Credit card companies are expected to roll out increasingly tempting cash back and rewards offers in 2018, as they compete for slots in Canadian wallets. With debt levels soaring in the face of rising interest rates, it’s more important than ever to get the most out of these offers when you pay with plastic. “It’s clear that competition is ramping up.

Shmuel points to TD Bank’s introduction of the TD Cash Back Visa Infinite Card last June. “Scotiabank and American Express, they all followed it,” Shmuel said. There are, however, a number of things to consider before you start filling out applications for new cards. Choosing the credit card with the right rewards or cash back program for you hinges on your income and spending habits, as well as your credit score.

If you know all that, you can focus your search on the cards that give you the best “earn rate”-- a non-precise measure of bang for your buck. Applying for a cash-back card is the simplest way to go, Shmuel said. They pay a small percentage of the amount spent back to the cardholder.

Some cards offer higher introductory cash-back rates that drop after a year, for example. Cash-back rates can also differ depending on what you buy and where you buy it. Some cards offer higher rates on purchases like gas and groceries. While cash back is great for simplicity sake, the earn rate is often considerably higher when you opt for rewards from specific companies that have partnered with the credit card provider.

“Travel rewards are no-brainers because their earn rate is high, comparatively, but of course those points only go to travel,” Shmuel added. Top-tier perks like concierge services and hotel discounts are typically reserved for premium cards, often branded as “elite” or “infinite,” that charge holders an annual fee. Weighing that cost against your expected earn rate should give you an idea of whether the fee is worth paying. It packs a bevy of travel benefits, including discounts and special offers on hotels, flights, car rentals, and cruise and vacation packages.

Cardholders also receive access to airport travel lounges as well as concierge services. 99 annual fee waived for the first year. 250 in redeemable travel expenses. “That is one of the best travel rewards cards you can have. It comes with a huge sign-up bonus and has a great earn rate for travel rewards,” Shmuel said.

120 annual fee, but it boasts a four per cent cash-back rate on all purchases for the first four months, after which the rate drops to 1.5 per cent. 0 annual fee and points perks available when you buy a Cineplex movie ticket or a meal at a slew of restaurants including Swiss Chalet, Harvey’s, Montana’s, East Side Mario’s, Milestones, and Kelsey’s. You can also put your points towards concert and sporting event tickets through Fanxchange.

“In terms of earn rate for a no-fee card, nothing comes close to it,” Shmuel said. “But it’s very specific. If your head is pounding from a holiday debt hangover, this may be the card for you. The zero per cent introductory interest rate for the first year on balance transfers within the first 90 days will give you an entire year to attack debt you have previously racked up, without the pain of paying additional interest. “It’s easily the best card in this category,” Shmuel said.

The card also has no annual fee and includes the platinum-level benefits associated with MBNA cards, such as auto rental insurance and trip interruption insurance. Using cards like the MBNA Platinum Plus Mastercard Credit Card to attack a large debt load accrued on another credit card is a wise move, Shmuel explains.

He’s among the growing number of observers who expect the Bank of Canada will continue raising its key overnight rate in 2018 to curb consumer debt. The ratio of household debt to disposable income topped 171 per cent in the third quarter of 2017, marking a record level for Canada that ranks among the highest in the world.