Capitalize on cross-border credit
(NC) Every winter, thousands of Canadians head to the U.S. to enjoy the sun, sand and surf and to go shopping. For snowbirds and frequent travellers, having access to credit can help simplify cross-border purchases, giving you more time to enjoy your vacation.
“Whether you choose a Canadian or U.S. dollar credit card, using one credit card for all purchases while travelling can be a great way to track and monitor spending,” says Stephen Menon, Associate Vice President, TD Canada Trust. “But before crossing the border, it's important to understand how each type of card works when making U.S. purchases.”
Using a Canadian dollar credit card in the U.S.
When using your Canadian dollar credit card to make purchases in the U.S., the foreign currency is converted directly to Canadian dollars based on the exchange rate before being added to your monthly statement. A foreign currency conversion rate – typically 2.5% – may also be applied to the converted amount. To confirm the rate for your credit card, refer to the cardholder agreement.
Using a U.S. dollar credit card
A U.S. dollar credit card, like the TD U.S. Dollar Visa Card, allows Canadians to make purchases and pay their monthly credit card balance in U.S. dollars. As there are no conversion rates, the exact cost of any purchases are shown on the monthly statement. When applying for a U.S. dollar credit card, financial institutions may look at an applicant's Canadian and U.S. assets, income and credit history.
Menon adds that whether you are on the road for a few days or a few months, you should always inform your credit card provider of your travel plans to ensure you have access to credit when you need it.
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