Matching a credit card to your lifestyle depends on your priorities
Your age and life stage can determine the rewards you’d most like to collect
If you’re using the same rewards credit card as your 80-year-old mother, it might be time to rethink what’s in your wallet. By choosing a credit-card rewards program that best suits your lifestyle and your rewards goals, you can maximize your earning potential. Cash-strapped student If you can avoid using it to blow tuition money on less academic pursuits, having a credit card during your post-secondary years can help you begin to build good credit history — key to future pursuits, like purchasing a car or applying for a mortgage. Best pick: BMO SPC Cashback MasterCard
This no-fee credit card has the benefits of the SPC (Student Price Card) program built in. The SPC — which on its own costs about $12 per year — gives students discounts of between 10 and 15 per cent at more than 100 retailers across Canada. Cardholders also earn 1 per cent cash back on all purchases (no restrictions).
Bonus: For a limited time (until April 30, 2016), new BMO cardholders will receive a $50 cashback bonus when they enrol. Aspiring globetrotter There’s a plethora of travel rewards cards to help satisfy your wanderlust. Cards with annual fees typically come with greater reward earning potential, but there are great no-fee options as well. Best picks, with fees: Capital One Aspire Travel World Elite MasterCard, Scotiabank Gold American Express Card
The Capital One Aspire Travel World Elite MasterCard gives users two rewards miles for every dollar spent, no matter what the purchase. If you spend $1,000 within the first three months of using the card, you’ll receive 40,000 bonus rewards, which translates to $400 worth of travel. The annual fee is $150 and you must have an annual personal income of at least $70,000 or a household income of $120,000 to sign up.
If you don’t meet those income requirements, consider the Scotiabank Gold American Express card. Cardholders earn four rewards points for every dollar spent (up to $50,000 annually, at which point cardholders earn one reward point for every dollar spent) on eligible grocery, gas, entertainment and dining purchases, and one point for all other purchases. This card’s annual fee is $99 and each additional card will cost $29.. Best pick, no fee: Capital One Aspire Travel Platinum MasterCard
You won’t pay to hold this card but you will earn one reward mile for every dollar spent, with no restrictions. Plus, you’ll get a new cardholder bonus: 10,000 reward miles ($100 worth of travel) when you spend $500 in the first three months. Soon-to-be parents A baby on the way means you’ll be thinking more about diapers than getaways. You need a card that will help you cover expenses when the little one arrives. Best pick: PC Financial World Elite MasterCard
If you do the majority of your shopping at Loblaws stores, you can quickly rack up points. It has premium earning benefits; this card will net you 30 PC points for every dollar spent at stores where President’s Choice products are sold, as well as at Shoppers Drug Mart and Pharmaprix MD stores. All other purchases earn at least 10 points per dollar, and 10,000 PC points equals $10 in rewards. This is Canada’s first “elite” card that doesn’t come with a fee, although you do need a minimum annual personal income of $70,000 or a household income of $120,000. Savvy small business owner As the owner of a small business, you have an additional catalogue of ex- penses — and an additional opportunity to win rewards. Best pick: Scotia Momentum for business VISA card
The cashback rate on this card makes it a winner. You’ll get 3 per cent back on purchases made at office supply stores, restaurants and gas stations, as well as on recurring bill payments (including Internet, phone, utilities and insurance). All other purchases are eligible for 1 per cent cash back. Travel emergency medical insurance (for up to eight days) and rental car collision and damage insurance is included. This card’s annual fee is $49 and each additional card will cost $29. Note that the maximum credit limit for this card is $50,000. Laid-back retiree If your finances are in order and if you’re not jet-setting for most of the year, the best card may be the simplest — no fee, no legwork, with attractive perks. Best pick: Tangerine Money-Back Credit Card
This MasterCard lets you earn cash back for no annual fee. You’ll receive 2 per cent cash back in two categories of your choosing (such as drug stores, grocery, gas, public transit and more) and 1 percent back on all other purchases. Bonus: if you apply by June 27, you’ll earn 4 per cent cash back on your selected categories for the first three months.