2023-08-21 23:51:47
Do I have to change credit card to benefit from a welcome bonus? Yes, but it is planned.
Personal finance specialists repeat it: keep your oldest credit card to maintain your credit history and avoid multiplying credit cards in your wallet. This way you preserve your credit rating.
• Read also: Is Tim Hortons new credit card a good deal?
• Read also: Credit card: increased minimum payment
These assertions need to be qualified somewhat. Credit cards are like insurance: you have to get the right card that meets your current needs. “You have to reassess your credit cards every two years,” says Jean Maximilien Voisine, founding president of Milesopedia. A student will not have the same needs as someone who has just started a family, who is working in their first job or who is approaching retirement.”
Frequent travelers will not apply for the same rewards programs as people who frequent restaurants assiduously, or young parents, who will bet more on groceries or clothing. And, currently, everyone is suffering from inflation.
play the system
If you have the discipline to always bring the balance of all your cards to zero each month, it becomes advantageous to change or add a card to benefit from the welcome bonus.
“Banks want to stand out from the competition and often offer very generous bonuses,” continues Mr. Voisine. If you just keep your card, you’re leaving money on the table that your current bank isn’t offering.”
You will therefore have to spend thousands of dollars to obtain the points offered by the new card, thanks to the welcome bonus.
In a sense, you’re playing the system in your favor when you switch cards.
I poked around in the Milesopedia comparator to unearth some offers of very generous welcome bonuses (v. tableau). I also discovered that each credit card has its own rules regarding the payment of points related to the welcome bonus (sign-up bonus). If the card is linked to a specific program, normally the points are paid directly into the account of this program and not that of the card.
Some make one or more installments, often at sign-up, following the first purchase or according to a minimum purchase amount required, or at each statement. Some will make up to more than ten installments.
Advice
• You don’t affect your credit report if you change a credit card following a few years.
• Experts suggest keeping two or three credit cards in your wallet: your oldest card (for your long-term credit history), a second for day-to-day expenses (food, gas, transport, home maintenance, children ), and a third to spoil yourself (clothing, travel, electronics). You benefit from several reward programs.
• Make sure you make at least one card transaction per quarter, even for a small amount, or you’ll affect your credit rating.
• If your oldest card no longer meets your needs, you can request a change of card from your issuer, without losing your credit history.
• You can have a card from another bank than your own.
• Annual fee credit cards offer the most generous premiums.
Here are the six credit cards
Cobalt American Express
• Up to 30,000 Privilèges Points the first year
• Value, 1st year: $1309
• 5% groceries and restaurants
• 2% gasoline and travel
Mastercard BMO Remises World Elite
• Up to $260 cashback
• Value, 1st year: $920
• 5% groceries
• 3% essence
• Accepted at Cosco
Visa Infinite Momentum Scotia
• Up to $200 cash back
• Value, 1st year: $848
• 4% groceries
• 2% essence
• Offer ends October 31
Dividende CIBC Visa Infinite
• Up to $200 cash back
• Value, 1st year: $831
• 4% groceries, gasoline
• 2% restaurants
Visa Infinite TD Remises
• Up to $290 cashback
• Value, 1st year: $829
• 3% gasoline, groceries
• Offer ends September 5
Mastercard World Elite Rewards MBNA-Quebec
• Up to 20,000 points within 90 days
• Value, 1st year: $733
• 5% groceries and restaurants
• Accepted at Costco
1692671063
#generous #bonus #credit #cards
