Stretch the Loonie Further with a U.S. Dollar Credit Card

Are you planning to travel to the U.S. this summer? If so, it’s important to plan ahead. With the Canadian dollar hovering around 80 cents, travelling to the U.S. can be a lot more costly if not done the right away. A strong USD means Canadian travellers and cross-border shoppers should look into ways to stretch their loonies. Using a US Dollar credit card is one of the easiest ways to stretch your loonie further.

U.S. Dollar Credit Card

If you frequently travel to the U.S., consider signing up for a U.S. dollar credit card, such as the Scotiabank U.S. Dollar VISA card. With a U.S. dollar credit card, you’ll avoid the headache of costly foreign exchange fees. When you use your Canadian dollar credit card, you’ll face the tough decision of paying in Canadian dollars or U.S. dollars. Sometimes it can work out in your favour, other times you can end up paying foreign exchange fees above 2.5 percent.

U.S. dollar credit cards let you enjoy the freedom of buying in U.S. dollars without the worry of fluctuations in the exchange rate. A U.S. dollar credit card is great whether you’re travelling to the U.S. on vacation, business or you’re shopping online from U.S. stores. You also have the convenience of paying your balance directly from your U.S. dollar bank account.

Travellers frequently convert Canadian dollars into U.S. currency before heading down south. Not only do you face the risk of paying a higher exchange rate, you also aren’t covered by the same protections a U.S. dollar credit card offers. With the Scotiabank U.S. Dollar VISA card, you’re covered by the Purchase Security and Extended Warranty. Under this warranty, you’re protected against theft, loss and damage for the first 90 days after your purchase. That’s not all – the extended warranty coverage often doubles to up to an extra year.

Exchanging Your Money

Did you know paying for international charges with a credit card can sometimes be cheaper than exchanging money at the airport or similar cash exchange locations? It’s true. That’s why It’s important to plan ahead to avoid being gouged by foreign exchange fees.

If you’re caught in a bind and need foreign currency right away, most airports and hotels let you convert your Canadian dollars into local currency. However, beware because these fees tend to be very costly. Even if the airport or hotel isn’t charging any commission, you may still be hit with hidden fees. This tends to be the most costly way to exchange currency.

A popular way to exchange money is to buy foreign currency from your bank before leaving Canada. This can often be done from the convenience of your home over the phone or online. The money is then delivered to your local bank branch for convenient pickup. Banks usually offer better exchange rates than elsewhere. The major downside to paying in cash is that you’re forgoing the protections you receive when purchasing with your credit card.

Resources:

http://travel.gc.ca/travelling/air/travelling-money/exchanging-money
http://travel.gc.ca/travelling/air/travelling-money