Credit Cards
 

I'm going to apply for my first credit card soon and I'd like your help since...well, I don't know jack about credit cards.

Ok a couple things:
- I need a card that will have enough credit for me to pay my tuition once in a while, that's the main purpose...which means maybe a ~$3k credit limit. I think. I know you can jsut do a bank direct thing but ppl are always saying something about a credit history so I might as well start now.
-I'd like a card that gives some some type of frills and bonus and those type of things. It's no big deal though :)
-I don't care much for interest rates, my bills are always paid on time and I don't spend more than I have
-If it means anything, I'm in Vancouver

So is my best bet to go to my bank? What are other companies that offer them? Where do I find these companies? I'm such a n00b...inform me! pls :)

I got my first one a couple of years ago from Royal Bank, they have a Student Visa package with a $1k limit and a bonus points thing, but I can't remember what the interest rate was. It's almost a guaranteed acceptance as long as you're making at least $2k a year.

lafemme

Visas are what most of the major Financial Institutions carry. I work at RBC so if anything I says leans towards them, you now know why...

Back to Visas. Up here in Canada Visas are almost all of the time run through banks. In the states I beleive you can get just a "VISA" no names attached type dealy. Its still just a credit card. Ok... where am I trying to go with this?

RBC carries a Visa, as do CIBC, TDCT, and Scotia. BMO carries Master Card as do most all Credit Unions. Master Cards are also carried by other non banking Financials like Citibank, MBNA.

Visas/Mastercards are great revolving credit, especially if you are paying it off every month. But if you can qualify try to get a Credit line. Same thing but a much lower interest rate. Visas/MC average @ 18.5% Interest per Annum. With low rate options the lowest I have seen it 10.5%. But credit lines are much lower like Prime + 1~2% depending on credit or if you have some security or co-signers. Prime atm is something like 4.75% so 5.75~6.75%. With credit lines you dont have any "Cash Back" or reward systems.

Ok...

Visas do offer many different Reward programs based on "points" per dollar spent. Depending on the card RBC offers points for

Rewards like Gift Certificates for The Bay, Futureshop, Home Hardware

Points to be used to select items from a Catalogue a la Zellers...

Points towards Air Travel.

I do not think that RBC offers a Cash Back Card. CIBC does. The CIBC Dividend Card.

The other banks offer alot of the same. Guess just depends on where you bank really. Mastercards I dont know too much about. Most offer Air Miles though... like the BMO cards.

And if you are a golfer dont forget about the "Mike Weir" card... you get points every time he wins! Really I am not that excited about it.

Anyways... hope that gives you some general information to help you find what you need!

Later.

Kris.

Most point systems and rewards require you to pay an annual fee.

If you are spending enough on the CC, it can be worth it. If you avoid using CCs, a no-fee CC can be best.

If you're collecting reward points, you're probably going to get a card with a 19% interest rate. Note that most banks have a "low rate option" that will get you a card for 10% annual, or less. RBC is one of them. Scotiabank is another. They may have a small annual fee ($25, say), but you won't get a lot of the other options (like purchase protection, payment insurance, etc.)

What ChasingAmy says about credit lines is right on the money, if I may use that phrase. If they work for you, hey, all the better. You'll benefit from the low interest rate, if you pay it off within a few months and don't try to carry a balance.

Lastly, if you're paying tuition with it, you're in a prime position to rack up a bundle of points. CIBC's aerogold visa, with a $125(I think) annual fee, could be the way to go. If you're good about not carrying a balance, the 19% interest rate shouldn't be so scary. But just be careful about that.

Good luck, and happy spending!