Fabulous Frugal Finds

Choose Wisely #MoneyWiseMoms

Rate Supermarket

I like to think that I’ve got a pretty good head on my shoulders when it comes to getting the best value for your dollar, saving money, and earning the best rewards out there. It’s what I pride myself on, and it’s the foundation of Feisty Frugal & Fabulous. This summer I was interviewed for an article on financial literacy with The Globe and Mail, sharing my thoughts.

I love rewards cards and use them faithfully. Whether buying groceries, cosmetics or lunch, if a business has a rewards card chances are I have it (and apps to help organize them as well!) I love being rewarded for money I’m spending anyway and will change my shopping habits and preferences because of it.

Years ago, we had an RBC low-rate Visa, with no rewards, because we carried a balance month to month. Once we were able to pay off our Visa (a huge deal for me, hooray!) we switched to the RBC Visa Infinite Avion card because it offered travel rewards and we knew that we would most likely pay off the balance every month. I was explaining to a friend just the other day how I use our RBC Visa Infinite Avion for almost all our every day purchases, from groceries to gas, so that we can earn as many points as possible. I thought I was doing pretty well with my savvy shopping and rewards seeking ways.

So much so, that when I visited the RateSupermarket.ca site and plugged my info into their Rewards Calculator, I fully expected a pat on the back for a job well done! I learned that I’m actually missing out on rewards with my current credit card, ack!

So how did RateSupermarket.ca figure this out?

RateSupermarket.ca has taken the guesswork out of picking your plastic with the 2015 Best of Finance Awards, a ranking of the hardest-working credit cards and banking products in Canada.

“It can be tricky to assess whether a credit card will help or harm your bottom line over the long run,” says Penelope Graham, Editor at RateSupermarket.ca. “Plush signup bonuses and promised freebies may appear to provide great value, but it’s important to choose a card with features that practically fit your personal spending habits.”

To determine and compare the true value proposition of each card, RateSupermarket.ca converted rewards – from points and miles to interest promotions – to cash earned over a 24-month period, based on the average Canadian household expenditure. It turns out my RBC Visa Infinite Avion card ranks 3rd in travel rewards cards with a fee. Not horrible, but certainly not the best either.

Using the Rewards Calculator at RateSupermarket.ca I discovered this painful scratch on my frugal armor:

Rate Supermarket

While my Visa is certainly performing above average, I can still do better. This is fantastic info to have, considering many of us choose our credit card based on where we do our usual banking, or what a friend or family member has recommended. Everyone has a unique financial situation and it makes sense that credit cards are not a one size fits all product.

Looking ahead to 2016, if your goal is to save more and earn more rewards (something I strive for all the time!) now is a great time to visit RateSupermarket.ca and use the Rewards Calculator to determine which card may be best for you. I will likely keep using my RBC Visa Infinite Avion as it does rank higher than average for cards, all the while keeping my eye on the #1 ranked card for travel, and determine if a switch is in order next year. Having the information at hand is, truly, priceless!

 

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