Kevin O’Leary’s credit card tips

How many credit cards should I have? Should I collect travel rewards points or cash back? Should I even have a credit card at all? These are common questions many first-time and frequent credit card users ask themselves. Fortunately, we’ve collected some of the top tips from one of Canada’s favourite Shark Tank investors: Kevin O’Leary.

Kevin O’Leary

• Kevin O’Leary is a Canadian businessman, TV personality and author.
• Kevin has a B.A. in environmental studies and psychology and an MBA in entrepreneurship.
• O’Leary is an investor on Shark Tank.

Have at least two credit cards.

Kevin O’Leary suggests having at least two credit cards. Have one credit card with a low limit that you only shop online with. That way, you can protect yourself from online fraud with a low limit card. The second credit card should have a higher credit limit and should be used for in-person purposes only. This way, you have one card you expose only to the online world and one that you use only to pay for purchases in person.

That said, O’Leary has approximately eight personal credit cards. He carries cards with no annual fees, cards that offer multiple currencies, cards that have no foreign transaction fees and more. He states that he simply dislikes credit card fees – especially foreign transaction fees.

If you travel often, get a card with no foreign transaction fees.

Kevin O’Leary is a frequent traveller and, as mentioned above, has around eight personal credit cards. Since his business endeavours take him through many different countries, he understands the importance of avoiding foreign transaction fees. Around 2.5% to 3%, this fee is charged on every transaction you make overseas. Although it doesn’t sound like a lot, these fees can quickly add up – especially if you use your credit card a lot.

Collect cash back, not rewards points.

This might be a controversial topic since many financial experts would recommend the opposite, however let’s hear O’Leary out. He suggests that you should always choose a cash back option over collecting rewards points. This is because cash back is more stable and will constantly be determined by the value of the Canadian dollar, while airline points are subject to more inflation and the value of the points tends to be less and less each year.

His reasoning is that you’ll likely get more value from cash back than you would earn from collecting airline or rewards points. This is why it’s essential to compare cash back to rewards points to determine your earning potential. Do this before you apply for a credit card.

If you’re in debt, avoid using a credit card.

Kevin O’Leary is a massive advocate for avoiding debt. If you don’t have the savings to pay off what you charge to your credit card, then he suggests to avoid using a credit card in the first place.

Paying on a credit card with money you have in a bank account, is different than paying on credit with money you don’t have! Important distinction” – Kevin O’Leary

That said, he does suggest that you occasionally use a credit card in order to build up your credit score, but only if you have the savings on hand to pay off your balance in full. Responsibly using your credit card can help you to build up your credit score, which is an important step for your future – you’ll ultimately get the most competitive rates for future forms of credit such as mortgages, car loans and more if you have a very good to excellent credit score.

Control emotional spending.

Kevin O’Leary says that mixing your emotions with shopping is a terrible combination – and should be avoided at all costs. While you might shop to make yourself feel better or to treat yourself after a difficult week at work, the feeling of debt on your shoulders will be a long lasting burden compared to the joy you feel when you bring home that new pair of shoes.

O’Leary suggests that when you’re about to head out shopping, assess your mood and determine how you’re feeling. Being mindful of your mood can help control impulse purchases and spending, which can ultimately fend off any debt you might bring home.

Don’t put vacations on your credit card.

Rather than charging fun or enjoyable experiences to your credit card – such as vacations, weekend getaways or lunch dates – create a “fun fund” instead. Set aside a percentage of your wage each week in cash, which you can then use to treat yourself to lunch, a spa day or even a vacation. The key to using cash is to avoid using your credit card frivolously toward enjoyable experiences. You can avoid debt, while still treating yourself every so often.

Compare Canadian credit cards

Sort by:

Name	Product	Welcome Offer	Rewards	Purchase Interest Rate	Annual Fee		Min. Credit Score	Description
BMO CashBack Mastercard BMO CashBack Mastercard		5% cash back	Up to 3% cash back	20.99%	$0	Apply now More Info	Min. recommended credit score: 660	Get 5% cash back on all eligible purchases in the first three months of card membership (up to max. spend of $2,500). Plus, get a rate of 0.99% on balance transfers for 9 months. A 2% fee applies to transferred balances.	Compare	loading Fetching your data...
OFFER Tangerine World Mastercard Tangerine World Mastercard	OFFER	10% cash back	Up to 2% cash back	19.95%	$0	Apply now More Info	Min. recommended credit score: 600	Earn 10% cash back (up to $100) when you spend $1,000 in the first 2 months. Valid until July 5, 2023. Plus, get a 1.95% interest rate on balance transfers for the first 6 months.	Compare	loading Fetching your data...
OFFER Tangerine Money-Back Credit Card Tangerine Money-Back Credit Card	OFFER	10% cash back	Up to 2% cash back	19.95%	$0	Apply now More Info	Min. recommended credit score: 600	Earn 10% cash back (up to $100) when you spend $1,000 in the first 2 months. Valid until July 5, 2023. Plus, get a 1.95% interest rate on balance transfers for the first 6 months.	Compare	loading Fetching your data...
Neo Financial Mastercard Neo Financial Mastercard		Get $25.00 + up to 15% cash back	Average 5% cash back	19.99% - 26.99%	$0	Apply now More Info	Min. recommended credit score: 600	Get $25 when you sign up for the Neo Financial Mastercard. Plus, earn bonuses like 15% cashback on your first purchase at most partners, and earn an average of 5% cashback at thousands of partners and at least 0.5% cashback guaranteed.	Compare	loading Fetching your data...
RBC Avion Visa Infinite RBC Avion Visa Infinite		35,000 points	Up to 1 point per $1 spent	20.99%	$120	Apply now More Info	Min. recommended credit score: 650	Get up to 35,000 Welcome Points.	Compare	loading Fetching your data...
American Express Cobalt Card American Express Cobalt Card		30,000 points	Up to 5x points per $1 spent	20.99%	$155.88	Apply now More Info	Min. recommended credit score: 700	Earn up to 30,000 Membership Rewards points in your first year. Earn 2,500 Membership Rewards points for each monthly billing period in which you spend $500 in net purchases on your card (up to 30,000 points). That’s up to $300 towards a weekend getaway or concert tickets.	Compare	loading Fetching your data...
BMO Preferred Rate Mastercard BMO Preferred Rate Mastercard		0.99% rate on balance transfers for 9 months	N/A	13.99%	$0 annual fee for the first year ($29 thereafter)	Apply now More Info	Min. recommended credit score: 660	Get a rate of 0.99% on balance transfers for 9 months with a 2% transfer fee. Plus, get the $29 annual fee waived in the first year.	Compare	loading Fetching your data...
RBC ION+ Visa RBC ION+ Visa		7,000 points	3 points per $1 spent	20.99%	$48	Apply now More Info	Min. recommended credit score: 660	Get up to 7,000 points. Get 3,500 Welcome Points on approval and earn 3,500 bonus points when you spend $500 in your first 3 months. Apply by July 31, 2023.	Compare	loading Fetching your data...
RBC ION Visa RBC ION Visa		3,500 points	1.5 points per $1 spent	20.99%	$0	Apply now More Info	Min. recommended credit score: 660	Get 3,500 Avion points when you get approved for the card. Apply by July 31, 2023.	Compare	loading Fetching your data...
American Express Green Card American Express Green Card		10,000 points	1 point per $1 spent	20.99%	$0	Apply now More Info	Min. recommended credit score: 700	Earn a Welcome Bonus of 10,000 Membership Rewards points when you charge $1,000 in purchases to your card in the first 3 months as a new Cardmember. That’s $100 towards groceries or concert tickets.	Compare	loading Fetching your data...
BMO Ascend World Elite Mastercard BMO Ascend World Elite Mastercard		60,000 points	Up to 5x points per $1 spent	20.99%	$0 annual fee for the first year ($150 thereafter)	Apply now More Info	Min. recommended credit score: 760	Get up to 60,000 points and get the $150 annual fee waived in the first year.	Compare	loading Fetching your data...
BMO Rewards Mastercard BMO Rewards Mastercard		10,000 points	Up to 1 points per $1 spent	20.99%	$0	Apply now	Min. recommended credit score: 725	Get a bonus of 10,000 BMO Rewards points when you spend $1,000 in the first 3 months. Plus, get a rate of 0.99% on balance transfers for 9 months. A 2% fee applies to transferred balances.	Compare	loading Fetching your data...
BMO eclipse Visa Infinite Privilege BMO eclipse Visa Infinite Privilege		90,000 points	5 points per $1 spent	20.99%	$499	Apply now More Info	Min. recommended credit score: 760	Get up to 90,000 welcome points in your first year.	Compare	loading Fetching your data...
SimplyCash Card from American Express SimplyCash Card from American Express		$100 in statement credits	Up to 2% cash back	20.99%	$0	Apply now More Info	Min. recommended credit score: 700	In your first 10 months, earn a $10 statement credit for each monthly billing period in which you spend $300 in purchases. This could add up to $100 in statement credits in the first 10 months.	Compare	loading Fetching your data...
Scotiabank Passport Visa Infinite Card Scotiabank Passport Visa Infinite Card		35,000 points	Up to 3 points per $1 spent	20.99%	$0 annual fee for the first year ($150 thereafter)	Apply now More Info	Min. recommended credit score: 750	Earn up to 35,000 bonus Scene+ points and get the first year annual fee waived (that’s up to $1,100 in value in the first 12 months). Apply by October 31, 2023.	Compare	loading Fetching your data...
Scotiabank SCENE Visa Card Scotiabank SCENE Visa Card		5,000 points	Up to 2 points per $1 spent	19.99%	$0	Apply now More Info	Min. recommended credit score: 660	Earn 5,000 Scene+ points when you spend $750 in the first 3 months. Apply by October 31, 2023.	Compare	loading Fetching your data...
Scotiabank Gold American Express Card Scotiabank Gold American Express Card		40,000 points	Up to 6 points per $1 spent	20.99%	$0 annual fee for the first year ($120 thereafter)	Apply now More Info	Min. recommended credit score: 700	Earn up to 40,000 bonus Scene+ points in your first year (that's up to $650 towards travel) and get the first year annual fee waived. Apply by October 31, 2023.	Compare	loading Fetching your data...
American Express Aeroplan Reserve Card American Express Aeroplan Reserve Card		115,000 points	Up to 3x points	20.99%	$599	Apply now More Info	Min. recommended credit score: 700	Earn up to 115,000 Welcome Bonus Aeroplan points. That's a first year value of up to $3,200. Offer ends July 24, 2023.	Compare	loading Fetching your data...
Scotiabank Value Visa Card Scotiabank Value Visa Card		0% on cash advances for 6 months	N/A	12.99%	$0 annual fee for the first year ($29 thereafter)	Apply now More Info	Min. recommended credit score: 660	Get a 0% introductory interest rate on cash advances for the first 6 months. Plus, pay no annual fee in the first year. Apply by October 31, 2023.	Compare	loading Fetching your data...
Scotia Momentum Visa Infinite Card Scotia Momentum Visa Infinite Card		10% cash back	Up to 4% cash back	20.99%	$0 annual fee for the first year ($120 thereafter)	Apply now More Info	Min. recommended credit score: 750	Earn 10% cash back on all purchases for the first 3 months. Plus, pay no annual fee in the first year. Apply by June 30, 2023.	Compare	loading Fetching your data...

loading

Load More

CompareClear