What’s interesting is that this card still has an incredible earning rate, and some of the best travel and purchase insurance available, so it’s still a potential keeper. Read my Scotia Momentum Visa Infinite review now to find out why it’s one of the best Scotiabank credit cards in Canada.

Scotia Momentum Visa Infinite Card

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• $120 annual fee – first year free
• Earn 15% cash back on all purchases for the first 3 months (up to $2,000 in purchases)
• Earn 4% cash back on groceries, recurring bills and subscription purchases
• Earn 2% cash back on gas, daily transit and food delivery purchases
• Earn 1% cash back on all other purchases with no cash back limit
• Travel and mobile device insurance included

Welcome bonus and earn rate

The Scotia Momentum Visa Infinite Card typically offers 10% cash back on all purchases for the first three months (up to $2,000 in spending), but it has been as high as 15% back. In addition, the annual fee of $120 is usually waived for the first year as part of the welcome bonus.

As for the earning rate, you’ll get 4% cash back on groceries, recurring bills, and subscription purchases, 2% on gas, transit and food delivery purchases, and 1% on all other purchases. Even though you get a high earn rate for multiple categories, there is an annual spending cap of. $25,000 Once you reach that amount, your earning rate drops to 1%. 

Benefits and perks

Like many cash back credit cards, the Scotia Momentum Visa Infinite doesn’t give you a ton of perks. That said, you do get some great insurance and Visa Infinite benefits.

Mobile device insurance

When you charge the full price of a mobile device (cellphone or tablet) to your Scotia Momentum Visa Infinite Card, you’re covered for up to $1,000 from loss, theft, or damage. Note that if you ever need to make a claim, depreciation applies.

Travel insurance

• Travel medical – $1,000,000 coverage up to 15 days
• Trip interruption – $2,000 per insured person (max $10,000 per trip)
• Trip cancellation – $1,500 per insured person (max $10,000 per trip)
• Flight delay – $500 per trip for eligible expenses for all insured travellers after a delay of 4 hours
• Delayed and lost baggage – $500 per trip for eligible expenses for all insured travellers after a delay of 4 hours
• Travel accident – $500,000 covering common carriers including airplanes, cruise ships, trains or buses
• Rental car collision / loss damage insurance – $65,000/48 days

For a cash back card, the included travel insurance is quite impressive. You only need to charge 75% of your trip costs to your card for the trip cancellation and trip interruption insurance to apply. However, for rental cars, you need to charge the full amount. There is no hotel/motel burglary insurance included.

Purchase insurance

• Purchase security – 90 days
• Extended warranty – Up to one additional year

When charging your purchases to your Scotia Momentum Visa Infinite Card, you’re covered for 90 days from loss, theft, and damage, thanks to the included purchase security. In addition, you get an extended warranty on purchases for up to one additional year.

Concierge service

As a Visa Infinite cardholder, you get access to a personal concierge. Available 24/7, these concierges are able to help you with dinner reservations, shopping, and more. Note that concierge can’t make miracles happen, so be realistic about your requests.

Save on car rentals

When renting a car at participating AVIS and Budget locations in Canada and the U.S., you’ll get up to 25% off the base rate when paying with your Scotia Momentum Visa Infinite Card.

Visa Infinite Hotel Collection

Visa has exclusive deals with hundreds of hotels where you can get a free room upgrade and Wi-Fi when you book directly with them.

Visa Infinite Dining and Wine Country program

Throughout the year, Scotiabank offers cardholders tickets to exclusive dining events where you can meet celebrity chefs and more.

When your Scotiabank cash back is paid out

Scotiabank now pays out the cash back anytime as long as you’ve earned at least $25 in rewards. Previously, you had to wait until November to get your cash back so this change makes things much more flexible.

Scotia Momentum VISA Infinite eligibility

• You’re a Canadian citizen or permanent resident
• You’re at least the age of majority in your province or territory
• You have a minimum annual personal gross income of $60,000
• You haven’t declared bankruptcy in the past 7 years
• Your home address matches your credit report home address

Although the Scotia Momentum VISA Infinite Card doesn’t have a formal minimum credit score requirement, a score of at least 700 is recommended.

How the Scotia Momentum Visa Infinite Card compares

Scotia Momentum Visa Infinite Card vs. American Express Cobalt Card

A natural comparison is the American Express Cobalt Card since it has a similar earning rate. The Cobalt Card gives you 5 American Express Membership Rewards points per $1 spent on eats and drinks (including grocery stores), 3 points on popular streaming services, 2 points on travel and transit, and 1 point on all other purchases. Since you can redeem 1,000 points for a $10 statement credit, this is essentially a hybrid cash back/travel rewards card.

Admittedly, the Scotia Momentum Visa Infinite Card has better insurance, but American Express Membership Rewards is a better program than Scene+. That’s because you can transfer your Membership Rewards points to other loyalty programs such as Aeroplan and Marriott Bonvoy. Depending on the redemption, you could get an increased value for your points.

Scotia Momentum Visa Infinite Card vs. BMO CashBack® World Elite®* Mastercard®*

The BMO CashBack® World Elite®* Mastercard®* also has an impressive earning rate of 5% cash back on groceries, 4% on transportation, 3% on gas and electric vehicle charging, 2% on recurring bills, and 1% on all other purchases. The catch is, there are monthly caps of $500 on groceries, $300 on transit, $300 on gas and electric vehicle charging, and $500 on recurring bills. If you typically spend more than that, then the Scotiabank is a better choice since it has a yearly cap, not a monthly one.

Scotia Momentum Visa Infinite Card vs. Tangerine World Mastercard

Of the best cash back credit cards in Canada, one other card worth comparing is the Tangerine World Mastercard. With the Tangerine card, you can choose up to three categories that will earn you 2% cash back, while all other purchases earn you 0.5% cash back. This is clearly lower than what the Scotia Momentum Visa Infinite Card offers, but it has no annual fee, which will appeal to many people. 

Final thoughts

It should be pretty obvious that my Scotia Momentum VISA Infinite review is positive. It’s one of the best no-fee cash back card available and I’d argue it’s an excellent choice as a “travel rewards” card. Although the cash back is easy to redeem, it’s only paid out once a year in November as a statement credit or deposited directly into your personal chequing or savings account if you bank with Scotia.

Choosing a credit card that eliminates foreign transaction fees can lead to substantial savings. If you spend several thousand dollars abroad or on foreign currency purchases, you could save over a hundred dollars in fees alone. These cards often come with additional travel perks, making them a practical choice for Canadians who travel internationally or shop across borders.

The best no foreign transaction fee credit cards in canada

Scotiabank Passport Visa Infinite* Card

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• $150 annual fee
• 40,000 Scene+ points when spending $2,000 in the first 3 months
• 10,000 points when spending $10,000 in the first six months
• Earn 3 Scene+ points per $1 spent at Empire owned supermarkets
• Earn 2 Scene+ points per $1 spent on eligible grocery stores, dining, entertainment, and daily transit purchases
• Earn 1 Scene+ point per $1 spent on all other eligible purchases
• Visa Airport Companion Program membership + 6 passes per year
• No foreign transaction fees

The Scotiabank Passport Visa Infinite Card stands out as a comprehensive option for travellers who prefer carrying a single card. This card charges an annual fee of $150 but delivers substantial value through its rewards program and travel perks.

You earn 3 Scene+ points per dollar at Empire-owned supermarkets, 2 points at eligible grocery stores, restaurants, entertainment venues, and on daily transit, plus 1 point on everything else. The bonus earning categories apply even when making purchases abroad in foreign currencies.

Travel benefits form the core appeal of this card. You receive a complimentary membership to the Visa Airport Companion Program through DragonPass, which includes six free lounge visits annually. Standard airport lounge access typically costs around US$99 yearly plus US$32 per visit, making this benefit valuable for frequent travellers.

The travel insurance package covers trips up to 31 days and includes medical emergencies, trip cancellation, trip interruption, lost baggage, and flight delay coverage. Additional perks include concierge services available 24/7, access to the Visa Infinite Hotel Collection with room upgrades and complimentary breakfast, and membership in the Dining and Wine Country program.

You also get a free Avis Preferred Plus membership, which provides faster rental car service and the ability to choose your vehicle. Priority Pass membership is not included, but the DragonPass access serves a similar purpose.

Eligibility: A minimum personal income of $60,000 or a household income of $100,000 or at least $250,000 in assets under management. A credit score of 700 is also recommended.
Welcome bonus: You’ll typically get 35,000 to 50,000 Scene+ points as the welcome offer. In most cases, you’ll need to spend a minimum amount in the first three months and another in the first 12 months for the full bonus.

Scotiabank Gold American Express® Card

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• $120 annual fee
• 30,000 Scene+ points when you spend $2,000 in the first 3 months
• 20,000 Scene+ points when you spend $7,500 in the first year
• Earn 6 Scene+ points per $1 spent at Empire owned supermarkets
• Earn 5 Scene+ points per $1 spent on grocery, dining, and entertainment
• Earn 3 Scene+ points per $1 spent on gas, and daily transit purchases
• Earn 1 Scene+ point on all other purchases
• No foreign transaction fees

The Scotiabank Gold American Express Card delivers exceptional earn rates that rival top-tier rewards cards in Canada. The annual fee sits at $120, making it slightly more affordable than the Passport card while still offering premium benefits.

Earning potential is where this card excels. You collect 6 Scene+ points per dollar at Empire-owned grocery stores, 5 points at other grocery stores, plus dining and entertainment purchases, 3 points on gas, public transit, rideshares, and streaming services, and 1 point on all other spending.

One important distinction exists with foreign transactions. While you won’t pay foreign transaction fees, purchases made in currencies other than Canadian dollars only earn the base rate of 1 point per dollar. The bonus categories don’t apply to international spending.

The card provides a comprehensive travel insurance package covering trips up to 25 days, including emergency medical coverage, trip cancellation and interruption, baggage loss and delay, and rental car coverage. Mobile device insurance protects your phone or tablet against damage and theft when you purchase the device with your card.

You also receive airport lounge access, though unlike the Passport card, you don’t get complimentary passes. You’ll need to pay per visit or purchase a membership separately if you want to use this benefit.

Eligibility: There’s no minimum income requirement. A credit score of at least 700 is recommended.
Welcome bonus: Typically worth between 40,000 and 60,000 Scene+ points when. To get the full bonus, you usually need to meet multiple minimum spending requirements.

EQ Bank Card

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• $20 referral bonus (must fund account with $100 within 30 days)
• No monthly fees
• 0.5% cash back on all purchases
• Free withdrawals from any ATM in Canada
• No foreign transaction fees
• Earn 2.50% interest until you spend

The EQ Bank Card functions as a prepaid card with unique advantages for travellers. There’s no annual fee, and you earn 0.5% cash back on all purchases regardless of currency.

What makes this card particularly useful is that any balance loaded onto the card earns interest at a competitive rate. Your money grows even when you’re not spending it, which is uncommon for prepaid cards.

The standout feature is the ATM policy. You won’t pay foreign transaction fees when withdrawing cash from ATMs abroad. EQ Bank even reimburses ATM fees charged by other financial institutions in Canada. However, one-time fees charged by foreign ATM operators are not covered.

This approach gives you flexibility when travelling. Instead of exchanging currency before departure or upon arrival, you can withdraw local currency as needed. You can load additional funds to your card while abroad by sending yourself an e-transfer.

Since this is a prepaid card, you can only spend what you’ve loaded. This helps with budgeting and eliminates the risk of overspending. Prepaid cards don’t require a credit check or minimum income, making them accessible to nearly everyone.

Eligibility: Must have an EQ Bank account. No income or credit history is required.
Welcome bonus: You get a $20 cash bonus when signing up with a referral link and funding your account with $100 within 30 days of account opening.

Home Trust Preferred Visa Card

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• No annual fee
• No foreign transaction fees
• 1% cash back on Canadian purchases
• Purchase protection

The Home Trust Preferred Visa offers a straightforward approach with no annual fee and no foreign exchange fees. You earn 1% cash back on purchases made in Canadian dollars, but it doesn’t apply to foreign-currency transactions.

This card functions as a traditional credit card rather than a prepaid option. You don’t need to load funds in advance, and you receive a credit line based on your creditworthiness. This makes it more convenient than prepaid alternatives for those who qualify.

Benefits are minimal beyond the no forex fee feature. You get purchase security coverage for 90 days against theft, loss, or damage. No travel insurance, airport lounge access, or concierge services are included.

One quirk to note: customer service has historically blocked transactions made outside Canada for security reasons. Call before you travel to notify them of your plans and avoid having your card declined.

Eligibility: No minimum income is required. A credit score of at least 660 is recommended.
Welcome bonus: None.

Wealthsimple Cash Card

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• No annual fee
• Up to $3,000 welcome bouns
• 1% back in cash, stocks, or crypto on all purchases
• 4% interest on deposited funds
• No foreign transaction fees on purchases or ATM withdrawals
• CDIC insurance protection

Another prepaid credit card with no foreign transaction fees is the Wealthsimple Cash Card. All purchases earn you 1% back in cash, stock, or crypto. In addition, any funds you have loaded to your card earn interest. That means your money always grows even when you’re not spending it.

As a no fee, prepaid card, there aren’t any other benefits. The main draw here is the cash back earned and the no foreign transaction fees. You also won’t pay foreign transaction fees on ATM withdrawals. That said, most foreign ATM operators will charge you a one-time fee, and Wealthsimple limits your withdrawals to $500 CAD a transaction. There’s also a daily withdrawal limit of $1,000 CAD per day.

This card is very similar to the EQ Bank Card. Many people prefer the EQ Bank Card because you get $20 when signing up with a referral link. However, Wealthsimple does give you a higher cash back and savings interest rate.

Eligibility: Must have a Wealthsimple Cash account, but no income or credit history is required.
Welcome bonus: Up to $3,000 (it’s random)

Amazon.ca Rewards Mastercard

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• No annual fee
• $50 Amazon gift card at sign up
• 5% back at Amazon.ca, grocery stores and restaurants for six months after your account is opened
• 2.5% back at Amazon.ca, Whole Foods Market in Canada and foreign currency transactions
• 1% back per dollar spent on all other purchases

The Amazon.ca Rewards Mastercard is one of the best no foreign transaction fee credit cards in Canada, but it flies under the radar. You’ll earn 2.5% back at Amazon.ca, Whole Foods and foreign transactions. All other purchases earn you 1% back. However, you must be an Amazon Prime member to get this rate. Non-Prime members earn 1.5% back at Amazon.ca and Whole Foods, and 1% on foreign transaction fees. 

The cash back works like this. Once you’ve earned 2,000 points, a $20 Amazon.ca gift card is deposited into your account. Other benefits with the card include discounts at Avis and Budget Rent a Car, purchase assurance, extended warranty, and zero liability insurance. 

This card is only worth considering if you’re an Amazon Prime member and you do a lot of shopping on Amazon. The good news is that there’s no annual fee.

Eligibility: Must be an Amazon Prime member for the increased earning rate. No minimum income or credit score is listed.
Welcome bonus: A $35 Amazon.ca gift card is given instantly upon approval.

What are foreign transaction fees?

When you make a purchase in any currency other than Canadian dollars, an additional charge gets applied to the exchange rate. This applies to all international transactions, including online shopping in US dollars.

Even if you’re buying from a Canadian business, paying in a foreign currency typically triggers these charges. The fee is embedded directly in the exchange rate, making it difficult to spot on your credit card statement.

Charges from your card provider

Your credit card provider typically adds a 2.5% foreign transaction fee to international purchases. Some providers charge up to 3.5%, depending on the card you hold.

Here’s what these forex fees mean for your spending:

• $1,000 in foreign purchases = $25 to $35 in fees
• $2,000 in foreign purchases = $50 to $70 in fees
• $5,000 in foreign purchases = $125 to $175 in fees

These currency conversion fees accumulate quickly, especially if you travel frequently or shop internationally online.

Charges from payment networks

Visa, Mastercard, and American Express apply their own small fees for currency conversion. These charges are much smaller than provider fees.

The payment networks use slightly different exchange rates than the official rate available to financial institutions. Here’s a comparison when converting 1 CAD to USD:

• Official exchange rate – 0.77118
• Visa exchange rate – 0.77333
• Mastercard exchange rate – 0.77255

Mastercard offers marginally better rates than Visa, though the difference is minimal in practice. American Express uses comparable rates but doesn’t publish them publicly.

You can check current conversion rates through xe.com, along with Visa and Mastercard’s websites. Understanding both types of fees helps you calculate the true cost of foreign currency transactions.

How Are Foreign Transaction Fees Calculated?

Your credit card company sets the foreign transaction fee, which typically appears in your cardholder agreement. The fee structure combines two main components: the currency conversion fee and the network’s exchange rate.

Visa and Mastercard each apply their own exchange rates when processing international purchases. These rates differ from the mid-market rate, which represents the true wholesale price between currencies. The gap between what you pay and the mid-market rate contributes to the total cost of your foreign purchase.

Exchange rates fluctuate based on currency market conditions. Economic events, political stability, and supply and demand for specific currencies all influence these rates daily. Your card issuer applies the rate that’s active when your transaction processes, not necessarily when you make the purchase.

Most Canadian credit cards add a 2.5% fee on top of the exchange rate used for currency conversion, though some cards charge between 1% and 3%.

Should I Pay in the Local Currency or CAD?

When making purchases abroad, merchants may offer you the choice between paying in the local currency or Canadian dollars through dynamic currency conversion. You should always select the local currency option. Your credit card issuer will convert the transaction using their exchange rate, which is typically more favourable than the payment processor’s.

Choosing to pay in CAD means accepting the merchant’s conversion rate, which includes a markup. This additional cost varies by processor but consistently exceeds the conversion rate your card provider uses. Even if your card doesn’t charge foreign transaction fees, paying in local currency remains the better option because you avoid the inflated merchant conversion rates.

Credit cards without foreign exchange fees make this choice even more advantageous. You receive competitive exchange rates without any percentage-based surcharges, maximizing your purchasing power overseas.

Do Foreign Transaction Fees Apply to ATMs?

Using a credit card at an ATM abroad triggers a cash advance, which means you’ll face immediate interest charges exceeding 22%. A foreign transaction fee also applies on top of this, and the ATM operator may charge their own service fee. This combination makes traditional credit cards a poor choice for withdrawing cash overseas.

Prepaid cards offer a better alternative. Cards like the Wealthsimple Cash Card and EQ Bank Card function like debit cards and don’t charge foreign transaction fees or interest on ATM withdrawals abroad. These cards provide access to cash without the costly charges associated with credit card advances.

Standard debit cards aren’t ideal either. Banks typically charge foreign transaction fees between 2.5% and 3.5% when you use your debit card at an international ATM. Both your bank and the ATM provider will likely apply one-time usage fees.

Is a No Foreign Transaction Fee Credit Card Worth It?

You should strongly consider getting a no foreign transaction fee credit card to avoid paying unnecessary charges on international purchases. Most cards charge 2.5% on foreign currency transactions, which accumulates quickly when you travel or shop online from international retailers.

Consider this scenario: if you spend $4,000 during a vacation abroad using a card that charges foreign exchange fees, you’ll pay an extra $100 in fees alone. That amount could cover a quality restaurant experience or another activity during your trip.

Numerous credit cards waive these fees entirely, so you can select one that aligns with your spending habits and preferences. Even if you only use the card occasionally throughout the year for international transactions, you’ll save money every time you avoid foreign transaction fees. There’s no compelling reason to pay extra when alternatives exist that eliminate these charges completely.

The savings become more significant if you travel frequently or regularly purchase from foreign websites. Choosing a card without foreign transaction fees makes financial sense for anyone who makes purchases in currencies other than Canadian dollars.

How to Select a Credit Card Without Foreign Transaction Fees

When comparing cards from your shortlist, several factors will help you identify the right option for your needs.

Consider whether you prefer a no-fee credit card or are comfortable paying an annual fee in exchange for premium perks. Cards with annual fees often offer added benefits such as airport lounge access, car rental discounts, and travel insurance coverage.

Key factors to evaluate:

• Card benefits – Review what extra features matter to you, such as travel insurance or rental vehicle protection
• ATM withdrawal costs – Some cards waive fees when you take out cash abroad
• Rewards structure – Certain cards offer cash back that can offset other costs, while others simply don’t charge foreign transaction fees
• Welcome bonuses – New cardholders may receive promotional offers worth considering
• Purchase APR – Check the interest rate if you plan to carry a balance

Your spending habits and travel frequency should guide your decision. A card with an annual fee might deliver better value if you travel regularly and use the included benefits.

Frequently Asked Questions

Are foreign transaction fees refunded?

Foreign transaction fees are generally not refundable once charged to your account. These fees become part of your transaction total and are processed immediately with your purchase.

If you notice an incorrect fee on your statement, you can contact your card issuer to dispute it. Document the transaction details and explain why you believe the charge is wrong. Your issuer will investigate and may credit your account if they find an error.

The most effective approach is to avoid these fees altogether by using a card that doesn’t charge them. Prevention saves you the time and effort of seeking refunds that may not be granted.

What Makes US Dollar Cards Different from No-FX-Fee Cards?

US dollar credit cards and no foreign transaction fee cards serve different purposes. A US dollar card bills your purchases in American currency, which you then pay in USD from a US dollar account.

No foreign transaction fee cards bill in Canadian dollars but don’t charge the standard 2.5% conversion fee. You still pay in CAD, but the exchange rate is applied without an additional markup.

US Dollar Cards:

• Require a US dollar bank account for payments
• Best for frequent US travellers
• Avoid conversion fees on USD purchases only
• Still charge fees for other currencies

No Foreign Transaction Fee Cards:

• Bill in Canadian dollars
• Work for all foreign currencies
• No extra account needed
• Apply exchange rates without added fees

If you primarily travel to the United States and maintain USD accounts, a US dollar card may suit you. For worldwide travel or varied currency use, a no-fee card offers more flexibility.

What Other Options Exist Besides No-FX-Fee Cards?

Prepaid travel cards provide an alternative for managing foreign currency expenses. You load these cards with funds before travelling and use them like debit cards abroad. Many charge lower fees than traditional cards, though they may have loading and ATM withdrawal costs.

Digital payment services and mobile wallets sometimes offer competitive exchange rates. However, their acceptance varies by location and merchant, limiting their reliability as your sole payment method.

Alternative options include:

• Multi-currency prepaid cards
• Online payment platforms with international features
• Traveller’s cheques (largely outdated)
• Cash withdrawn from low-fee bank accounts

Each alternative has trade-offs in cost, security, and acceptance. No foreign transaction fee credit cards typically offer the best combination of convenience, protection, and value for most travellers. They work everywhere credit cards are accepted and require no advance planning or currency loading.

The American Express Gold Rewards Card is a sound mid-tier travel rewards credit card. It typically comes with an excellent welcome bonus, a good earn rate and meaningful benefits. Basically, this card is now a light version of the American Express Platinum Card. Read my American Express Gold Rewards Card review now for all the details.

American Express Gold Rewards Card

• $250 annual fee
• Earn 5,000 Membership Rewards points when spending $1,000 each month for 12 months (60,000 points total)
• 10,000 additional points when using a referral link and spending $4,000 in the first 3 months
• Earn 2 Membership Rewards points per $1 spent on grocery, gas, pharmacy, and travel purchases
• Earn 1 Membership Rewards point per $1 spent on all other purchases
• $100 Annual travel credit
• Priority Pass Membership + 4 annual Plaza Premium passes
• MESSAGE ME FOR A REFERRAL LINK

Welcome bonus and earn rate

The welcome bonus for the American Express Gold Rewards Card has been in the 50,000 – 75,000 American Express Membership Rewards points range. As you can imagine, there tend to be different conditions for the offer. In addition, you’ll typically earn some extra points when using a referral link from a friend or business associate. The higher offer usually requires you to spend more, so I wouldn’t obsess over getting the highest bonus possible.

The earn rate of two points per dollar spent on groceries, gas, pharmacy, and travel is better than many similar cards. It’s true some of the best cash back cards in Canada have higher multipliers in some categories, but I believe travel points are more valuable if you use them to their maximum potential, which I’ll explain below.

Benefits and perks

It’s now time to go over the benefits and perks in this American Express Gold Rewards Card review. Although the card has an annual fee of $250, you get a lot of travel benefits including:

$100 travel credit

Cardholders get an annual travel credit of $100. This includes your first year of cardmembership. This credit can be used on any type of travel booked through the American Express travel portal. With this credit, your annual fee effectively becomes $150 a year.

Airport lounge access

The best benefit of this card is the four free annual passes you get to Plaza Premium lounges. Some of the best credit cards with airport lounge access allow you to use your passes at any lounge within their network, but the American Express Gold Rewards Card specifically gives you Plaza Premium lounge passes. While this may sound like a negative thing, Plaza Premium lounges are found in just about every major Canadian airport, so you won’t have any issues using your passes.

In addition, you get a Priority Pass membership. Although you don’t get any free airport lounge passes with your membership, you can buy access at 1,200+ lounges for about US$32.

NEXUS rebate

You’ll get a CA$50 for NEXUS application or renewal fees, as long as your charge the fee to your American Express Gold Rewards Card. Note that this benefit can be used only once every four years. That said, since NEXUS lasts five years, you’ll pretty much be reimbursed indefinitely.

Travel insurance

• Emergency Medical Insurance – $5,000,000 – 15 days / Under 65
• Trip Cancellation – $1,500 per person / $3,000 total
• Trip Interruption – $1,500 per person / $6,000 total
• Flight Delay Insurance $500 – 4 hours +
• Baggage Delay Insurance $500 – 6 hours +
• Lost or Stolen Baggage Insurance – $500 combined per occurrence
• Car Rental Theft Damage Insurance – $85,000 – 48 days
• Hotel/Motel Burglary Insurance – $500 per occurrence
• Travel Accident Insurance – Up to $500,000

The American Express Gold Rewards Card has some excellent travel insurance, that’s why it’s on my list of the best credit cards with travel insurance. You could argue that the defining feature is trip cancellation since it’s typically not included with many Amex cards with the exception of the Platinum Card.

Purchase insurance

• Purchase protection
• Buyer’s assurance

With purchase protection, your goods are protected from loss, theft, and damage within 90 days of your purchase date. There is a limit of $1,000 per occurrence (for all purchased items combined). As for buyer’s assurance, it doubles your manufacturer’s warranty for up to one additional year.

American Express experiences

As an American Express cardholder, you get some additional exclusive benefits, such as:

• Front of the line presales – You’ll get presale ticket access to some of the most popular concerts, restaurants, theatre productions and more.
• Reserved tickets – Some concerts and venues have an exclusive deal with American Express, where cardholders can purchase reserved seats.
• Experiences – Cardholders can purchase tickets to special events such as private dining, retail packages, advance movie screens and more.
• Offers – American Express will make retail and dining offers available to cardholders throughout the year. You’ll get a statement credit back once you meet the minimum spend requirement.

How to redeem your points

American Express Membership Rewards is the best bank travel loyalty program in Canada. 100 points get you $1 in travel or a statement credit. That means your points are perfectly worth 1 cent each.

That said, you could potentially increase the value of your points with some of the American Express travel partners. You can transfer your points to Aeroplan or British Airways Avios at a 1:1 ratio. If you prefer to transfer points to hotels, you can get exchange your Membership Rewards points to Marriott Bonvoy at a 1:1.2 ratio or to Hilton Honors at a 1:1.

Obviously, every redemption you get has a different value. That said, it’s not hard to get a value of 2 cents per Aeroplan point, so that’s what you want to look out for.

There’s also the Fixed Points Travel Program which can offer good value, but it depends on the base fare value of the ticket you’re looking to get.

American Express Gold Rewards Card eligibility

The American Express Gold Rewards Card eligibility is straightforward. You must be a Canadian resident and are at least the age of majority in the province or territory in which you live.

Although American Express doesn’t list a specific credit score required for approval, it’s safe to assume that you’ll likely need it to be in at least “good” standing. That means your credit score should be at least 600 before you apply.

It’s worth noting that American Express does not have a formal personal or household income requirement to be approved for this card.

How the Amex Gold Rewards card compares to others

The best card to compare to the Amex Gold Rewards Card is the BMO Ascend World Elite Mastercard. The earn rates for the two cards are similar, but the BMO card gives you a higher earn rate on travel. That said, with BMO Rewards, you need 150 points to claim $1 in travel. That effectively makes one BMO Rewards point worth .67 cents. BMO Rewards also has no transfer partners, whereas American Express Membership Rewards does.

Both cards give you four annual airport lounge passes, so it’s a wash there. You do get a free Boingo Wi-Fi with the BMO Ascend World Elite Mastercard. Don’t forget, American Express Membership Rewards are much more flexible since you can transfer your points to Aeroplan.

You could also compare the Amex Gold Rewards Card to the TD Aeroplan Visa Infinite Card. With the TD card, you earn 1.5 Aeroplan points per dollar spent on grocery, gas, drugstore and aircanada.com purchases, but the Gold Rewards Card gives you 2 points per $1 spent on the same categories. Since you can transfer your MR points to Aeroplan at a 1:1 ratio, many people would say the Gold Rewards Card is better, which is why it’s one of the best Aeroplan credit cards.

Final thoughts

Overall my American Express Gold Rewards card review is positive. This card is great for people in the following situation:

• You want travel benefits without paying a high annual fee – This card gives you a Priority Pass Membership + four free annual Plaza Premium passes. You also get an annual $100 travel credit.
• You want flexible rewards – American Express Membership Rewards can be redeemed for any travel purchase or transferred to Aeroplan and Marriott Bonvoy.
• You want good travel insurance – You’ll get travel medical, trip cancellation, trip interruption, baggage delays and more with this card.

This card is a natural choice for people who want travel benefits but don’t want to pay the high annual fee that comes with a card such as the American Express Platinum Card. You may not get as many perks, but the annual lounge passes and travel credit you get are worth more than the annual fee you’ll pay. In addition, the welcome bonus is usually quite generous.

It really depends on our individual situation. In theory, we’ll spend less since research has found we spend less when we use cash but there are plenty of other benefits that come with credit cards that we’ll start missing out on. Using credit cards responsibly is never a bad thing but let’s take a look at what happens when you don’t use your credit card

It affects your credit score

This really depends on our individual situation. Let’s say we’ve been using credibly responsibly for a long time. That means paying our bills on time and in full every month. But then we decide to stop using credit completely. In this case, our credit score probably won’t be affected too much since we’ve already built a solid credit history. That doesn’t mean we should start cancelling our cards, we want to keep them since our credit history is still active.

On the flip side of things, some millennials don’t even bother applying for credit cards at all. Between cash and mobile debit, they believe they don’t need to bother with credit. This may sound good in theory but it could affect us in the future. If we ever need to apply for a mortgage or car loan, the lenders are going to want to see a solid credit score/history. This is a lot harder to do if we’ve never used credit cards.

We miss out on major benefits

If I were to ask myself, what happens if I don’t use my credit card? I would immediately think of the major benefits that I would lose. My credit card earns me travel rewards points which I’ve been able to claim free flights and hotels with. My credit card also gives me comprehensive travel insurance which saves me a few hundred dollars a year.

For those who don’t like to travel, there’s always cash-back cards. A no-fee card will earn us 1-2% cash-back on our purchases but a premium card could give us up to 4%. That’s a pretty big incentive to use credit over cash.

Don’t forget about the additional benefits

Travel credits, cash-back, and travel insurance aren’t the only benefits we may get by charging our purchases. Premium credit cards usually offer auto insurance which covers car rentals too.

Even if you have a no-fee card, there are many standard benefits. Purchase protection will cover purchases from loss, damage, and theft for 90 days from the date of your purchase. There’s also a good chance that you’ll get an extended warranty. Finally, every credit card has a zero liability policy so in case you’re a victim of fraud, you won’t be responsible for the charges.

Final thoughts

Assuming we’ve already built up a solid credit history, there’s nothing technically wrong with not using credit cards. We would miss out on certain benefits (which are incentives to use credit) but it’s really a personal preference when it comes to our preferred method of payment.

Credit is probably the reason we got into debt in the first place, so it’s understandable if we’ve been avoiding credit while paying down debts. It’s also not just those in debt who’re avoiding credit, many of us have switched to cash only to help keep our budgets balanced. It doesn’t matter what situation we’re in, it’s important to try and maintain a good credit score.

The main reason we want to have a good credit score is because the majority of us are eventually going to need a major loan. There’s no chance we’ll be approved for a mortgage or line of credit unless we have a good credit score.

Understanding our credit score

We’re assigned a credit score based on our credit history and our standing really falls into 5 different categories.

Range	300-559	560-659	660-724	725-759	760+
Standing	Poor	Fair	Good	Very Good	Excellent

The best way to build a good credit score is to use our credit cards on a regular basis and pay our bills on time. Technically speaking, we don’t need to pay off your full balance every month to get a good credit score, but obviously we want to avoid the insane interest charges.

Using our cards regularly doesn’t even mean every day or 3 times a week. Credit bureaus just want to see that we’re using credit responsibly, so even if we’re  making just one purchase a month and paying it off immediately, that looks good in their eyes. Some of us falsely assume that just having a credit card is enough, that’s simply not the case. We do need to make regular transactions so the credit bureaus see the activity on our accounts.

The majority of Canadians have a credit score over 600, so there’s no real need to obsess over what our exact credit score number is. What does matter the most is not missing payments. Our creditors might forgive one missed payment, assuming it was an honest mistake, but miss 2 payments and our credit score will take a major hit.

[icon name=”share”] Related: Does applying for a credit card affect your credit score?

Using credit effectively

Building a good credit is based on a few different factors and one of those factors is our credit utilization. For example, let’s take 2 people with credit cards that both have a $5,000 limit. Person A carries a balance of $4,500 until his/her statement arrives and immediately pays off the full balance. Person B, on the other hand has a balance of just $500 but only makes the minimum payment.

In this scenario Person A has a utilization of 90% ($4,500/$5,000), while Person B has a utilization of 10% ($500/$5,000). As weird as it sounds, Person B will probably have a higher credit score than Person A because they have a lower credit utilization ratio.  Now this doesn’t mean you should carry a balance, just understand credit bureaus have to gauge risk and generally speaking people with a high utilization ratio are more likely to default, hence the lower score. If we’re similar to Person A, it may be worth our while to increase our credit limit or to apply for another card.

Another easy way to increase our credit score is to have more than one card. Having one card used to be enough, but now credit bureaus want to see how we manage the credit available to us. Even though I stated that credit bureaus like to see activity, we might not have to use all our cards. If one of our cards is older and we’ve since applied for a newer and better card, then it’s okay to simply “retire” that old card. Don’t cancel that old card, simply keep it in a box and use your new card, the credit bureaus like to see a long history so it’s worth keeping some old cards “active.”

Final word

Despite what we may have heard, carrying a balance is not necessary to get a good credit score. Credit bureaus don’t care if we make full payments or minimum payments. As long as we make our payments in full and on time, we’ll be fine– plus we won’t have to pay any interest charges.

Which option you choose will depend on various factors including; how much you owe, your income, your current expenses, and your credit rating. Making the right choice can be tough and it may require you to make sacrifices, but at least you have options.

Debt repayment options that help

Debt repayment plan – Regardless of how much debt you may have, it’s a good idea to have a debt repayment plan in place. This isn’t anything special, it’s simply a plan to help you get out of debt. Some people prefer to pay off their highest interest credit card first, while others prefer to pay off their lowest balance; the idea is to have a plan in place so you’re actively working towards paying off your debt.

Consolidation loan –  This is a single type of loan which traditionally comes from a bank. It combines all your outstanding debt so you end up paying all of your creditors at the same time. Besides making payments easier, consolidation loans usually have a lower interest rate making debt repayment much faster. If approved, the bank will pay off all of your outstanding debts on your behalf, you then make payments just to them.

Marketplace lending – Also known as peer-to-peer lending (P2PL), marketplace loans are a relatively new debt repayment option that is starting to become more popular. It’s basically a fixed-term consolidation loan that comes from accredited investors, who are anonymously and securely matched up with people who are looking to borrow through a P2PL company. With marketplace loans everything is done online so there’s no need to apply in person.

Unlike a traditional consolidation loan, marketplace loans encourage you to get out of debt. “Debt consolidation is a smart move if you can find a product with a lower rate and that will let you pay the debt off” says Andrew Graham, CEO at Borrowell. “We think our fixed-term loan product is a responsible way for someone to take control of their debt. A debt consolidation loan allows someone to pay off other debts and consolidate it all into one convenient monthly payment.”

Consumer proposal – This might not seem like a positive option, but it’s better than bankruptcy. A consumer proposal is a debt repayment plan made with your creditors with the help of a licensed trustee. With the proposal, you agree to pay a portion of what you owe to your credits and in return, they forgive any outstanding debt once you’re done paying down the proposal.

“A consumer proposal is a great alternative to bankruptcy for many debtors,” says Douglas Hoyes, a Trustee at Hoyes, Michalos & Associates.” You get the advantages of bankruptcy without some of the disadvantages.” You don’t lose your assets and once the creditors agree to your proposal, your payment remains fixed even if your income changes. In some circumstances, you might still be required to pay the entire portion of your debt, but a 0% could apply.

Beware of debt settlement companies and “debt consultants” that aren’t licensed. A federally licensed consumer proposal administrator does not charge upfront fees, so if you’re ever asked for an upfront fee, the odds are you’re not dealing with a legit company.

Debt repayment options to avoid

Payday loans – These are the worst and should be avoided at all costs, yet a recent Joe Debtor study done by Hoyes, Michalos, & Associates shows that payday loans are way up! Some people who run into credit card debt believe that they have no choice and see payday loans as a real option. Payday lenders are smart with their marketing, I’ve seen ads that offer a “Free $200 cash advance” or “$3 to borrow $300”. It’s no surprise people think they’re getting a deal, but when you read the fine print you could end up paying 800% interest, which makes your debt much worse.

Credit cards – You can’t technically pay off one credit card with another, but you can get a cash advance assuming you have available credit on the other card. The problem with this method is that you’ll end up paying a higher interest rate, and it starts compounding immediately– obviously you should never seriously consider this option.

Bankruptcy – This is literally your last resort. It’s time to consider bankruptcy when your debts are far beyond what you can repay on your own. Your debts will be totally cleared, but your credit will also be negatively affected and a note will be left on your credit file for many years.

It’s not just credit score that gets affected. “First, you must report your income to your trustee each month, and if your income increases, your payments while bankrupt may increase,” says Hoyes. “Second, in a bankruptcy, you lose certain assets.”

If bankruptcy is your only option, a licensed trustee will help you administer the process. Payments are based on your income and can last up to 21 months. There’s also a chance you’ll lose some of your assets, but at least once you’ve made your final payment, all your eligible unsecured debts will be discharged and you can start fresh.

Final thoughts

If we’re not careful, our debt can get out of control, and as you’ve read, some debt repayment options actually do more harm than good. Taking control of our finances early is the best step since obviously, we want to avoid bankruptcy or a consumer proposal, but if we leave our things unchecked we may not have a choice.

If you’re not sure how to handle your current situation, seek out a professional that can help you get back on track.