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Email this1:23 am
December 12, 2009
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That's fine. I have no problem with MBNA's Smart Cash Card. I just don't like their stringent requirements, trying to make us think they're a premium credit card issuer after the cream of the crop when in fact they want people who don't pay off their balances every month and only pay the minimum (or little more than minimum), as well as the fact they make it hard to get.
The real issue I have is RBC's Cash Back Visa card. So basically, you get 5% rewards for the first six months or whatever and may be lucky in getting your first annual fee waived but after that, you're back down to 1% and have to pay an annual fee. Like you said, even if you don't meet HSBC's fee waiver requirements for the HSBC Advance MasterCard, there are much better no-fee alternatives such as the PC Financial MasterCard. I believe Citibank also has no-fee cash back MasterCard products offering equivalent rewards to RBC's Cash Back Visa.
Cheers,
Doug
3:32 pm
May 7, 2010
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I　first signed up with MBNA when they had people giving out some university "branded" schoolbag at our student centre couple of years ago. I then rarely used the card.
Over the years I almost forgot about them until this smart cash card jumped into my eyes. Two hours on the phone playing all kinds of game with their numerous "departments", I was finally able to get the card, without even having to provide them proof of income. She shut me off before I even finished the sentence "do you need me to fax you my pay stub". So as far as they are concerned, I make $0 and they still gave me the card. Well, right move for them because since then I charged everything on this card.
6:46 am
5% cashback promotion is now until March 31 2011. Check rbc.com/cashback and click the small 1 next to '5% cash back on grocery store purchases' (even though it also states December 31).
I called them to confirm. Happy shopping 🙂
1:56 pm
5% cashback promotion is now until March 31 2011. Check rbc.com/cashback and click the small 1 next to '5% cash back on grocery store purchases' (even though it also states December 31).
I called them to confirm. Happy shopping 🙂
Is it still worth paying the annual fee though?
7:25 am
December 12, 2009
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I believe the annual fee is waived for the first year. However, opening and closing credit cards within a short time frame like one year just to get bonus rewards points actually hurts your credit rating. It's well understood that this actually hurts your credit rating even more than having too many credit-related inquiries on your credit bureau.
I have a big problem with annual fees on credit cards. They're totally unnecessary except in instances like Platinum-type credit cards that offer excellent insurance coverages, commission-free travellers' cheques and a host of other benefits. The reason is the credit card companies make millions (billions, in fact) on purchases you make at merchants and have very comfortable interest rate spreads too.
Cheers,
Doug
4:46 pm
Doug said:
I believe the annual fee is waived for the first year. However, opening and closing credit cards within a short time frame like one year just to get bonus rewards points actually hurts your credit rating. It's well understood that this actually hurts your credit rating even more than having too many credit-related inquiries on your credit bureau.
Since the cash back is credited to your account in January, your account needs to stay open until then. And since the annual fee is waived only if you open your account before the end of the year, you will pay an annual fee if you wish to benefit from the extended promotion.
And this is obviously just my own personal opinion, but people (in finance forums at least) freak out WAY too much about their credit score. If you keep a reasonable credit balance and pay your bill on time, you're ahead of the game.
8:01 pm
December 12, 2009
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That's what I'm saying though. Opening and closing credit cards just to take advantage of rewards point bonuses makes you look like a credit seeker and someone who isn't loyal to credit card companies.
Why even bother with this card?
If RBC really wants to sell this product, they should drop the annual fee. Same with Scotiabank and their Moneyback Visa.
Cheers,
Doug
4:54 pm
Doug said:
That's what I'm saying though. Opening and closing credit cards just to take advantage of rewards point bonuses makes you look like a credit seeker and someone who isn't loyal to credit card companies.
That is a very debatable statement. And even if you are right, that alone is no argument for a bank to deny anyone credit. They're mostly looking for people who are loyal to their bill payments. Loyalty towards them is their responsibility, not the customer's.
5:50 pm
December 12, 2009
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I still fail to see the rationale in opening and closing credit cards within a year.
Cheers,
Doug
4:01 am
I've cancelled at least two credit cards and it hasn't hurt my credit score. Less available credit is less risk. Neither Equifax nor Transunion's explanation of credit score mentions that closing credit accounts is bad for your score. Seeking credit is another matter. Once a year should be fine though.
6:44 pm
December 12, 2009
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It doesn't escape the fact this is a terrible product issued by RBC because of its annual fee and "teaser" higher promotional rewards before the annual fee kicks in and your rewards drop to 1%. Why people would sign up for this just for six months or a year when they could get the MBNA Platinum Plus Smart Cash MasterCard with no annual fee and even higher rewards is beyond explanation. Wal-Mart Rewards MasterCard also offers 1.5% rewards with no annual fee. Similar no-fee credit cards are available through PC Financial and Scotiabank, to name a few.
Shame on RBC for this terrible product!
Cheers,
Doug
4:02 am
March 25, 2009
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I just signed up for the Royal Bank Gold Rewards Visa.
http://www.rbcroyalbank.com/ca.....-gold.html
It's not the best card out there, but it's one we could get overseas for Canadians.
Have a great day
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