Is there any mystery as to why some people were not meant to own a credit card? When I talk to most people about debt they tell me that it’s the fault of the credit card they carry in tucked in their wallet. They fail to recognize that the card isn’t doing the shopping, it’s them.
It’s reality that a credit card is sometimes a necessity to book a hotel, rent a car or use paypal and other on-line frequencies. If you don’t have one the consumer hears , you are not privy to use our services or we don’t know if we can trust you. It’s like a gold ticket for these retailers, you mess up, they have your number.
If you credit score isn’t up to snuff you might find yourself lagging your mates who are able to capitalize on all the perks a credit can offer.
What is a Credit Score?
According to Industry Canada a credit score is a judgement about your financial health at a specific point in time. You can check your credit score for free once per year. You are rated on a scale of 1-9 where a 1 means you pay your bills within 30 days of the due date. If you have a rating of 9 well you have some explaining to do. This means you never pay your bills or you have went into consumer debt repayment proposal. Know your score, it’s important to your financial well-being and if you don’t understand your report you can learn all about it just by clicking here.
Credit Cards don’t have to have a bad wrap if they are used properly and paid in full at the end of the month. The best part may be the incentives involved if used properly although credit card companies simply want you to pay the minimum balance. Then what happens? You know all those perks.. well you are now paying for them in interest charges. Not all cards are created equally so it’s up to you to decide what’s best for you.
Oh, and make sure you read all the fine print and know what your interest rate and any “other” potential charges are. If it doesn’t make sense to you ask. The only stupid question is the one you didn’t ask. Many people toss the fine print in the bin and then when something goes wrong they blame the credit card company…. READ!
People who use these credit cards to their advantage like us take the perks and run with them. Whether you get Air Miles, groceries, money-back, scene points or gas it’s money back in your budget, provided you pay the bill when it comes knocking.
The hard part is figuring out what credit cards are right for you and leaving the one’s you will never use behind. Don’t be fooled or enticed to Spin the Credit Wheel by discounts and deals if you won’t use the card.
The last thing you want is more credit on your credit report that you aren’t using just to get a discount. It’s better to leave a long-standing credit card on your report than to cancel it. You may want to read up about how cancelling a credit card could potentially hurt your credit score.
If you think Pre-paid credit cards are the better option, think again. I received one for a Christmas Gift and what load of hooey. They charged me a $5.o0 activation fee on a $20.00 card. What kind of crap is that? Who buys these cards? Read the fine print or you might be spending more than you bargained for.
We have a couple credit cards which we prefer to use and I’ll tell you why
- I simply love this card as I’m a handy man and spend alot of money at Canadian Tire buying tools and household items. My Canadian Tire Money has come in handy or more than one occasion and has saved money in our home maintenance and vehicle maintenance budget.
- I use this for everything we purchase for the home and fuel in the vehicles. I also like to take advantage of email coupons sent by Canadian Tire which offers 10x points or other deals.
PC Financial MasterCard
- Free Groceries, sure bring it on. We’ve lost count how much we have received back in PC points and used towards FREE groceries. We purchase all our groceries with this card as well as get points through paying our bills online and bringing our own shopping bags. This has been a lovely incentive credit card for us and we plan to use this as long as they offer PC points.
Here’s what some of my Facebook Fans had to say about Why they LOVE their Credit Cards?
- Allyson Turner- It’s gotten me free movie tickets, free gas, and a great credit rating which will allow me to buy a house without needing my parents to co-sign for. It allows me to not miss paying my phone bill, and make instant payments through paypal, as well making purchases online where paypal is not accepted.
- It allows me to buy my gasoline without going in to the store and having to wait in line. I don’t live off of my credit card, but it definitely has had some pretty good uses. 🙂
- Coupon Christine I LOVE my credit card! I never ever carry a balance (especially now that I am a full-time couponer and never ever buy above my means). If I want to get something fancy like a new pair of jeans, something else must go that month.
- I have always been a PC MasterCard girl because of the perks I get when buying and using my card. Free groceries?? Yes please! I also benefit from using my credit card at the PC Gas bars too where I get 4% cash back in the form of an in store coupon redeemable as well on FREE GROCERIES (yes please once again).
- I have always been a smart shopper as well as I hate paying interest, that makes it just feel wrong as we already pay 13% tax .. who wants to pay another 18% on that … it would be just wrong.
- Shelley Ann McInnes Chenier– My hubby loves our credit card because he gets Canadian Tire money on the card. We do pay it off within days of using it!
- Zayba Butt Ramoutar- I love my credit card!!! I have a Shoppers Optimum MasterCard and usually only spend on my card, which is always paid off every month. It helps me keep track of my spending and gets me extra Optimum points! I end up redeeming every few months…of course I wait for the spend your points events!
- Michelle Dacey- My credit card has a $39 annual fee and I receive 2% cash back on all recurring bills, pharmacy purchases, gas and grocery purchases and 1% cash back on every other purchase. My payout is in November and I received $245.17 back in my chequing account. So for $39 I made $206.17 just for using my credit card. I’d be silly not to use my credit card for every purchase!!
- Meeow Meow- I have the pc one which is my main one and get points every time I use it. I can cash points in at RCSS for gas or other rewards. Usually i don’t carry a balance. they are a good financial tool used right.
- Jodie Munshaw -I get travel rewards. I have a short-haul flight and a good chunk already towards next winters vacation. I can also choose to put it towards an investment such as an RRSP if I want.
Sam@CreditCardShoppe says
I like my Discover It card because they charge no foreign transaction fees and I travel quite a bit. As far as prepaid cards go, you might think they are not so good, but they are a life saver for people who cannot get a credit card due to bad credit. Everyone can get approved and they can be used everywhere just like a regular credit card. They can be great for budgeting your monthly expenditures as well. Just shop around for the ones with the low or no activation fee and you’ll be all set.
willfeins says
The demand for credit card use has increased for the past years and this article gives us an idea of what to expect from credit cards. Credit card is an option and not a necessity. Before you get one, try to consider if you need it or want it
Canadianbudgetbinder says
Hi, Thanks for your comment. It’s true what you say. Some people feel pressured when they walk into a store by a credit card sales person. They tell them they can get discounts and 15% off their order if they apply for the card today. Like you say though, ask yourself, “do you need the card”. Most often I’ m betting it’s no. Thanks. Mr.CBB
mycanuckbuck says
Mr. CBB – I love this line! They fail to recognize that the card isn’t doing the shopping, it’s them. I just picture someone’s card jumping out of their wallet, and going for a little walk and shopping.. 🙂 I have a CIBC Adventura card which gives you points you can use for gift cards or travel!
Canadianbudgetbinder says
Ha, sounds to me like someone has a creative memory! What have you actually used your points on? I used a load today at PC.. I”m just about to post the amazing deals we found. Let’s just say there is NO room in the freezer. Mr.CBB
denlyn3 says
I love getting free groceries at Costco by using my American Express Card.
Joanna Cheevers says
I’ve had a credit card for close to 20 years. I have never paid a cent in interest. I’ve always kept in my mind that if I don’t have the money in the bank to pay the monthly balance off, then I cannot afford what I am purchasing and have to either not buy what I want or need, save more up before I can make a purchase or buy a less expensive product. As someone that shops at Walmart frequently I made sure to get the Walmart mastercard when it became available. I use it to pay for just about everything and reap the rewards. I pay it off every month. It is also nice for budgeting because if a miss a receipt, I can just look at my statement. Thanks Mr. CBB for the post!
Canadianbudgetbinder says
That is how everyone who has a credit card should think. It’s not free money, it’s an evil love/hate relationship that can turn sour very very fast if we are not mindful. Great tips. Thanks for sharing Joanna!! Mr.CBB
forpinoy says
Great article you have here. Thank for the information shared about credit cards. Well, it can be good or bad depending on how you use it.
Canadianbudgetbinder says
Yes that is exactly the point eh mate, it can be a positive perk or a destructive evil. Cheers and thanks for your comment. Mr.CBB
sherri warnes says
i love my capital one card and paypal, The reason is low interest on capital one and would never be without either one. There are some great deals on the net, so i only use them for that reason.
Canadianbudgetbinder says
Good for you.. it’s important to find cards that fit your lifestyle and can use and pay off each month. In your case you point out a low interest rate which is also important. Thanks for posting Sherri! Mr.CBB
Jen P says
Another great article Mr CBB! I really can’t decide now if I want to try and get another PC Mastercard! lol
Canadianbudgetbinder says
You are the master of your destiny, make your decisions for the right reasons.. and research everything, and ask the right questions. Cheers Mr.CBB
April Christianson says
Looking forward to trying to get into a good place with our credit cards. It will take us some time but we are starting to work on it now.
Canadianbudgetbinder says
That’s good news! Get rid of that debt and never make an excuse to use the credit card again unless you have the money to pay it at the end of the month or you are putting yourself back in danger. Save money in an emergency fund now even if it’s $5 a month… Cheers Mr.CBB
Stephanie says
never thought of a PC Financial card for points! Credit Cards are necessary for booking travel, hotels or an emergency. I only use mine if I know I have the money to pay it off right away or for a planned trip
Canadianbudgetbinder says
Good for you, paying off your credit card debt in full each month means you are smart with your money. Once you make excuses for not paying you are on your way to some trouble.. back up and take a breath and get back on track. Godd Luck. Mr.CBB
Wendy says
My husband loves credit cards and they are one thing that contributed to our financial problem the first time around. Now that all that debt will be paid off when the house closes, we are playing it smarter. This time around we will have one credit card with a $500 limit for some of the reasons you mention in the article, hotel booking etc. He has agreed that this will be the only reason it will be used. Other than the mortgage and a car payment this is all the debt that we will have. I am looking forward to living out from underneath extreme financial stress.
Canadianbudgetbinder says
Once you understand how you spend your money and why you do what you do you will become more mindful of your spending. At least that is what you will hope for. Good Luck and I look forward to learning more from you! Cheers Mr.CBB
nickydon40 says
PC Card gets me free shopping and we usually save it up for xmas pressies at the end of the year.
Canadianbudgetbinder says
That’s the cool part you don’t need to just spend it on groceries. You can use it on almost everything in the store. RCSS, and Zehrs some of them have full stores with household items, clothes etc.. it’s great. Thanks for your post Nicola! Mr.CBB 😉
Canadianbudgetbinder says
I love to use my cards for rewards , I use them then pay them right off when I get home ! great way to earn the rewards and never pay interest !
Wendy LeDrew says
great read once again:) I liked the part about always reading the fine print best!!!!
Canadianbudgetbinder says
It’s true, we are both guilty of not reading the fine print in the past and nearly got the surprise of a lifetime.. always read what you are signing up for! Thanks for your comment. Mr.CBB
Dani Ray says
I might have to get a PC credit card! I never knew it was that easy to get free groceries!
Canadianbudgetbinder says
It’s such an awesome Credit Card.. we can get up to $1000 a year depending on how much we put on the credit card and pay off each month… awesome. No I don’t work for them … lol just like free. Thanks for your comment Dani. Mr.CBB
Candice M says
credit cards can indeed be good, its knowing how to use them to your benefit though.
Canadianbudgetbinder says
That’s the name of the game!! Spend and pay it off in full.. enjoy the rewards if any. Cheers and thanks for your post. Mr.CBB
amie pepper says
I dont have credit cards, and I seem to think it helps me budget better. It also makes life less stressful with no debt!!
Canadianbudgetbinder says
Whatever makes you comfortable is what’s iimportant. There is no perk that will ever add up to stress free living without debt! cheers Amie! Mr.CBB
Zayba Ramoutar says
Awesome 🙂 Yet another great Article!!!!!!!!
Canadianbudgetbinder says
Zayba, that’s because we have a wonderful community who loves to share their opinions. cheers and thanks for your support and comments. Mr.CBB