Making purchases in US dollars can leave you with the burden of foreign currency conversion fees. A US dollar credit card can eliminate this issue altogether.

What is a US Dollar Credit Card?

A US dollar credit card sets your credit card’s currency in US dollars. This means you won’t be dealing with Canadian dollars. Instead, your purchases will be made automatically with US dollars.

You can avoid high foreign currency conversion fees with a US dollar credit card. You will save a lot of money, especially when our currency is lower.

How US Dollar Credit Cards Work

When you purchase in US dollars, you will be billed in US dollars. No additional foreign currency conversion fees will be added to your bill.

Besides this, US dollar credit cards work like ordinary credit cards. You can use it for purchases in US dollars. The balance should be paid off every month to avoid interest charges.

Pros and Cons of US Dollar Credit Cards

US dollar credit cards have their benefits and drawbacks. It’s wise to consider them before applying for this card.

The Pros of US Dollar Credit Cards

• Lower annual fees. Most US dollar credit cards have lower annual fees than regular credit cards. You can also find some that have no annual fee.
• Save on foreign currency conversion fees. With a US dollar credit card, you can make purchases in US dollars. This will save you the typical 2.5% charge.

The Cons of US Dollar Credit Cards

• Limited use. Besides making purchases in US dollars, you might not be able to use your card for much else. This shouldn’t be a problem if all you want to use your credit card for is online shopping and travel in the US.
• Few rewards. Besides avoiding a hefty foreign currency conversion fee, US dollar credit cards don’t offer great rewards.
• Foreign transaction fees on non-USD purchases. Since this card is meant solely for making US-dollar purchases, any charges in another currency will incur a fee.
• Limited card options. There aren’t as many credit card providers offering US dollar credit cards. So, the choices are slimmer. Also, within these options, you might only find one or two with no annual fee.

Choosing the Right US Dollar Credit Card for You

When looking for a US dollar credit card, it's essential to choose one that will benefit you. You should consider:

• The annual fee. Ask yourself if the annual fee is worth the perks the card provides. Also, ensure that the annual fee is realistic for you.
• Rewards and benefits are offered. Check out the rewards program attached to the card. It may be right for you if you anticipate reaping enough rewards from the card while using it. Also, consider the benefits the credit card provider offers. Some include purchase protection while others don't.
• Your eligibility. Look out for the eligibility requirements to ensure the card is the right fit for you.
• The interest rates. Assess and compare the interest rates on different US dollar credit cards. Look at the purchases interest rate and the cash advance interest rate.