Do You Really Need That Extra Credit Card?

Avoid Extra Credit Cards

First Published Date: Nov 30, 2009

It may appear that today many Canadians are walking a sort of a tightrope and the decision they make may not really be about whether or not to have a credit card but how many they are going to have in the first place. We all know with acclaim that with a credit card you can get to spend money you do not have, as long as you are able to pay up when you earn, there really should be no cause for alarm. Depending on how efficient you are with your payments, this can either be a blessing or a curse.

There is so much freedom and ease in amassing credit cards these days that one may need to really ask themselves if the really need to have that extra card they are applying for, or they just want an extra reason to spend money they have not earned. Because we do not have to pay upfront, there are many people who will get the extra card just in order to beat the limit they have in the other card they have, thus managing to acquire stuff they otherwise would not be able to afford. Of course the truth of the matter is if you are short of cash and you really need something, all you do is pull out your card and the shop attendant will swipe it and you walk away with all you ever needed, just as simple as ABC. It can come in handy when you are between the devil and the deep sea in some situation, which at times could actually be life saving.

We all know also that having a credit card helps you avoid the inconvenience of having to walk around with lots of cash and with a good use of one you will be able to track all your expenses. Shopping can become quite convenient and for those who may want to borrow some cash in future they provide a good credit history for you. There are even some companies who offer special discounts for those who shop using their credit cards and so you can imagine that there are plenty of advantages of owning a credit card. All you need to take care of is the management of your debt repayment and you will be safe.

However, just like with any other good thing there is always the downside of having a credit card. It becomes very easy fro the frivolous spender to amass a big amount of debt in small bits until most off the time they discover they are buried deep in it. In a little while many people discover that they were actually spending money they were not going to have in the next many months, it is no wonder that some people are many months ahead of their income in debt.

So do you need that extra card really? If you have managed your life without one you most likely can move on without a card, do not go for an extra card if at anytime time you have fallen behind in payment with your current one. Depending on what you earn, multiple credit cards may actually mean multiple problems and since the decision is yours to make, remember the responsibility will also be yours to settle the payments.

MoneySense Publishes Its Flawed 2015 Canada's Best Credit Cards Rankings

How Accurate Are MoneySense’s Credit Card Rankings?

First Published Date: September 13, 2015

Canada’s popular personal finance magazine MoneySense recently releases its annual credit card rankings for 2015. The five best credit cards were chosen for these six categories: cash-back cards, low-rate cards, retail rewards cards, travel rewards cards, student cards, and business cards.

However, the factors that MoneySense used to determine the best cards for Canadians are inaccurate and out of touch from reality. I will discuss only a few important points to show you why these rankings are flawed and also will give you links to some other rankings that I believe did a better job ranking Canada’s best credit cards.

Why These Rankings Are Flawed

– The biggest problem is that the assumption was made that you will be spending $2000 per month on credit cards. To spend $24,000 on credit cards annually, you will need to have at least $100,000 annual income, but even it’s hard on a 100K salary to spend that much. So it is safe to say that an average $150,000 salary is required to make sense of these rankings and if MoneySense thinks that is what most Canadians make they are out of touch.

– Even if we say everyone is Canada is spending $2,000 monthly on credit cards, the MoneySense ratings are wrong in terms of getting the best value back on your rewards. If you use this credit card tool to plug in $2,000 monthly spending, you will get very different results.

– The wrong information was provided for some credit cards. For example, if you look at insurance benefits for cards like WestJet RBC World Elite MasterCard or American Express Gold Rewards Cards, according to MoneySense these cards have trip cancellation, but in reality these cards do not have trip cancellation; they have trip interruption insurance, which is a totally different thing.

– The 1st and 2nd cards in the travel category are the WestJet RBC World Elite MasterCard and the American Express Gold Rewards Card. Neither of these cards should be first and second, as they are missing major elements that you need to have in a travel card, such as trip cancellation insurance and concierge services. Also, the big problem with the WestJet RBC World Elite MasterCard is that you are limited to fly only WestJet on limited destinations that WestJet covers.

– The worst picks are in the retail rewards category. Here you will find credit cards that are not even considered to compete by other best credit cards ratings sites. For example, if you use the credit card tools I mentioned in the article below, you will see that these top credit cards stay on the bottom of the list. So that makes you wonder why Rogers credit card is # 1 in this category. Rogers credit card is #1 retail rewards card is Canada – really?

How to Pick Your Best Credit Cards

Research and gather information from various sources, including the credit card providers’ own sites and make decisions based on your own circumstances. There are tools, calculators, and articles you can use to help you and I mentioned some of these in the Credit Cards/Rewards Cards Section on A Dawn Journal to help you with your research.

Also, you can check other sites’ best credit cards ratings. For example, the Greedy Rates ratings below is a good one and more aligned to reality.

Meet Canada’s First No-Fee World Elite Master Card

President Choice Launches World Elite Master Card

First Published Date: September 20, 2015

World Elite is the Elite series of credit cards from MasterCard that usually have a $100 to $150 annual fee. So when you see no-frills financial institution President Choice (owned by Loblaw) launching a world elite MasterCard without any annual fee, it’s bound to peak everyone’s interest.

The card has no annual fee, but it’s missing lots of features you would expect from world elite series cards as well. There is no sign-up bonus and it does not offer insurances such as Trip Cancellation and Trip Interruption insurance. However, it does have Travel Emergency Medical Insurance and Car Rental Collision/Loss Damage Waiver Insurance.

This is the only credit card that lets you earn 30 PC points for every $1 spent at PC stores (such as Loblaw, No Frills) and Shoppers Drug Mart. The earning rate is also 30 points per dollar at Pharmaprix, PC travel, PC mobile (excluding PC mobile prepaid services), per litre of Esso Supreme (Octane 91) and Esso SUPREME+ (Octane 93).

An interesting twist is that the PC Financial World Elite MasterCard offers 24/7 concierge service and this is unexpected from a no-fee card. Unlike Visa’s elite series Visa Infinite cards, which provide concierge service by VISA itself, World Elite MasterCard does not provide its own concierge service in Canada. So if you see World Elite MasterCard in Canada has concierge service, it’s provided either by a 3rd party or the issuer’s own concierge service team. For example, WestJet RBC World Elite MasterCard does not have concierge service, but BMO World Elite MasterCard comes with concierge service provided by BMO.

When I called PC MasterCard customer service and asked who is providing the concierge service for PC Financial World Elite MasterCard, it was obvious the rep had no idea what a concierge service is and how it works. He gave me hilariously wrong info to make me get off the phone. His idea of concierge service is when you go to a hotel; there will be a concierge service there to help you – which is totally wrong info.

It’s obvious that either President Choice Financial has not trained their reps well or I unfortunately came across a rep who had not done his home work. That’s another thing you need to keep in mind when you are getting something for free that usually comes with a price: You may not get top-notch customer service like other elite series credit cards that come with a price tag.

If you hold the PC World MasterCard, PC will upgrade you to World Elite without hard credit inquiries as long as you meet their World Elite MasterCard income requirement (70k Min Income or $120k household).

American Express Platinum or American Express Gold Credit Cards?

Amex Platinum and Gold Are 2 Different Things

First Published Date: September 29, 2015

A common question American Express credit card users, or even those do not hold any Amex cards but are considering it, are struggling to answer is should they choose the Amex Platinum or Gold. Or would it make sense to even choose both?

Today I will try to answer these questions by keeping things simple and without going into too much detail about these cards’ perks and features.

The very first striking anomaly anyone will notice in these two cards are the wide gap in annual fees. The Platinum charges a hefty $700 and the Gold charges a $150 annual fee (in Canada). However, based on your objectives, these fees may or may not be justified.

The American Express Platinum card is all about perks and features. This card makes sense for those who travel often and want to enjoy traveling in style and distinction. The card gives you access to over 600 airport lounges across the globe and also provides elevated hotel status for many big name hotel chains. This means benefits like a room upgrade, late checkout, and so on. If you do not fly or stay in hotels often, a platinum card may not provide any value to you. By often I mean not traveling one or twice a year, but once or twice a month.

While the platinum card is packed with features, it’s terrible with rewards points because it offers only 1.25 points for every dollar. This is where the American Express Gold comes in. The Amex Gold is a credit card that is designed for rewards points and it’s much generous for points on each dollar you spend, such as 2 points for every dollar at eligible gas, grocery store, and travel purchases. The gold card would make perfect sense for those who don’t travel often and don’t need to access lounges and elevated hotel status.

These are the very basic elements that separate these cards on the surface. Both cards offer much more and the only way to find out what suits you most is to go through all the features and benefits before making any decisions. You will find users who do not travel, but still hold the Platinum card and you will find users that hold both platinum and gold cards. So which card(s) is best for you totally depends on your lifestyle, what you want, and what you value most.

Disclosure: Information provided here may not be accurate and no longer valid. The mentioned card provider is not related to A Dawn Journal and neither monitor this site nor responsible for any inaccurate information. Contact the card company directly for accurate and updated information.

The ScotiaBank Gold American Express Card: Should You Keep It?

The ScotiaBank Gold American Express Card Review

First Published Date: October 8, 2015

The ScotiaBank Gold American Express card is a travel rewards credit card that lets you earn Scotia Rewards points for everyday purchases that can be used towards eligible travel costs without any blackout periods or restrictions.

The Cost

Annual Fee = $99. Additional cards = $29

Minimum annual income required = $12,000

Rewards Points Snapshot

– Earn 4 points for every $1 spent at eligible gas stations, grocery stores, and on dining and entertainment in Canada.

– Earn 1 point for every $1 spent on everything else.

First Time Bonus

A 20,000-point (valued $200) welcome bonus when you spend $500 within 3 months. Also, the annual fee is NOT waived for the first year.

Anniversary Bonus

None.

Features & Benefits

– Book with any travel provider and redeem points for your complete trip, including taxes and surcharges.

– Receive 20% off and complimentary upgrade (if available) and a free amenity, such as complimentary breakfast, late checkout privileges, etc. (if available)

– Low Price Airfare Alerts will monitor your itinerary and if a lower price becomes available, the agency of record will automatically exchange your ticket for the lower price.

– Access to 24/7 full service travel agency.

– Complimentary 24/7 premium concierge service.

– 35% discount on Priority Pass annual airport lounge membership.

– Emergency Medical Insurance (25 days<65, 10 days>65 or older, Amount: 1 M/per person).

– Travel Accident Insurance (Up to $500,000 CAD).

– Auto Rental Theft and Collision/Loss Damage Insurance (Amount not provided by Scotia)

– Trip Cancellation Insurance ($2,500 each, maximum $10,000).

– Trip Interruption Insurance ($2,500 each, maximum $10,000).

– Flight Delay Insurance (After 4 hours, maximum $500 per occurrence).

– Lost and Delayed Luggage (maximum $1,000).

– Hotel/Motel Burglary (maximum $1,000).

– Extended Warranty Insurance (1 additional year).

– Purchase Security (90 days).

– Price Protection (within 60 days, up to $100 per item, $500 each year).

What’s Missing

– None.

My Take

Although the Scotiabank Gold American Express card is not an Elite series card, it can put many elite cards to shame in terms of the features and benefits it provides for only a $99 annual fee. Just take a look at the regular American Express Gold card that charges a $150 annual fee and provides inferior benefits and insurances. For example, Amex Gold does not come with concierge, trip cancellation insurance, and many other features Scotiabank Gold American Express comes with.

The only thing I can complain about the Scotiabank Gold American Express card is that it does not provide 4 points per dollar on travel spending; it provides only 1 point, which I find ironic because it is a travel rewards card and providing no extra rewards points on travel spending.

Another thing you need to keep in mind is that this is a Scotiabank/American Express blended card that will only work on the American Express network and you may find many places will not accept this card, unlike Visa and MasterCard which are accepted everywhere.

Finally, keep in mind that insurances provide by American Bankers Insurance Company of Florida, an American insurer. Like Allianz Global (which provides insurances for many Canadian credit cards, for example, BMO World Elite MasterCard), there were numerous complaints and bad reviews online about these providers when it actually comes to processing claims. All these benefits look very good on paper, but would mean nothing if you are unable or getting hard time processing your claims. I am much more comfortable dealing with insurances provided by TD, RBC, American Express, and so on. So make your call before picking any credit cards that provide insurance benefits.

As of this writing I do not hold this card.

Disclosure: Information provided here may not be accurate and no longer valid. The mentioned card provider is not related to A Dawn Journal and neither monitor this site nor responsible for any inaccurate information. Contact the card company directly for accurate and updated information. A Dawn Journal or my YouTube Channel are not compensated by or affiliated with any credit card companies. All credit card articles are 100% unbiased and honest.