Banking 101: Understanding Credit Cards

Credit cards are a versatile tool that everyone should utilize. They can be used to shop, pay bills, travel, manage cashflow, build your credit history, and establish your credit score. You can use them for online purchases as well as in-store ones. 1st Choice Savings partners with Collabria Financial Services^® to bring our members a variety of credit cards.

To use your credit card, all you need to do is make a purchase. This can be in-store or online. Every time you use your credit card, you are borrowing funds from Collabria. Your card has a set amount of funds available for you to use (credit limit). You will receive a credit card statement once a month that outlines how much you currently owe and all activity.

When it comes to paying off your card, there are a few options. Based on the balance of your card, you will be given a minimum payment amount that must be made each month. If you can afford to make a bigger payment or pay off your card, you will save money by paying less or no interest on the revolving balance.

Every credit card has a specific limit that you can spend, and that amount will vary depending on the user and the card itself. Your limit is set for you when you initially receive your card. In most circumstances, your credit limit is determined by your creditworthiness and the ability to repay your debt. You can find your credit limit on the initial documents you received when you got your credit card, on your monthly statements, or on CardWise, your digital account management platform. If you come across a situation where you require an increase in your limit, contact Collabria Cardholder Services at 1.855.341.4643 (Canada and U.S.) to request a higher limit. Please note that you will have to be operating your account in a sound manner for over six months to be eligible for the increase.

Each card has a pre-determined interest rate. The annual interest rate is a measure of the cost of credit expressed as a yearly rate. It is the amount of interest that is billed to your account. Your annual interest rate is determined by your creditworthiness which is based on information from your credit file.

There are two major credit card companies: Visa* and Mastercard^®. Each type of card offers different features and rewards so you can find the card that best suits your lifestyle. We have cards specific to travelling, with low-rates, rewards, and cashback options.

Rewards: With each dollar spent, you will earn rewards on everyday purchases to redeem for merchandise, travel, and more.

Low-rate/No-Fee: You will receive the benefits of having a credit card with a low interest rate or without worrying about a costly annual payment.

Cashback: This reward comes in the form of a credit card statement credit, or if you have a Cash Back card, a deposit will be directly placed into your 1st Choice Chequing or Savings account.

For more information on the rewards offered with a Collabria credit card, click here.

These are the different credit cards we offer our members:

Now that you know the type of credit cards we offer, it is time to make the important decision of choosing the card for you. Some things to think about when choosing your card are your lifestyle, your current spending habits, annual fees, and interest, and what’s important to you. There is a card selector tool available to you that will help you choose the right card that fits within your lifestyle. Visit our website here to find your card.

If you are ready to get started and apply for a credit card, you can visit your local branch or select the card you would like to apply for, and click ‘Apply Here’ on this page.