In a recent post, I mentioned how my mortgage is up for renewal and I’m determined to find the best lender for me instead of just blindly renewing with my current lender. This led me to examine the other parts of my financial life, particularly which credit card I use.

Years ago, I used to have two credit cards, both Visa from CIBC. One had an annual fee of $29 but it had a low interest rate. I used to carry a credit card balance but it been about ten years since the bank have made any money off of me from credit card interest. I kept that card though, even after paying off all my credit card debit. One day I realized I was paying $29 a year for nothing. I cancelled that card and went down to a single credit card, one that offered cash back.

Last week, I re-examined how that cash rewards card worked and how it compares to the cards that are now available (that might not have been years ago). In summary, it didn’t take long to see my current card sucks. It has tiers of rewards, starting at 0.25% for the first $1500 in spending for the year, then 0.5% between $1500 and $3000, and then 1% only after you break the $3000 threshold.

In comparison, the MBNA Smart Cash Plus Mastercard, offers you %5 cash back on gas and groceries for the first six months, then 2% cash back on gas and groceries after that. For purchases that are not gas and groceries, you start off with 1% cash back right away, no tiers. There are also no annual fees. As you can see, it’s way better than my current Visa credit card.

I filled out an application form on the weekend and I’m hoping to get my new card as soon as possible. I’ve never had a MasterCard before but I’m willing to jump ship for more $$$ back. Once I get my new card, I’ll be transferring over all my re-occurring and monthly bills to it, like the Internet, Netflix, and the like.

Take it from me, it’s worth the five minutes to examine the financial products in your life.

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