Most of the major banks in Canada offer a U.S. dollar credit card – and some credit unions, too. While not everyone needs a USD credit card, it’s nice to have options if you do. The SCU US Dollar Mastercard is issued by Manitoba’s Steinbach Credit Union. It's a Collabria credit card that’s available to all Canadians except residents of Quebec.

How U.S. dollar credit cards work

U.S. dollar credit cards work a little differently than standard Canadian cards. You don’t pay any foreign exchange fees on USD purchases – but you must pay your credit card balance from a USD bank account. Since everything happens in USD, you avoid the currency exchange. If you make a purchase on the card in Canadian dollars, you’ll see that typical 2.5% fee.

This means that to use the card to its full benefit, you need a source of USD income or a USD account that you can transfer CAD into.

For most Canadians, a credit card with no foreign exchange fees is probably a better alternative. These cards eliminate the 2.5% fee on foreign currency purchases but still allow you to pay your bill in Canadian dollars.

Learn more: How do U.S. dollar credit cards work – and should you get one?

Pros of the SCU US Dollar Mastercard

If you're still interested in a USD credit card, here are the benefits this card offers – besides no foreign exchange fees on U.S. dollar purchases, of course.

1. Earns rewards on purchases

Most USD credit cards don't offer rewards on purchases, but this card offers 1 points per US$2 spent. When redeemed towards cash or travel, the points are worth 1 cent each, for a 0.5% return.

It’s nothing special but better than most USD credit cards.

2. Includes car rental insurance

While this card doesn’t offer an impressive insurance package, it does include car rental coverage. When you rent a vehicle, you can skip accepting the loss damage waiver when you’re at the counter.

Cons of the SCU US Dollar Mastercard

Here are two things you'll want to consider with the SCU US Dollar Mastercard.

1. Relatively high annual fee

Considering what’s on offer with this card, the annual fee is quite high at US$50. That's a lot to pay to avoid foreign currency exchange fees in USD.

2. Standard interest rates

There's no break from credit card interest, either. The SCU US Dollar Mastercard has a regular purchase interest rate of 19.99%.

Comparison to the BMO U.S. Dollar Mastercard

There are a few other USD cards out there, mostly issued by the big banks. Let’s take a look at how the SCU US Dollar Mastercard compares to the BMO U.S. Dollar Mastercard.

The BMO U.S. Dollar Mastercard is like a lot of USD cards – no rewards or real benefits. But you can waive the annual fee simply by spending US$3,000 annually.

The choice here is between earning rewards and (possibly) paying no annual fee.

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