I saw this card (https://www.scotiabank.com/ca/en/personal/credit-cards/visa/momentum-infinite-card.html) offered by Scotiabank that offers 10% cash back on purchases within the first 3 mo up to $2k, and 4% regularly on groceries and recurring payments. From first glance, it looks really good, but at the same time, there’s a $120 annual fee. Although, the first year has no fee.
I wonder if I could use it for the first year and then close or downgrade it afterward. Would my credit score take a substantial hit?
What’s your general opinion on cards with annual fees? What benefits would it need for you to consider one?
My friend, you need to google “churning”.
https://princeoftravel.com/newbie-guide/
I have 7 credit cards right now and cycle them regularly. Check /r/churningcanada for their credit card recommendation sticky thread.
To answer your question, no you wouldn’t take a hit beyond the initial credit inquiry when you get the card. Just keep an eye on your rating with something like credit karma.
I’ve heard of churning but I was told that it can ruin your credit score. How has 7 cards affected your acceptance rate?
It doesn’t. You take a tiny hit if someone does a hard inquiry, but it won’t do anything major AS LONG AS YOU PAY YOUR SHIT OFF.
If you can pay your balance every month, go for it!
My card has a $150 annual fee but I get like $800 in cash back per year. Pretty easy one to say yes to
Your spending must be quite substantial! I’m genuinely curious to learn which credit card provides such impressive cash back rewards. Are there no annual maximum limits on the rewards?
It all depends on how much you spend, and on what categories, and what categories the card gives you rewards back in. If you have a card with a $100 annual fee let’s say, but you earn $500 in rewards (points, travel, cashback etc.), then you would have made back 5x the amount of the annual fee and is totally worth it. As someone else has mentioned, you should take a look at churning. Whether you want to churn or not, they have the best information on whether or not a card with worth it, and which ones are considered the best.
I used to have more cards, using specific ones for different things, but I just get no joy from tracking that stuff. I currently just stick with a simple, no fee, cash back card. If you spend a lot (small business) I think there are better opportunities for credit cards. If you like spreadsheets and tracking, churning could be an option, but I think this is less profitable in Canada vs USA.
