I saw this card (https://www.scotiabank.com/ca/en/personal/credit-cards/visa/momentum-infinite-card.html) offered by Scotiabank that offers 10% cash back on purchases within the first 3 mo up to $2k, and 4% regularly on groceries and recurring payments. From first glance, it looks really good, but at the same time, there’s a $120 annual fee. Although, the first year has no fee.

I wonder if I could use it for the first year and then close or downgrade it afterward. Would my credit score take a substantial hit?

What’s your general opinion on cards with annual fees? What benefits would it need for you to consider one?

  • Shadow@lemmy.ca
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    1 year ago

    My friend, you need to google “churning”.

    https://princeoftravel.com/newbie-guide/

    I have 7 credit cards right now and cycle them regularly. Check /r/churningcanada for their credit card recommendation sticky thread.

    To answer your question, no you wouldn’t take a hit beyond the initial credit inquiry when you get the card. Just keep an eye on your rating with something like credit karma.

  • mindcruzer@lemmy.ca
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    1 year ago

    My card has a $150 annual fee but I get like $800 in cash back per year. Pretty easy one to say yes to

    • mxwarp@lemmy.world
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      1 year ago

      Your spending must be quite substantial! I’m genuinely curious to learn which credit card provides such impressive cash back rewards. Are there no annual maximum limits on the rewards?