# Credit Cards in Canada - Part 2 (slightly different question)



## Luanne (Apr 21, 2011)

I wanted to expand on the earlier question regarding credit cards in Canada.  

Younger dd will be attending school in Vanouver starting Fall 2011.  I don't know how often she will need to use a credit card, but want her to have access to one.  I checked with both my credit union, and Chase and have found the fees to be 2% and 3%, respectively.

So, my question is, would it make sense to apply for a Capitol One card, since they do not have any fees for foreign transactions?  Or should I have dd apply for a credit card at whatever bank she ends up banking with there? (Or would that create a whole separate set of problems?)

I'm really looking for input from those who already have a Capitol One card.  I looked briefly online and saw there are several choices.  I have no idea which one might be better.  Thanks in advance for any help.


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## Dori (Apr 21, 2011)

Luanne, I'm not sure what the rules are for U.S. citizens obtaining Canadian credit cards, but I do know that, as a Canadian, I cannot get a U.S. credit card because I don't have a SSN. My Social Insurance number doesn't cut it with them, even though we have a winter home in Florida.

Dori


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## Luanne (Apr 21, 2011)

Thanks Dori.  So it looks like my option is the Capitol One card, if I want one without fees.

I was just wondering if dd had a bank account at a Canadian bank if she'd be able to get a credit card through them.  I think I'll go check the university website and see if they have any information that might be helpful.


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## bankr63 (Apr 21, 2011)

It will be near impossible for her to get a Canadian Card as she will have no record with the Canadian Credit Bureaus.  Although we have TransUnion and Equifax up here, their records are separate from their US parents, and the two do not mix.  When she applies for a Canadian card, she will not have a credit score, and will be refused.  SIN does not really come into play in Canada, as it can only be voluntarily provided by applicants (you are not obliged to provide your SIN on an application, although it is always requested).

I would go for the lowest fee US card you can get, and stick with Visa, M/C, or Amex (Discover is not popular or well accepted in Canada).  Note that Capital One has a Canadian presence (issues cards in Canada).  So does Bank of America (still called MBNA in Canada). This probably will make little difference as the bank records for Canadian banks must be kept completely separate from US records, but there might be a small advantage when she has had some time to build a Canadian presence (you never know - Canada grows on folks after a while; she could become one of "us")  .


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## Luanne (Apr 21, 2011)

She'd love to become one of "you".  

I just checked the International Student Handbook.  They talk about bank accounts and debit card, but nothing about credit cards.  I think I'll get a Capitol One card, still need to figure out which one, which she can have for emergencies.  It looks like she can use the debit card from the bank for most things.


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## bankr63 (Apr 21, 2011)

Not much she can't use a debit card for.  Debit Cards and ATMs caught on much faster and earlier here in Canada than they did in the US.  About the only place you can't EASILY use them is where a security deposit is required (hotel rooms, rental cars).  I know many people who carry no more than pocket change anymore; debit cards are easier.

Note that your US debit cards will work up here too if they are on Cirrus or Plus networks.


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## Luanne (Apr 21, 2011)

bankr63 said:


> Not much she can't use a debit card for.  Debit Cards and ATMs caught on much faster and earlier here in Canada than they did in the US.  About the only place you can't EASILY use them is where a security deposit is required (hotel rooms, rental cars).  I know many people who carry no more than pocket change anymore; debit cards are easier.
> 
> Note that your US debit cards will work up here too if they are on Cirrus or Plus networks.



Yes, our debit cards are on Cirrus and/or Plus.  However we still seem to get socked for transaction fees.  That's what happened to here where she is now in Florida.  We thought she could just use her ATM card for cash.  

Or maybe she could use the ATM for purchases, with no fee, but not for getting cash out.  Oh, so much to figure out.

The next thing will be cell phones.


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## equitax (Apr 21, 2011)

*RBC Bank USA (US bank on US soil accessible to Canadians)*

If you deal with RBC, you can easily get a USD credit card issued on US soil through RBC Bank USA.

RBC Bank USA, is howwver up for sale, so I would suggest if you want the card to get one sooner rather than later.

google rbc bank usa.  I have been with them since 2002 and it is great.






Dori said:


> Luanne, I'm not sure what the rules are for U.S. citizens obtaining Canadian credit cards, but I do know that, as a Canadian, I cannot get a U.S. credit card because I don't have a SSN. My Social Insurance number doesn't cut it with them, even though we have a winter home in Florida.
> 
> Dori


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## cdn_traveler (Apr 22, 2011)

Actually it will be very easy for her to get a credit card.  On the first day of school, Visa and Mastercard will both be on campus handing out credit card applications to all the students.   
If she has an account at one of the canadian banks, she will have no problem being approved for one.  The limit may only be $1000 or $500 but that may not be such a bad thing. 

Good luck to your daughter, I know she will love it here.


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## dioxide45 (Apr 22, 2011)

cdn_traveler said:


> Actually it will be very easy for her to get a credit card.  On the first day of school, Visa and Mastercard will both be on campus handing out credit card applications to all the students.
> If she has an account at one of the canadian banks, she will have no problem being approved for one.  The limit may only be $1000 or $500 but that may not be such a bad thing.
> 
> Good luck to your daughter, I know she will love it here.



The problem is that any credit score garnered from that score won't be recognized in the USA. Before I moved from Canada to the USA I was able to apply for and receive a TD Waterhouse Visa bank account and Visa card that were US based. After I moved down to the USA, I kept that card and still have that account today. Of course TD Waterhouse went away and the card accounts were all sold to FirstUSA which then became JP Morgan Chase.

When I first pulled by US based credit report, it showed that I had to SSNs, one was my US SSN and the other was my Canadian Social Insurance Number. This was because when I applied for that TD Waterhouse card, I used my SIN to apply, then when I got a job in the US, they reported my US SSN.


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## bankr63 (Apr 23, 2011)

cdn_traveler said:


> Actually it will be very easy for her to get a credit card.  On the first day of school, Visa and Mastercard will both be on campus handing out credit card applications to all the students.
> If she has an account at one of the canadian banks, she will have no problem being approved for one.  The limit may only be $1000 or $500 but that may not be such a bad thing.
> 
> Good luck to your daughter, I know she will love it here.



Almost all Canadian lenders are what is know of as FICO lenders.  The credit score is the only thing that matters.  Credit applications are decisioned by a computer based entirely on the score.  Daughter won't have a score, no card.  (I know, I used to make credit decisions at the one Canadian bank that did not use a computer).

Fees for ATM usage in Canada can be highly variable.  Avoid using "unbranded" machines at convenience stores or bars.  Bank branded machines have better fees, but they can vary as well.  You can do cash back at major retailers like Wal-Mart or many grocery stores for no fee.


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## eal (Apr 23, 2011)

So how does anyone get their first credit card?


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## Larry6417 (Apr 23, 2011)

Canadian banks can be quite picky if you don't have much of a credit history in Canada. New immigrants have the same problem. See www.settlement.org/sys/faqs_detail.asp?faq_id=4000184

One of the (scarier) suggestions is to get a department store credit card (they have very low standards). If your daughter needs only a low limit, then a secured credit card may be a better option. 

One suggestion I found online (Caveat - I don't know anyone who's done this personally): apply for a credit card in the U.S. with a company that offers cards in the U.S. and Canada (e.g. Amex, MBNA / Bank of America, Capital One). After receiving the U.S. credit card, inform the company that you're in Canada and ask for a Canadian-based card with the same company. 

If your daughter is looking for very inexpensive banking, she might consider PC Financial (it's hard to beat free). See www.pcfinancial.ca/

Here's a comparison of Canadian-based credit cards www.redflagdeals.com/deals/main.php/creditstore/

I hope your daughter enjoys her stay!


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## bankr63 (Apr 23, 2011)

Larry is bang on.  A couple of other suggestions...

Credit cards aren't the only things reporting to your bureau.  Any type of lending will build a credit rating.  I started mine with a small bank loan for a car at 16; since I had a job, they didn't even require a co-signer.  

Most students have student loans that are reporting, so they can get a credit card after a year or two.  Most major cards will only open an account for a student in their final year, but it is hard to verify so sometimes they go to first and second years.  Interestingly, if the lender can find out, the program makes a difference.  They love signing up future doctors, lawyers, and engineers.  They want to be the first card in their pocket to build loyalty for the years when they start earning (and spending) heavily.

Another way to build credit is to buy furniture or electronics on a plan.  Try a stereo on the 1 year, no interest plan.  If you pay off before the end of the year, your borrowing cost is only the "processing fee" and but you will have it reported on your credit bureau.  Just don't let it roll into to the credit period; they will generally charge 18-22% interest back to the date of original purchase.


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## sailingman22 (Apr 24, 2011)

Just have your daughter walk into a bank and speak with a representative about opening an account including a line of credit and checking account. I have had the best luck with RBC but everyone has a choice

When I moved from the US to Canada 8 years ago, I did this and I was given a $5000 limit on a credit card and $10,000 line of credit. This was not because of any great credit score at the time.

Delta Airlines and Alaska Airlines both offer both US & Canadian credit cards with mileage. Information is available on their websites.

Also check www.flyertalk.com/forum and search "canadian" under other credit card programs. There is a wealth of info on various Canadian credit cards


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## Luanne (Apr 25, 2011)

Thanks for all of the information, so much to think about.  I wasn't even thinking of her getting the credit card in her own name, but that I'd open it up and have her authorized to use it.

Dh brought up a good point to me over the weekend.  I like to use a credit card to charge her school tuition.  At this point I'm getting Southwest points.  However, if I charge her tuition with my Chase card I'll pay the 3% transaction fee.  If I open up a new credit card for use in Canada most likely it won't have a high enough line of credit to begin with so that I can use it for tuition.


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## dori47 (Apr 25, 2011)

Luanne said:


> Thanks for all of the information, so much to think about.  I wasn't even thinking of her getting the credit card in her own name, but that I'd open it up and have her authorized to use it.



She should get the card in her name, since she legally cannot use a credit card in your name, only you can, but like most people have already said, she won't have much need for one. We also have the prepay credit card, perfect for students or those with no previous credit history. It is more like a debit card, in that you put money ON the card, so you load it up with cash, but like cash, if you lose it, it is gone.
Each time you use it, you start to build up a credit score, and you can put more money on it.
You can get a credit card with a second card in her name ( the second person doesn't need a credit rating) but again, if you have no address in Canada ( and she will ) you will not qualify to get a Canadian credit card.

She will qualify for a store card, and since Sears etc are actually mastercards now, that is one way to go, but the interest charges on store cards are horrendous- of course anyone without money should not be having a balance on a credit card anyway


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## cdn_traveler (Apr 25, 2011)

Luanne said:


> Dh brought up a good point to me over the weekend.  I like to use a credit card to charge her school tuition.  At this point I'm getting Southwest points.  However, if I charge her tuition with my Chase card I'll pay the 3% transaction fee.  If I open up a new credit card for use in Canada most likely it won't have a high enough line of credit to begin with so that I can use it for tuition.



Not sure which school your DD will be attending, but at UBC, credit cards are no longer an acceptable type of payment for tuition fees.  I am not 100%, but pretty sure that the other universities have omitted credit cards as acceptable payment too.


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## Luanne (Apr 28, 2011)

cdn_traveler said:


> Not sure which school your DD will be attending, but at UBC, credit cards are no longer an acceptable type of payment for tuition fees.  I am not 100%, but pretty sure that the other universities have omitted credit cards as acceptable payment too.



I didn't know that.  She will be attending UBC. I know she paid her deposit with a credit card, and I thought I'd read online that tuition was also payable that way.  I may have misunderstood, or it may have changed.

I did find out that she can open an account at RHC, and then they can request an account be opened in the US.  We can then transfer money into the US branch, and from there it can go to the Canadian account, with no transfer fees.  I sure hope I understood it all correctly.  

Depending on when the first tuition payment is due, we may have to do some fancy figuring on how to pay it.


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## cdn_traveler (Apr 28, 2011)

*Sorry, I was wrong...*

Hi Luanne,

As an international student, your daughter is still able to pay her tuition fees by credit card.  Credit cards not accepted for domestic students only. 

From FAQ's of UBC Student Services site:
https://ssc.adm.ubc.ca/sscportal/servlets/SRVSSCFramework 

_"Why can't I pay some fees by credit card?
UBC discontinued the use of credit cards for some services, such as tuition, to save funds that are now applied to teaching and learning initiatives. International students can still pay tuition by credit card. "_


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