• Annual Fee: $0
  • APR: Prime + 4.99% - 8.99%
  • Maximum Earnings Rate: N/A
  • Income Requierements: $60.000
  • Recommended Credit Score: Good to Excellent

minimum price:

$0/annually

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RBC RateAdvantage Visa Review: Pros and Cons [Reviewed in 2022]

Whether you're a first-time credit card holder or an experienced spender, this guide will show you everything you need to know about the RBC Rate Advantage Visa card.

Truth be told, there are plenty of things to be excited about, so let's jump in!

RBC RateAdvantage Visa Review: Pros and Cons [Reviewed in 2022]

minimum price:

$0/annually

Visit Website
  • Annual Fee: $0
  • APR: Prime + 4.99% - 8.99%
  • Maximum Earnings Rate: N/A
  • Income Requierements: $60.000
  • Recommended Credit Score: Good to Excellent

Best For

Extremely low interest rate

Strengths

  • Low variable interest rate
  • 0% introductory rate for the first 6 months
  • No annual fee
  • Complimentary concierge service
  • Optional balance protection insurance
  • A number of add-on services

Weaknesses

  • Foreign transaction fee of 2.5%
  • Limited perks

Overview

The Royal Bank of Canada is one of the largest financial institutions in Canada with over 16 million clients. With its headquarters in Toronto, Ontario, the company operates in a total of 55 countries.

In particular, the RBC Advantage Card is one of the most popular credit cards in the country. It was launched in 2008 and has since amassed a large following. As of 2020, there were over 9 million cardholders.

It’s is a great choice for people who are looking for a low-interest rate credit card. It has no annual fee, which makes it a great match for people who carry a balance on their credit cards from month to month. This provides the groundwork for avoiding major credit card debt, which will inherently help you save up some money over time.

Main Features

The card’s low-interest rate might be its major selling point but it certainly isn’t the only one. Cardholders can enjoy a number of other benefits, such as:

Grocery Store Rewards

If you link your RBC classic visa card to DoorDash services, you get a 3-month complimentary DoorDash subscription, which may be worth up to $300. In addition, you get to enjoy unlimited deliveries with no delivery fees on orders of $12 or more, as long as you pay with your RBC low rate visa card.

Selected Retail Rewards

Cards that are linked to Rexall drugstores will get the chance to receive 50 Be Well points for each dollar spent on eligible products. These points can then be redeemed, allowing you to make discounted purchases at Rexall stores using your RBC Visa classic low rate card. For instance, if you have 25.000 Be Well points, you can redeem them for a $10 discount.

Gas Rewards

Linking your RBC Advantage card with Petro-Canada gas stations, you can save 3 cents per litre on fuel. You’ll also receive a 20% increase in Petro Points as well as RBC rewards points. Impressive, isn’t it?

Additional Perks and Benefits

Apart from its main features, this Royal Bank low interest card offers a number of optional add-ons and perks that you might want to take advantage of.

Travel Insurance

The card has built-in travel insurance to protect both you and your family throughout your journey. This is applicable only if you use your RBC Rate Advantage Visa or redeem your RBC rewards to pay for your trip in full. Once you’ve completed that step, you’ll be able to receive emergency medical care, trip cancellation or interruption insurance, hotel burglary compensation as well as a number of other perks.

Roadside Assistance

If you’re hitting the road with your car, you might want to make use of RBC’s roadside assistance services, which are available 24 hours a day and 365 days throughout the year. You can contact their team anytime, anywhere across North America to get what you need.

Identity Theft and Credit Protection

No matter how careful you are when handling your credit cards, the risk of having your personal information stolen and exploited is always looming. In fact, statistics show that 1 in 3 Canadians have been subjected to financial fraud in their lifetime. Interestingly enough, young adults aged 18-24 are the most likely targets.

 

So if you want to avoid such unpleasant scenarios, the RBC Visa Classic low rate option offers 24/7 online identity monitoring as well as SMS or email alerts. In this way, you’ll be promptly notified of any suspicious activity. Moreover, you’ll have the chance to review your credit score through the RBC credit report service.

If you ever fall victim to credit card fraud or identity theft, the bank offers step-by-step support, emergency cash assistance and changes to any of your pre-authorized payments.

Balance Protector Insurance

This type of insurance protects you and your family in the event of a loss of life, critical illness, total disability as well as involuntary unemployment or loss of self-employment income. Your coverage includes $25.000 maximum benefit and up to 10% of your account balance for up to 10 months.

All you have to do is pay $1.19 per $100 of your insured RBC savings account. This payment is reduced to $0.59 once you reach 70 years of age.

RBC Tap and Pay

You can use the Visa payWave option to pay for purchases of up to $250. Simply tap your card at any point-of-sale system and you’re good to go.

Credit Card Lock

You have the ability to lock your RateAdvantage Visa temporarily at any given time. This feature might come in handy if you ever lose or misplace your card. Just log in to the RBC Mobile app and select the card you want to lock.

Rates and Fees

The RateAdvantage Visa features the standard RBC interest rate of 4.99% – 8.99% for prime users. Similarly, the RBC Visa cash advance and balance transfer rates come in the same range of 4.99% – 8.99%. These numbers will depend on your creditworthiness when you’re approved for the card.

There is also a 2.5%  foreign transaction fee charged on all purchases made in a currency other than CAD. Given that this is a no-fee card, this is a relatively high foreign transaction fee, especially if you take into consideration other cards that actually have annual fees. One such card is the American Express Cobalt, which has the same 2.5% foreign transaction fee, coupled with a monthly price tag of 12.99%.

Eligibility Requirements

In order to send in an application for the RateAdvantage Visa, applicants must meet the following criteria:

  • Be a Canadian citizen or permanent Canadian resident
  • Reach the age of majority in your province or territory of residence
  • Have a good to excellent average credit score history

These terms and conditions are in-line with all the other low-rate cards on the market, such as the Tangerine World Mastercard. If you meet these criteria, you can apply for the RBC Advantage Visa online, by phone, or in person at any RBC branch.

User Reviews

The Royal Bank of Canada generally has favourable reviews on websites such as Trustpilot and TrustRadius. Upon closer inspection of user reviews of the RateAdvantage Visa in particular, it seems that most people are satisfied with the no-fee card. Compliments are given for the decent interest rate, ability to earn rewards points and the absence of any unnecessary fees. Moreover, users praised the RBC visa support and customer service representatives for being helpful and professional when providing assistance.

There were, however, a few complaints about the high foreign transaction fee charged on this card. These numbers are somewhat higher than what’s typically offered by other no-fee cards on the market. So if you’re a frequent traveller and you want to cut down on expenses whenever you use your card outside of Canada, you should probably have a look at some of the other options on the market.

Want to Consider Other Options?

If you’re looking for a budget-friendly credit card, the RateAdvantage Visa isn’t the only available option. Luckily for you, we’ve put on our detective hats and searched the internet far and wide for some noteworthy alternatives.

RBC RateAdvantage Visa vs RBC Cash Back Mastercard

For those that are on a search for a no-fee credit card with cashback rewards, the RBC Cash Back Mastercard might be a better fit. It offers 1% cashback on all purchases, with no limit to the amount of money you can earn. Cardholders also receive purchase security and an extended warranty, which provide automatic protection against damage or theft for up to 90 days from the date of purchase, and doubles the manufacturer’s warranty up to one additional year.

The main difference between these two cards is that the RBC low rate visa offers a lower interest rate, while the Cash Back Mastercard provides greater cashback rewards. At the end of the day, you’ll be paying those expenses one way or the other, so it really comes down to which one you value more.

RBC Rate Advantage Visa vs BMO Cashback Mastercard

The BMO Cashback Mastercard is another no-fee credit card with high cashback rates and a generous welcome offer of a 1.99% introductory interest rate on balance transfers and 5% cashback for the first three months of your card membership (up to a maximum of $100). After that, cardholders earn 1% cashback on all purchases with no limit.

Like the RBC Advantage,  the BMO Cashback Mastercard also offers a grocery store and selected retail rewards, with additional discounts on car rentals and a complimentary Cirque de Soleil admission.

So, which one is better?  Again, it depends on what’s most important to you. The BMO Cashback Mastercard has a higher introductory interest rate and offers more cashback in the first three months. However, the RBC Rate Advantage Visa has a lower ongoing interest rate, which could save you money in the long run if you carry a balance on your card.

Final Verdict

That wraps up our in-depth review of the RBC low rate visa. All things considered,  this is a good no-fee card with a decent interest rate which gives you the ability to earn rewards points. Thanks to these features, and the reasonable eligibility requirements, this card is readily accessible to most Canadians.

But if you want to avoid high foreign transaction fees, you might want to look elsewhere.

FAQ

What is purchase interest RBC?

Purchase interest is the rate applied by the RBC to any purchases made with your card. The current purchase interest rate for the RBC RateAdvantage Visa is 4.99% – 8.99%. The exact interest rate will depend on your personal credit history and financial situation.

ABOUT AUTHOR

With an early start in journalism and years of work as a technical translator, Marija felt it was natural to blend the two. Passionate about news and research, she enjoys sifting through the data, researching new currents and the constant changes in our technologically and financially driven lives, as well as presenting the stats and facts to the readers so you don’t have to dig deep on your own.