With US dollar credit cards, you won’t be caught off guard by a sudden rise in the exchange rate or constant conversion fees every time you swipe your card – that’s because you won’t need either of them.
There are many reasons why Canadians (or anyone really) will find themselves spending a lot of time in the United States. Maybe you have a lot of family there, or maybe you’re there on vacation or to close a business deal or for a multitude of other reasons. Either way, if you spend a lot of time in the United States, you’ve probably already encountered the problems that spending in foreign currencies can pose.
The problem here is that spending foreign currency is expensive. Canadian credit cards, for example, are accepted in the United States, and you can certainly do all your spending with them – if you accept the additional currency conversion fees that are always added to your purchase for each transaction.
Typically, this conversion fee is set at 2.5% of your transaction amount. That means you’ll part with $51.25 for a $50 meal, and remember, it’s just one meal. Do this three times a day, 7 days a week, then add in your other expenses and you’ll see that it adds up very quickly.
This is why it is advisable to have US dollar credit cards for your spending in the United States.
Quick Overview of the 5 Best US Dollar Credit Cards
1. BMO US Dollar Mastercard
2. RBC Gold Visa in US Dollars
3. TD US Dollar Visa Card
4. Scotiabank US Dollar Visa Card
5. Meridian VISA Card in US Dollars
Why do you need a US dollar credit card?
Canadian banks and other financial institutions offer this type of credit card primarily for the benefit of their U.S.-bound traveling customers who spend a lot of time and money in the United States or who make a lot of purchases from U.S. sellers.
Canadians who need US dollar credit cards generally meet at least one or more (usually more) of the following criteria:
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They travel regularly to the United States
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They conduct most of their business in the United States, which means they often have to pay for their services in US dollars.
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They have and operate a USD bank account
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They spend at least a quarter of the year in the United States
So, what are the best US dollar credit cards offered by Canadian financial companies? We’ve put together a list of the best ones we can think of.
1. BMO US Dollar Mastercard
The Bank of Montreal US Dollar Mastercard is definitely a contender for the best credit card in this niche for many reasons. For one, its annual fee is very low, at US$35, which is arguably the lowest annual fee of any US dollar credit card in Canada.
What is more interesting is the fact that if you spend 1,000 USD or more in a year using this card, the annual fee for the following year is waived. This card has a few other benefits that make it perfect for travelers and USD spenders:
The BMO Dollar Mastercard is also available to those in a lower personal income category, thanks to its minimum requirement of $15,000. Additionally, to qualify for this card, you need to have a reasonable credit score ranging from around 560 to 659. This card doesn’t offer any rewards, but with perks like these, who needs rewards, right?
2. RBC Gold Visa in US Dollars
This credit card offering comes from the Royal Bank of Canada and costs almost twice as much as the BMO Mastercard in US dollars in terms of annual fees; the RBC credit card will cost you $65 in annual fees.
This card packs a punch in some other areas. An example would be its strong travel and shopping insurance. In terms of rewards, they give you 1 point for every dollar spent. Its rewards amount to approximately 1.13% of the value of your spending. A quick overview of its advantages and features:
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Annual fee of $65
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No exchange fees
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1 point earned for every dollar spent
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Shop at eligible retailers and earn bonus points
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Redeem your points for travel rewards, gift cards, financial products or merchandise
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Free and comprehensive travel insurance
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Purchase Protection
Plus, if you want to get an additional card on the same card account, you no longer need to pay $65.
Applying for an additional credit card will cost you $30 a piece, less than half the original price of $65.
Additionally, user reviews show that you will need a very good credit score to successfully apply for the RBC US Dollar Card. Your score must be between 725 and 759.
3. TD US Dollar Visa Card
If you’re not really into credit card rewards but would rather enjoy a full range of shopping and travel benefits, this credit card is worth your consideration.
Provided by TD Bank Group, this US dollar credit card isn’t the cheapest you can get: in terms of an annual fee of US$39, it’s considered mid-cost. Some of its benefits and features include:
TD US Dollar Visa Card also includes travel insurance packages for trip interruption, travel accident, delayed and lost baggage and more. The card is also compatible with contactless payment services like Visa payWave and Apple Pay.
Subject to your credit limit, you can also get a short-term cash advance of up to $5,000. The minimum credit limit to get this card is $1,000 and the ideal credit score to apply for it ranges from 725 to 759.
4. Scotiabank US Dollar Visa Card
The third Visa credit card on this list, Scotiabank’s offering is a very reliable credit card for avid travelers and online shoppers in terms of Spending in US dollars. To start, it costs a small annual fee of US$35 to get this card.
Like most credit cards provided by Visa, this card comes with Visa Checkout to further simplify and secure your online shopping needs. It also works with Android Pay and Apple Pay. While this credit card doesn’t offer any rewards, perhaps the coolest tip is the fact that applying for additional cards on your account doesn’t incur any additional fees. To obtain this card, you need a minimum personal income of $12,000.
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Annual fee of $35
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Visa payment functionality
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Compatible with Android Pay and Apple Pay
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Zero fees for additional credit cards
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Purchase protection (90 days) and warranty extension (1 year)
5. Meridian VISA Card in US Dollars
Meridian Credit Union’s offering is the most expensive card on this list, tied with RBC’s credit card at an annual fee of $65. But it offers something a little more: As a new Visa USDollar cardholder, Meridian will waive the annual fee for your first year. To get additional cards, you will have to pay $30 for each one.
Meridian VISA Card in US Dollars offers rewards. For every dollar spent, you get 1 reward point. These points can be redeemed at any time in the form of merchandise or cashback.
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Annual fee of $65 (waived for the first year)
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Insurance packages cover travel accidents, baggage delay and loss, trip interruption and cancellation, car rental collision/damage waiver, zero liability, extended warranty and purchase protection.
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1 reward point for every dollar spent
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No threshold for redeeming reward points. Can be exchanged for cashback or merchandise
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No minimum personal or family income required
In terms of interest rates, this credit card’s balance transfer rates are $19.50 and cash advance rates are $21.99, both slightly lower than the rates of most other credit card options.
Are US dollar credit cards still the best?
It is true that a reasonable number of people prefer to use no-fee conversion cards. However, even though these cards eliminate currency conversion fees, allowing you to pay hassle-free, you will still be subject to price changes related to any exchange rate changes.
As a general rule, if your spending is such that the 2.5% conversion fee is higher than the card’s annual fee, you should opt for a US dollar card and avoid this fee and the hassle of conversion altogether.
Last words
And there you have it, that was the list of the 5 best US dollar credit cards in Canada. Please choose the ones that suit your needs and which you think are worth it.
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Thanks for reading! Good day.
