Category: Credit Cards

Credit card fraud can happen to anyone — through data breaches, skimming devices, phishing messages or lost cards. While card issuers typically protect you from unauthorized charges, acting quickly is important. Here is how to protect yourself and what to do if your card is compromised.

Common Types of Credit Card Fraud

• Card-not-present fraud: stolen card details are used to shop online or by phone.
• Skimming: devices hidden on card readers, gas pumps or ATMs copy your card information.
• Phishing: fake emails, texts or calls pretend to be your bank and ask for your details.
• Lost or stolen cards used before you notice they are missing.
• Account takeover: criminals gain access to your online banking or change your contact information.
• New account fraud: someone opens a new card in your name using stolen personal information.

Warning Signs

• Purchases you don’t recognize, even small ones — fraudsters often test cards with tiny charges
• Alerts about password changes or new devices you didn’t add
• Missing statements or unexpected changes to your mailing address
• Calls from collectors about accounts you never opened

What to Do Immediately

1. Call your card issuer using the number on the back of your card or on the official website — not a number from a suspicious message.
2. Lock or cancel the card. Many banking apps let you lock a card instantly.
3. Review recent transactions and report every charge you didn’t make.
4. Change your online banking password and turn on two-step verification.
5. Check your credit reports with Equifax and TransUnion for new accounts you didn’t open.
6. Report fraud to the Canadian Anti-Fraud Centre and, if your identity was stolen, to your local police.

Are You Responsible for Fraudulent Charges?

Major card networks and issuers in Canada generally offer zero-liability protection for unauthorized transactions, as long as you took reasonable care of your card and PIN and reported the problem promptly. Check your cardholder agreement for the exact terms.

How to Reduce Your Risk

• Turn on transaction alerts so you are notified of every purchase.
• Never share one-time passcodes — your bank will never ask you for them.
• Use tap or chip rather than swiping, and cover the keypad when entering your PIN.
• Shop on secure websites and avoid saving your card on sites you rarely use.
• Use strong, unique passwords and a password manager.
• Be suspicious of urgency — scammers create panic to make you act fast.
• Shred documents that contain account information.

The Bottom Line

You can’t prevent every fraud attempt, but you can make yourself a much harder target and limit the damage. Turn on alerts, protect your passwords and codes, and contact your issuer immediately if something looks wrong.

This article is for general information only and is not financial or legal advice.

Interest is not the only cost of a credit card. Many cards charge fees that can add up to hundreds of dollars a year if you are not paying attention. The good news is that most of them are avoidable with a few simple habits.

1. Annual Fees

Many rewards and premium cards charge an annual fee. That fee is only worth paying if the rewards and benefits you actually use are worth more than the fee.

How to avoid it: choose a no-fee card if you do not use the extra perks. If you already have a fee card, ask the issuer whether it can waive the fee or move you to a no-fee version without closing your account.

2. Foreign Transaction Fees

When you buy something in a foreign currency — while travelling or shopping online from another country — many cards add a fee of around 2.5% on top of the exchange rate.

How to avoid it: use a card that does not charge foreign transaction fees for international purchases, and decline “dynamic currency conversion” offers at foreign terminals, which often use poor exchange rates.

3. Cash Advance Fees

Withdrawing cash with a credit card, or using it for certain cash-like transactions, usually triggers a flat fee plus interest that starts immediately, often at a higher rate.

How to avoid it: use a debit card for cash, and build an emergency fund so you are not forced to take a cash advance.

4. Late Payment Fees

Paying after the due date can result in a fee and, in some cases, a higher interest rate. Late payments can also be reported to the credit bureaus.

How to avoid it: set up automatic payments for at least the minimum, and add a calendar reminder a few days before your due date.

5. Over-Limit Fees

Some cards charge a fee if your balance goes over your credit limit. In Canada, issuers generally need your consent before charging over-limit fees.

How to avoid it: keep your balance well below your limit and set up balance alerts in your banking app.

6. Balance Transfer Fees

Moving a balance to another card often comes with a one-time fee.

How to avoid it: look for promotions with low or no transfer fees, and make sure the interest savings are bigger than the fee.

7. Returned Payment Fees

If a payment bounces because of insufficient funds, both your card issuer and your bank may charge a fee.

How to avoid it: make sure money is in your account before your automatic payment date.

8. Additional Card Fees

Some cards charge for adding an authorized user.

How to avoid it: check the fee before adding someone, or choose a card that offers free additional cards.

Review Your Statement Every Month

Read your monthly statement and look for any fees or charges you do not recognize. If you see a fee that seems unfair or was charged by mistake, call your issuer — they will sometimes reverse it, especially if you have a good payment history.

The Bottom Line

Most credit card fees are avoidable. Pick a card that matches how you spend, pay on time, avoid cash advances, and review your statements. Those habits can save you a meaningful amount every year.

This article is for general information only and is not financial advice.

If you are carrying a balance on a high-interest credit card, a balance transfer offer can give you breathing room. By moving your debt to a card with a low promotional interest rate, more of your payment goes toward the balance instead of interest. But balance transfers come with rules and traps that are easy to miss.

How a Balance Transfer Works

You move debt from one or more credit cards to a different card — usually a new card or one you already have — that offers a low promotional rate for a set period, such as 6, 10 or 12 months. After the promotion ends, the remaining balance is charged the card’s regular balance transfer or purchase rate.

The Costs to Know

• Transfer fee: many cards charge a one-time fee, often a percentage of the amount transferred.
• Promotional period: the low rate only lasts for a limited time.
• Regular rate after the promotion: often around 20% or higher on standard cards.
• Annual fee: some balance transfer cards charge one.

Example

You owe $5,000 at about 20% interest. You transfer it to a card offering a low promotional rate for 12 months with a 3% transfer fee ($150). If you pay about $430 a month, you could clear the balance before the promotion ends and save hundreds of dollars compared with leaving it at 20%.

Common Traps

New purchases may cost more

On some cards, new purchases are charged the regular rate while the transferred balance gets the promotional rate. It is often best to avoid using the balance transfer card for new spending.

Missing a payment

Some offers can end early if you miss a payment. Set up automatic payments for at least the minimum.

Not paying it off in time

If you only make minimum payments, a large balance may remain when the promotion ends, and interest will start building again.

Running up the old card

Once your old card is at $0, it is tempting to use it again. Doing so can leave you with twice the debt.

How to Use a Balance Transfer Successfully

1. Divide the total balance (plus fee) by the number of promotional months to find the payment you need.
2. Automate that payment.
3. Stop using the old card for new purchases, or keep it only for small, planned expenses you pay in full.
4. Read the terms for how payments are applied and when the promotion ends.
5. Mark the end date on your calendar.

Who Should Consider a Balance Transfer

A balance transfer is a good fit if you have a clear plan to repay most or all of the balance during the promotion and the discipline not to add new debt. If your debt is too large to repay in that time, a debt consolidation loan or a non-profit credit counselling program may be more effective.

The Bottom Line

A balance transfer is a tool to pay off debt faster, not a way to postpone it. With a firm payoff plan, it can save you real money.

This article is for general information only and is not financial advice.

If you are new to credit, new to Canada, or recovering from past financial trouble, getting approved for a regular credit card can be difficult. A secured credit card is designed for exactly this situation. It works like a normal credit card but is backed by a deposit, which makes approval much easier.

How a Secured Credit Card Works

You give the card issuer a refundable security deposit — for example, $500. That deposit usually becomes your credit limit. You then use the card for purchases and receive a monthly statement, just like any other credit card.

If you stop paying, the issuer can use your deposit to cover the balance. Because the lender’s risk is low, approval rates are high, even for people with poor or no credit history.

How It Builds Your Credit

Most secured cards report your account activity to the credit bureaus. Every on-time payment adds positive information to your credit file. Over time, this history can raise your credit score and help you qualify for unsecured cards and loans.

Before applying, confirm the card reports to Equifax and/or TransUnion. If it does not, it will not help your credit.

Secured Card vs. Prepaid Card

These two are often confused. A prepaid card is loaded with your own money and is not a credit product, so it does not build credit history. A secured card is a real credit card account that is reported to the bureaus. If your goal is building credit, choose a secured card.

What to Look For

• Reporting to the credit bureaus (essential)
• Low or no annual fee
• A minimum deposit you can afford
• A clear path to an unsecured card and deposit refund
• Reasonable interest rate, in case you ever carry a balance

How to Use a Secured Card the Right Way

1. Use it for small, regular purchases like a phone bill or streaming subscription.
2. Keep your balance low — under 30% of the limit is a good guide.
3. Pay the full balance on time, every month. Set up autopay as a safety net.
4. Check your credit report after a few months to confirm the account is showing up.

How Long Until You See Results?

Many people see their credit file begin to improve after six months of consistent, on-time payments. After roughly 12 to 18 months of good history, you may qualify for a regular unsecured card. Some issuers will review your account and return your deposit automatically; others require you to ask.

Common Mistakes to Avoid

• Maxing out the card, which raises your utilization and can lower your score
• Missing payments, which defeats the purpose of the card
• Closing the account too soon, which can shorten your credit history
• Applying for several new cards at once after you graduate

The Bottom Line

A secured credit card is a simple, low-risk tool for building or rebuilding credit. Choose one that reports to the credit bureaus, use it lightly, pay it in full every month, and you will be on your way to stronger credit.

This article is for general information only and is not financial advice.

Rewards credit cards can put real money back in your pocket — but only if you choose the right type and use it the right way. The two most popular categories are cash back cards and travel rewards cards. Here is how they compare and how to decide which one suits you.

How Cash Back Cards Work

Cash back cards return a percentage of your spending as a credit on your statement or a deposit. Some offer a flat rate on everything, while others pay higher rates in specific categories such as groceries, gas, or recurring bills.

Pros:

• Simple to understand — a dollar is a dollar
• No need to track point values or booking rules
• Many good no-annual-fee options

Cons:

• Earn rates may be capped or limited to certain categories
• Some cards pay out only once a year

How Travel Rewards Cards Work

Travel cards earn points or miles that you redeem for flights, hotels, or other travel. Some are tied to a specific airline or hotel program, while others use flexible points you can transfer or redeem for many kinds of travel.

Pros:

• Points can be worth more than cash back when redeemed strategically
• Premium cards may include travel insurance, lounge access, or free checked bags
• Large welcome bonuses are common

Cons:

• Point values vary and can be confusing
• Higher annual fees are common on the best cards
• Availability rules and blackout dates can limit redemptions

Questions to Help You Decide

1. How often do you travel? If you take one or more trips a year and enjoy planning redemptions, a travel card may be worth it. If not, cash back is usually better.
2. Where do you spend the most? Match the card’s bonus categories to your real spending.
3. Will the rewards cover the annual fee? Estimate your yearly rewards and subtract the fee to see your true return.
4. Do you value simplicity? Cash back requires almost no effort.
5. Do you carry a balance? If so, interest will likely outweigh any rewards. A low-interest card may be a better choice.

A Simple Example

Suppose you spend $1,500 a month on a card. At an average 1.5% cash back, that is about $270 a year. A travel card that earns points worth the same or slightly more could beat that — but if it charges a $120 annual fee, you need to redeem well to come out ahead.

Getting the Most From Any Rewards Card

• Pay the full balance every month — rewards are never worth paying interest.
• Do not overspend just to earn points.
• Check whether rewards expire and redeem them regularly.
• Review your card once a year to make sure it still fits your spending.

The Bottom Line

Choose cash back if you want simple, guaranteed value. Choose travel rewards if you travel regularly, are comfortable learning a points program, and the rewards clearly outweigh any annual fee. Either way, the best rewards card is the one you pay off in full.

This article is for general information only and is not financial advice.

Credit cards can be completely free to use — or one of the most expensive forms of debt you will ever carry. The difference comes down to understanding how interest is charged. This guide explains grace periods, interest rates, and minimum payments in plain language.

The Interest Rate on Your Card

Every credit card has an annual interest rate for purchases. In Canada, standard cards commonly charge around 20% or more, while low-rate cards may be closer to 10–13%. Most cards also have a separate, often higher rate for cash advances and balance transfers (unless a promotion applies).

Although the rate is stated annually, interest is usually calculated daily on your balance and charged monthly.

How the Grace Period Works

The grace period is the time between the end of your statement period and your payment due date. In Canada, federally regulated card issuers must give you at least 21 days interest-free on new purchases — but only if you paid your previous statement balance in full.

If you pay in full by the due date every month, you never pay purchase interest. That is the single most important credit card habit.

What Happens If You Carry a Balance

If you do not pay the full statement balance, you typically lose the grace period. Interest is then charged on the unpaid balance, and new purchases may begin accumulating interest right away until the balance is paid in full again.

Cash Advances: No Grace Period

Withdrawing cash from your credit card, or using card “cheques,” usually counts as a cash advance. Interest starts the day you take the money, and there is often a flat fee on top. Avoid cash advances except in true emergencies.

The Minimum Payment Trap

Your statement shows a minimum payment — often a small percentage of the balance or a set dollar amount, whichever is greater. Paying only the minimum keeps your account in good standing, but most of that payment may go to interest rather than reducing what you owe.

Example: With a $3,000 balance at about 20% and payments of only the minimum, it can take many years to pay off and cost thousands in interest. Canadian statements are required to show an estimate of how long it would take to pay off your balance by making only minimum payments — check yours.

How Payments Are Applied

When you pay more than the minimum, issuers in Canada must generally apply the extra amount either to the balance with the highest interest rate first, or proportionally across balances. Paying more than the minimum always helps.

Practical Ways to Pay Less Interest

• Pay the full balance every month whenever possible.
• Pay more than the minimum if you cannot pay in full.
• Make payments early or more than once a month to reduce the average daily balance.
• Consider a low-interest card if you regularly carry a balance.
• Use a balance transfer offer carefully, with a plan to pay it off before the promotional rate ends.
• Set up automatic payments so you never miss a due date.

The Bottom Line

A credit card is free to use when you pay the full balance on time. Once you carry a balance, interest adds up quickly. Read your statement, understand your card’s rates, and always aim to pay more than the minimum.

This article is for general information only and is not financial advice.

Your first credit card is more than a payment tool — it is usually the first step in building the credit history you will need later for a car loan, apartment rental, or mortgage. Choosing the right card and using it responsibly from day one can set you up for years. Here is what to consider.

Start With Your Goal

For most first-time cardholders, the main goal is simple: build a strong credit history at a low cost. Rewards are a nice bonus, but they matter far less than avoiding fees and interest while you establish good habits.

Types of Cards for Beginners

• No-fee basic cards: simple cards with no annual fee and a modest limit. Ideal for most beginners.
• Student cards: designed for post-secondary students with limited income or history.
• Low-interest cards: useful if you think you may occasionally carry a balance.
• Secured cards: require a refundable deposit and are easier to get if you have no credit or poor credit.
• Entry-level rewards cards: no-fee cards that earn small amounts of cash back or points.

Features That Matter Most

1. Annual fee: as a beginner, a $0 annual fee card is usually the best choice.
2. Interest rate: purchase rates on standard cards are often around 20% or higher. If you always pay in full, you avoid this entirely.
3. Grace period: in Canada, you get at least 21 days interest-free on new purchases if you paid your previous balance in full.
4. Credit limit: a modest limit is fine — and helps prevent overspending.
5. Reporting to the credit bureaus: make sure your card activity is reported to Equifax and TransUnion so it builds your credit file.

Fees to Watch Out For

• Cash advance fees and higher cash advance interest rates
• Foreign transaction fees (often around 2.5%) on purchases in other currencies
• Over-limit and late payment fees
• Balance transfer fees

How to Use Your First Card Wisely

• Pay the full statement balance every month so you never pay interest.
• Never miss a payment. Set up automatic payments for at least the minimum as a safety net.
• Keep your balance low — ideally under 30% of your limit — since high utilization can lower your score.
• Use it for planned purchases like groceries or a phone bill, not impulse spending.
• Avoid cash advances, which start charging interest immediately.

Applying for Your First Card

Check the eligibility requirements (minimum income, age of majority in your province, residency). Apply for one card at a time — multiple applications in a short period can hurt your score. If you are declined, a secured card or becoming an authorized user on a family member’s account can help you get started.

The Bottom Line

The best first credit card is usually the simplest one: no annual fee, reports to the credit bureaus, and a limit you can handle. Use it lightly, pay it off in full every month, and you will build a solid credit history.

This article is for general information only and is not financial advice.