Shop Canada's Best Credit Cards for Good Credit
Credit Cards for Good Credit
If you currently have good credit, then you should know that you're eligible for some great offers and promotions when it comes to credit card shopping. Card issuers and financial institutions have incentives and bonuses for people with good credit and above because they want to reward you for being a responsible and reliable borrower. But if you're shopping around for a new credit card, you may feel overwhelmed by the options available, so today you'll learn about what it means to have good credit, what types of cards and benefits are available to you, and where to look to find the best cards.
What Is a Good Credit Score?
Two credit bureaus in Canada are responsible for gathering information about a person's credit history and creating a credit score based on that activity. The two bureaus are Equifax and TransUnion, and every year each bureau will provide you with a free copy of your credit report. Credit scores go from 300 (very poor) to 900 (excellent), and the higher your score, the more eligible you'll be for better financial terms and offers.
The credit score ranges for good credit are between 680 and 724, and if you have good credit, then it means two things. For one, your credit score is higher than most Canadians. For another, you won't have any trouble qualifying for a credit card or other loans. In fact, you could probably apply for just about any credit card you wanted, and as long as there weren't any annual income restrictions, then you'd probably qualify. Even if your credit score is good, however, you'll want to take measures to keep it where it is or even improve it. To help you with that, here's what the credit bureaus consider when calculating your score:
Payment history: This is the record of you making repayments on your credit, and it includes items like whether you pay your bills on time or are often late. Frequent late payments will have a negative impact on your credit score, and if you want to keep your score high, then never let payments go to collections.
A mix of credit accounts: Lenders like borrowers who can manage a variety of debt types, including credit cards, mortgages, and vehicle loans, for instance. If you have a good credit mix, therefore, then you'll improve your score.
Credit inquiries: Every time you apply for credit, it will negatively impact your score. Although it’s not possible to completely avoid credit inquiries, you can minimize their impact on your score by completing all your loan applications at the same time.
Age of your account: When you start using credit, it takes about six months of regular credit and payment history before you'll have any credit score at all, and it can take upwards of five years for you to build your score above an average or good rating.
Credit utilization ratio: Although credit bureaus want to see that you use your credit regularly, they don’t want you to use too much of it. A good rule of thumb is to not use more than 30 percent of the available credit limit on any of your cards. Similarly, if you have any debts on your credit account, take steps to pay them off as soon as possible.
Exploring the Benefits of Credit Cards for Good Credit
It’s almost impossible to get away with not having a credit card these days, and if you ever want to buy high-priced items, purchase things online, or even book a hotel room, then you'll need a credit card with your name on it. But when you have a good credit score, you can choose credit cards that will actually work for you as well. When you pose a low credit risk to a card issuer (you have good credit or better), you'll be rewarded with a number of perks, including:
- Cards that pay you in the form of points, cash back, travel miles, and other rewards
- Sign up bonuses, such as 10,000 points upon signing up or three months of interest-free purchases
- The lowest interest rates
- Great credit card offers, such as low or no annual fees
- The best terms and conditions, including deals for cash advances, no penalties, and free balance transfers
These days, it's tough to find a credit card that doesn't offer you something back for the money you spend, and when you have good credit, you can pick and choose the offers you want. Whether you want a travel card, rewards card, low-interest rate, or any other type of reward, here are some of the best credit card options if you have good credit:
- Scotiabank American Express Gold
- MBNA World Elite
- The SimplyCash Preferred card from American Express
- American Express Gold Rewards Card
- Scotia SCENE Visa
- No Fee Scotia Value Visa
Finding the Best Credit Cards for People with Good Credit
Most credit card issuers and financial institutions don’t categorize credit cards based on the incentives offered by credit score, and if you want to make sure you get the best bonuses possible for somebody with good credit, then you'll want to use shoptherate.ca. Here, you can filter cards based on the perks, including viewing cards designed for:
- Travel rewards
- Cash back
- Balance transfers
- Low interest
You'll also be able to compare cards and will have easy access to all the information you need to decide what card is best for you, including interest rates, fees, rewards, and special promos.
When you have good credit, a whole world of opportunities is open to you concerning credit cards, promotions and incentives, interest rates, and even favourable terms and conditions. To find the right card for you, determine what kind of limit you want, what rate you need, and what kind of rewards appeal to you most, and then look for a card that can offer you these features. And to ensure you'll always be eligible for the best credit cards, continue taking steps to maintain or improve your credit score.