Have you ever taken out a line of credit to make multiple purchases? That’s what revolving credit is all about! This form of credit allows borrowers to make payments as they choose as long as they don’t exceed a credit limit.
Read on if you’re keen to learn more about two of the most common types of revolving credit.
Cash Back Credit Cards
Canadians own a total of over 76 million Visa and MasterCard cards, as per data from the Canadian Banker’s Association. Many of these are cash back credit cards which give owners a percentage rebate on every credit card transaction. The more purchases are made using the cash back credit card, the more they earn!
Cash back credit cards are an immensely popular type of revolving credit because they give you discounts on everything from bill payments to groceries and gas purchases. All you’ve got to do is stay within your credit limit (which is established based on factors like your income and credit score) and settle your credit balance before the due date to avoid interest.
Home Equity Line of Credit
Another popular type of revolving credit in Canada is the home equity line of credit (HELOC). HELOC is a loan taken out against the value of the borrower’s home. It’s similar to a credit card because it gives the borrower a credit limit based on their credit history and income. The limit is also calculated by subtracting outstanding mortgage payments from a certain home equity percentage.
HELOCs are offered at a variable interest rate, which means the interest charged changes depending on market conditions. Unfortunately, this makes it hard to budget using HELOCS; That’s why we believe credit cards are the best type of revolving credit.
Compare Some of the Best Canadian Cash Back Credit Cards on Great Canadian Rebates
If you’re looking for a fantastic credit card comparison table to help you take advantage of this useful type of revolving credit, it’s time to check out Great Canadian Rebates!
Great Canadian Rebates is an online platform that lets customers compare credit card options available in Canada and apply for the one that best suits their financial and lifestyle requirements. The online platform provides information on a wide range of major credit cards in Canada and gives generous cash back rebates upon approval of credit cards applied for through their website. Customers can also choose from over 700 well-known merchants and get their hands on some great rebates, deals and discounts.
Visit Great Canadian Rebates for more information.