How much do you know about Credit Cards?
By Alterna Team
December 20, 2021

Credit Cards are convenient, widely accepted, and offer plenty of incentives. Understanding how they work is the best way to reap their benefits.

Applying for a Credit Card

As with most financial products that lend you access to money, having a good credit score helps. However, a variety of factors such as income, credit history and debt load, all play a role when determining whether you’re approved for a credit card – and its limit.


A low credit score will limit the number of cards you qualify for but that doesn’t mean there aren’t options. Secured cards require a security deposit but ensure access to a credit card and help slowly build your credit score.

Making Payments

When making credit card payments, it’s important to make them on time. Otherwise, you run the risk of hefty interest charges, and depending on the circumstances, a decline in your credit score.

A history of missed payments may lead to your credit card provider taking additional action such as increasing your interest rate.

Contrary to popular belief, you don’t need to carry a balance on your credit card to maintain a good score.


When you can pay off the entire balance of your credit card ahead of schedule. This will ensure you avoid interest charges altogether and still get the card’s benefits.

Perks and Benefits

There are many perks and benefits to credit cards that may include cashback, extended warranty and purchase protection, travel bonuses, and discounts. Depending on how and when you use it – spending habits also affect how you’re rewarded.


Always compare credit cards and see what one is right for you. To compare Alterna Savings Collabria VISA credit cards, click here.

Cash Advances

Using your credit card to withdraw cash from an ATM can result in high-interest rates. When possible, it’s best to avoid using your credit card for cash advances.


A line of credit is an alternate option and a great way to access cash when you need it. Learn more.

Credit cards are a convenient payment solution, a great way to avoid carrying cash, and offer some great advantages. And when you understand how they work, you can make them work for you.

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