TLDR
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Credit cards make it easy to make purchases in-store and online, but they offer plenty of other benefits too.
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Using your credit card builds experience in credit management, and using your card responsibly can help build your credit history and raise your credit score.
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Many credit cards offer additional benefits, from the ability to earn rewards for everyday spending to access to exclusive programs and discounts.
Credit cards are an essential financial tool for many Canadians, and finding the right card offers a range of benefits. Read on to learn about six of the top benefits of owning a credit card—plus, how to use your credit card responsibly to support your financial health.
Make purchases conveniently, in-store and online
The most immediate benefit of a credit card is the flexibility to make purchases at a store or online. Credit cards are especially useful for paying ecommerce merchants, who may not accept debit cards. You can also add your card to a digital wallet to pay using your mobile device.
Learn more: The benefits of adding a credit card to your digital wallet
Each month, you’ll receive a statement listing all of your transactions in that billing cycle. If you make all (or almost all) of your purchases on your credit card, it’s easy to track your spending in one place.
Gain an extra layer of payment security
While debit cards contain several security features to protect your information, credit cards come with an added layer of security.
Your credit card issuer may ask you to confirm potentially suspicious transactions, giving you an opportunity to reject a transaction if someone has stolen your card information. For a lost or stolen card, you can also place a hold on your account to prevent further transactions. And credit cards usually offer built-in liability protection, so you generally aren’t responsible for purchases made on a stolen card.
Earn rewards from the spending you would do anyway
Many credit cards, particularly premium or luxury cards, allow you to earn rewards for your purchases. Rewards programs vary from card to card, but they can include:
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Points, which you can redeem for merchandise (such as headphones and gift cards)
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Cash back, which refunds a percentage of the purchases made using the card
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Travel rewards, such as airfare, hotel accommodations and other travel-related expenses.
Some cards also offer bonus rewards for certain types of purchases. For example, RBC Avion Credit Cards allow you to earn 25% more rewards for travel-related purchases.
Pro tip: Some credit cards allow you to transfer the value of your rewards into a savings account, such as an RRSP or RESP. So, making purchases using your credit card can help you achieve other financial goals.
Score exclusive deals and discounts
In addition to rewards programs, many credit card issuers partner with other companies to offer their cardholders exclusive discounts.
For example, a travel rewards credit card might include airport lounge passes, while a retailer-specific card could offer additional discounts at that retailer. Similarly, credit card issuers might offer exclusive access to events or concert tickets.
Get high-end benefits with luxury cards
Once you’re experienced with credit and qualify for premium credit cards, you can gain access to even more perks. Premium or luxury cards often come with high-end advantages, such as:
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Emergency medical insurance, which protects you if you need to access emergency medical care during travel, as long as you pay for your trip using your credit card
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Mobile device insurance, which provides coverage to repair or replace a damaged, lost or stolen mobile device when you pay for that device using your credit card
Learn more: Mobile Device Insurance with a Credit Card: What It Is and How It Works in Canada
Pro tip: Some credit cards also offer Purchase Protection, which can supplement a manufacturer’s warranty on goods purchased with your credit card.
Looking for a credit card?
Use our Credit Card Selector Tool to find the best credit card for you.
An opportunity to build your credit score
If you are just beginning to establish a credit history, a credit card can be a great way to start—and potentially boost your credit score. Using your card responsibly signals to lenders that you have strong financial management skills—and it can also help you set and reach other goals.
Learn more: How to Use Credit Cards to Improve Your Credit Score
A history of managing your credit responsibly may make it easier to access other types of credit, such as a loan, line of credit or mortgage. In addition, landlords may pull your credit history as part of your rental application, which means your credit score may affect your ability to rent the home you want.
How to make the most of your credit card
You’ll get the most from your credit card by managing your credit responsibly. These three habits will help you build your credit and gain confidence managing your money.
1. Make your payments on time, every time
Payment history is the most important factor affecting your credit score. Make sure you’re making at least the minimum payment by the due date for each billing cycle.
2. Spend within your means
Credit cards offer an easy and convenient way to make purchases, but it’s important to stick to your budget when you’re using your card. Check your balance throughout the billing cycle to stay on top of your spending and avoid going into debt.
Read more: Understanding Credit Card Balances [add link when live]
3. Review your statement each month
Similarly, review the transactions on your credit card statement to stay informed on how you’re spending your money. A monthly review can help you learn where your money is really going, so you can set financial goals accordingly.
Set yourself up for success with the credit card that’s right for you
Everyone has different needs and priorities, and it’s important to find a credit card that suits your goals. To get started, review the credit cards that may be available to you, then use our Credit Card Comparison Tool to find the best one for you.
