Credit cards: It's in your best interest to know
Credit cards are virtually essential today-in making hotel reservations, renting a car, and in establishing a strong credit history. A Credit Card is a flexible and convenient payment and borrowing tool that gives you the freedom to manage your finances and the security necessary to respond to unexpected emergencies. And so long as you pay off your balance in full each month, your Credit Card offers a convenient, interest-free loan on purchases, whenever you need it.
We believe that as a valued RBC Royal Bank customer, you deserve to be well-informed about your Credit Card. That's why we've assembled a wealth of information to assist you-everything from why you should have a Credit Card to choosing a card that's right for you and selecting a payment method that suits your needs. We've assembled strategies to avoid or minimize interest charges, a comprehensive guide to protecting yourself from Credit Card fraud, a glossary of credit terms, and more.
Why have a Credit Card?
Using your Credit Card as a financial management tool
Reduce interest cost
Protect yourself from Credit Card fraud
If your card is lost or stolen
Easy ways to pay your RBC Royal Bank Visa bill
Credit terms
Choosing the card that's right for you
Why have a Credit Card?
Credit cards afford you a number of important benefits that you don't get when paying with either cash or personal cheques.
A convenient financial management tool
A Credit Card provides a convenient and secure way to shop, budget and manage your financial resources. You can use your card to make purchases, manage your day-to-day cash flow through cash advances, and to access a variety of personal accounts through online banking and Automatic Teller Machines (ATM).
When you use a Credit Card for everyday purchases, you don't need to carry a large amount of cash or provide the additional methods of identification necessary to pay with a cheque. In addition, a Credit Card is virtually the only way to make online purchases.
Credit Rating
Developing a positive credit rating through the responsible use of a Visa card is an asset, not only when you apply for a Credit Card, but also when you apply for a job, insurance coverage, or car or home financing. Remember that a bad credit rating can follow you for seven years. The best way to ensure a positive credit rating is to pay your bills on time and, whenever possible, pay more than the minimum balance due on your card. This will assure future lenders that you are a good credit risk.
Insurance coverages
Most credit cards come with at least basic coverage while some fee-based cards come with an extensive list of valuable insurance coverages. All RBC Royal Bank Visa cardholders enjoy Purchase Security and Extended Warranty Insurance, while, depending upon the card you choose, you can also access the security of additional insurance protection like Out-of-Province/Out-of-Country Emergency Medical Insurance coverage and more.
Earn points and redeem for rewards
Depending on the Credit Card you choose, you can also earn points toward travel or merchandise with every dollar you spend. For instance, certain RBC Royal Bank Visa cards offer the discerning traveller a range of rewarding choices, from unrestricted travel dates to selecting from a variety of airlines, including Air Canada. In addition, many cards provide money-saving partner discounts and special savings at a host of the country's best retailers. To see the range of rewarding options available, click here.
Worldwide acceptance
Your Credit Card can make travelling hassle-free. A Visa Credit Card is accepted worldwide and that means you'll never have to worry about having a ready supply of foreign currency on hand. An RBC Royal Bank Visa card is accepted at more than 600,000 locations in Canada and over 22 million locations worldwide.
Using your Credit Card as a financial management tool
By viewing your Credit Card as a financial management tool, you can control how much you spend on credit, how quickly you pay it back, and the items you purchase.
Your statement is an excellent budgeting tool, because it provides records of every purchase you make, how much you spend, and where and when you're spending.
To make your Credit Card work for you, think of credit as a tool to help you reach your goals. One of the great values of carrying an RBC Royal Bank Visa card is having access to an interest-free loan on purchases, so long as you pay off your balance in full each month.
Responsible use of your Credit Card is an excellent way to build a solid credit rating. Your credit rating helps financial institutions determine your suitability for mortgage approval on a new home, a new car loan, financing for a college or university education, or a loan for a dream vacation.
Consolidate debt
In order to get your finances in order, you may need to consolidate your debt. Department stores and gasoline cards have higher interest rates. One way to begin is to transfer balances from higher interest credit cards to an RBC Royal Bank Visa card. The advantage is that you will then have a lower interest, single monthly payment to manage. And that makes sound financial sense. For more information on RBC Royal Bank Visa cards, click here.
RBC Royal Bank Balance Protector Plan
RBC Royal Bank offers affordable protection of your outstanding balance in the event of unforeseen circumstances such as job loss, strike or critical illness, through BalanceProtector Insurance. For just 89 cents on each $100 of outstanding balance, conveniently charged to your RBC Royal Bank Visa card, you can rest assured that your balance will be taken care of under the terms outlined in the BalanceProtector agreement. For more information, click here.
Reduce interest cost
Used properly, your Credit Card provides fast and easy access to funds without the need to carry a large amount of cash. Understanding how interest costs are generated will help you make educated decisions about the responsible use of your Credit Card.
How to minimize interest charges
Here are some tips to help minimize the interest charges on your Credit Card:
- Pay off your Credit Card balance in full each month.
- If you choose not to pay off your balance in full, try to pay more than the minimum balance due.
- If you carry a balance from month to month, consider a RBC Royal Bank Visa card with a lower interest rate.
- Understand the interest charges and fees being applied to your Credit Card account. For example, remember that with cash advances, interest begins to accrue as soon as the cash is advanced, and with RBC Royal Bank Visa cheques, interest begins to accrue once the cheque has been cashed.
- Remember that the faster you pay off your outstanding balance, the less interest you'll pay.
- Consolidate your debt from higher interest cards-like department store cards-to a lower interest RBC Royal Bank Visa card.
- Make payments on time. Take advantage of helpful tools like automated payment options and the use of RBC Royal Bank Visa cheques.
- Be a careful consumer and know the cost of using credit cards. Be sure to read the important information in the Visa Agreement mailed to you when you receive your RBC Royal Bank Visa card.
Protect yourself from Credit Card fraud
It's vital that you guard your Credit Card in the same manner that you would guard the key to your home. Here are some tips to minimize the chance of becoming the victim of Credit Card fraud.
Card safety
DOs
- Sign the back of your Credit Card as soon as you receive it.
- Call to activate your new Credit Card as soon as you receive it.
- Keep all your receipts and promptly reconcile your receipts to the charges on your Credit Card statement.
- Call 1-800 ROYAL® 1-2 (1-800-769-2512) immediately if you do not recognize a charge on your statement.
- Store your card in a secure place where you will immediately know if it is missing.
- Call 1-800 ROYAL® 1-2 (1-800-769-2512) immediately when you notice your card is lost or stolen.
- Keep a close eye on your mail delivery when you are expecting a new or replacement card.
- When you receive a new Credit Card, cut up the old one before you throw it away.
- Treat your Credit Card like cash, never leaving it unattended.
- Draw a line through any blank spaces on your Visa slips when paying with your Credit Card at places such as restaurants or retailers.
- Keep your eye on your Credit Card during transactions, and ensure that your Credit Card has been returned to you.
- Take all receipts and carbon copies home with you, such as those from ATM machines, self-service gasoline pumps and restaurants; destroy them by shredding before throwing away.
- Keep a record of all your Credit Card account numbers in a secure place.
- Carry your Credit Card number and the toll-free customer service number on the back of your card, in a secure place, separate from the card when travelling.
- Memorize your PIN (personal identification number).
DON'Ts
- Never lend your card to anyone.
- When disposing of old receipts and statements, don't use public waste receptacles.
- When you initiate a call, it is generally safe to give your Credit Card number over the telephone. However, don't give your Credit Card number to someone calling you on the telephone, even if the caller assures you that you will win a prize or award.
- Never write or allow a retailer to write your Credit Card number on a cheque for identification purposes.
- Don't make purchases from online retailers you're unfamiliar with or who maintain a site that isn't secure. If you're unsure, contact the Better Business Bureau.
- Never share your PIN (personal identification number) with anyone.
- Never carry your PIN in your wallet or purse.
- Never let anyone see you input your PIN.
- Never use a PIN that could be easily guessed, eg. Your birthday or telephone number.
- Never leave your card unattended, eg. In your car, in a hotel room or at work.
"Phishing" or "Brand Spoofing" e-mail fraud
This involves the use of fraudulent, but authentic-looking, branded e-mails and web sites from parties pretending to be legitimate companies, such as Royal Bank of Canada or another Financial Institution - when in fact it is a malicious attempt to collect customer information for the purpose of committing fraud.
If you receive an e-mail that appears to be sent by a legitimate company but asks for sensitive financial information and you are suspicious about that e-mail, contact the company's public telephone number directly to verify its authenticity. You may contact RBC at any time, 24/7, at 1 800 769-2555.
If you believe you may have inadvertently provided any sensitive information about your RBC Royal Bank Visa account, please contact us immediately at 1 800 769-2555 so we can act quickly to help prevent a possible loss.
RBC will never ask you for confidential information through regular e-mail. RBC employees will never ask you for your PIN or password.
If someone identifies themselves as a Bank employee and asks for your password or PIN, take caution. They do not represent the Bank. Do not reveal your information to them and please contact 1-800-769-2555 immediately and ask to speak to a supervisor.
To find out more about "phishing" or "brand spoofing" sites and how to prevent becoming a victim of fraud on such sites , visit:
If your card is lost or stolen
Call our 24-hour toll-free number 1-800 ROYAL® 1-2 (1-800-769-2512) immediately if:
- your RBC Royal Bank Visa card is lost or stolen;
- you do not recognize a charge on your Credit Card statement or if you suspect that someone else is using your RBC Royal Bank Visa card;
- you suspect your RBC Royal Bank Visa card is missing.
Once you have informed us of the loss, we will be able to block the card from future use and issue a new card to you.
Card Registry service
For additional security and peace of mind, you can register all your card numbers with a single source. This service is complimentary with some cards.
If any of your cards are lost or stolen, you need only make a single call to the RBC Royal Bank Visa Card Registry service. We'll take care of contacting your card issuers, requesting cancellation and issuing replacement cards.
Protection against theft
When you report a lost or stolen card immediately, your liability is minimal. And in most places around the world, your Credit Card can be replaced in three business days or sooner.
Easy ways to pay your RBC Royal Bank Visa bill
Getting the most out of your RBC Royal Bank Visa card, and maintaining a good payment record, means finding a payment method that suits your needs. RBC Royal Bank offers a range of methods to suit your personal financial style.
Online banking
You can manage your RBC Royal Bank Visa from anywhere you have access to the Internet. Pay your bill immediately or set up a series of recurring automated payments so you'll never miss another scheduled payment due date. To register for RBC Royal Bank Online Banking, click here.
Automated payments
Have your RBC Royal Bank Visa minimum payment or full monthly payment automatically withdrawn from your RBC Royal Bank bank account, or your bank account at any Canadian Financial Institution. Payments will always be withdrawn to the statement due date, and you will continue to receive a monthly statement.
At an ATM machine
You can pay your Visa bill at any RBC Royal Bank ATM machine with your confidential PIN (personal identification number). If you have an RBC Client Card, your Visa PIN is the same as your Client Card PIN. If you do not have an RBC Client Card, you can select a PIN for your RBC Royal Bank Visa card at your local branch. Your PIN gives you secure access to your RBC Royal Bank Visa card for financial transactions such as Visa payments and cash advances at RBC Royal Bank ATM machines. A fee applies for this service.
To locate an RBC Royal Bank ATM near you, click here.
Telephone banking
You can have instant and convenient access to your RBC Royal Bank Visa account 24-hours-a-day via Telephone Banking. After you enter your confidential PIN number, you can choose from a list of automated services that include the ability to pay your RBC Royal Bank Visa from your RBC Royal Bank chequing or savings account, details of your account balance and activity, and more. Or you can speak to a friendly and helpful Telephone Banking Specialist. For more on enrolling in Online/Telephone Banking, click here.
In branch
Payments can be made at any one of the conveniently-located RBC Royal Bank branches throughout Canada. For a complete listing of RBC Royal Bank branches please click here.
By mail
You can mail your payment using the addressed envelope provided with your statement. Please note that even when normal postage service is disrupted, you are still required to make your payment.
RBC Royal Bank Visa Inquiry
Now you can choose to access your RBC Royal Bank Visa statement online with the new Visa Inquiry service. While this service will not permit you to pay your RBC Royal Bank Visa bill online, it does give you a handy tool to access your account information when you want it, 24-hours-a-day. There is no additional charge for this service, which is offered complementary to IVR inquiry and other subscriber services. For more information, click here.
Credit terms
Interest rate
The interest rate is measured as a percentage and usually expressed as an annual percentage rate. RBC Royal Bank offers a host of RBC Royal Bank Visa cards with varying interest rates, benefits and rewards to suit every lifestyle. For more information, click here.
Minimum payment
If you choose not to pay the full balance owing on your RBC Royal Bank Visa card, you must pay at least the Minimum Payment due each month to maintain a good credit rating. This amount will appear on your monthly Visa statement in the box marked "Minimum Payment".
It will normally be $10 plus the Interest and the Fees. If the outstanding balance is less than $10 or less than the calculated Minimum Payment, the outstanding balance will be the Minimum Payment.
This Minimum Payment may also include any past due amounts and any portion of the total new balance owing that is more than your credit limit.
Annual fees and service fees
Depending upon the level of benefits, rewards and money-saving insurance coverages associated with each card, some RBC Royal Bank Visa cards have annual fees-a once yearly charge for ownership-while others do not. In addition, certain charges apply for services such as cash advances, dishonoured cheques, statement copy fees and more. For a complete list of the annual fees and service charges associated with each card, please consult your Visa Agreement.
Grace period
The grace period is the number of days you have to pay your bill before interest is accrued on your purchases, providing you do not have a revolving balance. There is no grace period for cash advances, RBC Royal Bank Visa cheques or balance transfer cheques. For the grace periods associated with each card, please click here.
Outstanding balance
The amount owing on your RBC Royal Bank Visa card once a payment has been made, is the outstanding balance.
Balance transfer
If you have more than one Credit Card, Balance Transfer cheques can become an important component of your debt reduction strategy by allowing you to transfer the outstanding balance from one card-like a higher interest gas or department store card- to a lower interest rate RBC Royal Bank Visa card. Call 1-800 ROYAL® 1-2 for more information.
Cash advance
You can use your RBC Royal Bank Visa card to obtain cash at any ATM or RBC Royal Bank Branch. Interest is charged on cash advances from the time the cash advance is made. To view the current interest rate for cash advances, refer to your Visa Agreement for details.
RBC Royal Bank Visa cheques/Convenience cheques
With RBC Royal Bank Visa cheques, you always have access to your RBC Royal Bank Visa account at times when it may not be convenient to use your card. You can access all, or a portion, of your unused Visa credit limit simply by writing an RBC Royal Bank Visa cheque for rent, groceries, household expenses and more. You can order personalized cheques free of charge by simply calling our Customer Service line at 1-800 ROYAL® 1-2 (1-800-769-2512). Any cheque amount will be credited directly to your RBC Royal Bank Visa account as a cash advance and interest will be charged from the time that your cheque is cashed.
Credit limit
Your monthly RBC Royal Bank Visa statement shows your credit limit. This is the maximum amount that can be charged to your RBC Royal Bank Visa card to cover purchases, cash advances, interest, service fees and other charges. You may use your RBC Royal Bank Visa card up to this amount. As the charges on your RBC Royal Bank Visa card increase or decrease, the amount of credit available to you goes up and down.
To increase or decrease your credit limit, simply call 1-800 ROYAL® 1-2 (1-800-769-2512).
Choosing the card that's right for you
Whether you're looking for a convenient payment option, low borrowing rates, merchandise or travel rewards, and retail discounts, there's an RBC Royal Bank Visa card that matches your unique needs.
All RBC Royal Bank Visa cardholders enjoy Purchase Security and Extended Warranty Insurance, while, depending upon the card you choose, also accessing the security of additional insurance protection like Out-of-Province/Out-of-Country Emergency Medical Insurance coverage and more.
To discover the RBC Royal Bank Visa Credit Card that's just right for your personal credit and lifestyle needs, just click here to use our Card Selector.
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