Choosing The Best Credit Card in Canada: What Do You Need To Know?

By Remitbee - Feb 17, 2022

You can use a Canadian credit card to borrow a certain amount of money to spend on services or products. Of course, you must repay the funds by a given timeline.

With so many credit card choices available in Canada, it's easy to get caught up. Interest rates, fees, and the perks and advantages you'll receive are the primary differences among credit cards.

It's possible that what's best for others isn't the perfect fit for your needs. So, follow these simple guidelines to figure out which option is best for you!

Examine Your Credit Score and Earnings

Before applying for a Canadian credit card, you should know your credit score. Checking this can help you determine which credit cards in Canada you'll qualify for.

A credit agency, such as Equifax or TransUnion, can provide you with your credit score. It could be completely free, or you may have to pay a small fee to use it. Certain credit intermediaries also offer a free credit score verification service.

Furthermore, some credit cards in Canada have a required minimum personal or household earnings for you to be able to qualify. During the application procedure, they will inform you of any revenue specifications. If your earnings do not meet the requisites for a particular card, it is advisable to take your application elsewhere.

Check Your Spending Patterns

Finding the best Canadian credit card can be challenging, but examining your spending patterns can help you determine which card will provide the most value.

Do you shop at a particular merchant regularly? Is your bank statement overstuffed with travel-related charges such as flights or hotels? Or are the funds being used to purchase just groceries and gasoline?

Certain credit cards reward specific expenditure categories, so if you know where your money goes, you may save or even make a lot of money by carrying the right credit card!

While it's unlikely that you'll find a credit card that comes out on top in every category, having several credit cards in your wallet can help you cover all of your bases.

Also, read - best canadian travel credit cards

Scrutinize Your Payment Habits

Take into account your payment habits while deciding on a credit card that best suits your needs. A high-interest rate, for example, maybe reasonable if you regularly pay your monthly bill in full.

If you satisfy the following conditions, however, one of the top low-interest credit cards may be the best option for you:

  • Tends to carry a balance
  • Requires payment flexibility
  • Want to make a large expenditure and wish to stretch the cost throughout several months
  • Driven to repay debt and avoid incurring interest costs

Determine Your Objectives

What are your plans for your credit card? Because each credit card is created for a specific purpose, you should select one that meets your needs. Take the following objectives into consideration:

Accumulate rewards

Your best option is a rewards credit card. Each transaction gives you points, which you may use to exchange for cash, free trips, or other perks. However, this is often only appropriate for people with an excellent credit score and a history of not carrying debt.

Eliminate your debt

Anyone currently holding a load on another credit card might choose a credit card with a low-interest rate and has a balance transfer option. Over time, you could save money by transferring your debt to a lower-interest credit card.

Increasing your credit score

You should apply for a student or entry-level credit card. It provides an excellent opportunity for individuals to begin increasing their credit scores.

Consider Other Factors

If you're having difficulty deciding between credit cards, sit back and examine the card's overall value. Certain cards provide you with additional benefits. Therefore, try focusing on the minute nuances to assist you in selecting the correct card. Consider the following:

Incentive upon registration

Consider a card that gives a welcome incentive, such as more points or a cash-back percentage.

Rate of interest

Do you intend to clear off your bill each month, or do you anticipate carrying some debt? When analyzing interest rates, keep in mind how your balance will accumulate.

Additional advantages

Numerous premium credit cards have additional benefits, including travel insurance, access to lounges, price protection, and extended warranties.


While finding the best credit card in Canada is not that easy, you're likely to get a card that checks off several of your criteria by collecting incentives, eliminating debt, and improving your credit score. Take enough time to apply for the most appropriate one for you and enjoy all the advantages.

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