{"id":75,"date":"2021-05-12T08:39:00","date_gmt":"2021-05-12T08:39:00","guid":{"rendered":"https:\/\/www.cashwaves.ca\/blog\/?p=75"},"modified":"2026-09-16T07:53:35","modified_gmt":"2026-09-16T07:53:35","slug":"cashwaves-the-next-generation-credit-card","status":"publish","type":"post","link":"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/","title":{"rendered":"CashWaves: The Next Generation Credit Card"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#What_Is_a_Credit_Card\" >What Is a Credit Card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#What_Makes_a_Credit_Card_%E2%80%9CNext_Generation%E2%80%9D\" >What Makes a Credit Card \u201cNext Generation\u201d?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#Start_With_the_Interest_Rate_Not_the_Technology\" >Start With the Interest Rate, Not the Technology<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#How_Does_the_Credit_Card_Grace_Period_Work_in_Canada\" >How Does the Credit Card Grace Period Work in Canada?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#Cash_advances_are_different\" >Cash advances are different<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#Why_Paying_the_Full_Balance_Matters\" >Why Paying the Full Balance Matters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#What_Is_the_Minimum_Credit_Card_Payment\" >What Is the Minimum Credit Card Payment?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#Smart_Alerts_Are_Useful_%E2%80%94_But_They_Dont_Replace_a_Budget\" >Smart Alerts Are Useful \u2014 But They Don&#8217;t Replace a Budget<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#Credit_Card_Rewards_Look_Beyond_the_Headline_Rate\" >Credit Card Rewards: Look Beyond the Headline Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#Annual_Fees_vs_No-Fee_Credit_Cards\" >Annual Fees vs. No-Fee Credit Cards<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#Watch_for_Fees_Beyond_the_Annual_Fee\" >Watch for Fees Beyond the Annual Fee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#How_Credit_Card_Utilization_Can_Affect_Your_Credit\" >How Credit Card Utilization Can Affect Your Credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#Credit_Limit_Increases_Arent_Free_Money\" >Credit Limit Increases Aren&#8217;t Free Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#Can_a_Credit_Card_Help_Build_Credit\" >Can a Credit Card Help Build Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#What_If_You_Have_Bad_Credit_or_No_Credit_History\" >What If You Have Bad Credit or No Credit History?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#How_Do_Modern_Credit_Cards_Handle_Security\" >How Do Modern Credit Cards Handle Security?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#What_Happens_If_Someone_Uses_Your_Card_Without_Permission\" >What Happens If Someone Uses Your Card Without Permission?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#Credit_Card_vs_Debit_Card_Whats_the_Difference\" >Credit Card vs. Debit Card: What&#8217;s the Difference?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#Credit_Card_vs_Payday_Loan\" >Credit Card vs. Payday Loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#8_Things_to_Compare_Before_Applying_for_a_Credit_Card\" >8 Things to Compare Before Applying for a Credit Card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#Questions_to_Ask_Yourself_Before_Getting_Another_Credit_Card\" >Questions to Ask Yourself Before Getting Another Credit Card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#The_Real_%E2%80%9CNext_Generation%E2%80%9D_Feature_Is_Better_Financial_Control\" >The Real \u201cNext Generation\u201d Feature Is Better Financial Control<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.cashwaves.ca\/blog\/cashwaves-the-next-generation-credit-card\/#FREQUENTLY_ASKED_QUESTIONS\" >FREQUENTLY ASKED QUESTIONS<\/a><\/li><\/ul><\/nav><\/div>\n\n<p class=\"wp-block-paragraph\">Credit cards have changed considerably from the days when the main features were simply a plastic card, a credit limit and a monthly statement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many cards now combine mobile account management, transaction alerts, contactless payments, digital-wallet compatibility, rewards programs and enhanced security tools.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the phrase <strong>\u201cnext-generation credit card\u201d isn&#8217;t a separate regulated category of credit card in Canada<\/strong>. It is better understood as a way of describing cards that combine newer technology and account-management features with traditional revolving credit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The technology may be modern, but the fundamentals still matter most: <strong>interest rates, fees, repayment terms, security, rewards and how the card fits your spending habits.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;re working on your broader finances rather than simply choosing a card, CashWaves&#8217; <a href=\"https:\/\/www.cashwaves.ca\/financial-tips.html\">financial tips for Canadians<\/a> cover budgeting and responsible borrowing in more detail.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_a_Credit_Card\"><\/span>What Is a Credit Card?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A credit card gives you access to a pre-approved amount of borrowed money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When you make a purchase, you&#8217;re borrowing from the card issuer rather than spending money directly from your chequing account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You must make at least the required minimum payment by the due date. If you don&#8217;t pay the amount required to maintain your interest-free treatment, interest may apply according to your card agreement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/credit-cards\/credit-card-work.html\" target=\"_blank\" rel=\"noopener\">Financial Consumer Agency of Canada explains how credit cards work<\/a>, including purchases, interest, cash advances, fees and grace periods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A credit card is therefore different from a debit card.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With a debit card, money normally comes directly from your bank account. With a credit card, you are using borrowed money that must later be repaid.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Makes_a_Credit_Card_%E2%80%9CNext_Generation%E2%80%9D\"><\/span>What Makes a Credit Card \u201cNext Generation\u201d?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There is no official Canadian regulatory definition of a next-generation credit card.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead, think of it as a card that may combine traditional credit with newer digital tools.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the issuer, modern features may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>instant transaction notifications<\/li>\n\n\n\n<li>mobile-app account management<\/li>\n\n\n\n<li>digital-wallet compatibility<\/li>\n\n\n\n<li>contactless payments<\/li>\n\n\n\n<li>card locking and unlocking controls<\/li>\n\n\n\n<li>spending-category tracking<\/li>\n\n\n\n<li>customizable account alerts<\/li>\n\n\n\n<li>automated payment options<\/li>\n\n\n\n<li>rewards tracking<\/li>\n\n\n\n<li>enhanced authentication<\/li>\n\n\n\n<li>digital or virtual card-management features<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Not every card provides every feature.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That is why comparing a card based only on its app or technology can be misleading. A visually impressive card with a high interest rate or expensive annual fee may not be a good financial fit for someone who regularly carries a balance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Start_With_the_Interest_Rate_Not_the_Technology\"><\/span>Start With the Interest Rate, Not the Technology<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the first numbers to check on any credit card is its annual interest rate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you regularly carry an unpaid balance, the interest rate may matter much more than rewards, card design or mobile features.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/credit-cards\/choose-credit-card.html\" target=\"_blank\" rel=\"noopener\">guide to choosing a credit card<\/a> recommends comparing factors including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>interest rates<\/li>\n\n\n\n<li>annual and transaction fees<\/li>\n\n\n\n<li>rewards<\/li>\n\n\n\n<li>benefits<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Different interest rates may apply to different transactions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, your card may have one rate for purchases and another for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>cash advances<\/li>\n\n\n\n<li>balance transfers<\/li>\n\n\n\n<li>cash-like transactions<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Read the cardholder agreement rather than assuming one advertised rate applies to everything.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_the_Credit_Card_Grace_Period_Work_in_Canada\"><\/span>How Does the Credit Card Grace Period Work in Canada?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Credit-card purchases may benefit from an interest-free grace period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For cards issued by federally regulated financial institutions, the minimum grace period is generally <strong>21 days<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The grace period begins after the end of the billing period and gives you time to pay eligible purchases without interest when the applicable conditions are met.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can learn more in the FCAC guide explaining <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/credit-cards\/credit-card-work.html\" target=\"_blank\" rel=\"noopener\">credit-card interest and grace periods<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cash_advances_are_different\"><\/span>Cash advances are different<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The regular purchase grace period generally doesn&#8217;t apply to cash advances.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Interest may begin accumulating from the day you receive the cash advance, and a separate transaction fee may also apply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That means using your credit card at an ATM isn&#8217;t financially equivalent to buying groceries with the same card.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Paying_the_Full_Balance_Matters\"><\/span>Why Paying the Full Balance Matters<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A credit card can be significantly less expensive when you pay the statement balance required to avoid interest by the due date.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you carry a balance, interest increases the total cost of your purchases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Imagine buying an item for $1,000.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you pay the required statement balance in full within the applicable interest-free period, you may avoid purchase interest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you carry that $1,000 balance for months, however, interest can make the final cost considerably higher.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exact cost depends on your interest rate, payment amount and card terms.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_the_Minimum_Credit_Card_Payment\"><\/span>What Is the Minimum Credit Card Payment?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The minimum payment is the smallest amount your issuer requires you to pay for that billing cycle.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The method used to calculate it depends on your card agreement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Paying the minimum can help keep the account from becoming past due, but it is not the same as paying off your debt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Government of Canada warns that making only minimum payments means:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">See FCAC&#8217;s guidance on <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/credit-cards\/pay-off-credit-card.html\" target=\"_blank\" rel=\"noopener\">paying off a credit card<\/a> for more information.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>taking longer to repay the balance<\/li>\n\n\n\n<li>paying more interest over time<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Whenever possible, paying more than the minimum reduces the amount of time interest has to accumulate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Smart_Alerts_Are_Useful_%E2%80%94_But_They_Dont_Replace_a_Budget\"><\/span>Smart Alerts Are Useful \u2014 But They Don&#8217;t Replace a Budget<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Modern cards often make account activity easier to monitor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Federally regulated banks are required to provide an electronic alert when available credit falls below <strong>$100<\/strong>, unless the customer selects another threshold or opts out.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These alerts can help cardholders notice when they&#8217;re approaching their credit limit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consumers can read more about these protections in the Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/rights-responsibilities\/rights-credit-cards\/right-to-information.html\" target=\"_blank\" rel=\"noopener\">credit-card rights guide<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Still, receiving an alert after your available credit becomes low is not the same as managing spending in advance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A simple monthly budget remains useful even when your card app offers real-time spending information.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CashWaves&#8217; <a href=\"https:\/\/www.cashwaves.ca\/financial-tips.html\">financial education resources<\/a> provide additional guidance on budgeting, borrowing and managing short-term financial needs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Credit_Card_Rewards_Look_Beyond_the_Headline_Rate\"><\/span>Credit Card Rewards: Look Beyond the Headline Rate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Rewards are one of the most heavily marketed credit-card features.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the card, rewards may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>cash back<\/li>\n\n\n\n<li>travel points<\/li>\n\n\n\n<li>airline miles<\/li>\n\n\n\n<li>hotel rewards<\/li>\n\n\n\n<li>retailer rewards<\/li>\n\n\n\n<li>statement credits<\/li>\n\n\n\n<li>discounts<\/li>\n\n\n\n<li>insurance or travel benefits<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A card offering rewards isn&#8217;t automatically better than one without them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose a card costs $120 per year but your normal spending generates only $80 of useful rewards.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your simplified net result would be:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$80 rewards \u2212 $120 annual fee = \u2212$40<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You would be paying more for the card than you receive in that particular reward calculation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other hand, someone who genuinely uses enough of the included benefits may receive value exceeding the annual fee.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The key is to calculate rewards based on your normal spending rather than spending more simply to earn points.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Annual_Fees_vs_No-Fee_Credit_Cards\"><\/span>Annual Fees vs. No-Fee Credit Cards<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Some Canadian credit cards charge no annual fee.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Others charge an annual fee in exchange for features such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>higher reward rates<\/li>\n\n\n\n<li>travel benefits<\/li>\n\n\n\n<li>insurance coverage<\/li>\n\n\n\n<li>premium services<\/li>\n\n\n\n<li>lower interest rates in some cases<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Neither structure is automatically better.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ask:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Will I actually use enough of the benefits to justify the fee?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the answer is no, a simpler card may make more sense.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before applying, use the <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/credit-cards\/choose-credit-card.html\" target=\"_blank\" rel=\"noopener\">Government of Canada credit-card comparison guidance<\/a> to understand the factors worth comparing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Watch_for_Fees_Beyond_the_Annual_Fee\"><\/span>Watch for Fees Beyond the Annual Fee<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Annual fees aren&#8217;t the only charges that may apply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the card and transaction, potential charges can include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>cash-advance fees<\/li>\n\n\n\n<li>foreign-currency conversion charges<\/li>\n\n\n\n<li>balance-transfer fees<\/li>\n\n\n\n<li>dishonoured-payment charges<\/li>\n\n\n\n<li>inactive-account fees<\/li>\n\n\n\n<li>optional insurance premiums<\/li>\n\n\n\n<li>certain over-limit charges where applicable<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Read the information box and card agreement before applying.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A card advertised as \u201cno annual fee\u201d can still have other charges.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Credit_Card_Utilization_Can_Affect_Your_Credit\"><\/span>How Credit Card Utilization Can Affect Your Credit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Credit utilization measures how much of your available revolving credit you are using.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Credit limit: $5,000<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Balance: $1,000<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Credit utilization: $1,000 \u00f7 $5,000 = 20%<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Financial Consumer Agency of Canada recommends trying to use <strong>less than 30% of your total available credit<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can read the agency&#8217;s guidance on <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/credit-reports-score\/improve-credit-score.html\" target=\"_blank\" rel=\"noopener\">improving your credit score<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using a large proportion of available credit may signal greater reliance on borrowed money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That can matter even if you eventually pay the balance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Credit_Limit_Increases_Arent_Free_Money\"><\/span>Credit Limit Increases Aren&#8217;t Free Money<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">An issuer may offer to increase your credit limit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That doesn&#8217;t increase your income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It increases the amount you&#8217;re potentially able to borrow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For federally regulated financial institutions, express consent is required before a credit limit is increased.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A larger limit can help lower your utilization percentage if spending stays unchanged, but it can create problems if it encourages additional spending.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consider your own behaviour before accepting an increase.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_a_Credit_Card_Help_Build_Credit\"><\/span>Can a Credit Card Help Build Credit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Responsible credit-card use may contribute to building a positive credit history.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Important habits include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>making payments on time<\/li>\n\n\n\n<li>avoiding missed payments<\/li>\n\n\n\n<li>keeping balances manageable<\/li>\n\n\n\n<li>limiting repeated applications for new credit<\/li>\n\n\n\n<li>keeping credit utilization under control<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">On the other hand, late payments, heavy utilization and repeated credit applications may negatively affect your credit profile.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A credit card is therefore a financial tool rather than an automatic credit-score solution.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_If_You_Have_Bad_Credit_or_No_Credit_History\"><\/span>What If You Have Bad Credit or No Credit History?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Getting approved for a conventional unsecured credit card may be more difficult if you have limited or damaged credit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One alternative is a <strong>secured credit card<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A secured card requires you to provide a security deposit to the issuer. That deposit helps secure the account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FCAC notes that secured credit cards may be considered by people who:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>don&#8217;t yet have established credit history<\/li>\n\n\n\n<li>are newcomers to Canada<\/li>\n\n\n\n<li>have experienced past credit problems<\/li>\n\n\n\n<li>are trying to rebuild their credit profile<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">More information is available in the Government of Canada&#8217;s <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/credit-cards\/choose-credit-card.html\" target=\"_blank\" rel=\"noopener\">guide to choosing a credit card<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A secured card should still be evaluated for fees, interest rates and issuer legitimacy before applying.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Do_Modern_Credit_Cards_Handle_Security\"><\/span>How Do Modern Credit Cards Handle Security?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Security is one area where digital account tools can be particularly useful.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on the issuer, features may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>transaction alerts<\/li>\n\n\n\n<li>suspicious-activity notifications<\/li>\n\n\n\n<li>multi-factor authentication<\/li>\n\n\n\n<li>card locking through an app<\/li>\n\n\n\n<li>digital-wallet authentication<\/li>\n\n\n\n<li>controls for online transactions<\/li>\n\n\n\n<li>fraud monitoring<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Consumers also have responsibilities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Protect your:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>physical card<\/li>\n\n\n\n<li>PIN<\/li>\n\n\n\n<li>online banking credentials<\/li>\n\n\n\n<li>card security code<\/li>\n\n\n\n<li>passwords<\/li>\n\n\n\n<li>mobile device<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Don&#8217;t share authentication information simply because someone claims to represent your bank or card issuer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Happens_If_Someone_Uses_Your_Card_Without_Permission\"><\/span>What Happens If Someone Uses Your Card Without Permission?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Report suspected unauthorized transactions to your card issuer immediately.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Canadian consumers have legal and network protections relating to unauthorized card use.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a bank-issued credit card, FCAC states that the maximum liability for unauthorized use is generally <strong>$50<\/strong>, unless gross negligence or other applicable exceptions are established.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Different circumstances can affect how a claim is handled, so report the transaction promptly and cooperate with the issuer&#8217;s investigation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read the Government of Canada&#8217;s guidance on <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/rights-responsibilities\/protection-unauthorized-transactions.html\" target=\"_blank\" rel=\"noopener\">protection against unauthorized credit and debit transactions<\/a> for the detailed rules.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Credit_Card_vs_Debit_Card_Whats_the_Difference\"><\/span>Credit Card vs. Debit Card: What&#8217;s the Difference?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Feature<\/th><th>Credit Card<\/th><th>Debit Card<\/th><\/tr><tr><td>Source of money<\/td><td>Borrowed credit<\/td><td>Money in bank account<\/td><\/tr><tr><td>Repayment required<\/td><td>Yes<\/td><td>Normally no separate repayment<\/td><\/tr><tr><td>Interest possible<\/td><td>Yes<\/td><td>Generally not on ordinary debit purchases<\/td><\/tr><tr><td>Credit history impact<\/td><td>Can affect credit history<\/td><td>Ordinary debit use generally doesn&#8217;t build credit history<\/td><\/tr><tr><td>Credit limit<\/td><td>Issuer sets a limit<\/td><td>Based largely on account funds and transaction limits<\/td><\/tr><tr><td>Rewards<\/td><td>Available on some cards<\/td><td>Available on some products, but less common<\/td><\/tr><tr><td>Cash withdrawal<\/td><td>Usually treated as a cash advance<\/td><td>Withdraws your own account funds<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Neither payment method is always better.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The right choice depends on what you&#8217;re buying, your financial habits and whether you can manage credit responsibly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Credit_Card_vs_Payday_Loan\"><\/span>Credit Card vs. Payday Loan<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A credit card and payday loan are both forms of borrowing, but they work very differently.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Feature<\/th><th>Credit Card<\/th><th>Payday Loan<\/th><\/tr><tr><td>Structure<\/td><td>Revolving credit<\/td><td>Short-term loan<\/td><\/tr><tr><td>Reuse<\/td><td>Credit becomes available again as balance is repaid<\/td><td>Normally a separate loan transaction<\/td><\/tr><tr><td>Purchase grace period<\/td><td>May apply to eligible purchases<\/td><td>Not applicable in the same way<\/td><\/tr><tr><td>Repayment<\/td><td>Monthly minimum required; balance may carry forward<\/td><td>Usually short repayment schedule<\/td><\/tr><tr><td>Cost<\/td><td>Depends on interest, fees and repayment behaviour<\/td><td>High-cost short-term borrowing<\/td><\/tr><tr><td>Intended use<\/td><td>Everyday purchases and revolving credit<\/td><td>Temporary short-term cash need<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">CashWaves explains its approach to short-term borrowing in its <a href=\"https:\/\/www.cashwaves.ca\/responsible-lending.html\">Responsible Lending guide<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;re comparing a card with a structured loan rather than a payday loan, you can also review CashWaves&#8217; educational guide to <a href=\"https:\/\/www.cashwaves.ca\/installment-loans.html\">installment loans in Canada<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The important point is to compare <strong>total cost, repayment structure and affordability<\/strong>, rather than choosing solely on how quickly money is available.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Things_to_Compare_Before_Applying_for_a_Credit_Card\"><\/span>8 Things to Compare Before Applying for a Credit Card<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Before submitting an application, check:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Purchase interest rate<\/strong> \u2014 especially if you may carry a balance.<\/li>\n\n\n\n<li><strong>Cash-advance rate<\/strong> \u2014 it may be higher than the purchase rate.<\/li>\n\n\n\n<li><strong>Annual fee<\/strong> \u2014 calculate whether the benefits justify it.<\/li>\n\n\n\n<li><strong>Other fees<\/strong> \u2014 including foreign-currency and cash-advance charges.<\/li>\n\n\n\n<li><strong>Rewards structure<\/strong> \u2014 determine what your normal spending would actually earn.<\/li>\n\n\n\n<li><strong>Grace period<\/strong> \u2014 understand how to qualify for interest-free treatment on purchases.<\/li>\n\n\n\n<li><strong>Digital and security tools<\/strong> \u2014 compare alerts, card controls and account-access options.<\/li>\n\n\n\n<li><strong>Eligibility requirements<\/strong> \u2014 don&#8217;t assume approval because a card is heavily advertised.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">You can compare these fundamentals using the <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/credit-cards.html\" target=\"_blank\" rel=\"noopener\">Financial Consumer Agency of Canada&#8217;s credit-card resources<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Questions_to_Ask_Yourself_Before_Getting_Another_Credit_Card\"><\/span>Questions to Ask Yourself Before Getting Another Credit Card<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A modern card can provide useful technology and rewards, but another credit account isn&#8217;t always necessary.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ask yourself:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Do I normally pay my balance in full?<\/li>\n\n\n\n<li>Am I already carrying credit-card debt?<\/li>\n\n\n\n<li>Do I need the card or mainly want its sign-up offer?<\/li>\n\n\n\n<li>Will the annual fee provide real value to me?<\/li>\n\n\n\n<li>Would another application affect my broader borrowing plans?<\/li>\n\n\n\n<li>Can I manage another payment due date?<\/li>\n\n\n\n<li>Do I understand the regular interest rate after any promotional period?<\/li>\n\n\n\n<li>Would a lower-cost borrowing option better fit my needs?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If recurring debt rather than payment convenience is the main problem, adding more available credit may not solve the underlying issue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CashWaves&#8217; <a href=\"https:\/\/www.cashwaves.ca\/responsible-lending.html\">responsible borrowing principles<\/a> emphasize looking at affordability and alternatives before adding debt.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Real_%E2%80%9CNext_Generation%E2%80%9D_Feature_Is_Better_Financial_Control\"><\/span>The Real \u201cNext Generation\u201d Feature Is Better Financial Control<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The most useful credit-card innovation isn&#8217;t necessarily a metal card, an elaborate rewards program or a sophisticated mobile interface.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s better information and greater control over how you use credit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Features such as real-time alerts, digital account access and spending information can make credit easier to monitor. But they work best when combined with basic habits:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>spend within your budget<\/li>\n\n\n\n<li>pay on time<\/li>\n\n\n\n<li>understand your interest rate<\/li>\n\n\n\n<li>avoid unnecessary cash advances<\/li>\n\n\n\n<li>monitor statements<\/li>\n\n\n\n<li>protect account information<\/li>\n\n\n\n<li>keep utilization manageable<\/li>\n\n\n\n<li>compare the actual value of rewards and fees<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Technology can make credit easier to manage. It can&#8217;t make debt free.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CashWaves provides educational financial content to help Canadians understand different borrowing options. You can learn more about the site&#8217;s approach on the <a href=\"https:\/\/www.cashwaves.ca\/about.html\">About CashWaves<\/a> and <a href=\"https:\/\/www.cashwaves.ca\/editorial-policy.html\">Editorial Policy<\/a> pages.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FREQUENTLY_ASKED_QUESTIONS\"><\/span>FREQUENTLY ASKED QUESTIONS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-37e7b535 uagb-faq-icon-row-reverse uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height     \" data-faqtoggle=\"true\" role=\"tablist\"><script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"@id\":\"https:\\\/\\\/www.cashwaves.ca\\\/blog\\\/cashwaves-the-next-generation-credit-card\\\/\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What is a next-generation credit card?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"\\u201cNext-generation credit card\\u201d isn't a specific legal category in Canada. It generally describes a credit card offering newer digital, security, payment or account-management features alongside traditional revolving credit.\"}},{\"@type\":\"Question\",\"name\":\"Does CashWaves issue a credit card?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"CashWaves describes itself as an educational and loan-referral platform, not a bank or credit-card issuer. This article is educational and does not represent a CashWaves-branded credit-card product.\"}},{\"@type\":\"Question\",\"name\":\"What is the minimum credit-card grace period in Canada?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Federally regulated financial institutions must provide a minimum <strong>21-day interest-free grace period<\\\/strong> for qualifying credit-card purchases. The standard purchase grace period doesn't apply to cash advances and certain other transactions.<br><br>See the <a href=\\\"https:\\\/\\\/www.canada.ca\\\/en\\\/financial-consumer-agency\\\/services\\\/credit-cards\\\/credit-card-work.html\\\">Government of Canada explanation of credit-card interest<\\\/a> for details.\"}},{\"@type\":\"Question\",\"name\":\"Is it better to pay the minimum or the entire credit-card balance?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Paying only the minimum usually means taking longer to eliminate the balance and paying more interest. Paying the required statement balance in full by the due date can allow you to avoid purchase interest when the applicable grace-period conditions are satisfied.\"}},{\"@type\":\"Question\",\"name\":\"What credit utilization ratio should I aim for?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"FCAC recommends trying to use less than <strong>30% of your total available credit<\\\/strong>.<br><br>For example, if your total credit limit is $10,000, 30% would equal $3,000.<br><br>Keeping utilization below that level may help demonstrate that you aren't relying heavily on available credit.\"}},{\"@type\":\"Question\",\"name\":\"Can I get a credit card with bad credit?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Possibly. Approval depends on the issuer's criteria.<br><br>A secured credit card may be an option for someone with damaged or limited credit history. Secured cards normally require a security deposit.\"}},{\"@type\":\"Question\",\"name\":\"Do credit-card cash advances have a grace period?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Generally, no. Interest on a cash advance normally begins from the date of the transaction. A cash-advance fee may also apply.\"}},{\"@type\":\"Question\",\"name\":\"Are rewards credit cards always worth the annual fee?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. Compare the annual value of rewards and benefits you realistically expect to use against the card's annual fee and any other costs.<br><br>If you carry a balance, interest charges may also outweigh the value of the rewards.\"}},{\"@type\":\"Question\",\"name\":\"What should I do if I notice an unauthorized transaction?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Contact your credit-card issuer immediately, report the transaction and protect your account credentials. You may also need to change passwords or PINs and review your other accounts for suspicious activity.<br><br>Detailed steps are available through the <a href=\\\"https:\\\/\\\/www.canada.ca\\\/en\\\/financial-consumer-agency\\\/services\\\/resolving-unauthorized-transaction.html\\\">Financial Consumer Agency of Canada<\\\/a>.\"}}]}<\/script><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-c09cd37b \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">What is a next-generation credit card?<\/span><\/div><div class=\"uagb-faq-content\"><p>\u201cNext-generation credit card\u201d isn&#8217;t a specific legal category in Canada. It generally describes a credit card offering newer digital, security, payment or account-management features alongside traditional revolving credit.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-0dabded2 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Does CashWaves issue a credit card?<\/span><\/div><div class=\"uagb-faq-content\"><p>CashWaves describes itself as an educational and loan-referral platform, not a bank or credit-card issuer. This article is educational and does not represent a CashWaves-branded credit-card product.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-d8942cf7 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">What is the minimum credit-card grace period in Canada?<\/span><\/div><div class=\"uagb-faq-content\"><p>Federally regulated financial institutions must provide a minimum <strong>21-day interest-free grace period<\/strong> for qualifying credit-card purchases. The standard purchase grace period doesn&#8217;t apply to cash advances and certain other transactions.<br><br>See the <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/credit-cards\/credit-card-work.html\" target=\"_blank\" rel=\"noopener\">Government of Canada explanation of credit-card interest<\/a> for details.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-af3d1355 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Is it better to pay the minimum or the entire credit-card balance?<\/span><\/div><div class=\"uagb-faq-content\"><p>Paying only the minimum usually means taking longer to eliminate the balance and paying more interest. Paying the required statement balance in full by the due date can allow you to avoid purchase interest when the applicable grace-period conditions are satisfied.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-8328361a \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">What credit utilization ratio should I aim for?<\/span><\/div><div class=\"uagb-faq-content\"><p>FCAC recommends trying to use less than <strong>30% of your total available credit<\/strong>.<br><br>For example, if your total credit limit is $10,000, 30% would equal $3,000.<br><br>Keeping utilization below that level may help demonstrate that you aren&#8217;t relying heavily on available credit.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-cc084d5c \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Can I get a credit card with bad credit?<\/span><\/div><div class=\"uagb-faq-content\"><p>Possibly. Approval depends on the issuer&#8217;s criteria.<br><br>A secured credit card may be an option for someone with damaged or limited credit history. Secured cards normally require a security deposit.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-59c52148 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Do credit-card cash advances have a grace period?<\/span><\/div><div class=\"uagb-faq-content\"><p>Generally, no. Interest on a cash advance normally begins from the date of the transaction. A cash-advance fee may also apply.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-0a0f1e80 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">Are rewards credit cards always worth the annual fee?<\/span><\/div><div class=\"uagb-faq-content\"><p>No. Compare the annual value of rewards and benefits you realistically expect to use against the card&#8217;s annual fee and any other costs.<br><br>If you carry a balance, interest charges may also outweigh the value of the rewards.<\/p><\/div><\/div><div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-6449c973 \" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\">\t\t\t<span class=\"uagb-icon uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t<span class=\"uagb-icon-active uagb-faq-icon-wrap\">\n\t\t\t\t\t\t\t\t<svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox= \"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg>\n\t\t\t\t\t\t\t<\/span>\n\t\t\t<span class=\"uagb-question\">What should I do if I notice an unauthorized transaction?<\/span><\/div><div class=\"uagb-faq-content\"><p>Contact your credit-card issuer immediately, report the transaction and protect your account credentials. You may also need to change passwords or PINs and review your other accounts for suspicious activity.<br><br>Detailed steps are available through the <a href=\"https:\/\/www.canada.ca\/en\/financial-consumer-agency\/services\/resolving-unauthorized-transaction.html\" target=\"_blank\" rel=\"noopener\">Financial Consumer Agency of Canada<\/a>.<\/p><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Credit cards have changed considerably from the days when the main features were simply a plastic card, a credit limit and a monthly statement. Many cards now combine mobile account management, transaction alerts, contactless payments, digital-wallet compatibility, rewards programs and enhanced security tools. But the phrase \u201cnext-generation credit card\u201d isn&#8217;t a separate regulated category of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":338,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","footnotes":"","_yoast_wpseo_title":"Credit Card EMV Chip Credit & Debit Cards | Mastercard","_yoast_wpseo_metadesc":"Credit Card smart chip EMV technology by Mastercard. You can pay with a secure microchip credit card around the world Secure.","_yoast_wpseo_focuskw":"credit card","rank_math_title":"Credit Card EMV Chip Credit & Debit Cards | Mastercard","rank_math_description":"Credit Card smart chip EMV technology by Mastercard. You can pay with a secure microchip credit card around the world Secure.","rank_math_focus_keyword":"credit card","_dpc-meta-title":"","_dpc-meta-description":"","_dpc-keyword":""},"categories":[30],"tags":[28,29],"class_list":["post-75","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-credit-card","tag-credit-card","tag-credit-cards-canada-instant-approval"],"uagb_featured_image_src":{"full":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Credit-Card.webp",1920,1080,false],"thumbnail":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Credit-Card-150x150.webp",150,150,true],"medium":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Credit-Card-300x169.webp",300,169,true],"medium_large":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Credit-Card-768x432.webp",640,360,true],"large":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Credit-Card-1024x576.webp",640,360,true],"1536x1536":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Credit-Card-1536x864.webp",1536,864,true],"2048x2048":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Credit-Card.webp",1920,1080,false],"post-thumbnail":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Credit-Card-768x432.webp",768,432,true],"color-blog-full-width":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Credit-Card-1160x653.webp",1160,653,true],"color-blog-post":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Credit-Card-600x400.webp",600,400,true],"color-blog-post-auto":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Credit-Card-600x338.webp",600,338,true],"color-blog-slider-post":["https:\/\/www.cashwaves.ca\/blog\/wp-content\/uploads\/2021\/05\/Credit-Card-1200x700.webp",1200,700,true]},"uagb_author_info":{"display_name":false,"author_link":"https:\/\/www.cashwaves.ca\/blog\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"Credit cards have changed considerably from the days when the main features were simply a plastic card, a credit limit and a monthly statement. Many cards now combine mobile account management, transaction alerts, contactless payments, digital-wallet compatibility, rewards programs and enhanced security tools. But the phrase \u201cnext-generation credit card\u201d isn&#8217;t a separate regulated category of&hellip;","_links":{"self":[{"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/posts\/75","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/comments?post=75"}],"version-history":[{"count":7,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/posts\/75\/revisions"}],"predecessor-version":[{"id":481,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/posts\/75\/revisions\/481"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/media\/338"}],"wp:attachment":[{"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/media?parent=75"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/categories?post=75"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashwaves.ca\/blog\/wp-json\/wp\/v2\/tags?post=75"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}