Home Trust Preferred Visa review

What the Home Trust Preferred is designed to do

The Home Trust Preferred Visa’s main job is to save you money on foreign currency purchases. Most Canadian credit cards add a 2.5% foreign transaction fee to anything charged in another currency. This card adds nothing, including on online purchases from foreign stores.

On $1,000 of spending abroad, that’s about $25 you keep compared with a card charging 2.5%. A family spending $4,000 on a US vacation would avoid roughly $100 in fees, and a regular cross-border online shopper saves the same 2.5% on every order.

The saving applies to every foreign-currency charge, not just big trips. Hotel bills, restaurant meals abroad and orders from overseas retailers all skip the extra fee.

How the cash back works

At home, the card pays 1% cash back on all eligible purchases, with no annual cap. Foreign currency transactions, cash advances and fees don’t earn cash back, so the card’s two benefits don’t overlap: you save on FX fees abroad and earn cash back in Canada.

As an example, someone putting $1,500 a month of Canadian spending on the card would earn $15 a month, or $180 a year. That cash back is paid once a year as a statement credit in January, so you can’t redeem it as you go.

Other perks

The card includes Visa Zero Liability fraud protection and guaranteed hotel reservations worldwide, which can hold your room if you arrive late. It works with Apple Pay, Google Pay and Samsung Pay, so you can tap your phone instead of carrying the card.

Fees, interest and the fine print

There’s no annual fee and no foreign transaction fee. Purchases and cash advances are both charged 21.99% interest. Cash advances don’t earn cash back either, so avoid using the card at foreign ATMs unless you have no other option.

As with any card, paying the full balance by the due date each month avoids purchase interest. Carrying a balance at 21.99% would quickly cancel out both the 1% cash back and the FX savings.

Insurance coverage

Insurance is minimal. No travel medical, trip cancellation or rental car coverage is listed, so arrange separate travel insurance before you leave. Read the certificate for the details of the coverage that is included.

• Purchase security (theft or damage within 90 days of purchase)

Who it suits, and who should look elsewhere

The Home Trust Preferred suits travellers, snowbirds on a budget and cross-border online shoppers who want to avoid FX fees without paying an annual fee. Its low listed income requirement also makes it accessible to many applicants.

It’s not available to Quebec residents. It’s also a weaker choice if you want travel insurance included or prefer to redeem rewards whenever you like rather than once a year.

It also works well as a second card: use it for anything priced in a foreign currency, and keep a higher-earning card for spending at home.

How it compares

The Wealthsimple Credit Card is the closest alternative. It’s a Visa with no annual fee and no foreign transaction fee, and it earns 1% cash back on everything.

If you’d pay a fee for more rewards, the Scotiabank Passport Visa Infinite + Card also has no foreign transaction fee. It costs $150 a year and earns Scene+ points, including 3 points per dollar at Sobeys, Safeway, IGA, Foodland and participating Co-ops.

Before you apply

The recommended credit score is 660 or higher, and the card’s listing notes an income requirement of $15,000. Home Trust makes the final decision based on your full credit profile. Confirm current rates and eligibility on the Home Trust website before you apply.