Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
These days, getting by without a credit card is becoming increasingly difficult. Not only are credit cards more convenient for in-person purchases, but they also make online purchases and remote reservations possible.
Plus, many credit cards can help you make your money work for you with rewards systems that help cardholders earn points with each dollar spent. And they can also help you build and improve your credit score. Your score plays a key role in your ability to secure a number of financial products, and paying your credit card bill on time every month can help you establish a healthy credit profile.
Ninety-five percent of Canadian adults carry at least one credit card in their wallets and use it to pay for most of their purchases. Furthermore, about three-quarters of these same consumers have a credit card that offers some sort of rewards program.
The question is, should you carry more than one credit card?
The number of credit cards that are right for you may be much different than for someone else. Ultimately, the number of cards you carry should reflect how many you need to optimize your spending, as long as you’re responsible with your cards.
Credit cards come with very high-interest rates that can easily skyrocket your outstanding balance if you have a habit of failing to pay it down in full every month. But, if you pay off your entire credit card balance every billing cycle, you can avoid these sky-high rates.
If you’re able to pay off what you put on credit each month, there’s no reason not to have a variety of cards. For instance, one card might be great for paying out rewards for every dollar you spend, while another may have an excellent travel insurance package.
That said, you’ll need to keep the annual fees in mind, as many credit cards charge a fee each year. Make sure that the perks that come with each credit card make it worth paying these fees every 12 months.
Having said all that, for most people, one or two credit cards should suffice. That way, if one credit card doesn’t work for whatever reason, you’ll have another as a backup. In this case, the two cards should be from different credit card providers.
Find out how to build your credit without a credit card.
Every eligible Candian should have a credit card not just to make spending easy and to take advantage of the perks that come with them but also to build credit. As mentioned, having and using a credit card is one of the best ways to build and improve your credit score, which will play a key role in your financial life.
There really is no magic number when it comes to how many credit cards are too many. As mentioned, as long as you are diligent in paying off your credit card bills every month and have weighed the annual fees against the perks that each card offers, there’s no right or wrong answer in terms of how many you should carry.
Find out if your credit card rewards can be taxed.
At the end of the day, the right number of credit cards for you is a personal decision that’s dependent on your current credit score, spending habits, and financial health.
However, there are things to be mindful of when applying for multiple credit cards:
There are several perks and drawbacks to carrying multiple credit cards to consider before you start applying.
Having multiple credit cards in your wallet may not be a good idea for everyone, but there are certain scenarios in which it might make sense and work in your best interests:
If you love to travel, then you may want to add a credit card to your collection that offers rewards to be applied to flights and accommodations, a comprehensive travel insurance package, and VIP perks like free airport lounge access and concierge services.
If you are currently carrying a balance on a high-interest credit card, you may want to look for another card that offers a much lower interest rate and a bonus balance transfer rate. This will give you the chance to move your high-interest credit card balances to a low or even zero-percent credit card for a specific period. If you can muster up enough discipline to pay off your balance during that temporary low-rate time frame, you can pay down your overall debt faster.
As mentioned earlier, having a low credit utilization ratio is good for your credit score. And in addition to making sure that you spend no more than 30% of your entire credit limit, you can also reduce your ratio by increasing your credit limit through additional credit cards.
Find out why your credit card limit decreased.
You can make your money work for you by earning points for every dollar you spend. Once you’ve accumulated enough points, you can use them to redeem things like flights, hotels, gift cards, groceries, and other merchandise and services.
If you’re financially responsible, then having multiple can be advantageous for you. You’ll have a higher credit limit, have a backup card in case one fails, and can take advantage of the different types of perks that each card comes with. Just be sure that you’ve accounted for the annual fees charged and that you’re able to manage different bills when they come in every month.
Rating of 5/5 based on 2 votes.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Don’t pay until March with this offer from our partner, Fairstone.* Ends January 31st.
New Offer! Get up to $2,000 cashback + a $50 bonus on signing up. Conditions apply.
Earn an average 5%¹ cash back at thousands of partners and at least 0.5%² cashback guaranteed.
With KOHO’s prepaid card you can build a better credit score for just $10/month.
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.
When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.
Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.