The Keeper Card series makes the case for why specific cards deserve an ongoing spot in your wallet despite any annual fees or alternative options. As always I'm writing for a Canadian market, and at times targetting professionals who may have business expenses and need additional cards in that context.
What Makes a Keeper - Unique Features
The credit card landscape is broad, even here in Canada, but many of the cards offer broadly similar features. Cash back or points and insurance make up the bulk of their kit. But some cards have unique features that provide potential for ongoing value sufficient to justify the keeper card status.
This category relies on no fee or low fee cards because the unique benefits may be niche.
Forex Fees
Foreign exchange fees are a sneaky drawback to using our favourite cards abroad, but the convience, insurance benefits, and rewards often encourage us to use them anyways. The majority of Canadian credit cards charge a foreign exchange fee, typically around 2.5%, and when we consider favourite cards like the TD AP VIP or Amex Business Platinum with their 1.25x return on uncategorized spend valued at ~2.5% back, you end up with a net 0% return. Basically your forex fee is funding your rewards - certainly better than some options but maybe not your best bet.
That isn't to say that you can't out earn the fees. The Rogers WE mastercard earns 3% back on USD purchases, and can gain an additional 1.5x value when that cash back is redeemed against a Rogers/Shaw/Fido bill (net 0.5-2%).
Other cards have category specific rates which outearn their fees, such as the Amex Bonvoy or Bonvoy Business cards. These cards earn 5x Bonvoy points per dollar spent at participating Marriott properties. Often valued at around 0.8cpp, this would give 4% back (net 1.5%).
If the above circumstances don't apply to you, or if you would rather save money instead of earning more points (cash is king afterall)... then a no forex card could seem pretty appealing right now.
In the US you would be flush with options, but here in Canada, and especially for doctors or dentists, I would argue that the best choice is the Scotia Passport Visa Infinite, and if you don't mind holding yet another card you could add the Scotia Gold Amex.
Scotia Passport VI
Scotia has positioned itself as the only large bank in Canada to offer credit cards with no foreign exchange fees. While several of their cards carry this feature, the Passport VI is likely the card you should keep.
First of all, as a Visa product it will be more widely accepted than their Amex version of the card, and if the point of this is to use it abroad, that feature is pretty key. The Scotia Gold Amex does have a higher earn rate, so if you don't mind carrying both cards (and get the fees waived for both) that would be a reasonable approach. Second, lets talk rewards, while using it abroad will only net you 1 scene point per dollar, scene points have predictable/reliable value and can be redeemed against a wide range of "travel" related expenses that can otherwise be difficult to get covered. At 1cpp value this means that you are earning only 1% back, but again when considering the -2.5% of forex fees on other cards it will come out ahead in many circumstances.
Third, it comes with a suite of insurances that make it acceptable for travel purchases. Trip cancellation insurance to recover hotel and car rental fees, car rental insurance, hotel burglary insurance and purchase security insurance to cover items you pick up while shopping abroad. Many of the insurances are slightly worse on the Scotia P VI vs the most premium alternatives like the TD or CIBC AP VIP, RBC Avion VIP, or Amex Platinum but should be plenty for typical use. Travel medical insurance with 2M coverage for 25 days for under 65yo, versus TD VIP 5M for 31 days for under 65yo (3 and 4 days respectively for over 65). Another notable caveat is that its rental car insurance is limited to vehicles with an MSRP of no more than $65,000 instead of $85,000 on some other cards. This could be problematic if you book or get upgraded to a luxury vehicle and assume that the card still has you covered. If you are set on such a vehicle then you'll have to consider whether you want this sort of coverage in which case you could either pay for it from the rental agency or book the rental on your premium travel card, accepting the forex fee.
Fourth it comes Visa Airport Companion program with 6 lounge visits for you and anyone travelling with you.
Finally, the card is often available with no annual fee for the first year and a sign up bonus (SUB) of 25,000 scene points for only $1000 in spend in 3 months, an equivalent of $250 or 25% back, or sometimes a higher SUB of 30k points for $2000 spend. The second tranche of 10,000 scene points for $40k in spending however is not worth it in most cases(0.25% return). The ongoing annual fee is $150 so the first bonus gets you ahead even if it wasn't offering the first year free as it is currently. But the cherry on top is that healthcare professionals who open a no cost healthcare account with Scotia get the fee on this card waived indefinitely!
Given the $0 annual fee for the first supplemental card it should be a no brainer to get one as well, especially since it comes with its own separate 6 lounge passes for the supplemental card holder and anyone travelling with them.
General Use
Outside of its niche use for avoiding forex, and the potential benefit of some free lounge passes, it isn't a strong card. I wouldn't use it for general purchases unless I needed a bit more to reach the SUB. Speaking of which, $250 worth of points on the first $1000 spent is a 25% effective return regardless of what youre spending on. The highest earn category (3% return at partner grocery stores) overlaps with stores that accept Amex Cobalt acceptance (effective 10% back) and the other categories max out at 2% which is less than the effective value of 1.25x on a TD AP VIP (2.5% effective), so I wouldn't use this card in Canada after the SUB has been secured.
Ideally you can time picking up this card with a trip where you will organically reach the minimum spend requirement (MSR), but if you are coming up a bit short, the return on the SUB is worth it so go right ahead and use it for anything.
Conclusion
The waived annual fee for healthcare professionals and certain other account holders makes this an easy card to recommend even just to get the SUB. The ability to have a widely accepted card with a guaranteed 1% net return gives it ongoing use whether or not you also take advantage of the lounge passes making this another of my keeper cards. If you can't get an ongoing fee waiver, consider whether you can time opening it with a no AF promotion, or whether your forex spend is high enough to justify holding it.
Referral links
Find the current offer for the Scotia Passport VI here.
With its best in market 5x multiplier Amex Cobalt is a powerful point earner that can get you on flying for free 5 times faster than much of the competition - sign up here. TIP: Consider waiting until a supplemental card promotion before adding the free supp card for even more points.
To see the access the best offers for different Amex card such as the Business Gold, or Platinum click here. Or to compare all the cards I can refer to, check out my card comparison tool.
Â
You're going to need somewhere to stay after all of these free flights. The Amex Bonvoy or the Business Bonvoy card will earn you free hotel stays and can be combined with the Aeroplan eStore for some incredible double dipped rewards.
If you're on the fence, or wondering about other cards reach out to me for a free consult, and if you sign up for a card through my link, let me know and I will walk you through advanced tricks and personalized advice to help you get the maximum benefit both from earning and redeeming points - getting your travel journey going faster than you ever thought possible.
Check out my Keeper Cards series to see other cards worth exploring
Disclaimer
These posts are all made in good intentions and are to the best of my ability accurate at the time of writing. That said, the official terms and conditions and current sign up bonuses should be verified and interpreted in the context of your personal financial situation.
