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Your U.S. dollar card questions, answered.
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How does a U.S. dollar credit card work?
Don't worry about about currency conversion fees or volatile exchange rates. With a U.S. dollar credit card, the purchases you make in U.S. dollars are billed in U.S. dollars.
That means there won't be any surprises when you open your credit card bill. The amount of money you're charged in U.S. dollars is the amount you'll see on your statement.
How do I pay the bill for my U.S. dollar credit card?
You can pay your U.S. dollar credit card with a U.S. dollar checking or savings account, which can be opened at any major Canadian bank. Simply go online and transfer funds from your U.S. dollar account to your U.S. dollar credit card.
You can also make payments toward your U.S. dollar card from a regular Canadian dollar account. However, your Canadian dollars will be converted to U.S. dollars when the bill is paid. That means your funds will be subject to whatever the exchange rate is at that time (although you won't have to pay a credit card currency conversion fee).
Why should I get a U.S. dollar credit card?
It's hard to avoid making purchases in U.S. dollars, especially if you travel or shop online. But you can save some money with a U.S. dollar credit card. Regular credit cards, on the other hand, charge a currency conversion fee equivalent to at least 2.5% of your purchase, so for every $100 you spend on your card, you'll have to pay an additional $2.50 just to convert your Canadian funds into U.S. funds.
But U.S. dollar credit cards don't require any currency conversion. You only have to pay what you see on your bill — but in U.S. dollars, of course.
Bonus: U.S. dollar credit cards also let you take advantage of favourable exchange rates at the time of your choosing. That means you don't have to be at the mercy of the prevailing exchange rate at the time you happen to make your purchase. When the Canadian dollar is strong, seize the opportunity: buy U.S. dollars and top up your U.S. dollar account to optimize your U.S. dollar purchases — in today's world of volatile exchange rates, this strategy makes a lot of sense.
Why can't I just get a credit card from a U.S. bank or a U.S. based credit card company?
Sometimes it's difficult for Canadians to get a credit card from a U.S. financial institution. Most U.S. banks require a social security number or proof of U.S. residency before they issue a credit card approval.
And there's another complication: U.S. banks often don't have access to Canadian credit reports, which makes the approval process even more difficult. That's why a U.S. dollar credit card from a Canadian bank is usually a better option.
Compare U.S. dollar credit cards today
Remove guesswork and added expenses from your U.S. dollar transactions. Instead, get a U.S. dollar credit card. We'll help you find the right card — just like that.
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