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No matter where you’re at in your settlement journey, this is your guide to some best practices when it comes to using your credit card in Canada with confidence.
A credit card is an important part of many people’s daily lives. That’s partly because of its convenient purchasing power and potential to help you earn rewards are hard to match
., but there are a few key things you need to remember when using your credit card in Canada
DO: Earn Cash Back
One of the single biggest benefits you can get from having the right credit card is earning cash back. That means you can get a small percentage of the money you spend right back.
For example, with a CIBC Dividend Platinum® Visa* Card you can get 3% cash back on eligible gas and groceries purchase and 2% on dining and transportation.
If you’re planning to use your credit card a lot, make sure you’re getting some cash back in return.
DON’T: Neglect Your Credit Score
Your credit score is a three-digit number (between 300-850) that predicts your ability to pay off debts, while helping you establish your ability to make major purchases. It’s important to maintain a good score. For instance, banks can use it to determine whether or not to lend you money and landlords can use it to see if they want to have you as a renter.
Thankfully, the quickest way to build your credit score in Canada is by obtaining a Canadian credit card and making your payments when due.
Some cards even let you build your credit and earn cash back at the same time, like the CIBC Dividend Platinum® Visa* Card.
DO: Keep Your Card Safe
This should go without saying but keep a close eye on your credit card. Don’t write down or unnecessarily give out details like the number or your PIN. Don’t enter it into websites that don’t seem trustworthy. Don’t leave it sitting around in the open.
Basically, treat it like it’s a big stack of money because that is basically what your card represents.
DON’T: Forget About the Other Perks
Depending on the credit card you have, you could be looking at a wealth of additional benefits. One great perk is mobile banking, which provides card account insights straight from your phone. Additionally, e-transfers are a common benefit that can allow you to send money to someone in Canada or back home.
And there are a lot more benefits where those came from…
DO: Get the Right Credit Card
Finding the right credit card in Canada is different for every person. But we have a great place you can start with lots of newcomer benefits.
Enjoy up to $198 in value‡ when you open a new CIBC Dividend Platinum® Visa* Card. Learn more about all of the other potential benefits, like the $15,000 credit limit◇, by speaking to a CIBC advisor today.
Ready to put these tips into practice for yourself?
*Opinions expressed are those of the author, and not necessarily those of Student Life Network or their partners.