Canadian Money Forum banner
1 - 20 of 75 Posts

·
Banned
Joined
·
39 Posts
Discussion Starter · #1 ·
In interested in knowing the forums thoughts on best points credit card. I spend about 2,000 a month on the one credit card -- pay it off at end of month. But am wondering which NO FEE credit card is best.. I currently use PC Mastercard.

Use points for groceries
 

·
Registered
Joined
·
283 Posts
I got the CIBC areogold infinite card 5 months ago.

15k miles to sign up
It's 1$=1mile.
It also has a lot of extra miles for various things.
it does have an annual fee

I have already got a free flight to Florida and still have 15k miles left over, in only 5 month. Granted I use it a lot.

To be fair, I have not made extensive comparisons but this card seems above average.
 

·
Banned
Joined
·
2,508 Posts
Here is what we've used recently:

MBNA smart cash, 3% on grocery and gas, 1% everything else.
Westjet world mastercard, annual fee waived first year, 1.5% in westjet dollars
AMEX spg card, 11000 points sign up bonus, first year waived (used 12000 points on $400USD room..)
GM visa card, 3% GM dollars, 3% 5 month cash back promo last year

I'm not sure who is the king of travel rewards now. But I can say that I know of nothing that beats the smartcash for grocery and gas. Card is no fee.
 

·
Registered
Joined
·
7,412 Posts
In interested in knowing the forums thoughts on best points credit card. I spend about 2,000 a month on the one credit card -- pay it off at end of month. But am wondering which NO FEE credit card is best.. I currently use PC Mastercard.

Use points for groceries
I have the same CC and of course the no fees PC banking.
Yes, you do get free grocery points but its on a 100 to 1 basis which means
for every $100 you spend with the MC, you get $1 worth of groceries at
Loblaws or their afflilate grocery store. The minimum you can cash in
is $20, so that requires CC purchases of $2000.

I also pay off the high interest CC when it is due..because I'm not going
to pay them 20% interest when I can borrow money (if I need to) at a
much cheaper rate of less than 5% on my LOC.

There are many affliate cards...I don't travel, so I have no use for air miles.
I only have one other credit card and that's the H-D card that I only use
for the 6 month or 1 year interest free deals..and pay it off with a check
at the local h-D store at least 10 days before it's due to avoid almost
30% interest charges.

What is a "smart CC card"?..it's the one you can pay off a couple of days
before the interest is due. To me that's using the card smartly and
avoiding any CC interest. I shudder when I hear about couples incurring
thousands of dollars in CC debt and interest...if you pay the minimum rate
it will take over 30 years or more to pay it off..that's what credit card
companies like. They must hate people like me that use the card as
convenience and getting a few dollars of groceries out of them.

Incidently, I had one of those GM affliate CC cards a few years ago..accrued
several hundred dollars in points and when I was ready to buy a vehicle
(truck),,the local dealer started to nickel and dime me on this and that..
and when it was all totalled up..even with the "GM dollars" it wasn't such
a good deal compared to the Chrysler dealer that gave me a much better
deal without any CC card points, so in the end, all those points I collected
where wasted when I cancelled the CC.

Those cards are to attract people into the specific car companies
showrooms, thinking you can get a " better deal"...you can get the
same deal or better by just going to the competition and mentioning that
you got a quote from such and such and looking for a better deal.

Ford is offering $1000 off if you are a Costco customer..so the GM
affinity card is no big deal.
 

·
Registered
Joined
·
967 Posts
*sigh* I also indulge in the reward credit cards. But ultimately, we all pay for it one way or another. Some "premium" credit cards charge the merchant as much as 4% of the transaction. That cost is directly pass to the customers, both cash and CC users alike.
 

·
Banned
Joined
·
1,241 Posts
We use TD Infinite Travel card... there's a big annual fee (I think it's over $200/yr for our two cards) but we have Select Service (no monthly fees for Select Service if you have 5K to stick in there). Right now, with low interest on savings, it's worth our while to do that and pay nothing. We spend just under $4K/m on our visa and we get back somewhere around $1000/yr in travel money (not points, money). When we book through TD travel agents we get 3X the credits, so the cash adds up quickly.

But of course this is only good if you like to travel a fair bit. I'm sure there's a better card for people in different situations.
 

·
Registered
Joined
·
7,412 Posts
We use TD Infinite Travel card... there's a big annual fee (I think it's over $200/yr for our two cards) but we have Select Service (no monthly fees for Select Service if you have 5K to stick in there). Right now, with low interest on savings, it's worth our while to do that and pay nothing. But of course this is only good if you like to travel a fair bit. I'm sure there's a better card for people in different situations.
Did you say you need to put in a deposit of $5k against your TD visa
travel card(s) to enjoy "service charge free cards"?

Ok, so you say, you pay a fee of $100 (per card) and you enjoy the benefits..travel $...but either way, their card demands some kind of fee for their use..like you pay $200 up front ...or you deposit $5k up front with them
and get them for "free".

Now interest rates are very low on savings accts...(around 1.5% ), so if you put that $5k in a daily interest acct, you would probably earn $75 annually against the $5k, and that would be taxable as well, so I suppose,
you are ahead of the game if you just pay the $200 for the cards up front.

The big problem in this economy, is having $5k available that you have already saved up, to be able to deposit that money for a long time.
 

·
Registered
Joined
·
875 Posts
Did you say you need to put in a deposit of $5k against your TD visa
travel card(s) to enjoy "service charge free cards"?

Ok, so you say, you pay a fee of $100 (per card) and you enjoy the benefits..travel $...but either way, their card demands some kind of fee for their use..like you pay $200 up front ...or you deposit $5k up front with them
and get them for "free".

Now interest rates are very low on savings accts...(around 1.5% ), so if you put that $5k in a daily interest acct, you would probably earn $75 annually against the $5k, and that would be taxable as well, so I suppose,
you are ahead of the game if you just pay the $200 for the cards up front.

The big problem in this economy, is having $5k available that you have already saved up, to be able to deposit that money for a long time.
The Select Service chequing account is TD's bells and whistles account option. One of the features is waiving the annual fee (including a supplemental card) on the TD Infinite Visa card. The monthly cost of the SS account is $29, however if you maintain a balance of $5000 throughout the month, those fees are waived.

I have this account but have been debating getting the Capital One Aspire. The point value conversion is 2%, compared to 1.5% for the TD Infinite card. Capital One also provides annual point bonuses which equal in value to the annual fee ($120ish I think???). The only thing stopping me is a I like being able to see everything when I log into my TD account.
 

·
Registered
Joined
·
7,412 Posts
The Select Service chequing account is TD's bells and whistles account option. One of the features is waiving the annual fee (including a supplemental card) on the TD Infinite Visa card. The monthly cost of the SS account is $29, however if you maintain a balance of $5000 throughout the month, those fees are waived.
So it's a win-win? If you don't deposit the $5k, you have to pay $348 in yearly service charges + $100 for the
SS visa card ($448?)..if you deposit $5k, you get a "fee free" acct, but
then the bank is using your money for loans at 5-8% interest charged
on LOC or personal loans..so if one can repay that loan over 3 years,
they make $220 a year interest on your money.
 

·
Registered
Joined
·
875 Posts
So it's a win-win? If you don't deposit the $5k, you have to pay $348 in yearly service charges + $100 for the
SS visa card ($448?)..if you deposit $5k, you get a "fee free" acct, but
then the bank is using your money for loans at 5-8% interest charged
on LOC or personal loans..so if one can repay that loan over 3 years,
they make $220 a year interest on your money.
First of all, the credit card comes with the plan, so you don't have to pay for the plan and the card.

Secondly, it's a cheap way to get all the features you need. What are YOUR opportunity costs. It's irrelevant what the bank does with your money. If you put the $5000 into a savings account, you would yield $100 per year before taxes. At a marginal rate of 35%, this plan would cost you $65 per year or $5.42 per month after taxes. I'm happy with leaving this money in the account and getting all the benefits that come with the plan.
 

·
Registered
Joined
·
2,626 Posts
I think its a pretty reasonable deal also, and have an account myself. I consider the funds as emergency, and the few dollars extra I would earn parking my cash elsewhere is insignificant to me. For me, the Auto club membership, safety deposit box, and free USD VISA more than make up for the loss interest by parking my $5k in an account earning only 2%.

Here are a few other benefits of the account (stolen from a different thread)

Highlights:

* All the perks of Select Service account = $300 yearly savings
* Annual fee waived on TD Gold Elite Visa = $99 yearly savings
* Free Deluxe TD Auto Club Membership = $79 yearly savings
* Unlimited Interac ABM and PLUS system withdrawals = $40 yearly savings
* 1% Annual Cash Rebate on purchases = $80 dollar earned
* More perks with TD Gold Elite Card
o Trip Interruption Insurance
o No-Fee Travellers Cheques
o Common Carrier Travel Accident Insurance
o Emergency Travel Assistance Services
o Delayed and Lost Baggage Insurance
o CardAssist Card Registry Service
o Purchase security and extended warranty protection
* More perks with TD Select Service Chequings Account
o Free drafts and certified cheques
o Free small safety deposit box (subject to availability)
o No commission fee for Canadian and U.S. dollar travellers cheques
o 1/4% interest bonus on 1 - 5 Year GICs
o Free Borderless Plan with U.S. Dollar Daily Interest Chequing Account
 

·
Registered
Joined
·
2,626 Posts
Last benefit, TD gave me $250 free! That will cover the interest differential from holding the $5k elsewhere for 2-3 years at the current rates. :D
 

·
Banned
Joined
·
1,241 Posts
We signed up a while ago (maybe six months ago, but I'm just guessing) and never got the $250. Does anyone know when the promo was for sure on? If we are entitled to the $ I'm darn well going to ask for it!
 

·
Registered
Joined
·
3,647 Posts
I just got this account in the past month ,I was spending about $10.00+ in ATM fees so a great deal for me as well.I also get 4-6 certified checks a year ,travel to europe for business 1-2 times a year so quite a good return for having to keep $5000 there.
 

·
Registered
Joined
·
649 Posts
Hmm some of those cash-back no-fee sounds great if I'm reading that correctly (I'm doing a quick scan), but I have a Vancity (credit union) card and I just put $100 towards my rrsp with my points although I've been meaning to look to see how much spending it took me to get there :)
 
1 - 20 of 75 Posts
Top