Credit card: do I have to get one with my bank?

For most of the world, it is more than likely that the first credit card for which you would register will be through your bank – but whether it is necessary or for you to get a card with them is another story. Like all banks and financial options, we do not believe that you should limit your choices to what is offered by the creditors with whom you do your daily banking; in fact, getting a credit card with another provider may be better for you.

Before making a decision, consider some of the advantages and disadvantages of obtaining a credit card with your bank.

 

Advantages

Quick Application Trial

credit cards

The application process for a credit card is often tedious. Credit card providers must gather as much information about you as possible to determine creditworthiness and give you a credit card of your choice. Fortunately, most of this information is already collected by your bank; This means that the trial would be expedited when you apply for a credit card offered by your bank.

 

Big Financial Image and Easy Payments

Big Financial Image and Easy Payments

Credit card payments will be easier to do, since all your financial information is consolidated with a supplier and presented in front of you. You will be able to see how much you have spent on your credit card and how much money you have in your debit account, all on a bank account; This makes keeping track of your finances and pays for your simple credit card balance.

 

Annual Fees Discontinued

Annual Fees Discontinued

Due to excessive annual fees, it can be difficult to get a good annual return on your credit card rewards. Fortunately, some banks, such as TD, will remove annual fees on your credit card if you already have a bank account with them; this is something to seriously consider, if your bank offers a credit card rewards that could generate you a good return and you do not want to worry about annual fees.

 

Disadvantages

Sign Up Bonus Signed

Sign Up Bonus Signed

Credit card providers want your business and will offer interesting signup bonuses to get it. In addition, these bonuses can be much better than those offered by your bank. By remaining loyal to your bank, you may lose the opportunity to earn hundreds of dollars in credit card sign-up bonuses. For example, if you were doing all your banking elsewhere but found a Scotiabank credit card with a $ 200 sign up bonus. Could you ignore it? Goodbye, free money.

 

Less Variety

credit cards

When you shop for credit cards exclusively at your bank, you limit your choices. For example, it is possible that the credit cards of some rewards programs are not offered by bank cutters. If you are an Aeroflex Rewards Member, and like the idea of ​​getting a Aeroflex Credit Card but also want to get a credit card through your bank, you would need to be with CIBC or TD. If you are not ready to use a card from a different bank, you will miss very good rewards.

 

Bank Accounts Seizures

Bank Accounts Seizures

In most credit card agreements with your bank, incorporated in small print is a clause that gives your bank the right to withdraw money directly from your bank account in order to pay your credit card balance. credit. This is typically only to make the minimum payment on the credit card. On the other hand, if you have a considerable balance for long enough and leave it unpaid, your bank could enter your entire bank account. Quite disturbing.

It is important to weigh the pros and cons of any credit card before submitting an application. This is even more true if you are thinking about staying loyal to your bank by only getting a credit card with them. Your bank may not have the best credit card in Canada for you. So, it is crucial to shop before making your decision. You may even want to consider getting a second credit card, if you already have one with your bank.