Wealthsimple takes on Big Six with launch of credit cards and loans (thelogic.co)

submitted 2 days ago by Sunshine@lemmy.ca to c/canada@lemmy.ca

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[-] DeepChill@sh.itjust.works 5 points 2 days ago

Looks like a no brainer. If you’re already a Wealthsimple client they ask you for consent to do a soft inquiry on your credit report. I like that a lot more than a hard hit. Especially for something I know without a doubt I’m qualified for. Time to get rid of a card I’ve been meaning to ditch for a while now (no rewards at all).

[-] jnb@lemmy.ca 3 points 2 days ago* (last edited 2 days ago)

Only a no brainer if you can make the $10/mth fee back in cash-back ($500 in purchases?), or if you're Premium or higher. Otherwise why not use the Mastercard Cash account card?

[-] DeepChill@sh.itjust.works 1 points 1 day ago

Who doesn’t spend $500 a month these days? Cellphone, gas & groceries would be that much or more. The fees are waived if you auto deposit your paycheque ($4k/moth or more).

From the FAQ….

How is the Wealthsimple credit card different from the Wealthsimple prepaid Mastercard? The credit card is a way of borrowing money, while the prepaid card is spending your own money that is already in your chequing account. When applying for the credit card, a credit check is required and using the card will affect your credit score — good payment history helps, while missed payments may affect your score negatively.

The cash back rewards are higher on the credit card, and it comes with some additional benefits like insurance and access to the Visa Infinite perks.

One other benefit that never gets mentioned and people don’t realize. Credit cards are safer for you as the consumer when it comes to fraud. If your card is compromised by a shady vendor it’s not your money that gets stolen. It’s the credit card company’s. It’s up to them to get it back. Using a debit card means it’s YOUR money that gets stolen and it’s up to you to fight to get it back. Meanwhile, your car payment or rent might bounce because your chequing account has been emptied.

[-] jnb@lemmy.ca 2 points 23 hours ago* (last edited 23 hours ago)

Who doesn’t spend $500 a month these days?

First off just to say this reply feels very privileged, there's folks that can barely afford $100 in groceries a month... let alone 4K a month in deposits... is the card realistically for them? Maybe not. But still...

TY for the info on the card, I forgot that the Cash card is more like a debit card and doesn't add to your Credit Score.

[-] DeepChill@sh.itjust.works 0 points 22 hours ago

You assume privilege. Let me correct you. I work two jobs and put in over 70hrs a week. I’ve been doing that for over 10yrs. That’s not privilege, that’s working my ass off to get ahead. I will admit that I’ve been very lucky in that my line of work was not negatively impacted by Covid. But that’s as far as I will concede.

[-] Kelsenellenelvial@lemmy.ca 0 points 2 days ago

I’ve got the Costco Mastercard and it looks pretty comparable. Phone/ purchase protection, travel insurance, etc.. Costco is 2-3% on some purchases and 1% on everything else, though you can only spend the cash back at Costco. Maybe if I took the time to pick between each I could average an extra 1/2%. More choice is always good though and this helps squeeze other issuers to get more competitive.

I think it’s easier to qualify for the Costco card though than the no fees for the WealthSimple one.

[-] DeepChill@sh.itjust.works 2 points 1 day ago

You said it yourself. The Costco card has different reward percentages depending on what you buy and where. The benefit of this new card is the complete lack of categories. It’s just 2% across the board on all purchases at any store. When I shop at Costco I’d effectively be getting 4% cash back. 2% on this credit card and 2% because I have the executive membership.

[-] Kelsenellenelvial@lemmy.ca 1 points 1 day ago

Isn’t the WealthSimple card a Visa though? Costco only takes Mastercard so you wouldn’t be using it there. Costco card is 3% on Costco gas and restaurants, 2% on other gas and Costco.ca. For me that’s a big part of my spending.

Now if someone doesn’t do Costco then the WealthSimple card is probably a better option than lots of other cards. Particularly if they qualify for not paying the monthly fee.