Credit Cards
To Swipe or Not to Swipe…
Some people in the FIRE movement think that credit cards are a dirty word. They can be if used improperly. Ask yourself can you handle having a credit card without making extra purchases you wouldn’t normally make with cash or directly from your checking account? If the answer is no then try to avoid using credit as much as possible. If the answer is yes then credit cards can be a great way to earn rewards on purchases you were going to make anyway.
Pro tip: if you go to your bank or find the option online, you can setup automatic full payment of your credit card balance. That way you will never carry a balance and have to pay interest. When looking for a credit card if you have to ask what the interest rate is you’re doing it wrong.
Why Good Credit is Important
Without good credit, you won’t be able to get credit cards that have as many perks. Worse, when it comes time to buy a house or take out any loan of any kind you will qualify for less or get denied if you have bad credit.
A credit score from 660 to 900 is considered good.
The power of a Solid Credit Card
There are a few credit cards that really stand out. The best perks from credit cards I’ve found are cashback and travel points. Three cards I really like are the TD First Class Travel Visa Infinite, the Scotia Momentum Visa Infinite Card, and the PC Mastercard. I like to at least have a Visa and Mastercard because some places only accept one.
TD First Class Travel Visa Infinite
The reason I like this card is for the travel points. Unlike Airmiles or other rewards programs, this card makes it easy the earn and spend points on TD Expedia with no black-out dates. This card does have an annual fee of $120 but the fee is waived if you have a TD All-inclusive chequing account. With the TD visa for all everyday purchases you earn:
3 points per dollar spent.
At TD Expedia 200 points = 1$.
Aftermath that works out to 1.5% cash saved.
For purchases on TD Expedia you earn:
9 points per dollar spent.
At TD Expedia 200 points = 1$.
Aftermath that works out to 4.5% cash saved.
Sign up here.
Scotia Momentum Visa Infinite Card
The reason I like this card is it has a straightforward cashback program. You will receive your cashback put on to the card in November. This card does have a $120 per year fee but the fee is waived if have a Scotia Bank Ultimate Package chequing account. Here is how the cashback program works:
4% cashback on groceries and recurring bills
2% cashback on transit (gas, buses, taxis, and ride-sharing).
1% cashback for all other purchases.
Other Perks:
Comprehensive travel insurance.
New mobile device insurance coverage.
Purchase security and extended warranty protection.
Complimentary 24/7 concierge services.
I have as many bills as possible as recurring payments as long as the company charges a low fee or none. These are all items I buy anyways but get rewarded for.
Sign up here.
PC Mastercard
PC Mastercard is the only card on the list that is completely free. Here are the perks:
No annual fee
10 points per dollar spent at PC grocery stores
1.0% cash saved
25 points per dollar spent at shoppers drug mart
2.5% cash saved
30 points per dollar spent at Esso Mobil
3.0% cash saved
20 points per dollar spent at PC travel
2.0% cash saved
10 points per dollar for all other purchases
1.0% cash saved
10,000 points = $10 when redeeming points
Sign up here.
There are lots of good credit cards out there but I think these are the best.
You can compare more credit cards here.
If you want to learn more secrets to saving money see my blog.