https://cardnorth.ca/glossary/Recent content in Canadian Credit Card Glossary — CardNorth on CardNorthHugo -- gohugo.ioen-caThu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/aeroplan/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/aeroplan/Aeroplan Aeroplan is Air Canada’s loyalty programme, and one of Canada’s most popular travel rewards currencies. Members earn Aeroplan points by flying Air Canada and its Star Alliance partners, shopping at over 150 retail and travel partners, and most importantly — by holding an Aeroplan co-branded credit card. Points can be redeemed for flights, seat upgrades, hotel stays, car rentals, and merchandise, with flights generally offering the best value. Aeroplan uses a distance and fare class-based award chart for redemptions, which means the number of points required depends on the route and the type of ticket.https://cardnorth.ca/glossary/air-miles/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/air-miles/AIR MILES AIR MILES is Canada’s largest coalition loyalty programme, operated by the AIR MILES Reward Program (owned by Loyalty Ventures). Members earn miles by shopping at a network of over 200 sponsor partners — including grocery stores, gas stations, pharmacies, and home improvement retailers — without needing to fly anywhere to accumulate miles. This makes AIR MILES particularly accessible for everyday Canadians who may not travel frequently. The programme operates two separate “currencies” that serve different redemption goals.https://cardnorth.ca/glossary/amex-membership-rewards/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/amex-membership-rewards/Amex Membership Rewards (MR) American Express Membership Rewards (MR) is Amex’s proprietary, transferable points programme available to Canadian cardholders on eligible Amex credit cards. MR points are considered one of the most flexible loyalty currencies in Canada because they can be transferred to multiple airline partners, used to pay for travel through the Amex Travel portal, converted to statement credits, or redeemed for gift cards and merchandise. The highest value — and the reason travel enthusiasts favour MR — comes from transferring points to airline partners at a 1:1 ratio and booking premium cabin award flights.https://cardnorth.ca/glossary/annual-fee/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/annual-fee/Annual Fee An annual fee is a flat charge your credit card issuer collects once per year — or in some cases monthly — in exchange for access to the card’s benefits. Higher annual fees generally come with richer rewards rates, travel insurance, airport lounge access, and concierge services. Whether a fee is worth paying depends on whether the value of the benefits you actually use exceeds the cost. Many issuers waive the annual fee for the first year as a sign-up incentive, giving you time to evaluate the card before committing.https://cardnorth.ca/glossary/annual-percentage-rate/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/annual-percentage-rate/Annual Percentage Rate (APR) The Annual Percentage Rate, or APR, is the annualized cost of borrowing on a credit card expressed as a percentage. It applies only when you carry a balance past your payment due date — if you pay your statement in full each month, you pay zero interest regardless of the APR. The APR is not the same as the annual fee; it is purely the interest component.https://cardnorth.ca/glossary/avion-rewards/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/avion-rewards/Avion Rewards Avion Rewards is Royal Bank of Canada’s proprietary loyalty programme, earned exclusively through RBC credit cards and banking products. Avion points can be redeemed through RBC’s travel portal at a fixed rate, or transferred to a selection of airline and hotel partners — making them a flexible “transferable points” currency similar to Amex Membership Rewards or American Express points in the US. The true value of Avion points is unlocked through airline transfer partners, where a well-chosen redemption can yield significantly more than the base portal rate.https://cardnorth.ca/glossary/balance-transfer/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/balance-transfer/Balance Transfer A balance transfer is the process of moving an outstanding balance from one or more existing credit cards to a new credit card, typically one offering a low promotional interest rate for a limited time. The goal is to reduce the amount of interest you pay while paying down the debt. Instead of paying 19.99% on your existing card, you might pay 0%–3.99% for six to twelve months on the new card — giving you a window to make real progress on the principal.https://cardnorth.ca/glossary/cash-advance/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/cash-advance/Cash Advance A cash advance is any transaction that allows you to use your credit card to obtain cash directly, most commonly by withdrawing from an ATM. Unlike a regular purchase, a cash advance starts accruing interest immediately — there is no grace period. The interest rate is also higher than the standard purchase rate, typically 21.99%–22.99% in Canada. Combined with the upfront cash advance fee (usually 1%–3% or $3–$5, whichever is greater), this makes cash advances one of the most expensive ways to access funds.https://cardnorth.ca/glossary/cash-back/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/cash-back/Cash Back Cash back is a credit card reward type that returns a percentage of your eligible spending to you as real money, rather than as points or miles. The appeal is simplicity: 1% cash back on $1,000 of spending is always worth $10, with no redemption complexity, partner transfers, or blackout dates. Cash back can be distributed as a statement credit (reducing your balance), a cheque mailed to you, or a direct deposit to a bank account depending on the card issuer.https://cardnorth.ca/glossary/credit-bureau/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/credit-bureau/Credit Bureau A credit bureau (also called a credit reporting agency) is a company that collects, maintains, and sells credit-related information about consumers. When you take out a loan, open a credit card, or miss a payment, your lender typically reports that activity to one or both credit bureaus. Bureaus compile this data into your credit report and calculate your credit score, which lenders then access (with your permission, via a hard inquiry) when you apply for new credit.https://cardnorth.ca/glossary/credit-limit/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/credit-limit/Credit Limit Your credit limit is the maximum dollar amount your card issuer will allow you to carry on your credit card at any given time. It applies to the combined total of purchases, cash advances, fees, and interest on the account. Attempting to exceed your limit may result in a declined transaction, an over-limit fee (if your issuer charges one), or both. The limit is set at account opening and can be revised over time.https://cardnorth.ca/glossary/credit-report/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/credit-report/Credit Report Your credit report is a comprehensive record of your credit history maintained by Canada’s two major credit bureaus, Equifax and TransUnion. It documents every credit account you’ve opened or applied for, your payment history on each, your current balances, credit limits, and any hard inquiries made by lenders. It may also include public records such as bankruptcies or consumer proposals. Lenders use your credit report — accessed via a hard inquiry — to make decisions on credit applications.https://cardnorth.ca/glossary/credit-score/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/credit-score/Credit Score Your credit score is a three-digit number that summarizes your creditworthiness based on your credit history. Lenders, landlords, and some employers use it to quickly assess the likelihood that you’ll repay debts as agreed. A higher score signals lower risk and typically results in better interest rates, higher credit limits, and approval for more desirable credit products. A lower score may mean higher rates, lower limits, or outright application rejections.https://cardnorth.ca/glossary/credit-utilization/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/credit-utilization/Credit Utilization Credit utilization is the percentage of your total available revolving credit that you are currently using. It is calculated by dividing your total outstanding credit card balances by your total credit limits across all cards, then multiplying by 100. For example, if you have $1,500 in balances across cards with a combined limit of $10,000, your utilization is 15%. Credit bureaus capture a snapshot of your balances on the statement closing date and report that to your credit report.https://cardnorth.ca/glossary/equifax/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/equifax/Equifax Equifax is one of the two major credit bureaus operating in Canada — the other being TransUnion. It is a global data analytics company headquartered in Atlanta, Georgia, with substantial Canadian operations. Equifax collects credit and financial data reported by lenders and other creditors, and compiles this into individual credit reports and credit scores for Canadian consumers. When you apply for a credit card, mortgage, or loan, the lender typically requests your credit report from Equifax, TransUnion, or both.https://cardnorth.ca/glossary/extended-warranty/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/extended-warranty/Extended Warranty Extended warranty is a credit card insurance benefit that supplements the manufacturer’s or store’s warranty on eligible purchases, typically by doubling the original warranty period up to a maximum of one to two additional years. If you buy a dishwasher with a one-year manufacturer warranty using an eligible credit card, the extended warranty benefit would add another year of protection against mechanical or electrical failures at no extra cost.https://cardnorth.ca/glossary/foreign-transaction-fee/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/foreign-transaction-fee/Foreign Transaction Fee A foreign transaction fee (also called an FX fee or currency conversion fee) is a charge added by your credit card issuer whenever you make a purchase in a currency other than Canadian dollars. In Canada, this fee is almost universally 2.5% of the transaction amount. The fee is applied on top of the exchange rate, meaning you pay both the conversion cost and the surcharge. Crucially, the fee is triggered by the currency of the transaction, not your physical location.https://cardnorth.ca/glossary/grace-period/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/grace-period/Grace Period The grace period is the stretch of time between your credit card statement closing date and your payment due date, during which you can pay your balance in full without being charged any interest on purchases. If you pay the full statement balance before the due date, you effectively borrow interest-free for up to 51–55 days (the billing cycle plus the grace period). This is one of the most underappreciated features of responsible credit card use.https://cardnorth.ca/glossary/hard-inquiry/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/hard-inquiry/Hard Inquiry (Hard Pull) A hard inquiry (also called a hard pull or hard credit check) occurs when a lender or financial institution accesses your full credit report to evaluate you for a new credit application — such as a credit card, personal loan, mortgage, or car financing. Unlike a soft inquiry, a hard pull is recorded on your credit report and is visible to other lenders who check your file.https://cardnorth.ca/glossary/interest-rate/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/interest-rate/Interest Rate (Purchase Rate) The interest rate on a credit card — specifically called the purchase rate or purchase APR — is the annualized percentage charged on any balance you carry past your payment due date. In practical terms: if you pay your statement in full every month, you pay zero interest regardless of your card’s rate. If you carry even a small balance, interest is calculated daily on the outstanding amount using the annual rate.https://cardnorth.ca/glossary/minimum-payment/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/minimum-payment/Minimum Payment The minimum payment is the smallest amount your credit card issuer requires you to pay by the due date each month to keep your account in good standing and avoid a late payment fee. While paying the minimum prevents a late fee and protects your credit score from a missed payment, it is not a debt repayment strategy — it is a debt maintenance strategy. The vast majority of your payment at the minimum goes toward interest, with very little reducing the principal balance.https://cardnorth.ca/glossary/no-annual-fee/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/no-annual-fee/No Annual Fee A no annual fee credit card is exactly what it sounds like: a card with no yearly charge simply for holding it. This makes them ideal as long-term keeper cards (since closing them doesn’t cost you money), starter cards for those building credit, or as a complement to a premium card to catch spending in categories where the premium card earns poorly. While no-fee cards historically offered fewer benefits than their paid counterparts, the Canadian market has several impressive no-fee options that offer competitive cash back rates, strong earn categories, and useful insurance benefits.https://cardnorth.ca/glossary/points-redemption/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/points-redemption/Points Redemption Points redemption is the act of exchanging accumulated loyalty points for a reward — whether a flight, hotel stay, statement credit, gift card, or merchandise. The value you receive per point depends heavily on what you’re redeeming for and which programme you’re using. This is why understanding redemption options before accumulating a large points balance is important: not all redemptions are created equal. Broadly speaking, travel redemptions (particularly premium cabin flights) offer the highest value per point, while merchandise, gift cards, and retail purchases deliver the lowest value.https://cardnorth.ca/glossary/purchase-protection/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/purchase-protection/Purchase Protection Purchase protection is a built-in insurance benefit included on many Canadian credit cards that covers eligible new purchases against theft or accidental damage for a set period after buying. If your new laptop is stolen a month after purchase or your new camera is accidentally dropped and damaged, purchase protection may reimburse you for the loss or repair — up to the policy limits. The item must have been purchased using the eligible credit card.https://cardnorth.ca/glossary/scene-plus/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/scene-plus/Scene+ Scene+ is a Canadian loyalty programme jointly operated by Scotiabank and Cineplex Entertainment. Originally launched as a movie-focused rewards programme (Scene), it was expanded in 2021 and rebranded as Scene+ to include grocery and everyday retail partners. Members can now earn points through a broad range of everyday spending — at Scotiabank credit cards, Cineplex theatres, Sobeys, Safeway, IGA, FreshCo, and other Empire Company grocery brands. One of the strongest features of Scene+ is its straightforward, fixed redemption value: 1 Scene+ point equals exactly 1 cent when redeemed toward travel through Scotiabank’s travel portal.https://cardnorth.ca/glossary/soft-inquiry/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/soft-inquiry/Soft Inquiry (Soft Pull) A soft inquiry (also called a soft pull or soft credit check) is a type of credit report access that does not impact your credit score and is not visible to other lenders. Soft inquiries occur in situations where no formal credit decision is being made — such as when you check your own credit score, when a lender sends you a pre-approved offer, or when an employer runs a background check.https://cardnorth.ca/glossary/supplementary-card/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/supplementary-card/Supplementary Card (Additional Cardholder) A supplementary card — also called an additional cardholder card — is a second credit card linked to your existing account that is issued to another person, typically a spouse, partner, or adult child. The supplementary cardholder gets their own physical card with their name on it, but all charges are billed to the primary cardholder’s account and count against the same credit limit. The primary cardholder is legally responsible for all purchases made on the supplementary card.https://cardnorth.ca/glossary/transunion/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/transunion/TransUnion TransUnion is one of the two major credit bureaus operating in Canada — the other being Equifax. It is a global information and insights company that collects credit data reported by lenders, utilities, and other creditors to build individual credit files for Canadian consumers. Lenders consult TransUnion’s credit reports and scores to assess the risk of lending to you. Not every Canadian lender reports to both Equifax and TransUnion — some report to only one.https://cardnorth.ca/glossary/westjet-dollars/Thu, 04 Jun 2026 00:00:00 +0000https://cardnorth.ca/glossary/westjet-dollars/WestJet Dollars WestJet Dollars are the loyalty currency of WestJet Rewards, WestJet’s frequent flyer programme. Unlike traditional points or miles programmes, WestJet Dollars are intentionally simple: 1 WestJet Dollar is always worth exactly $1 when applied toward WestJet flights or WestJet Vacations packages. There are no award charts to master, no blackout dates, and no complex redemption rules — what you earn is what you get. Members earn WestJet Dollars by flying WestJet (as a percentage of the base fare) and by using an RBC WestJet co-branded credit card, which earns WestJet Dollars on everyday purchases.