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Every winter, thousands of Canadian snowbirds head south for a few weeks or several months. The right credit card for snowbirds changes everything: it removes foreign transaction fees, funds hotel nights and protects you during a long stay abroad. Here are our strategies for saving money with the best Canadian credit cards. To plan your whole season down south, see our complete snowbirds guide.
The right cards help you save on almost everything: gas, groceries, restaurants, hotels and flights. The goal stays the same: travel more often, better, and for less.
Paying in a foreign currency with a standard Canadian card means accepting a 2.5% foreign transaction fee on top of the exchange rate the banks apply. Over a full winter down south, the bill adds up fast.
Three Canadian credit cards eliminate these fees entirely, along with several other perks:
On top of charging no foreign transaction fees, each of these cards grants a welcome bonus. Some promotions are worth hundreds of dollars in bonuses or cash back that you can apply to hotel stays, car rentals or excursions.
Some also add airport lounge access and an annual travel credit, for example to pay for better seats on the plane. Finally, they come with excellent insurance, a key point when you want comfort and safety during a long stay.
There are also other options, such as reloadable prepaid cards that charge no foreign transaction fees (or lower fees).
With the KOHO Extra Mastercard, there are no foreign transaction fees. It acts as a guardrail, since you only spend what you have deposited in your account. However, it only includes one free international ATM withdrawal per month (additional ones are charged) and comes with no travel insurance. It is also a paid plan: $18 per month or $144 per year. Not very handy for renting a car or booking a hotel when the merchant asks for a pre-authorization of 15 to 20% of the amount. See all the details on the KOHO prepaid Mastercard.
Finally, there are Canadian credit cards in US dollars, an option every financial institution offers.
They do require keeping a minimum balance in the US bank account for the service to stay free, or they limit the number of transactions unless you pay for a plan. So far, that could work. But the rewards offered, whether cash back (1%) or items at a rate of 100 points for $1, remain unappealing.
For a long stay down south, a hotel card funds free hotel nights. The Marriott Bonvoy American Express Card is a solid choice: it is available in Canada, unlike the Hilton chain cards.
This card gives a free night every year on renewal, worth up to 35,000 points. That free night easily makes up for the $120 annual fee, not counting the points earned on sign-up and on your purchases.
On top of that, the fifth night is free when you book four with points. There are also the elite statuses that grant lounge and breakfast access, early check-ins and late check-outs.
In the United States, always ask that the amount be charged to your card in US dollars, never in Canadian dollars. Some merchants take a commission on these conversions, known as dynamic currency conversion.
This article is about credit cards for snowbirds. Note that there are other tricks to save, including currency transfers between the Canadian dollar and the US dollar.
For example, the Wise service offers an unbeatable rate and lets you get US dollars quickly. Or the currency exchange program of the Canadian Snowbird Association.
If you worry about your credit score after applying for new cards, here is how it is calculated:
Example:
It is recommended to keep a utilization ratio below 30%.
A well-prepared winter down south starts with the right financial tools. A card with no foreign transaction fees, a hotel card for free nights and travel insurance suited to a long stay: these three levers make a real difference to the budget of a full season. Compare the best credit cards to find the one that fits your travels.
Here are questions frequently asked in the milesopedia community about these cards.
Savings this way:
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