Life on Credit

The art of borrowing money

Top 7 Business Credit Cards in Canada

By 10 Comments

Some of the best business credit cards in Canada are offered by financial institutions such as the Bank of Montreal, CIBC, TD Bank, and RBC. They feature cashback and rewards points, low annual fees, low purchase rates, insurance perks, and other beneficial features.

Rewards

CIBC Aerogold® Visa for Business

CIBC Aerogold Visa for Business comes with travel benefits, extensive insurance coverage, and low interest rate. Customers are offered 35,000 bonus miles and 1.5 miles per $1 on purchases made at gas stations, travel agencies, car rental agencies, hotels, and airlines. All other purchases earn at 1 point per $1. Rewards points can be redeemed for merchandise, entertainment, car rentals, gift cards, and getaways. Rewards are offered across different categories such as sports and outdoor merchandise, home and garden, health and wellness, fashion and accessories, and activities and entertainment. The category of activities and entertainment includes SPA and gateways, attractions and parks, and events and dining. Examples of travel rewards are travel accessories, travel and cruise gift cards, and car rental certificates. Miles can also be used to pay expenses such as surcharges, fees, and taxes on airfare. CIBC Aerogold Visa also features extensive insurance coverage, including trip interruption and trip cancellation, common carrier accident, auto rental collision, and flight delay and baggage coverage. Mobile device and hotel burglary insurance are also available. Only customers with a minimum household income of $35,000 qualify.

  • Cash interest rate: 50 percent
  • Purchase interest rate: 12.99 percent
  • Annual fee: $180

TD Business Travel Visa Card

Toronto-Dominion offers a travel credit card with a selection of automotive, travel, and everyday benefits. Customers earn 3 points per dollar on business-related purchases, 6 points on booking travel through Expedia by phone, and 9 points on booking travel online. The card also comes with insurance perks such as lost and delayed luggage, common carrier travel accident, trip/flight delay, and travel medical insurance. Automotive benefits are also offered, including low base rates at Budget Rent a Car and Avis Rent A Car and auto rental collision/loss damage coverage.

Under the Visa SavingsEdge Program, customers qualify for generous discounts of up to 25 percent which apply to business-related purchases.

When applying, clients are asked to provide documents such as articles of incorporation, partnership agreement, or master business license, depending on the type of business (corporation, partnership, or sole proprietorship). Customers may also be asked to present their business financial statements and notice of assessment. They may apply by phone, at a local branch, and by booking an appointment.

  • Cash advance rate: 22.99 percent
  • Purchase rate: 19.99 percent
  • Annual fee: $149
  • Additional cards: $49
  • Minimum credit limit: $1,000

Cash Back

Scotia Momentum® for Business VISA

Also a premium business card, Scotia Momentum for Business features up to 3 percent cashback on business expenses. Cash back is also offered on recurring payments such as gym memberships, insurance coverage, telecommunications, and subscriptions. Expenses that qualify for cash back include purchases made at office supply stores, restaurants, and gas stations. Supplementary cards also earn cash back. Business customers also benefit from insurance perks such as rental car collision and travel emergency medical insurance. The travel emergency medical insurance, for example, covers expenses such as surgeons’ and physicians’ fees, licensed ambulances, hospital stays, prescription drugs, medical supplies and services, and nursing care.

An added benefit is the fact that Scotiabank offers a low introductory rate of just 2.99 percent which is applicable to balance transfers made during the first six months. The credit limit is between $500 and $100,000. Visa SavingsEdge is also a useful feature available to qualifying businesses which allows them to get access to discounts and thus reduce costs. Customers are offered discounts on business purchases at participating merchants such as Blue Mountain, Sage 50, The UPS Store, Umbra, National Car Rental, and more. Discounts are offered on items in different categories, including entertainment and travel, telecommunications, and electronics, computer, and retail. Merchants offering discounts also operate in industries such as hotels, business software and publications, and business services and products. Discounts are in the range of 3 – 10 percent and up to 25 percent.  To enroll in the program, cardholders are asked to fill in details such as postal code, business name, and industry (i.e. retail, real estate, manufacturing, transportation, construction, etc.).

  • Annual fee: $49
  • Supplementary cards: $29
  • Interest rate: 19.99 percent
  • Grace period: 25 days

No Annual Fee

BMO CashBack® Business MasterCard®

This is a good choice for customers looking for a no annual fee credit card, featuring a welcome bonus, money back, and optional employee cards. In addition to saving on annual fees, holders are offered 6 percent cash back on internet and phone bills, office supplies, and gas purchases during the first 4 months. Purchases made after the promotional period earn 1.5 percent cash back. Gas purchases at Shell locations earn at 1.75 points per dollar.

Additional benefits include extended warranty, automatic rebates at participating retailers, and pre-authorized payments. In addition to pre-authorized payments, bills can be paid at any BMO branch, online, by phone, and by mail. Customers are also offered emergency cash advances and replacement cards and assistance with stolen and lost cards.

Depending on the type of business, customers are asked to bring documents such as master business license, trade name registration, partnership agreement, and articles of association. Corporate customers must bring documents such as corporate profile report, articles of amalgamation, articles of amendment, and complete articles of incorporation. Business customers also provide details such as type of ownership, percentage ownership, nature of primary business, and occupation.

  • Cash advances: 22.99 percent
  • Purchase rate: 19.99 percent
  • Annual fee: $0

Protection and Insurance

RBC® Avion® Business for Visa

This card comes with an extensive insurance coverage, including extended warranty, liability waiver, rental car, and trip interruption and trip cancellation insurance. There are added incentives such as 20,000 welcome points, fuel discounts, and travel rewards, including tours, cruises, car rentals, hotels, and packaged holidays. Customers are free to choose from different rewards such as gift cards, merchandise, and Apple accessories and products. Every dollar spent on purchases earns 1 rewards point. Cardholders also earn triple rewards points on travel experiences offered by Carlson Wagonlit Travel and double rewards points on truck and car rentals by Thrifty. There are also financial rewards and the option to donate to a charity, pay with points, or convert points.

  • Cash advance rate: 22.99 percent
  • Purchase rate: 19.99 percent
  • Annual fee: $120
  • Additional cards: $50

American Express® Business Gold Rewards Card

American Express also offers a rewards card that comes with a generous bonus of 25,000 points. Rewards points can be transferred to loyalty programs, used toward domestic or international airfare, or redeemed in the form of statement credit. Every dollar in travel purchases earns 2 points and so do purchases made at drugstores, grocery stores, and gas stations. Qualifying travel purchases include cruises, car rentals, hotel accommodation, and airfare. Every dollar in everyday purchases earns 1 point.

One of the main benefits for cardholders is the comprehensive insurance coverage. Customers are offered travel accident, baggage delay, flight delay, and hotel/motel burglary coverage. Car rental damage and theft, trip interruption, and stolen and lost baggage insurance are also available. Out of province/country emergency medical coverage is included as well.

This card also comes with a host of travel benefits, including complimentary room upgrades, vehicle upgrades, and hotel credit toward golf, spa, and dining.

Residents and citizens who have a Canadian credit file qualify provided that they are of the age of majority.

  • Annual fee: $250
  • Grace period: up to 31 days
  • Additional cards: $50

Low Interest Rate

CIBC bizline® Visa Card for Small Business

This offer by CIBC is ideal for customers who wish to save on interest rates and still benefit from perks such as a high credit limit, additional cards, and insurance coverage. Holders are free to request up to 9 additional cards. The minimum annual income is $35,000. This credit card is also a good choice for business owners with revenues in the range of $35,000 – $5 million.

Cardholders are offered common carrier accident insurance and a spend manager solution to track and organize spending, set alerts, and develop customized budgets. The interest rate is based on the applicant’s credit score which makes this card a good choice for business owners with very good and excellent credit histories.

  • Purchase interest rate: CIBC Prime + 1.5 percent
  • Cash interest rate: CIBC Prime + 1.5 percent
  • Annual fee: none
  • Additional cards: no annual fee

There are plenty of premium business credit cards that feature low interest rates, introductory rates, no annual fees, extensive insurance coverage, and airmiles, rewards points, and cash back. Some cards also feature complimentary bonus points, complimentary concierge, free additional cards, and attractive discounts on office supplies, equipment, and other business-related expenses.

5 Ways to Save on Car Insurance

By 1 Comment

There are smart ways to save on car insurance policies and lower the premium. Maintaining a very good credit score, shopping around for deals, and comparing costs and premiums are good ways to save on vehicle insurance.

Maintain Good Credit History

Credit history is one factor that insurers take into account. Different studies show that people with fair and average scores are high-risk customers. They are more likely to commit fraud, file inflated claims, and file more claims compared to people with very good and excellent scores. Other factors that insurers take into account include miles driven per year, vehicle use and vehicle type, previous coverage, and deductibles. Additional factors include things like your claims history, driving record, years of experience, and marital status. Insurers pay close attention to your driving record before making an offer. If you have a history of traffic violations and accidents, you will pay more. Insurers also use rating factors such as gender, age, and geographic location. These factors are taken into account to assess the probability of customers filing a claim.


There are other vehicle and driver factors for insurance companies, among which:

• Level of education
• Residence and location
• Home ownership
• Financial security
• Number of drivers
• Prior liability limits
• Number of insured vehicles
• Car alarm and other safety devices
• Length of time being insured with them

Where you live is one factor that affects rates. If your location has a higher than average claims ratio or accident rate, then you are likely to pay more. Obviously, insurance companies also take into account factors such as payment plans, profitability, and existing legislation.

Shop around for Deals

When shopping around for deals, try to get as many quotes as you can and discuss your options with insurance providers. Depending on your individual circumstances, you may benefit from discounts offered to customers with no moving violations and no accidents. Those with multiple policies are also offered better terms. Some insurers also offer discounts to long-term customers, those who have low annual mileages, and even students enrolled out of province.

Compare Premiums and Costs before Buying a Vehicle

You may want to compare insurance costs before you purchase a vehicle. The reason is that insurers calculate premiums based on factors such as vehicle use and type. When it comes to vehicle type, if the company’s data shows that owners of this particular model file more claims or cause more car accidents, then you are in a high-risk category. Other factors that insurance providers look into include safety tests, accident rate for your car model, cost of repairs, as well as theft rate and purchase price. If you plan to buy a used vehicle, then the age of the vehicle is a factor for companies. While the repair costs for old vehicles are about the same as new ones, old vehicles tend to break more often. At the same time, owners of new vehicles sometimes benefit from a new car discount.

Ask about Group Insurance

Group coverage is yet another way to save. Another benefit for policyholders is the greater payment flexibility. There are further advantages such as cost sharing between employer and employees, considerably lower costs, and the chance to get basic coverage. There are benefits for employers as well, among which better retention rates, increased productivity, and others.

You may want to ask whether your employer or local organization offers this option. In fact, many companies offer group insurance to employees and so do organizations, clubs, universities, and colleges. Employers usually offer group health insurance policies but some plans also feature car insurance as an added benefit. University alumni are also offered discounts on different plans, including home and auto coverage. Finally, some membership and professional organizations offer group coverage options, including societies, honorary groups, and others.

If this is not an option, contact insurance companies in your area and inquire about the benefits they offer. Many insurers offer discounts on vehicle-related services such as repairs, towing, and others. Others offer discounts on vehicle accessories, car rentals, and parking at designated facilities and areas.

Higher Deductible Results in Lower Premiums

Many are unsure whether to choose a low or high deductible on their car insurance policy. Common wisdom says that a high deductible means lower monthly payments. If you increase your deductible by $300, then your premiums decrease by up to 30 percent. If your budget is tight, then a low deductible makes more sense. The same goes if you have a history of traffic accidents. To make a choice, however, it is important to learn what a deductible is. This is the amount you are asked to pay when filing a claim. For example, if your policy covers medical payments and a hospital stay costs $250, what you are left paying depends on the deductible. If it is $150, the insurance company will pay $100 and you will pay $150. Basically, insurers and customers share the risk should anything happen. The deductible applies in two cases – when you have collision or comprehensive coverage. There is no deductible on liability plans.

Some experts recommend getting comprehensive coverage with a low deductible and a collision policy with a high deductible. This is one way to lower the risk of accidents. To figure out which option suits you best, you can use an insurance quote tool, and there are plenty available online.

Travelling this Christmas? What Are the Best Travel Insurance Options?

By 1 Comment

It you are travelling this Christmas to spend time with family and friends, you are probably thinking about the best insurance options for your vacation. There are different types of coverage, from single trip and short-stay solutions to all-inclusive packages.

Comprehensive Insurance

All-inclusive or comprehensive coverage usually includes stolen, damaged, and lost items and luggage, trip delay, interruption, and cancellation, and emergency repatriation and evacuation. Comprehensive packages also include emergency dental and medical expenses. Trip cancellation packages are also offered and cover trip delay, interruption, and cancellation, as well as lost and stolen luggage. Trip cancellation covers travel delays, interruptions, and delays prior to departure. Premium packages also include non-medical emergency evacuation, return of remains, and medical repatriation. Some premium packages also include rental car damage, flight and accident insurance, and medical follow-up once in Canada. Eligibility varies by provider but patients with terminal illness and those who require kidney dialysis are usually not eligible. Patients with organ transplant or bone marrow transplant are not eligible too.

When shopping for insurance deals, it is a good idea to check travel packages that cover travel accidents, unlimited emergency medical, travel assistance, and more. Packages usually include flight accident insurance that covers irrecoverable loss of hearing or speech, loss of sight, double dismemberment, and death. Travel accident plans feature the same coverage but the principal amount is lower. Travel packages also cover escort for children and return of children to their territory or province of residence. Some plans also include provisions for the return of travelling companion and return of vehicle. The best travel coverage options for your Christmas holiday also feature coverage for physician visits to replace damaged, stolen, or lost medications. This is a beneficial provision if you plan a holiday abroad. There are plans that cover emergency medical conditions of caregivers, children, partners, and other immediate family members. This is a good choice if planning a family vacation, whether at home or abroad. Comprehensive plans also offer coverage for the death of travelling companion who can be a caregiver, family member, or business partner. Some plans even cover the death of a friend or host. There are other covered risks such as delay of a cruise ship, a travelling companion subpoenaed as a witness or called to serve on a jury duty, and so on. Some plans even offer coverage for the death or injury of a service dog of handicapped, visually impaired, and blind persons. Additional provisions that can be beneficial include subsistence allowance, travel and tour package benefit, missed connection benefit, and so on.

Trip Cancellation and Coverage

When it comes to cancelled trips, reasons to cancel include bankruptcy of your travel agency, loss of job, hurricane damages, and death, sickness, or injury of a travelling companion, spouse, child, or another family member. The list of covered reasons is quite long and includes divorce or legal separation, school year extension, theft of visa or passport, traffic accident occurring prior to the trip, and burglarized, vandalized or damaged home. Loss of accommodation as a result of death or illness of host friends or family is also covered.

Travel Medical Insurance

Many providers, including insurers and financial institutions, offer medical insurance that covers emergency medical treatment. Plans usually include emergency medical coverage and dental treatment and some feature coverage for preexisting medical conditions. A multi-trip plans is also a good option for people who travel frequently and not just over Christmas. Look for a plan that has no age limits and flexible deductible.

Car Rental

When shopping for insurance, there are different factors to look into, for example, whether you need a car rental for your holiday. Car rental insurance is a good option in this case, especially if you are travelling long distances. Insurers usually offer plans that include personal effects and personal accident coverage. There are rental car protection plans that cover reasonable loss of use, fire department charges, loss of rented vehicle, and physical damage to the vehicle. This type of coverage is a good choice when travelling abroad or out of province and is offered for both leased and rented vehicles.

Life Insurance

Weather conditions can be severe during the holiday season and accidents happen unfortunately. Life insurance is an option to look into and comes in two varieties – permanent and term life coverage. The second option is for persons who want to have guaranteed protection during their life time. Term life coverage, on the other hand, offers coverage over a specific timeframe. Beneficiaries such as children and other family members are entitled to tax-free benefits in the event of death. In general, term life coverage is a good choice for people who are looking for temporary protection while their children are in college or until they pay off a mortgage loan. This is also an alternative for people who are looking for an affordable policy. The best part about term life is that there is an option to convert to permanent coverage. Depending on the policy of choice, there are variations when it comes to cash value accessibility, coverage options, payment flexibility, guaranteed premiums, coverage amounts, and age limits. There are different types of coverage options – single life and joint first to die. The amounts also vary by type of coverage and range from $5,000 to $50,000.

Shopping for Insurance

When shopping for good deals, it pays to inquire about details such as out-of-pocket expenses, coverage limits, exclusions and restrictions, co-payments, and the deductible. When it comes to medical travel insurance, comprehensive plans allow policyholders to use almost any facility and physician. Other policies charge more for the same or have limits.

Exclusions

Insurance plans usually come with general exclusions such as health conditions resulting from the use of prescription drugs without prescription and the use of alcohol. Abuse of medications is also excluded from insurance policies.