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When comparing credit card interest rates, consider the Annual Percentage Rate (APR), which determines how much it will cost you if you don't pay it off each month. Look for credit cards with a lower APR if you plan to carry a balance. Compare introductory rates and make sure you consider how they might change after the introductory welcome offer period has expired.

To compare credit card fees, look at the annual fee, late payment fees, foreign transaction fees, and balance transfer fees. Some credit cards may waive the annual fee for the first year or offer lower fees for certain transactions, but it's important to consider how you'll be using this credit card to find the best option for your spending habits.

For international use, compare foreign transaction fees, which can range from 0-3%. Look for Canadian credit cards that offer travel benefits such as no foreign transaction fees, chip-and-PIN capability, travel insurance, and emergency assistance. Also, consider the global acceptance of the card's network (Visa, Mastercard, etc.) to ensure it's accepted where you plan to use it.

Compare common credit card benefits like travel insurance, purchase protection, extended warranties, and concierge services. Evaluate the value of these perks based on your spending habits, lifestyle and how you'll be spending with your new credit card. Some cards also offer exclusive access to events, while others offer discounts with certain retailers.

For international use, compare foreign transaction fees, which can range from 0-3%. Look for Canadian credit cards that offer travel benefits such as no foreign transaction fees, chip-and-PIN capability, travel insurance, and emergency assistance. Also, consider the global acceptance of the card's network (Visa, Mastercard, etc.) to ensure it's accepted where you plan to use it.

If you only pay the minimum payment on your credit card, several things happen:

(1) You’ll pay interest on the remaining balance. Credit card interest rates in Canada typically range from 19.99% to 24.99% annually. When you make only the minimum payment, the remaining balance continues to accrue interest daily until it’s paid off.

(2) It takes much longer to pay off your debt. Because most of your payment goes toward interest rather than the principal, it can take years to pay off even a modest balance if you only make the minimum payments.

(3) You lose the interest-free grace period. Most credit cards offer a grace period (usually 21 days) where you can avoid interest if you pay your full statement balance by the due date. Once you carry a balance, new purchases typically begin accruing interest immediately unless the full balance is paid again.

(4) Your credit score remains intact — but with risks. Making the minimum keeps your account in good standing and avoids late fees or hits to your credit score. However, carrying a high balance relative to your credit limit (high utilization) can lower your credit score.

In short, paying just the minimum keeps you current but costs you more in interest and delays your debt-free date. Try to pay more than the minimum whenever possible to reduce interest charges and improve your financial health.

Credit card churning is the practice of repeatedly signing up for credit cards to earn welcome bonuses, then cancelling them before paying an annual fee. While the practice of credit card churning is not illegal in Canada, it can get you into trouble in several ways:

(1) Card issuers may blacklist you. Banks like TD, RBC, and American Express track your application history. If they detect frequent churning, they may deny future applications, even for other products.

(2) You may forfeit bonuses. Many credit card issuers now include terms that limit sign-up bonuses to once per person, per card, or exclude those who have recently closed similar accounts.

(3) Your credit score can take a hit. Frequent credit card applications cause “hard inquiries,” which can lower your credit score. Cancelling cards too soon also reduces your credit history length and total available credit, both of which can hurt your score.

(4) You may face clawbacks or fee penalties. Some issuers claw back welcome bonuses if you cancel the card shortly after earning the reward. Others may charge the full annual fee even if the card is cancelled early.

While some Canadians do successfully churn cards for travel or cash rewards, it's a high-risk strategy. If you choose to do it, read the fine print carefully, space out applications, and maintain a good credit score.