5 Things to Know About the Home Trust Preferred Visa

The Home Trust Preferred Visa is known for its ability to save you money on foreign transaction fees, but because it’s not a premium travel card, there are plenty of areas where other cards have it beat, including insurance coverage, travel benefits and rewards.

Most importantly, there is a lot of fine print that people miss when signing up for the card, and with a closer look, this is more of a Robin to one’s Batman, at least in the NW Cinematic Universe.

This card can pair well with a higher-earning card or one with more travel perks, but is almost never the top choice for a daily driver.

4.1/5

4.1

NerdWallet rating

Home Trust No Fee Preferred Visa card

Annual fee$0

Rewards rate1%

Intro offerN/A

APPLY NOW

on Home Trust's website

View details

Rewards breakdown

1%

Cash back on all eligible purchases

NerdWallet's take

With 1% cash back on purchases, no foreign exchange fees and no annual fee, this rewards card offers travellers simplicity over luxury perks. Best for: Budget-conscious travellers who spend big abroad.

Pros

• No annual fee.
• No foreign exchange fees.
• No caps on cash back.

Cons

• No travel insurance.
• Not available in Quebec.

Card details

• Receive 1% cash back¹ on every eligible purchase made with your Home Trust Preferred Visa*.
• CashBack Rewards earned are displayed every month on your statement, and the total amount earned for the previous year will be provided to you as a credit in January.
• No annual fee.
• Use your Home Trust Preferred Visa on purchases made in foreign currencies without added foreign exchange fees², whether you’re spending while abroad or shopping online at home.
• Worldwide access from anywhere you are, for hotel and travel reservations or shopping in-store and online. Access cash at over 2.5 million ATMs in more than 200 countries and territories worldwide.
• Manage your Visa account easily and securely — at any time, and from anywhere. Get your balance and view your transactions at Home Trust Visa Online.
• Purchase Security³: insures eligible items against theft or damage for 90 days from the date of purchase.
• Manage your Home Trust Visa account easily and securely — at anytime from anywhere in the world. View the card’s balance, transactions and pay bills online at Home Trust Visa Online.
• Guaranteed hotel reservations — with this international travel credit card, you can request a guaranteed hotel reservation anywhere in the world and your room will be held for you even if you arrive late.
• Preferred rates: 21.99% for purchases and cash advances.
• To be eligible, $15,000 individual annual income is required. Also, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live. You cannot currently be in bankruptcy or be a resident of Quebec.

Here are the five most important things you’ll want to know about the card before applying.

The Home Trust Preferred Visa is one of the few Canadian credit cards that doesn’t charge foreign transaction fees.

Most cards charge around 2.5% for foreign transactions, so the savings will add up nicely when you’re on vacation.

There’s a major caveat however: those foreign currency purchases won’t typically earn any rewards. Buried in the terms and conditions, it states:

Even without cash back, avoiding the typical 2.5% foreign transaction fee will often leave you ahead. Ordinary cards that earn 1% or 2% back won’t be able to cover off the whole fee.

If you want to maximize your earnings, some cards earn rewards on non-CAD purchases. For example, Scotiabank has four cards that do this, but they all require an annual fee.

» EXPLORE: Guide to Scotiabank credit cards

The Home Trust Preferred Visa earns a flat rate of 1% cash back on eligible purchases with no cap on spending. Other cash back cards may earn more, but they could charge an annual fee or a maximum amount of cash back you can earn per statement period.

Heads up: your rewards are only provided to you as a statement credit in January. This is in contrast to other cards that allow you to redeem your rewards whenever you want.

While other cards may charge hundreds of dollars in annual fees, this card charges none. This makes the card accessible for those who don’t spend much money or don’t really take advantage of the perks that more high-value cards offer.

Income requirements are low, too

Another nice benefit is that the personal income requirements of just $15,000, which is among the lowest for a credit card that has a minimum requirement.

» MORE: Best credit cards without an annual fee

This isn’t a travel credit card, despite the 2.5% foreign transaction fee waiver, but that’s the point. Most credit card insurance won’t cover a trip booked on another card, and if you pay for your flight on this card, you’ll end up paying for checked bags as well.

Where this card shines is paying for things once you’ve actually set foot in your new destination. Very few cards charge no annual fee and no foreign transaction fees, giving you a real case to sign up for it (even if it’s sitting in your nightstand for most of the year).

The biggest hidden fee is the $12 inactivity fee that’s charged if you don’t make any transactions within 12 months.

If you agree that this card is good as a secondary card that’s only used for travel, but find yourself not travelling for long periods of time, then you leave yourself open to being hit by that $12 charge.

Because of the Home Trust Preferred Visa’s limited perks, benefits and earn rates, we would usually recommend pairing it with another credit card to get the most value out of your travels.

Here are three good cards you can put it in tandem with.

The Home Trust Preferred Visa is almost always best suited to play the supporting cast in your wallet, not the lead role. Its lack of perks and pedestrian earn rates make it a specialist that you’ll be glad to pull out of your wallet when you’re travelling abroad, but not one that you’ll be using day to day when you’re at home.

Nevertheless, saving big on foreign transaction fees is a good enough reason to get this card. And so long as you can make at least one small transaction per year (a candy bar will do), there will be no excess fees to pay.