Credit cards with non competitive features and annual fees could cost a cardholder an extra $1,194 per year, according to Canada-based financial rates comparison resource RateSupermarket.ca.The figure was calculated for an average cardholder who had $6,000 balance and based on 19.90% annual interest rate.
However, with so many features and reward options on credit cards, Canadians are confused with which card to select.
RateSupermarket.ca’s recently launched Credit Card Rewards Calculator allows to find the difference between a consumer’s current card and the potential savings from switching to a new low interest or cash back rewards option card.
With Credit Card Rewards Calculators, cardholders can enter their card balance, interest rate and annual spend to find their customised savings potential.
RateSupermarket.ca editor, Penelope Graham, said consumers may be incentivised to switch cards due to features such as points or bonuses, but they believe there is real value in knowing down to the dollar what the right card can save you.
"These calculators are the latest tools we’ve provided to give consumers transparent access to the credit card marketplace, and to help them understand their card options," Graham added.