You’ve worked hard. You’ve used your credit card responsibly and over the years you’ve built good credit. Congratulations!
Good credit is one of the cornerstones of a solid financial future and will open the door to benefits like low mortgage rates, favourable car loan rates and access to the best credit cards. Now that you’ve put in the hard work, you’re ready to reap the rewards. All you need to do is choose the right credit card for your good credit. If you’re looking for the best credit card in Canada, you have several options.
Scotiabank Value Visa
The Scotiabank Value Visa has no income requirement for individuals or families, which makes it a great choice for younger credit card users working their way up the income ladder. The Scotiabank Value Visa offers a low interest rate of 11.99% on all purchases, cash advances and balance transfers. In fact, if you open an account before October 31st, 2015, you’ll enjoy 0.99% interest on balance transfers and cash advances for the first six months. This special offer could be a great way to pay off high-interest debt.
This credit card has an annual fee of $29 and the standard interest-free grace period of 21 days applies to all purchases. If you are a frequent rental car user, you’ll be happy to know that if you book an AVIS rental car with this credit card, you’ll receive a 20% discount.
The Scotiabank Value Visa is a good option for new credit card users or those looking for a low-interest balance transfer option. But if you are a seasoned, high-earning credit card user who wants to get the most out of your spending, consider the TD Aeroplan Visa Infinite.
TD Aeroplan Visa Infinite
The TD Aeroplan Visa Infinite differs from the Scotiabank Value Visa in a few key ways. First, the TD Aeroplan Visa Infinite has a minimum income requirement of $60,000 per year or $100,000 per year for families. The annual fee is steeper than the Scotiabank Value Visa at $120, but TD waives half of that for the first year. The interest rate on this credit card is 19.99% for purchases and 22.99% for cash withdrawals. There is no balance transfer option for this credit card.
The biggest difference between the two credit cards is the TD Aeroplan Visa Infinite is a rewards credit card, which means you’ll earn Aeroplan Miles on your purchases. With this credit card, you’ll earn 1.5 Aeroplan Miles per dollar spent on travel, gas, groceries and at the pharmacy, and 1 Aeroplan Mile per dollar spent on everything else. You’ll also earn 15,000 Aeroplan Miles when you sign up for this credit card and an additional 10,000 Aeroplan Miles if you keep your account in good standing for three months. That’s a $180 and $120 value, respectively. If you spend $1,500 per month on this credit card, you’ll earn about $510 in rewards in the first year.
When considering which of these two credit cards to choose for your good credit, you should keep in mind that they’re ideal for different situations. If you want a credit card with a low interest rate and no minimum income requirement, the Scotiabank Value Visa is a good option. If your goal is to maximize your spending with credit card rewards, the TD Aeroplan Visa Infinite is the right choice. To compare the best credit cards in Canada 2015, use our credit cards reward calculator.
Flickr: Sarah Reid