How to choose the right credit card

Your credit score is a three-digit number that represents how successful you’ve been at paying your debt. The higher the number, the better your score.

You’ll want to keep an eye on your credit score since it impacts whether lenders decide to approve your applications for lines of credit, car loans, mortgages and credit cards. If you’re a CIBC client, you can conveniently sign into the CIBC Mobile Banking® App and check your credit rating instantly.

Different cards offer different perks and benefits so consider what matters most to you. Keep in mind that some cards are strong in more than one category. For example, you can earn travel points and enjoy no annual fee with the CIBC Aventura® Visa* Card.

Think about a variety of factors.

Build credit

If you have no credit history or are working on improving your credit score, you can actually build your rating by responsibly using a credit card. Responsible use means paying off your balance in full, on time, every month. If you carry a balance, you can keep your score safe by always paying the minimum balance.

Earn rewards

The ability to earn rewards, whether points, travel miles, or cash back, is one of the best perks of using a credit card.

Loyalty programs such as Aventura are flexible in terms of the rewards you can earn. You can earn points which you can apply towards travel rewards, merchandise, gift cards and more when you use the CIBC Aventura® Visa Infinite* Card.

Cash back cards let you earn when you spend. Compare earn rates, including whether there are accelerated rates in some spending categories, and the annual fee. A great example of a no-annual-fee cash back card is the CIBC Dividend® Visa Infinite* Card. For competitive rates, families who shop at Costco might want to consider the CIBC Costco®^† Mastercard®.

Pay off debt

If you're carrying credit card debt, you'll want to pay it off as quickly as possible. One strategy is to transfer it to a card with a lower interest rate — preferably one that has a balance transfer offer.

For example, take the CIBC Select Visa* Card. It has an interest rate of 13.99%1. When you transfer your balance from a credit card with a regular interest rate of around 20%, you'll be saving around 7% in interest. Plus, you'll pay no interest at all for 10 months, and get a waiver on the already low $29 annual fee.

Now that you know your credit score and have a good idea of what you're looking for in a card, it's time to narrow down your options with these easy steps.

• Compare apples to apples. You can see how cards measure up to each other by looking at their annual fees, welcome bonuses, interest rates, earn rates and benefits.
• Optimize your spending. If you're considering a rewards card, knowing where you spend your money helps identify the card that matches you best. Look for a card with high earn rates in your most-used spending categories to maximize rewards.
• Go for quality over quantity. A card that offers dozens of perks is no good if they aren't things you'll use. Would you use discounts on rental cars? What about mobile device insurance? Does the travel insurance offer adequate coverage or would you have to purchase extra? 
• Don't limit yourself. Sometimes the best credit card is two credit cards with different benefits. For example, you might opt to use a cash back card for everyday spending and a travel card with insurance included for booking travel.

Your next credit card can be a perfect match for your lifestyle and spending habits. Discover which card would work best for you by using our handy credit card comparison tool.

¹ Interest rates may change from time to time.