Carry a Balance
Carrying a Balance on a credit card means that you do not pay off your credit card on your given credit statement date. If you're carrying a balance, then the balance will accumulate interest at the agreed upon rate.
If you carry a balance on your credit card on a regular basis, it is recommended that you use low interest credit cards to minimize your interest costs.
We don't recommend collecting reward points if you regularly carry a balance on your cards. The reason being, the interest paid will cost more than any rewards benefit you may receive.
Some credit cards such as American Express don't want you to carry a balance. They call these charge cards. They expect that you'll pay the balance off each month. The penalty for not paying off the balance in this case is around 30%.
See Also
Best Credit Cards Canada
Best Cash Back Credit Cards Canada
Best Capital One Credit Cards Canada
Best MasterCard Credit Cards Canada
Best MBNA Credit Cards Canada
Best Visa Credit Cards Canada
Best Secured Credit Cards Canada
Travel Credit Cards Canada
Balance Transfer Credit Cards Canada
References
What is an Annual Fee?
FCAC - Best Credit Cards in Canada
Your First Credit Card - Ontario Gov't
External Links
Carrying a Balance on Credit Cards
Capital One Card Website
Canadian Credit Cards - Gas Cards
Canadian Credit Cards
CARRY A BALANCE
