Best Credit Cards for Canadians Traveling in the United States

Using Credit Cards with Discretion

With the exception of purchasing a house, I have always subscribed to the dictum: "If you can't pay for it in cash, dash."

There is a difference between "wants" and "needs",  although through the process of rationalization, the difference can often be narrowed.

It is somewhat easy to diminish the stock of one's "wants".  I have always had the practice of waiting for at least a month before making a prospective purchase.  It's amazing how many "wants" and even "needs" disappear as a result.

When I make a purchase, I always try to buy an item or service "on sale".  At the very least, I always comparison shop.  The only time I make an exception is when I determine that the supplier provides superlative service or where the difference of patronizing a local supplier and a more distant supplier is negligible.  (I prefer to support neighbourhood establishments in the interest of maintaining a vital community.)

When paying for a purchase, I always try to use a credit card in order to receive the benefit of "points".  I NEVER run up a balance on the card as it defeats the objective of purchasing things cheaply.

Foreign Exchange Fees - the added burden of using credit cards

I do not travel in foreign countries without a credit card for the following reasons:

• Transactions are fast and easy.
• There are records for review.
• Many cards come with insurance benefits such as emergency health, travel interruption some auto insurance coverage which can reduce the cost of vehicle rentals. Credit cards represent a major improvement over travellers cheques and carrying large sums of cash. 

However, there is a downside which is sometimes unappreciated. Each time you make a purchase in a foreign currency for a Canadian credit card issued in $Cdn, you are liable for a foreign exchange fee.  The fee is generally in the range of 2.5 percent! This fee is in addition to currency exchange rates. 

The combination of these charges, can easily exceed the earning power of the card and leave one in a "deficit" position.

(Note that many Canadians use credit card denominated in $US; however, they still are still liable for exchange rate differences if a conversion from $Cdn to $US is involved in the payment out the outstanding balance.)

Here is a synopsis of rates on various cards which Canadians routinely use in the U.S.

Credit Card	Foreign Transaction Fee	Signing-Bonus Points	Annual Fee
Chase Marriott Rewards Visa Card	0%	30,000	$120 Waived 1st Year
CIBC Aventura Visa Infinite	2.5%	15,000	$120
TD Aeroplan Visa Infinite	2.5%	25,000	$120
RBC Avion Visa Infinite	2.5%	15,000	$120
BMO Rewards World Elite	2.5%	30,000	$150
Scotiabank Gold Amex Card	2.5%	15,000	$99 Waived 1st Year

http://www.greedyrates.ca/blog/travel-tip-avoid-foreign-transaction-fees-canadian-credit-card/#.VVpBFlVVhBc

I initially thought that I could avoid this situation by taking out foreign cash in my local bank branch or an ATM stateside. However, this approach does not save money.  I came across this graphic on the website: http://www.greedyrates.ca/

The situation is not much changed from March 13, 2004 when the preceding chart was prepared ... with one exception which should interest Canadian travellers who stay in hotels in the U.S.

Mariott Rewards Premier Card

Click on the preceding link to see the benefits associated with this card.  Included:

• No foreign exchange fee
• Sign-up offer which includes free nights which can amount to several hundred dollars
• Fee waiver for the first year

I applied for the card and have received a free night in the Mariott chain.  I figure that the card will more than pay for itself even with the addition of annual fees which apply after the first year. The Marriott chain and its affiliates cover a wide geographic area and the hotels provide fair value and quality.  In a future post, I will report on my experience with the card.  Even when travelling cheap while on long distance cycling trips, I have always found that the Marriott group and like hotels provide that little measure of added value over most competitors in that they allow bikes in the rooms. The generally spacious rooms are great for drying clothes and spreading out one's kit.