As a young professional, you have many competing priorities and lead a relatively busy life. Between working hard to get ahead, unwinding over the weekend and various social and networking events, it seems like you never have enough time in the day. With this reality, how can you maximize your earnings without having to take on a part time job or side hustle?
The key is using the right credit cards that best fit your spending. If you’re the type of person who likes to grab drinks after work, and hits the bars and restaurants over the weekend, your credit card should be very different from someone who loves farmers’ markets and only uses their credit card for the occasional shopping trip.
Why is this the case? Most credit cards reward spending based on category – typically gas, groceries, restaurants, and entertainment – so it’s important to understand in which categories you spend the most. For example, if you’re the person who is always out and about in the city, one of the best credit cards in Canada right now is the Scotiabank Gold American Express card. With 4% back on gas, groceries, restaurants and entertainment and 1% back on everything else, you can make your bar nights, movie nights and dinners out work for you!
On the other hand, if you’re not a big traveller or would prefer a no-fee card, one of the best cash-back credit cards right now is the Tangerine Money Back Credit Card which rewards you with 2% back on any two categories (three when you open a Tangerine Savings Account) and 0.5% back on all other purchases. And with no annual fee, it truly is free money!
For those living in expensive cities such as Toronto and Vancouver, the need for any additional income is even greater. Using the right credit card can go a long way to helping you pay your expenses. Using a typical spending profile, and factoring in sign up and spending bonuses, you could earn $915 in travel rewards in your first year with the Scotiabank Gold American Express card – enough for a free roundtrip flight – or $268 in cashback using the Tangerine Money Back Credit Card which can go a long way to covering groceries for the month.
When used properly, credit cards are a great way to get rebates on the spending you already do, whether that’s checking out the latest restaurants or staying in with some friends.
RateHub.ca is an independent financial product comparison site that empowers Canadians to make smart financial decisions by comparing rates on mortgages, credit cards, chequing accounts, savings accounts and insurance.
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Writer: Jelani Smith
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