Pick a card, any card
Navigating the landscape that is the credit card industry can seem overwhelming. The sheer number of cards and products available can make choosing the right card extremely difficult. However, it doesn’t need to be like this.
The right choice
The best way to pick the card that’s right for you is to begin by asking yourself a couple of simple questions. The first question should be, “how long will I need it for?” If you want to use a credit card for a onceoff purchase, then a prepaid card is probably the right option. Prepaid cards do not require contracts and are available in many outlets across the country.
However, if you plan on using your card more regularly, then you might want to ask a couple of more questions such as, “why do I need it?” and , “what would I like to get in return?”
Many cards award points that can be used as payment for goods and services or can be even exchanged for cash. According to Steve Tyres of CIBC, increasing flexibility of rewards is a big plus for customers: “consumer technology is really hot these days — people want the option to redeem points not only for travel but for merchandise — and everyday items like gas too.”
“Choice is vital for our customers... so offering no restrictions on airlines, flights, and times is a big plus for our clients.”
Purchasing merchandise using a credit card is also a simple way to establish credit, especially for those without a credit history, such as students, and newcomers to Canada.All of the major banks offer both student and newcomer credit card packages, although some secured credit cards may require funds up front.
Stephen Menos of TD Bank, says the different choices are representative of people’s needs: “customers want variety and yes, it may appear complex, but really the choices are all about making sure that customers get want they want — whether it’s aspirational awards, a card that helps build credit, or air miles for people who fly a lot.”
Andrea Metrick of RBC also sees choice and consumer demand as a key market driver: “choice is vital for our customers. They demand that we offer flexibility, and real choice in how rewards are used — so offering no restrictions on airlines, flights, and times is a big plus for our clients.”
Narrowing it down For regular travelers, signing up for a card that offers travel miles on purchases is a great idea.All of the major banks offer cards that provide additional travel benefits (such as preferred seating and flight insurance) for a yearly fee.
Perhaps the easiest method to figure out what card is right for you, is to use a credit card selector tool; all of the major banks have such tools on their websites that help customers understand the type of card that is best for them. However, if you prefer the personal touch, you can always walk into your local branch and speak with a representative who can guide you in the right direction.
You don’t have to get lost in the maze; all you have to do is know what you need.