US$ and Credit Card Redo

[cdnSpinalTap]

I thought I would share my recent changes to how I use credit cards as it relates to Disney Trips. Here is what I did in the past:

• I have an MBNA Cd$ credit card as it has the highest return on money spent (2%). I use this for all my day to day purchases and then use the points (10,000 points for $100) as cash to apply toward our annual trip.
• I have a USD$ BMO Mastercard that I used in the US to avoid the 2.5% fee. Typically I would exchange funds at my local BMO to pay off the card. I would also buy travellers cheques and use them in the US for security and budgeting purposes.

Here are the changes I made:

• I will continue to use my MBNA for day to day purchases as I still believe this gives me the highest return on my daily spend.
• I am going to cancel my USD$ BMO MasterCard.
• I have opened 2 new WestJet RBC MastCard's, one in my wife's name and one in mine. These are two totally separate accounts, so we will receive 2 companion vouchers per year. With this, we will spend around $400 (2x$99 fee plus 2*$99 Companion Fee) for 2 of our 5 flights (excluding taxes). If I had this in place for our previous January trip, I would have saved $489.
• I have opened a Rogers Platinum MasterCard for use in the US. This card charges the 2.5% fee, but I will be getting 4% cash back on all Foreign Currency transactions. This results in a 1.5% net gain on foreign currency transactions. As well, according to GreedyRates, MasterCard has the best historical foreign exchange rate, even better than exchanging at the bank. I will set up my Rogers cell phone bill for monthly payment to avoid the $29 yearly fee. Switching this from my MBNA to Rogers will cost me $5.00 per year in points, but based on my previous US spend for my trips, I should gain $150 per year in points doing this.
• I will no longer use travellers cheques and will avoid all foreign currency transactions at the bank.

I did a quick calculation on our previous January trip and if I had this in place, including all the fees and costs, I would have saved an additional $500 on our trip. In the grand scheme of things, it does not sound like a lot, but every little bit helps.

Just one caveat - this is what works for me. I am not suggesting anyone else do it, I just thought I would share my experience.

 

[alohamom]

Thanks for sharing, I hate, hate, hate transaction fees!

 

[Susie63]

Amazon.ca Visa

 

[cdnSpinalTap]

Amazon.ca Visa

That's definitely a great option for some. For me, with being able to get my Rogers cost down to $0, I preferred getting the net 1.5% in cash back from Rogers over Amazon points. As has been said before, each person has their own reasons. This one happened to work better for me.

 

[Susie63]

My Amazon.ca charges no transaction fee and is free. It's an option if you hate paying the 2.9% but I only use it while I am in the US or making Ebay purchases.

 

[Sue M]

Interesting! Thanks for the info. Because we live on the west coast I have an Alaska Airlines MC. Seattle is their hub, and have direct flights to Ft Lauderdale & MCO. They also give the $99 companion fare. I mostly use this card at home.
I also have a CIBC USD savings acct and Visa. So I buy & transfer USD to my savings and use it to pay off my USD Visa. Many times I transfer some USD to the Visa before leaving on trip.

Interesting about the Rogers card. I also have Rogers cell phone, switched last fall after many years with Telus. I was able to get a corporate rate with Rogers. Otherwise I never would have switched. I think Telus has a better customer retention department. But cellular plans are getting crazy expensive and corporate rate was too good to pass on.

 

[Lizardsoccernut]

We just got a Rogers Mastercard 6 weeks ago and I already love it. We considered getting a US$ visa for our increasingly frequent US travel, but then we wouldn't be accumulating rewards while we actually travel. The Rogers card is free because I've linked our Rogers bill to it and each month we accumulate enough reward dollars to pay for the bulk of our phone/cable/cell/internet bill. It's a great option.