Tap Canadian and you could win $1000*!
Complete 5 eligible Interac® Debit transactions from July 1 - August 31 for your chance to win.
Learn more.You may be thinking, I already have a debit card! I can tap and pay, so why should I get a credit card?
There are a multitude of reasons to apply for a credit card and use it daily! Christine Young, a Personal Banking Advisor with Cambrian with 25-plus years of experience in financial institutions, shared some info and advice with us.
Here’s a bit of what we learned:
Here are the things credit cards have that may kick them up a notch from debit cards:
When you use your credit card for everyday purchases, you can earn valuable rewards.1 Some cards award points that can be redeemed for travel, gift cards, merchandise, or statement credits.2 Others offer true cash back, where your points can be redeemed for cash.
Redeem your points for cash back and the funds will be deposited into your chequing or savings account within three business days.
“Many other cards don’t offer this flexibility,” says Christine. “They may only have the statement credit or be redeemable for investments.”
Collabria Mastercard® has a full suite of options to choose from through Cambrian. Check out this card selector to begin reviewing the options and their different rewards and points features.
When you sign up for a card, you also usually get things upfront! It could be cash, bonus points, the first year’s annual fee rebate, and more. Be sure to check out our Special Offers. At any given time, we likely have a Collabria Mastercard promo on.
“Fraud protection is a major advantage of credit cards over debit,” says Christine.
If you spot an unauthorized transaction on your account, report it right away. With Zero Liability protection, you won't be held responsible for eligible unauthorized purchases made with your card.
Debit cards do have fraud protection as well, but fraudulent debit transactions withdraw cash right away, and it may take longer to get that money back. Credit cards generally have more secure protection.3
Credit card companies often include insurance for products purchased with your credit card, at no extra cost.4
“Buy any product with a credit card, and keep the receipt,” says Christine. “It includes 90 days of purchase security protection, meaning it covers items that are lost, stolen, or damaged within 90 days. With a receipt and a claim, you may be reimbursed, and it’s included automatically at no cost.
“Purchases on our credit cards also often include up to one additional year of warranty coverage, for example, when you buy a cell phone. This means there is no need to purchase extended warranty from the store in many cases. Just keep the receipt and manuals.”
If travel is important to you, talk to an advisor about the credit card features that best suit you. Some cards offer travel-related benefits such as emergency medical insurance, trip interruption coverage, or car rental protection. A credit card can also make it easier when booking a hotel or renting a car.
“If you book hotels with cash, hotels typically require a steep cash deposit to guarantee against damages, room charges, or mini-bar usage,” says Christine, “and yes, you can rent a car with cash, but it is rare. It requires strict advance planning and extra documents.”
Many major Canadian airlines don’t even accept cash or debit for in-flight purchases—in some cases, they only accept a major credit card.5
It’s hard to build your credit score if you don’t have a credit card. Get your first credit card and start learning about how to use it today!
Read about how to improve your credit score here.
Always check out the terms, offer, insurance, and benefits of the different cards to get the full details and then decide which card would suit you best.
Christine says, often, yes! For all the reasons above and more, credit may be a good option for many members, depending on your spending habits and financial goals.
“If you struggle with spending control, and you are constantly maxing out on your credit card, debit might be better in those cases,” says Christine. “Debit limits spending to what is available in the account. If there are insufficient funds, purchases are declined.”
Features available through Collabria's CardWise platform allow cardholders to monitor transactions, set controls, and stay on top of their spending. If you're consistently reaching your credit limit, it's a good idea to review your spending habits and speak with an advisor about the payment option that's right for you.
Learn some ways to manage impulse spending here.
Meet with one of our advisors! Our Personal Banking Advisors, like Christine, have a breadth of experience and are here to help.
We can help you start budgeting from square one, and we can submit a credit card application on your behalf and guide you through the whole process. Book today!
P.S. You haven’t seen the last of Christine! More in-depth advice and pointers on credit cards coming soon.
®Mastercard is a registered trademark of Mastercard International Incorporated.
®The Collabria Mastercard is issued by Collabria Financial Services Inc. pursuant to a license from Mastercard International Incorporated.
Collabria Financial Services Inc. (“Collabria”) is an independent entity from your credit union with no ownership interest in the other. If you choose to obtain Collabria credit card services through a referral from your credit union, it will receive compensation from Collabria.
1. Reward points are earned on net purchases only. Any Cash-like Transactions including Cash Advances, Balance Transfers, and interest charges, fees, payments, credit or debit adjustments and any amount other than Purchases that may be charged to your Account with your Card do not qualify for Points. For more information visit collabriacreditcards.ca/rewards.
2. The base value of one Flex Rewards point is equal to one cent (a penny per point). The cash equivalent shown for illustration purposes only is based upon the redemption of these points as a statement credit.
Account information used to request a cash back redemption is the sole responsibility of the Cardholder and any delays or disruptions to the successful completion of the redemption request are not the responsibility of Collabria. The valuation is for cash equivalent only; the value of redeeming for merchandise and travel may vary. For more details regarding redemption options, please refer to collabriacreditcards.ca/rewards.
3. Zero Liability applies to your purchases made with your credit card in the store, over the telephone, online or via a mobile device. As a cardholder, you will not be held responsible for unauthorized transactions if:
If you believe there has been unauthorized use on your account and you meet the conditions above, you are protected by Zero Liability.
4. Insurance coverage is underwritten by American Bankers Insurance Company of Florida (ABIC). ABIC, its subsidiaries, and affiliates carry on business in Canada under the trade name of Assurant®. ®Assurant is a registered trademark of Assurant, Inc. Details of insurance coverage, including definitions, benefits, limitations and exclusions, are in the Certificate of Insurance. The Certificate of Insurance is available online at collabriacreditcards.ca/insurance. Insurance coverage is subject to change.
5. Insurance coverage is underwritten by Desjardins Financial Security Life Assurance Company. Details of insurance coverage, including number of days of coverage, definitions, benefits, limitations and exclusions are in the Travel Insurance Contract. Please visit collabriacreditcards.ca/insurance for complete details. Insurance coverage is subject to change.
We would be happy to discuss your unique situation with you.
Our goal is to make complex topics like this one, simple.
