Given the hidden cost in fluctuating exchange rate and currency-conversion fee (a sizable 2.5% or more), it is most reassuring to have a credit card billing in US currency. This way, your can control when and at what rate you convert your Canadian fund.
Most of the major Canadian banks offer US dollar credit cards. Bank of Montreal appears to offer the most variety of cards with different annual fee, cash back or Air Miles rewards. Here’s a brief list.
- Bank of Montreal (BMO) Mosaik MasterCard U.S. Dollar Card
- CIBC U.S. Dollar VISA Card
- Royal Bank U.S. Dollar Visa Gold
- TD Canada Trust U.S. Dollar Visa
Some US financial institutions, such as Capital One and Citi, also offer US Dollar MasterCard.
If you frequent US shops, you should not have problem qualifying for such a credit card. All the cards offer good purchase protection and extended warranty. The decision will be based on interest rate, annual fee and reward program.
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