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The Best Credit Cards for Renters

Renters are in a unique situation. If by chance your landlord allows you to pay your monthly rent with a credit card, then you have a lot of options. What do I mean by this? Well, credit cards have tons of signup bonuses, and when you’re charging $1,000+ a month, it’s not hard to meet those minimum spend thresholds which in turn means big rewards for you.

Even if your landlord doesn’t allow you to pay your rent with a credit card, you should still use a card that benefits you. The question is, which of the best credit cards in Canada should you use? It really comes down to where you spend the most money and what kind of rewards you prefer.

For the foodies

Last year American Express introduced the Cobalt card which has been a hit with foodies. You earn 5 points for every $1 spent on “eats and drinks” categories which includes restaurants, grocery stores, food delivery service, bars, and cafés. There is no other card on the market that allows you to earn this many points on food and drinks.

In addition, American Express offers some amazing benefits to cardholders. With American Express Invites, you’ll get pre-sale tickets to some of the best dining and entertainment options available. Your points have total flexibility as you can use them to redeem travel rewards which gives you additional options.

For those who love travel

If you love to travel, then you might want to take a look at the BMO WorldElite MasterCard. New applicants get a 35,000 signup bonus when they spend $3,000 in the first 3 months of card membership. Those points are worth $250 in travel and the annual fee for the first year gets waived so you’re essentially getting free money to travel.

As for earning points, you’ll get 3 BMO Rewards points for every $1 spent on travel, dining and entertainment purchases and 2 points for every $1 spent everywhere else. What’s nice about this card is the fact that there are no blackout dates and you can use your points to pay for any taxes or fees when making a redemption. You’ll also get a comprehensive travel insurance package so you’re protected whenever you’re abroad.

For those who like to keep things simple

Let’s be honest, some people don’t like rewards points because they find the programs too complicated to understand. Fortunately, there’s a simple solution - cash back credit cards. As the name implies, when using a cash back credit card, you’ll earn cash back on every purchase you make.

The amount of cash back you earn varies per card, but one popular cash back card is the SimplyCash Preferred Card from American Express. New cardholders earn 5% in cash back for the first 6 months (up to $300). Once that promotional period ends, you’ll earn 2% on all purchases. There is an annual fee of $99, but supplementary cards are free.

For those who want to reduce their debt

Earning points is fun, but if you’re currently in debt, you may want to reconsider how you use your credit cards. Normally credit cards have an interest rate of 19.99%, but you can bring that down by signing up for a balance transfer credit card. The idea is, you balance transfer your current credit card debt to a low interest credit card.

The Scotiabank Value Visa has a special 0.99% introductory interest rate on balance transfers for the first 6 months which will allow you to crush your debt. After the promotional period ends, the interest rate is just 11.99%. There is an annual fee of $29, but that’s likely significantly less than what you’re paying in interest on a card that charges you 19.99% interest.

The final word

Remember, rewards points are only worth it if you’re paying off your full balance every month. Any interest charges you incur simply aren’t worth the rewards. To find out which are the best credit cards in Canada based on your spending habits, checkout Ratehub.ca now.

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