Credit card for use in Canada

[Luanne Senior Member Find all posts View Profile Close Luanne]

I'm not really sure where exactly to post this question, but thought I'd start here.

Younger dd will be attending school in Vanouver starting Fall 2011. I don't know how often she will need to use a credit card, but want her to have access to one. I checked with both my credit union, and Chase and have found the fees to be 2% and 3%, respectively.

So, my question is, would it make sense to apply for a Capitol One card, since they do not have any fees for foreign transactions? Or should I have dd apply for a credit card at whatever bank she ends up banking with there? (Or would that create a whole separate set of problems?)

I'm really looking for input from those who already have a Capitol One card. I looked briefly online and saw there are several choices. I have no idea which one might be better. Thanks in advance for any help.

[Pstreet1 Senior Member Find all posts View Profile Close Pstreet1]

The British Airways card from Chase does not have foreign transaction fees--and it currently comes with 100,000 miles. You can read about the card and the promotion on BestFares.com finds Cheap Flights, Travel Deals, Travel News, Cheap Tickets, Airline Tickets and Discount Airfares The site tells you exactly what to do to apply for it. I think you have to spend $5,000 in 4 months, but you'll have tuition to pay and that would certainly cover the spending requirement to get the 100,000 miles.

[Luanne Senior Member Find all posts View Profile Close Luanne]

The British Airways card from Chase does not have foreign transaction fees--and it currently comes with 100,000 miles. You can read about the card and the promotion on BestFares.com finds Cheap Flights, Travel Deals, Travel News, Cheap Tickets, Airline Tickets and Discount Airfares The site tells you exactly what to do to apply for it. I think you have to spend $5,000 in 4 months, but you'll have tuition to pay and that would certainly cover the spending requirement to get the 100,000 miles.

Do the miles have to be used with British Airways? If so, not such a great deal for us. Currently my Chase card is with Southwest, which we do use a lot, and I've been charging her tuition on that one. I'd really like to get a card, with no annual fee, and no transactions fees, that she could just have to use in the "just in case" instances.

[Pstreet1 Senior Member Find all posts View Profile Close Pstreet1]

No, not just on British Airways. If British Airways doesn't fly the route, you can use a partner--which means American Airlines in most cases. By using American, you also avoid the high taxes on British Airways. Could be a good deal with a daughter flying home regularly.

[happymum Senior Member Find all posts View Profile Close happymum]

If your daughter applies for a cc from a Canadian bank, she will likely run in to the same problem that my son did, in reverse. He could not find a US bank willing to issue him a card, because he had no established US credit history. (despite a 5 year great Canadian one!)

[bellesgirl Senior Member Find all posts View Profile Close bellesgirl]

I use my Capital One card all the time when I travel outside the country. Just used it in Trinidad and Tobago and got a great exchange rate. I have the one that gives me cash rebates - 1.25% plus occasional promotions. It is a Visa card, so it is accepted everywhere and there is no annual fee. I think you can also set up a money market account, and get a debit card that can be used at ATMs, also with no foreign fees, but I have no experience with that card.

[dcwojo Senior Member Find all posts View Profile Close dcwojo]

Check with Chase and see if they have any fees. I live near the border with Canada and use my chase visa in Toronto and Hamilton quite often and have not been charged extra fees.

[qb_bc Junior Member Find all posts View Profile Close qb_bc]

One thing to watch in using credit cards abroad is the exchange rate used. It is similar to exchanging money in a bank where there is a spread on the buy and sell, up to 2 1/2% each way. Ask your bank how they calculate the exchange rate. There may not be a fee, but the exchange rate may differ.

Most of my credit cards do not charge a fee as such, but have this exchange fee built onto their exchange rate. Since I would need to pay this exchange fee if I wanted to exchange and use cash, it ends up the same in the end if I use a credit card.

When abroad I generally only use my debit card to withdraw money from an ATM. I make sure that it is the appropriate type, Cirrus or Plus, and that it is a bank ATM rather than one in a shop. The card I have has a $5 transaction fee, so I make sure that the withdrawal is worth doing. That way the fee doesn't hit as hard.

As to getting a credit card in Canada, the best advice I can offer is for her to discuss this with a bank manager when she sets up her account. It may be a low limit card but she should be able to find a bank that will issue a card. The debit card comes automatically when one sets up a chequing account.

Finally, always exchange cash in a bank to get the best rate. US bills, used in Canada, will be accepted everywhere but you may not like the rate offered by shops. All banks will accept US money for exchange, and will give a rate about 2.5% off the daily trade rate.

[Luanne Senior Member Find all posts View Profile Close Luanne]

Check with Chase and see if they have any fees. I live near the border with Canada and use my chase visa in Toronto and Hamilton quite often and have not been charged extra fees.

The card I currently have with Chase has a 3% transaction fee.

[csavargo Senior Member Find all posts View Profile Close csavargo]

I am Canadian spending lots $ in FLA.
Had a similar issue the other way around...
Check witha canadian bank ROYAL BANK OF CANADA. RBC...
No fees, good rates, several locations in the US now.

[longtimer Senior Member Find all posts View Profile Close longtimer]

Each semester, before my daughter goes off the college, I purchase a prepaid Visa card from AAA. There is a small upfront fee for this, but IMO, it's much more sensible than a traditional credit card. It can be processed as either a credit card or a debit card, and can even be used for online purchases. There is no worry about overspending, because once the money is used up, it will be rejected. She can keep track of her purchases online (and you can too!). The card can be reloaded as many times as you want, until the expiration date (the ones I've purchased have been good for at least two years). If the card is lost, you have much less hassle worrying about a thief running up thousands of dollars. Most importantly - at least for your daughter, it is accepted outside the US (my daughter used hers in China - however, keep in mind there may be exchange fees). I believe she could also use to withdraw money from an ATM.

[Luanne Senior Member Find all posts View Profile Close Luanne]

I'm not worried about the ATM part. She will have an account at a Canadian bank, and those all seem to come with an ATM/Debit card. So, I think we're covered there.

[bnoble Senior Member Find all posts View Profile Close bnoble]

The Times had an article on this just the other day.

Choosing the Best Credit Card - Practical Traveler - NYTimes.com

[happymum Senior Member Find all posts View Profile Close happymum]

I am Canadian spending lots $ in FLA.
Had a similar issue the other way around...
Check witha canadian bank ROYAL BANK OF CANADA. RBC...
No fees, good rates, several locations in the US now.

Although RBC is good in the Eastern US, it is not great in California/Washington.

[Luanne Senior Member Find all posts View Profile Close Luanne]

Although RBC is good in the Eastern US, it is not great in California/Washington.

I found that RBC has a branch in San Francisco. However, they handle large investment accounts. But, I did speak to their Customer Service department, and if I understood correctly dd can open an account at one of their branches in Canada. Then the branch can request an acount be opened in the US. We can then put money into the US account, and have that transferred to the Canadian account, with no fees.

It doesn't solve the credit card issue, but would make the banking part easier.