Never Settle for Cash Back Rewards Credit Cards Except for This One Reason

Maximize Rewards with Travel Credit Cards

First Published Date: June 8, 2016

Those who are for cash back credit cards will often tell you that cash back cards are the best rewards credit cards because they are simple to understand and easy to deal with. And you don’t need to spend endless hours mastering hotel points and flight miles. However, what many cash back credit card users don’t realize that even though you don’t want to deal with points and miles, there is no need to shy away from travel rewards credit cards, as they provide the best returns possible among all types of rewards cards.

So how is it possible to enjoy a travel rewards credit card without going into the hassle of miles and points? The answer lies on the types of travel credit cards you are dealing with. Proprietary rewards travel credit cards offer simple rewards points that are proprietary to the credit card company that just work like a cash back credit card. You will receive proprietary points that will offset your travel costs charged by your card. For example, The ScotiaBank Gold American Express travel rewards card provides 4 points per dollar spend on selected categories that translates into 4 percent return. The only difference here from a cash back card is that you have to use these points to offset travel costs, instead of getting cash back.

Cash back credit cards can never beat travel credit cards because of the benefits and rewards travel credit cards can provide. And you can choose a propitiatory travel rewards credit card if you don’t want to go into points and miles. That begs the question: what is the only reason you should not use travel rewards credit cards? The answer is when you do not travel at all and not planning to travel ever.

For most of the population, travel happens often or will happen at one point in our lives. So to get the most out of your credit cards, go with a travel rewards credit card and enjoy the highest return credit cards provide among with other wide array of perks that no other types of cards can provide.

Can This Possibly Be The Lowest Interest Rate Credit Card in Canada?

American Express Launches 8.99% Rate Interest Rate Card

First Published Date: September 20, 2016

American Express, or AmEx, is known for its upscale cards that usually target customers with heavy spending. The annual fee for some of its cards skyrocket to $700 or even $900. However, this time Amex seems to be targeting traditional consumers who carry a balance with its new low-rate American Express Essential Credit Card.

While you will find most credit cards charge 20 to 30 percent interest, the American Express Essential Credit Card charges only 8.99 percent interest with no annual fee. This low rate is not a promotional rate and is here to stay unless market conditions change.

A few other credit cards in Canada, such as BMO Preferred Rate, Scotiabank Value Visa, CIBC Select Visa, and RBC Visa Classic Low Rate also provide low-rate cards where the interest rate can run 12 to 17 percent, but they don’t come close to the new American Express offer.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

Another card worth mentioning is the MBNA Trueline Credit Card. This no annual fee credit card charges interest rate based on your credit score and it can range from 5.99 to 14.99 percent. What I like about this card is that on the MBNA website it will tell you what your interest rate will be by doing a soft credit check that does not affect your credit score even before you start the application process.

As more players are offering more low-rate credit cards, consumers are the winners from the competition. And there definitely will be more credit card companies entering the arena of low-rate cards following the American Express Essential credit card in the future.

This Credit Card Sign-Up Trick Gets You More Bonus Points

How to Get More Credit Card Miles

First Published Date: July 2, 2016

If you are applying for rewards credit cards the traditional way, by calling the Credit Card Company or going on their website, you may be losing out big on additional bonus points or miles. Today, I will talk about how to maximize receiving points or miles when you apply for credit cards.

What you need to know is that there are 3rd party sites that are always offering better offers than credit card companies. To get the most out of your credit card applications, use these sites instead of the credit card companies’ own sites or call centers. Think of it like buying plane tickets. You are likely to get better deals from a 3rd party than the airlines selling tickets themselves.

Here is a real example to help me illustrate. The MBNA Best Western MasterCard was running a promotion recently with a sign-up bonus of 60,000 points. However, this promotion was only available through 3rd party websites. MBNA Canada’s own website was offering only 20,000 points. Even when customers called in to apply over the phone, their reps were unable to match the offer that existed on 3rd party sites.

Now the question is: how do you find these websites that offer better promotions? I will provide you with some sites here that are always offering various credit card deals and promotions such as additional miles, points, gift cards, and so on. These are:

Greedyrates.ca

Greatcanadianrebates.ca

However, don’t settle for anything until you do thorough research, as there can be better deals somewhere else. Here are some keywords you can use to search online – “Best credit card offers”, “credit card promotions”, etc.

A little research and effort can make a huge difference between travelling on points for free/paying very little or paying the ridiculous full cost. I choose not to pay and travel on points for free or at a ridiculous low cost.

Finally Free Credit Score Comes to Canada

How to Check Your Credit Score for Free

First Published Date: July 9, 2016

Canadians have always had access to free credit reports, but not free credit scores. All that has changed recently – now you are able to know your credit score for free and there is no need to pay $24 each time.

Two online loan providers are giving free access to your credit score when you open an account with them. There is no catch, really. Your free account will show your credit score and better yet, you will have an updated credit score every three months for free as well.

These two providers are: www.borrowell.com and www.mogo.ca. I opened an account with Borrowell to try it out and I was surprised at the ease and simplicity of the whole process. Within 5 minutes I was able to view my score on-screen. To make things better, there are free online credit courses and free articles on how to improve your credit score also.

Keep in mind that the credit score you are provided for free is an Equinox credit score, which is a proprietary model of Equinox. This is different than FICO®, which is a proprietary model created by Fair Isaac Corporation (FICO).

It is a good idea to keep an eye on your credit score and since this is free it makes even more sense. One more thing, don’t worry about your score dropping when you check

Avoid These Common Credit Card Mistakes

Avoid These Common Credit Card Mistakes

First Published Date: July 31, 2016

Credit cards are a part of our daily living and they are good things, if you know how to manage them. Today, I will talk about how some common and simple mistakes can ruin your credit score. These small mistakes are so negligible that we often forget they can have a big impact on our finances. Learn these mistakes, avoid them, and make them a thing of the past.

Making Late Payments – This is the most common mistake we all make. A late payment can incur late payment charges and bump up your interest rate higher. It can also hurt your credit score, depending on how late it is. Use online tools like Google Calendar or anything that works for you to remind you 3 days ahead of the actual due date so you don’t get caught up making late payments.

Paying Only The Minimum – In Canada, by law, credit card companies now have to show how many years it will take to pay your full balance if you only make the minimum. Add some extra dollars with your minimum, whether it’s $20 or $50 a month, and you can shave off years and save lots interest costs on your credit card balance.  

Using a Credit Card for Cash Advances – Withdrawing cash using a credit card hurt you 2 ways. The first is you pay a high cash advance fee. This fee could run from $20 to $50, depending on your bank. The other bad thing is you start paying high interest the moment you take out cash advances. Never use credit card for cash advances. It’s the worst way to borrow money.

Paying Annual Fees – Many credit cards will try to hook you up offering reward points or cash back in exchange for annual fees. Just to cover these fees, you have to spend more than $20,000 or $30,000 annually. Read the fine print and figure out if it’s really worth it to spend that much money for reward points or cash back after covering annual fees. Use a no annual fee reward or cash back credit card instead; there are lots of them available in the market.