.

Rewards Credit Cards

These days, I see no point in using a credit card without any rewards. A rewards credit card offers you points or rewards just for using it. Rewards can be in the form of cash back, Air miles, Aeroplan miles, merchandise, and so on. I prefer cash back, as it does not restrict you to using your points on anything specific. If you use reward points or miles, make sure they don’t expire and are easy to use without restrictions and hassle.

A Few Other Things to Look For:

I always make sure your credit card provides the following:

– Free Purchase Warranty: This feature protects your purchases against theft, loss, damages, etc. for 90 days or so depending on the credit card company.

– Free Extended Warranty: This feature doubles the manufacturer’s warranty for an additional year.

– Free Price Protection: This feature refunds the difference if you see the same item you bought at a lower price anywhere else.

– Free Collision/Loss Damage Waiver for Rental Cars: This feature insures you for rental cars if it’s lost or damaged. You save money on the rental company’s insurance that otherwise you would have to pay.

-  Free Travel Accident and Baggage Delay Coverage: This feature covers you from travel accident injuries and baggage losses or delays.

It is important to note that you may not be able to get all the free features I mentioned above in one card. What I do is carry two or three credit cards giving these free additional features and whenever I need a feature covered, I use the credit card with that feature. A Dawn Journal has a credit card section with lots of credit card articles. Make sure you read them and don’t for get to recommend A Dawn Journal to your friends and family.

How To Lower Your Credit Card Interest Rate

Lower Credit Card Rates

First Published Date : November 6, 2010 ADawnJournal.com

If you are dealing with debt and you want to try and get your head above water, then one of the best things you can do is to look at lowering your interest rates. Since credit card debt is one of the most common forms of debt, you should look at lowering your interest rate with this. It is quite easy to do, and all you have to do is follow the instructions in this article to lower your credit card interest rate.

Many people do not realize that you can lower your credit card interest rate through something as easy as a phone call. Remember, if you default on your credit card, it costs the credit card company money. The credit card company does not want that, so they will work with you to help you pay off your credit card. Therefore, all you need to do is call the credit card company and call them, asking that they convert your credit card to one with a lower interest rate. One good thing to do is to show them that you have always paid your credit card, and been a credit card customer for a long period of time. This will help them lower the credit card interest rate in your favour.

If they do not, then you can search for a credit card company that provides a better interest rate on their cards. Look for cards through local banks and contact them to get a credit card. Once you have contacted them, you will get a credit card application. Then, fill it out, send it off and when you get your new credit card, you just need to transfer the balance of your current credit card to the new credit card.

It is important to point out that when you do get a credit card and do a transfer, you will be subjected to a transfer fee, but usually it is just a percentage of what you are sending over to the new credit card.

If you think that credit card interest rates are not that big of a deal, then look at it this way. If you have a credit card with $10,000 on it, and your interest rate is 19 per cent, then you will end up paying $1,900 in interest per year. However, if you are able to lower your interest rate down to nine percent, you save $1,000 per year in interest. That little bit of a decline will save you a lot of money and that will help you get out of debt much sooner. Sometimes it is as simple as just asking for a new interest rate, but if that doesn’t work, then you have to do a bit more work and yes, get a new credit card. Although when you get your new credit card and transfer the balance, you can then cancel the old credit card, thereby eliminating that bad interest rate forever.

Amazon Canada Rewards MasterCard Fails to Attract Customers

Amazon Canada Rewards Credit Card Review

If you find this review or any other review on AhmedDawn.com or YouTube.com/ADawn different than 99% of other sites online, you got that right. The reason being, those other sites are working for the credit card companies, selling credit cards, and making money off you by providing affiliated links and dishonest, sugarcoated information.

My reviews are non-affiliated, unbiased and honest and I do not accept money or work for credit companies.

Amazon Canada recently launched a credit card issued by MBNA TD bank. There were lots of expectations, but this card failed to meet them. If you remember the old Amazon Chase Canada Visa Credit Card that was discontinued in early 2018, it was everyone’s favourite because of its zero foreign transaction fee feature.

The new Amazon Canada Rewards MasterCard offers 2 different rewards structures. If you are an Amazon Prime member, you get:

- 2.5% return on Amazon online and physical stores, such as Whole Food Markets, and 2.5% on foreign transactions.

- 1.5% return on everything else.

If you are a non-Prime member, you get:

- 1.5% return on Amazon online and physical stores and

- 1% return on everything else.

There are some other benefits, such as 90-day purchase assurance coverage, extended warranty, and trip interruption coverage.

It does not have any annual fee, points caps or expiration for points earned. Every 2,000 points earned will automatically give you a credit on your Amazon account for a $20 Amazon.ca gift card.

As you can see, the Amazon Canada Rewards Credit Card is a mediocre credit card that offers no value and there is no keep to make this card your daily card for any reason.

You can easily get a 4-5% return on Amazon purchases by purchasing gift cards (and using it on Amazon) from grocery stores with one of those cards that offer 4-5% return on groceries.

Although the Amazon Canada Rewards Credit gives 2.5% return on foreign transactions to offset foreign transaction fees for Prime Members, you will end up earning no additional returns on them. There are other credit cards that offer zero foreign transaction fee plus some returns. You can find these cards on my channel in the credit card section. 

Unfortunately, I cannot recommend this card to anyone, even if you are an Amazon Prime Member. Your best option to earn a higher rate on Amazon purchases would be to use a high-earning 4% to 5% card to buy Amazon gift cards from grocery stores and use them on Amazon.

You can watch my video on Amazon Canada Rewards Credit by visiting the link.

Scotia Momentum VISA® Card Offers 2% Cash Back – But Is It Worth It?

Scotia Launches New Scotia Momentum VISA® Card

First Published Date : August 31, 2009 ADawnJournal.com

Scotia Bank recently introduces a new VISA® card called Scotia Momentum VISA® card. Scotia Momentum card holders will be able to get cash back on purchases – whenever an eligible transaction is made.

Scotia Momentum VISA® card offers 2% cash back on eligible purchases. These eligible merchants are classified as groceries, gas stations, supermarkets, pharmacies, recurring bill payments, and so on by VISA®. Only the first $25,000 spent annually will attract 2% cash back. In addition, Scotia Momentum VISA® card offers 1% cash back once you exceed your $25,000 limit and on other eligible purchases. Cash back is not given for transactions such as cash advances, annual card fees, interest charges, etc.

Scotia is offering a special bonus for all purchases on first three statements. Purchases normally attracting 1% cash back will earn 2% during this promotion. This offer expires on October 31, 2009. All these incentives do not sound bad, after all, who does not want free money? However, if you do some calculations, you will be able to see the full picture.

Visit Scotibank’s website to find out more about eligible purchases and special bonus program

Let’s Dissect Scotia Momentum VISA® Card

You need to spend at least $1,950 to get back the annual fee ($39) you will pay
And then, you can pocket the 2% you will be making on eligible purchases (after spending your first $1,950)
Now, let’s say, you spend $3,600 annually on eligible purchases each year (that’s $300 a month)
So, the money you will be making each year = $3,600 – $1,950 = $1,650 X 2% = $33

Not bad, huh? Wait, not so fast. If you use one of the credit cards I mentioned in this post –
ADJ Picks Canada’s Best Credit Cards, you will be able to beat Momentum VISA® card by getting 1% cash back on your full $3,600 – and that works out to be $36 cash back.
However, if you spend more than approximately $300 per month on eligible transactions, Scotia Momentum VISA® card is a good bet. Here are the calculations assuming you spend $5000 annually (roughly $400 a month) on eligible transactions:

The money you will be making each year = $5,000 – $1,950 = $3,050 X 2% = $61
However, with a no annual fee 1% cash back card, you will be making = $5,000 X 1% = $50

My Take

My take is that the threshold for this card is about $300 per month. If you spend less than $300 each month, you can pick one of those I mentioned in the article above. If you spend more than $300, Scotia Momentum VISA® is an option you should look at; however, always do your own homework before making any financial decisions.

Leaked – Mega Changes Are Coming to the Scotiabank Gold American Express Card

Huge Changes for Scotia Gold Amex Card

Sites like Reddit had leaked about new updates coming to the Scotiabank Gold American Credit card starting August 1, 2019. If this leaked news is true, Scotia Gold Amex will be in direct competition with the American Express Cobalt credit card.

Today, I will briefly l discuss these changes (assuming the leaked information is true) and will provide my insights on the new (after changes) Scotia Gold Amex card.

Annual Fee

Annual will go up to $120 from $99. Additional card annual fee will not change and remains at $29.

Rewards Structure

Now: 4x Gas, Grocery, Dining, Entertainment | 1X Everything Else

Aug 1 Onward: 5X Grocery, Dining, Entertainment | 3X Gas, Daily Transit, Select Streaming |1X Everything else

Foreign Transaction Fees

Now: 2.5%

Aug 1 Onward: 0%

Travel Insurance Changes

Travel Emergency Medical: 65> age will lower from 10 days to 3 days.

Trip Cancellation/Trip Interruption: Amount will lower from $2,500 each to $1,500 each

Price Protection

This insurance will no longer be offered after August 1, 2019.

Everything else not mentioned above is not changing. As you can see, with these changes Scotia is trying to capture a significant chunk of the Canadian credit card market and they are expecting to grab a lot of Amex Cobalt customers.

One difference in points compared to Amex Cobalt is that Scotia Points are not convertible to Marriott Bonvoy (and then to 44 frequent-flyer program airline miles such as Aeroplan, Avios).

However, the Amex Cobalt Card does not provide as many benefits as the Scotiabank Gold Amex does. For example, Amex Cobalt does not offer concierge service, trip cancellation insurance, zero foreign currency fee, and many more.

In the past, the Amex Cobalt card was the only card in Canada that provided 5X rewards on some categories. Now that we have Scotia Gold Amex competing, plus it’s giving a lot more than Cobalt, consumers will have to take a hard look to decide which card to keep.

I do have an Amex Cobalt Card, but I haven’t decided yet whether to keep it or cancel it after August 1 and replace with Scotia Gold Amex.

I have a video on what I discussed above and you can watch it here: Changes Are Coming to the Scotiabank Gold American Express Credit Cards Another credit card which is changing also is the Scotia Momentum Visa Infinite. I will talk and video about this shortly.