Need New Cr Card with Changes to Home Trust

[gskywalker]

Hate to have to do this again so soon after the Amazon Mastercard was cancelled(the old one not the new one just mentioned). I got the notice in the mail today that Home Trust will no longer pay the 1% cash back on foreign exchange charges. The new Amazon Mastercard works out the same as it charges 2.5% and pays 2.5%. Is there anything out there where we can actually get something back on foreign spending? I know there is a good Scotia card but it requires a significant income level I believe.

 

[efrant]

The Scotia Passport Infinite and the HSBC WE MC both require $60k+ income. I think the only card that doesn't charge the 2.5% fee, gives rewards, and doesn't have an income requirement, is Brim: https://brimfinancial.com/

 

[bankr63]

The Rogers World Elite level Mastercard is now a better option than it was when first introduced. It offers 4% cash back on foreign transactions (more than offsetting the 2.5% fee) and 1.75% on domestic transactions. There is no annual fee, and you can use the Pay With Rewards app to apply your cash back to most transactions (no longer has to be a Rogers transaction). The lower level Platinum card offers 3% and 1.25% on foreign/domestic purchases.

 

[isabellea]

We have Brim and it gives sone kind of reward on purchases (never pais attention to this aspect) and has no FX fees. We only use it on vacation.

 

[StarSeven7]

I saw that from the Hometrust Visa as well! Bummer! We also have the Rogers World Elite Mastercard so we might use that more when charging in a foreign currency. It still seems like we'd lose out though if we need to make returns, with the FX fee charged. The Rogers card is pretty good but they're so stingy with their spending limit! We've used CCs that charge an annual fee for the last 10 years or so because the rewards were worth it, and we've had a really high spending limit which is great because we put everything on our CC and pay it off each month. We switched to the Rogers card after having some bad experiences with the MBNA world elite card and the limit they gave us was so low that we maxed out one month after spending a bit more doing some home renovations! My DH called them to up the limit and they told him it would negatively affect his credit rating! So that's been a bit of a pain!

 

[bankr63]

It still seems like we'd lose out though if we need to make returns, with the FX fee charged. The Rogers card is pretty good but they're so stingy with their spending limit! We've used CCs that charge an annual fee for the last 10 years or so because the rewards were worth it, and we've had a really high spending limit which is great because we put everything on our CC and pay it off each month. We switched to the Rogers card after having some bad experiences with the MBNA world elite card and the limit they gave us was so low that we maxed out one month after spending a bit more doing some home renovations! My DH called them to up the limit and they told him it would negatively affect his credit rating! So that's been a bit of a pain!

That is true about the returns when there is an FX fee. I don't think I have ever returned anything that I have purchased in the US, so has never been an issue for me, but I guess it could become one sometime. A lot of stores will accept returns for Store Credit, so if you want to buy something else from the same place you can avoid the forex on the return.

Surprised that you got a low limit on a World Elite level card - they generally are high spender cards. DW and I both got a $15k limit out of the gate. That's plenty for any vacation plans we may have.

Also true that raising your credit limit will affect your credit score. This is not just an MBNA thing, it applies to all banks. One of the larger components of your credit score is the amount of credit you have available to use that is reporting on your bureaus. Increasing your amount of credit available will generally always have at least a small impact on your FICO or other lending scores. If you do it too rapidly then it will have a larger impact as it makes you appear to be credit seeking. One way I keep my credit score high is by turning down offers from my issuers to increase my credit limits; I don't need the credit and I know it will decrease my score.

 

[StarSeven7]

That is true about the returns when there is an FX fee. I don't think I have ever returned anything that I have purchased in the US, so has never been an issue for me, but I guess it could become one sometime. A lot of stores will accept returns for Store Credit, so if you want to buy something else from the same place you can avoid the forex on the return.

Surprised that you got a low limit on a World Elite level card - they generally are high spender cards. DW and I both got a $15k limit out of the gate. That's plenty for any vacation plans we may have.

Also true that raising your credit limit will affect your credit score. This is not just an MBNA thing, it applies to all banks. One of the larger components of your credit score is the amount of credit you have available to use that is reporting on your bureaus. Increasing your amount of credit available will generally always have at least a small impact on your FICO or other lending scores. If you do it too rapidly then it will have a larger impact as it makes you appear to be credit seeking. One way I keep my credit score high is by turning down offers from my issuers to increase my credit limits; I don't need the credit and I know it will decrease my score.

Sorry, the way I worded that was slightly confusing! The low limit is on the Rogers card and not the MBNA card. The MBNA card they are throwing money at us but we'd like to close it because we've had way too many issues with it so it's just really not reliable as a main credit card. We use the Rogers card as our main card now but we still have that MBNA one open because of the low limit on the Rogers card so we need a backup if we reach our limit!! My DH did request a limit increase on the Rogers card anyways since he has an excellent credit score so we're not too concerned over it. They still only gave us a small increase so our limit is still quite a bit lower than the MBNA card!!

 

[Sue M]

I have the Alaska Airlines MBNA card. I’ve never had a problem with it and gets me one companion fare a year. Plus Alaska miles every time I use it. No luggage fee. Since a RT from the west coast to Florida is at least $500, that savings alone is probably more than a cash back card?
WestJet has a similar deal with companion fare.

 

[efrant]

[snip]

Also true that raising your credit limit will affect your credit score. This is not just an MBNA thing, it applies to all banks. One of the larger components of your credit score is the amount of credit you have available to use that is reporting on your bureaus. Increasing your amount of credit available will generally always have at least a small impact on your FICO or other lending scores. If you do it too rapidly then it will have a larger impact as it makes you appear to be credit seeking. One way I keep my credit score high is by turning down offers from my issuers to increase my credit limits; I don't need the credit and I know it will decrease my score.

My personal experience: If I apply for new credit (not an credit increase, but a new credit card), my score dips modestly once the credit inquiry to my file is made, then dips again when the account shows up on my credit file, but after a few months, it goes back up to where it was before, give or take. If I apply for a credit limit increase (on an existing card), my score dips modestly from the credit inquiry (only if there is one), but eventually goes back up as well. As for accepting credit limit increase offers (i.e., not me applying for the increase), my score has never gone down because of that, and typically goes up modestly once the higher limit is reported to my credit file. Granted I don't have access to what the banks actually use for lending purposes, but as far as what Equifax/TransUnion report, that is the case for me.

 

[bankr63]

My personal experience: If I apply for new credit (not an credit increase, but a new credit card), my score dips modestly once the credit inquiry to my file is made, then dips again when the account shows up on my credit file, but after a few months, it goes back up to where it was before, give or take. If I apply for a credit limit increase (on an existing card), my score dips modestly from the credit inquiry (only if there is one), but eventually goes back up as well. As for accepting credit limit increase offers (i.e., not me applying for the increase), my score has never gone down because of that, and typically goes up modestly once the higher limit is reported to my credit file. Granted I don't have access to what the banks actually use for lending purposes, but as far as what Equifax/TransUnion report, that is the case for me.

I agree,

As someone who used to decision credit card applications for one of Canada's largest issuers, I can state that on average an increase will have a detrimental effect on your credit score. You probably have an above average score to start with based on the described behaviour, but for the consumer with the average score, the effect is more pronounced. I don't know anyone's actual score here, so am using the "average" effect of a CLI.