Compare credit cards

Comparison of credit cards for travel rewards, cashback, balance transfers, rebuilding credit, and more.

Joe Cortez avatar
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Yvonne Taylor avatar
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Updated 13 Jun 2025   |   Rates updated regularly

Comparing of 40 credit cards

American Express Cobalt Card

On website

Featured

American Express Cobalt Card

Balance transfer

N/A

Purchase rate

21.99% p.a. ongoing

Interest-free days

N/A

Annual fee

$155.88 p.a. ongoing

Highlights

  • Earn up to 15,000 Membership Rewards points. In your first year as a new Cobalt Cardmember, you can earn 1,250 Membership Rewards® points for each monthly billing period in which you spend $750 in purchases on your Card. T&Cs apply.
  • Earn 5X points on eligible eats & drinks, 2X points on eligible gas, transit & ride share, and 1 point per $1 spent on everything else.
  • Enjoy perks, bonus rewards, and access to great events as an American Express Cobalt Cardmember.

Pros

  • Earn up to 15,000 points when you meet the criteria.
  • Earn 3X points on eligible streaming subscriptions.
  • No fees when you get additional cards.
  • Enjoy access to hotel bookings, a room upgrade (when available).

Cons

  • $155.88 is slightly higher than the average annual fee.
  • If you miss payments, the applicable rates for your account will be 25.99% - 28.99%
Neo Mastercard

On website

Neo Mastercard

Balance transfer

N/A

Purchase rate

From 19.99% p.a. ongoing

Interest-free days

N/A

Annual fee

$0.00 p.a. ongoing

Highlights

  • Earn an average of 5% cashback at thousands of Neo partner brands across Canada.
  • Instant approval with no annual fee and flexible credit limits.
  • Get tailored offers and rewards that match your spending habits.
  • Track spending, redeem rewards, and manage your account easily with the Neo app.

Pros

  • No annual fee.
  • Add a supplementary cardholder to share your account’s credit, perks, and cashback.
  • High cashback potential when you shop with Neo partners.
  • Exclusive offers and bonuses personalised to your lifestyle.
  • Quick and simple application process with instant decision.
  • Useful mobile app with real-time alerts and smart budgeting tools.

Cons

  • There is a 2.5% Foreign Exchange Fee.
  • Not ideal for those who carry a balance — interest rates can be high.
American Express Gold Rewards Card

On website

Apply by August 18, 2025

American Express Gold Rewards Card

Balance transfer

N/A

Purchase rate

21.99% p.a. ongoing

Interest-free days

N/A

Annual fee

$250.00 p.a. ongoing

Highlights

  • Earn up to 110,000 Membership Rewards points: New American Express Gold Rewards Cardmembers can earn 5,000 points for each month they spend $1,000 (up to 12 months), 30,000 bonus points after spending $20,000 in the first 12 months, and an extra 20,000 points with a purchase made between months 15 and 17. T&Cs apply.
  • 1 free additional Gold Rewards Card ($50 annual fee for Additional Gold Rewards Cards).
  • Earn 2 points for every $1 in Card purchases for eligible travel purchases, gas stations, grocery stores, and drugstores. Earn 1 point for every $1 in Card purchases everywhere else.

Pros

  • Earn up to 110,000 points when you meet the criteria.
  • Earn bonus points while you spend.
  • Includes 9 complimentary insurances.

Cons

  • The $250 p.a. annual fee.
  • If you miss payments, the applicable rates for your account will be 25.99% and/or 28.99%
Neo World Mastercard

On website

Neo World Mastercard

Balance transfer

N/A

Purchase rate

From 19.99% p.a. ongoing

Interest-free days

N/A

Annual fee

$0.00 p.a. ongoing

Highlights

  • Earn 2% cashback on groceries, gas, and recurring bills, plus 0.5% on all other everyday spend.
  • No annual fee.
  • Get instant access after approval by adding the card to your mobile wallet - no waiting for the physical card to arrive.

Pros

  • Add a supplementary cardholder to share your account’s credit, perks, and cashback.
  • Extended Warranty and Purchase Protection add extra coverage to eligible purchases.
  • High cashback potential when spending at Neo partner brands, often well above standard rates.
  • Tailored offers and rewards that match your spending habits for more relevant savings.
  • Fast, straightforward application with instant approval decision in most cases.
  • The Neo app gives you real-time alerts, smart budgeting tools, and a clear view of your spending

Cons

  • Cashback earnings are capped.
  • Requires a relatively high income to qualify — $50,000 personal or $80,000 household.
SimplyCash Preferred Card from American Express

On website

SimplyCash Preferred Card from American Express

Balance transfer

N/A

Purchase rate

21.99% p.a. ongoing

Interest-free days

N/A

Annual fee

$119.88 p.a. ongoing

Highlights

  • Get a 10% cashback bonus on all purchases (up to $2,000 in spending) during your first 3 months. Plus, receive a $50 statement credit when you make a purchase in month 13. This offers up to $250 in bonus value within your first 13 months. Terms and Conditions apply.
  • Earn 4% cashback on gas and grocery.
  • Earn 2% cashback on other eligible transactions.

Pros

  • Earn generous cash back when you meet the eligibility requirements.
  • No fee when you get an additional card.
  • Includes Travel coverage and Mobile coverage.
  • Access events and special offers curated for Cardmembers with Amex Experiences™.

Cons

  • There is a $9.99 monthly fee.
Neo World Elite Mastercard

On website

Neo World Elite Mastercard

Balance transfer

N/A

Purchase rate

From 19.99% p.a. ongoing

Interest-free days

N/A

Annual fee

$125.00 p.a. ongoing

Highlights

  • Earn 5% cashback on groceries, 4% on recurring bills, 3% at gas stations or EV chargers, and 1% on everything else.
  • Get an extra 5% cashback at Neo’s partner brands — available both online and in-store.
  • Access exclusive offers and rewards that adapt to your everyday spending patterns.
  • All rewards are automatically applied — no need to track categories or activate promos.

Pros

  • Add a supplementary cardholder to share your account’s credit, perks, and cashback.
  • Extended Warranty and Purchase Protection provide added peace of mind on eligible purchases.
  • Includes comprehensive travel insurance with coverage for delayed or lost baggage, flight delays, trip interruptions, and more.
  • Emergency medical insurance applies even when you're out of province or travelling internationally.
  • DragonPass membership gives access to 1,300+ airport lounges and related travel perks.
  • Includes Auto Rental Collision/Loss Damage Insurance for eligible rentals.
  • The Neo app offers real-time alerts, spending insights, and built-in budgeting tools to stay in control.

Cons

  • The $125 annual fee adds to the cost, though it may be justified if you take full advantage of the perks.
  • Cashback earnings are capped.
  • Requires a high income to qualify — $80,000 personal or $150,000 household
American Express Platinum Card

On website

Apply by August 18, 2025

American Express Platinum Card

Balance transfer

N/A

Purchase rate

N/A

Interest-free days

N/A

Annual fee

$799.00 p.a. ongoing

Highlights

  • Earn up to 180,000 Membership Rewards points: Get 100,000 points when you spend $10,000 in the first 3 months, 50,000 more after spending $50,000 in your first year, and an extra 30,000 points with a purchase between months 15 and 17. T&Cs apply.
  • Earn 2 points for every $1 in Card purchases on eligible dining in Canada, 2 points for every $1 in Card purchases on eligible travel, and 1 point for every $1 in all other Card purchases.
  • Enjoy a $200 annual Travel Credit. Terms and conditions apply.

Pros

  • Earn up to 180,000 points when you meet the criteria.
  • Enjoy complimentary benefits that offer an average value of $550 USD at over 1,600 extraordinary properties worldwide when you book Fine Hotels + Resorts.
  • Enjoy a $200 Annual Dining Credit at some of Canada’s best restaurants.
  • Includes travel and shopping coverage.

Cons

  • The $799 p.a. annual fee.
Neo Card™ (Secured)

On website

Neo Card™ (Secured)

Balance transfer

N/A

Purchase rate

From 19.99% p.a. ongoing

Interest-free days

N/A

Annual fee

$60.00 p.a. ongoing

Highlights

  • Guaranteed approval with no credit check when you provide a refundable security deposit starting from just $50.
  • Build or rebuild your credit — Neo reports to both major Canadian credit bureaus.
  • Earn cashback at thousands of partners across Canada, including gas stations, grocery stores, and restaurants.
  • Manage your account and track your credit activity easily through the Neo mobile app.

Pros

  • No credit history needed to apply.
  • Low entry deposit of only $50.
  • Real-time spending alerts and smart budgeting tools via the app.
  • Get access to exclusive partner offers and average cashback of up to 5%

Cons

  • Since this is a secured card, you will be required to deposit cash upfront.
  • A $5 monthly fee applies, totaling $60 per year.
Marriott Bonvoy American Express Card

On website

Apply by August 18, 2025

Marriott Bonvoy American Express Card

Balance transfer

N/A

Purchase rate

21.99% p.a. ongoing

Interest-free days

N/A

Annual fee

$120.00 p.a. ongoing

Highlights

  • Earn up to 110,000 Bonus Marriott Bonvoy® points. Earn 65,000 points after spending $3,000 on your card within the first 3 months of card membership. Get an additional 30,000 points after you spend $20,000 on your card in your first 12 months of card membership. Plus, earn 15,000 points when you make a purchase between 15 and 17 months of card membership. Terms and conditions apply.
  • Earn 5 Marriott Bonvoy points for every $1 of eligible Marriott Bonvoy purchases and 2 points on other eligible purchases.
  • Enjoy an Annual Free Night Award after your Card anniversary each year.

Pros

  • Earn up to 110,000 Welcome Bonus points when you meet the criteria.
  • Earn 5X the points on Marriott purchases.
  • Earn 2 points for every $1 in all other eligible card purchases.
  • Receive 15 Elite Night Credits each calendar year.
  • No annual fee on additional cards.

Cons

  • The $120 p.a. annual fee.
KOHO Easy Prepaid Mastercard

On website

KOHO Easy Prepaid Mastercard

Balance transfer

N/A

Purchase rate

N/A

Interest-free days

N/A

Annual fee

$0.00 p.a. ongoing

Highlights

  • $0 annual fee.
  • 0% interest rate.
  • Earn 1% cashback on groceries, billing, and services.

Pros

  • No credit check required.
  • Earn cashback on eligible transactions.
  • Get up to 5% additional cashback with KOHO merchant partners.
  • Optional Credit Building for $10/month
  • You can earn 0.5% interest on your balance. 

Cons

  • There is a 1.5% foreign transaction fee.
  • Since it is a prepaid card, you need to fund the account to use the card.
KOHO Extra Prepaid Mastercard

On website

KOHO Extra Prepaid Mastercard

Balance transfer

N/A

Purchase rate

N/A

Interest-free days

N/A

Annual fee

$84.00 p.a. ongoing

Highlights

  • 0% interest rate.
  • Enjoy an affordable $84 annual fee (comes with a 30-day free trial).
  • Earn 2% cashback on groceries, bills & services, eating & drinking.

Pros

  • No credit check required.
  • No foreign exchange fees.
  • Get 1 free international withdrawal a month.
  • Optional Credit Building for $7/month
  • You can earn 2% interest on your balance. 

Cons

  • Since it is a prepaid card, you need to fund the account to use the card.
  • The $84 annual fee.
KOHO Essential Prepaid Mastercard

On website

KOHO Essential Prepaid Mastercard

Balance transfer

N/A

Purchase rate

N/A

Interest-free days

N/A

Annual fee

$48.00 p.a. ongoing

Highlights

  • 0% interest rate.
  • Enjoy an affordable $48 annual fee (comes with a 30-day free trial).
  • Earn 1% cashback on groceries, bills & services, eating & drinking.

Pros

  • No credit check required.
  • Earn 0.25% cashback on all other purchases
  • Get up to 5% additional cashback with KOHO merchant partners.
  • Optional Credit Building for $7/month
  • You can earn 1.5% interest on your balance. 

Cons

  • There is a 1.5% foreign transaction fee.
  • Since it is a prepaid card, you need to fund the account to use the card.
National Bank Mycredit Mastercard

Not available for application via this website

National Bank Mycredit Mastercard

Balance transfer

N/A

Purchase rate

20.99% p.a. ongoing

Interest-free days

N/A

Annual fee

$0.00 p.a. ongoing

Highlights

  • $0 ongoing annual fee.
  • Earn 1% cashback on restaurant transactions and recurring automatic transfers. Terms and Conditions apply.
  • Get 0.5% cashback on all other purchases.

Pros

  • $0 annual fee.
  • Earn up to 1% cashback.
  • Get insured against theft or damage for up to 2 years following the purchase of your mobile device using your Mycredit Mastercard.

Cons

  • There is no introductory balance transfer offer on this card.
National Bank World Mastercard

Not available for application via this website

National Bank World Mastercard

Balance transfer

N/A

Purchase rate

20.99% p.a. ongoing

Interest-free days

N/A

Annual fee

$115.00 p.a. ongoing

Highlights

  • Earn 2 reward points per $1 spent on all transactions. Terms and Conditions apply.
  • Enjoy up to 60 days of comprehensive travel insurance.
  • Includes extended warranty on your purchases.

Pros

  • The 2 reward points per $1 spent on all purchases.
  • Comes with comprehensive insurance coverage, trip cancellation/interruption, flight delay, baggage insurance, and rental vehicle insurance.
  • Use accumulated points to get new electronics, vacation packages, travel tickets, and more.

Cons

  • There is no sign-up bonus offer on this card at the moment.
  • The $115 p.a. annual fee.
National Bank World Elite Mastercard

Not available for application via this website

National Bank World Elite Mastercard

Balance transfer

N/A

Purchase rate

20.99% p.a. ongoing

Interest-free days

N/A

Annual fee

$150.00 p.a. ongoing

Highlights

  • Earn 5 reward points per $1 spent on groceries and restaurant transactions. Terms and Conditions apply.
  • Gas purchases, travel, and recurring bill payments earn 2 points per $1 spent then other purchases will earn 1 point per $1 spent.
  • Enjoy unlimited access to the National Bank lounge at Montréal-Trudeau Airport and get up to $150 each year in refund for your travel expenses.


*Disclaimer: To be eligible for the offer, you must not be a primary cardholder of a National Bank Mastercard credit card (personal) or have been in the last 24 months”


Pros

  • Take advantage of the unlimited lounge access and the $150 refund per year on your travel expenses.
  • Comes with comprehensive insurance coverage, trip cancellation/interruption, flight delay, baggage insurance, and rental vehicle insurance.
  • Includes extended warranty on your purchases.
  • Enjoy concierge service that offers a wide range of services.

Cons

  • There is a $150 p.a. annual fee.

Credit cards in Canada are far more than plastic rectangles that sit in your wallet. Each one can increase your buying power, earn cash back, let you pay off a big purchase over time, or help you get closer to your next vacation. It is all determined by your credit, your everyday spending habits, and your overall goals for your spending.

By definition, credit cards offer an open loan from a bank or lender, which you can use to pay for goods or services. But they can also offer a lot of opportunity for responsible senders, or potential problems for those with less discipline. Here's everything you need to know when you compare credit cards in Canada.

What are the main credit card types?

There are six main credit card types everyone should be aware of. It's important to compare credit cards based on their differences within each of these categories:

  • Promotional interest credit cards: Also known as "0% purchase credit cards," promotional interest credit cards offer a promotional rate for a purchase, over a period of time - usually 24 to 36 months. If you don't pay off the balance before the promotional period is over, you may be charged interest on the whole purchase.
  • Balance transfer credit cards: Balance transfer credit cards offer a promotional low interest rate to move a balance from one card to another. The balance transfer rate is only for a limited time - after which, the remaining balance left over will accrue interest at the card's regular rate.
  • Rewards credit cards: Rewards credit cards offer points or cash back for your everyday spending, but often come with an annual fee. While you will get rewards every time you use it, these cards usually offer bonus categories, giving you even more returns at certain types of retailers.
  • Airline and hotel credit cards: As their name suggests, these cards offer travel rewards in the form of airline frequent flyer miles, or hotel points. While these cards often come with an annual fee and higher interest rate, it's possible to earn back the fees by using your points for travel rewards aboard airlines or free hotel rooms. This type of card often have a sign up bonus.
  • Low interest credit cards: For those who are looking to pay off a big purchase over time, low interest credit cards offer a reduced rate over time. These cards may come with an annual fee, but can be negated in the payment for your savings.
  • No annual fee credit cards: No annual fee credit cards have $0 in yearly fees, but often do not come with a high credit limit, or any rewards. No annual fee credit cards are great for those who are building their credit, or rebuilding their file after a bankruptcy or period of bad credit.
  • Credit builder credit cards: If you have damaged your credit score or if you haven't got a credit history at all, then you can use a credit card to build your credit rating over time. Also available for people with bad credit.
  • Secured credit cards: A secured credit card works just like any other credit card except you will have to make a cash deposit before you can use the card. The amount deposited is typically the same as your maximum credit limit. Secured cards are an alternative to a credit building credit cards in that they can also help establish a positive credit history.

There are also credit cards aimed at different types of people.

  • Immigrants: Unfortunately your credit report does not migrate with you, so recent immigrants to Canada have a more limited range of credit cards available to them.
  • Pensioners: Income is an important part of the eligibility criteria for most banks. Since pensioners may have income from disparate sources other than employment, they may not be automatically eligible for some offers.
  • Self-employed: These cards are tailored to smaller businesses and typically offer an attractive combination of interest-free days and rewards. However, as ever, be aware that the value of any rewards earned by funnelling capital expenses through a card are quickly negated by interest incurred if the balance rolls over.
  • Students: Even though they may not have an established credit history or income, students can still get a credit card. These are typically entry level cards with a low credit limit that offer very little by way of rewards, but they are useful in that you can start building a credit history.

How do I compare credit card offers?

Based on your overall goals, it's easy to compare credit cards and get the perfect option for your needs. It all depends on what you want to achieve, and what types of credit card rewards you value the most.

The first step is to understand and evaluate your credit score. Higher credit scores are needed to qualify for the best credit cards in Canada. If you don't have a good credit history, you mat not necessarily get approved for the best options.

Next, determine what kind of rewards best for you. Benefits range from points that can be exchanged for travel or merchandise, to cash back that let you erase portions of your balance. Instead of applying for the biggest rewards credit cards, determine which ones will help you get closer to what you want most.

Finally, it's important to read all the fine print, and make credit card comparisons based on the interest rate and annual fee. If you won't use the rewards, or get the value from the annual fee through using rewards, it doesn't make sense to apply for that credit card.

Credit card repayment

Every month you spend on your credit card, your bank will require you to make a payment on your balance. You can choose to make the minimum payment (between 2% and 2.5% of your current balance, or a fixed amount per month), up to the entire balance. Although you have options, it's important to know that you are responsible for paying interest on any remaining balance.

Credit card interest charges

Interest charges are what the bank adds to your credit balances. Depending on the credit card you have, your interest rate can be as low as 8%, all the way up to 25% and beyond. This additional charge is added to your balance every month, until your credit card balance is paid off entirely.

The best way to use a credit card is to make purchases on it, and pay off the credit card balance in full every month. This strategy helps you maximize your credit card rewards, without paying additional fees to the bank — effectively giving you free points, miles, or cash back.

Credit card cash advances

Depending on which credit cards you have, you may be able to borrow cash against your balance. Credit card cash advances are limited by your card, and often come with a high interest rate.

While withdrawing cash from your card can be an easy way to get money to cover an emergency, a cash advance can be costly if not paid off immediately. Interest on cash advances are charged until the money is paid back, even if you don't have a balance on your card.

Credit card limit

Every credit card has a balance limit. Your limit is determine by your credit score, credit history, and the bank. Credit limits can range between $500 and $100,000, depending on the type of card and the bank.

Once you reach your credit card limit through spending and not paying it down, you will not be allowed to spend any more money until some of the balance is paid.

With years of responsible use, you can request your bank extend your credit limit. If you have a good credit report, you may be able to extend your credit card limit with a simple request.

Credit card annual fees

Depending on the credit card you apply for, it may come with an annual fee. Rewards credit cards, travel rewards cards and cash back cards often come with an annual fee: a sum charged yearly to your card for keeping the account open. Fees can range anywhere from $30 to $500 or more.

If your rewards credit cards come with an annual fee, it's important to make sure your rewards balance out every year. When your rewards credit card doesn't pay for the annual fee, you are paying the bank money to keep your card open.

Learn more about credit cards

Expert insight into how credit cards work and how you can maximize their benefits.

  • FAQs

  • Pros & cons

  • Tips

How do I compare credit card offers?

Based on your overall goals, it's easy to compare credit cards and get the perfect option for your needs. It all depends on what you want to achieve, and what types of credit card rewards you value the most.

The first step is to understand and evaluate your credit score. Higher credit scores are needed to qualify for the best credit cards in Canada. If you don't have a good credit history, you mat not necessarily get approved for the best options.

Next, determine what kind of rewards are best for you. Benefits range from points that can be exchanged for travel or merchandise, to cash back that lets you erase portions of your balance. Instead of applying for the biggest rewards credit cards, determine which ones will help you get closer to what you want most. If you are trying to pay off debt or are building your credit history, you may want a credit card with no annual fee, or a balance transfer credit card. The best credit card will offer you plenty of benefit over time.

Finally, it's important to read all the fine print, and make credit card comparisons based on the interest rate and annual fee. If you won't use the rewards, or get the value from the annual fee through using rewards, it doesn't make sense to apply for that credit card.

How do I apply for a credit card?

Most credit card applications start online. After you compare credit card benefits and options, you can be taken to the bank's website to apply. You can also apply at your local bank branch. While most credit card application decisions can be made in minutes, the bank may take up to five business days to make a decision.

What is Annual Percentage Rate (APR)?

The annual percentage rate (APR) is the interest rate you will pay on your credit card. APR is determined by the bank, and is determined by your credit score and credit history.

Credit cards can have multiple APRs, depending on the type. For instance: a balance transfer credit card may offer a promotional APR for the balance you roll over, while having a separate APR for new purchases.

Will my APR change over time?

Your APR may change over time, based on the type of card you have. Variable rate credit cards will change your APR over time, based on multiple factors. On the other hand, a fixed-rate credit card won't change interest rates.

How does my credit score affect my odds of approval?

Your credit score plays a major part in your odds of approval. A high credit score is required to get the best credit cards which offer rewards and bonuses. If you don't have a high credit score, you may only qualify for cards with low credit limits, with annual fees, or with no rewards.

Can I get a credit card if I have a low or no credit score?

It's possible to get a credit card if you have a low credit score or no credit score, but your options will be limited. If you are building or rebuilding your credit report, you may be offered credit cards with no annual fee, or cards with a low credit limit and high interest rate. But as you use these cards responsibly by keeping a low balance and paying off as much of the balance as you can every month, you can build your credit and ultimately qualify for the best cards.

How is my credit affected if I miss a payment or pay late?

If you miss a payment or pay your bill late, your credit may be affected negatively. Credit card companies will report missed payments after 30 days, which hurts your report and lowers your credit score. If you miss more than one payment, you risk your credit card going into default, which is a major derogatory mark on your credit report.

What is a joint credit card account?

Like a joint bank account, a joint credit card is a credit account offered to two holders. Both people are equally responsible for paying off the balance, and can share the rewards together. However, joint credit card accounts have become less and less popular, as banks move to add authorized users instead.

What is a credit card authorized user?

A credit card authorized user is one of more people you authorize to use your account. They will get their own credit card, but may share the same number as yours.

Are there risks of adding an authorized user?

The biggest risk of adding an authorized user is that they are not responsible for paying off the balance. As a result, you may be required to pay for the authorized user, even if they can't pay it off themselves.

What are the benefits of adding an authorized user?

Adding an authorized user can help you earn credit card rewards faster by combining your collective spending. Authorized users may also get some of the benefits of using the card, including travel insurance.

How do I add an authorized user to my account?

To add an authorized user, call your credit card bank and ask to add the person to your account. The bank may check their credit, and you may be asked to acknowledge an authorized user agreement.

Easy way to borrow money

Credit cards are effectively easy loans that let you borrow the bank's money at any time, without worrying about re-applying every time you want to make a purchase. If you pay back the balance every month, it can quickly turn into free travel rewards, or a very low-cost loan.

Build your credit score

As you use credit cards in Canada responsibly, your credit score will grow and provide positive reports on your credit history. In turn, this can help you qualify for the best credit cards, or even bigger credit limits over time.

Track your spending across categories

Many of the best credit cards offer you the opportunity to see how you are using your money, and even let you track your credit score. In turn, your credit card can help you make better decisions about using and saving cash.

Accepted almost everywhere

Second only to cash, credit cards are almost universally accepted – even when you travel. When you are abroad, your credit cards are often more welcome than traveller's cheques, and come with fewer expenses than getting local cash from an ATM.

Earn rewards with every purchase

Rewards credit cards help you earn points, miles, or hotel credits with every spend. The best credit card for your goals and lifestyle can help you save money, or get closer to your next flight at a cheap price.

Safer than carrying cash

While cash can be stolen and gone forever, credit cards can be cancelled and replaced if they are lost or stolen. Even if you are abroad, your bank may be able to issue you a new card within days.

Easy way to get into debt

Although credit cards can earn rewards and bonuses, they are also an easy way to get into debt. If you can't pay the balance every month, you could be forced to pay high monthly bills and interest rates on what you hold over every month.

Spending money you may not have

If you don't budget wisely, spending on your credit card may result in overextending your paycheque every month. This results in credit card bills you may not be able to afford over time, or even bankruptcy.

Make the most out of your card

No matter what type of card you have – rewards credit card, low interest credit card, or balance transfer credit card – be sure to know all the terms and conditions. Rewards cards can earn extra points or bonuses when you spend in the right category, while balance transfer cards help you pay off debt at low interest rates over a period of time. The best credit card may also offer fringe benefits, including hotel status or travel insurance.

Maximize rewards for your lifestyle

The best credit card for your lifestyle will give you usable rewards everywhere you go. As you compare, be sure that you can spend enough every year to earn substantial rewards, along with value that exceeds the cost of the annual fee.

Use all the benefits from your premium card

Top-tier credit cards often offer a number of ancillary benefits you may not be aware of. From rental car bonuses, hotel chain elite status, and faster boarding aboard airlines, be sure you use all the benefits to get back the cost of your annual fee.

Be aware of foreign transaction fees

Although credit cards are often accepted around the world, you may be paying foreign transaction fees when you spend outside of your home country. Foreign transaction fees can add between 1% and 2.5% to your purchases, which is ultimately added to your purchase price.

Be careful of how many cards you apply for

While having multiple credit cards can help build your credit history, applying for too many can create problems over time. Applying for many different cards over a period of two years can hurt your credit score, ultimately reducing your chances of getting the best credit card benefits.

Protect yourself against credit card fraud

Holding multiple credit cards can open you up to credit card fraud. When somebody uses your card without your knowledge or approval, you could be forced to pay the bill if you don't notice it in time. Be sure to check your credit card statement monthly, and be sure to report any fraudulent charges immediately.

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