RBC RateAdvantage Visa Review

4.79

$0

Annual Fee

$0

Annual Rewards

N/A

Intro Offer

$0

Annual fee

$0

Annual rewards

N/A

Intro offer


Pros


  • Competitive variable interest rate
  • No annual fee
  • Purchase protection and extended warranty
  • Free supplementary cards
  • Access to RBC offers and Visa Infinite benefits

Cons


  • No rewards or cash back program
  • Requires a minimum personal income of $15,000
  • Not suitable for those seeking travel rewards or perks
  • May not be ideal for individuals with poor or no credit history

Performance test results

At DollarWise, for each credit card we test 7 different factors including the rewards, value for money, perks, insurance, strengths and weaknesses of the card.

You can see our full testing methodology here to learn why we’re the most trusted source for credit card reviews.

The RBC RateAdvantage Visa has earned a 4.79 DollarWise Rating out of 5. This score is based on a weighted average of the two highest scoring factors (excluding acceptance and approval).

Rewards

Fees

Perks

Interest rates

Insurance

Acceptance

Approval

The highest scoring categories for the RBC RateAdvantage Visa are fees and interest.

These factors are weighted 70% to the highest scoring factor and 30% to the second highest score to get an overall review score.

This weighting allows us to judge cards on their merits and the customers they are designed for.

For the RBC RateAdvantage Visa the most important factors for scoring this card are its fees and interest.

Rewards

With the RBC RateAdvantage Visa, here’s the rates at which you earn rewards for different spending categories per dollar you spend:

Calculating your annual rewards

We estimate that spending $2,000 per month with the RBC RateAdvantage Visa would earn $0 in rewards over the year.

Our performance testing research uses an accurate estimation of the average Canadian households spending patterns to predict the rewards a card will earn.

We found that you’d earn this per category:

Our study investigating the value found that each dollar spent on the RBC RateAdvantage Visa is worth up to $0.00, depending on how you redeem.

This $0 in rewards value puts the RBC RateAdvantage Visa in the bottom 20% of credit cards in Canada based on rewards earned.

The average credit card in our database earns $337 in rewards for the same spend that the RBC RateAdvantage Visa earns $0 in rewards value.

We can compare this card to other options by looking at the earn rate by category.

This earn rate is the percentage return that you would get when you spend on this card, assuming you redeem at the predicted maximum value.

For example, if a card earned 5 points per dollar on gas and each point is worth up to $0.02, then the earn rate is 5 points multiplied by $0.02 each, divided by the dollar you spent.

In this example, that’s a 10% earn rate on gas.

Above, we’ve calculated the earn rate for the RBC RateAdvantage Visa for every spend category and compared it to the average for all Canadian credit cards.

For an annual spend of $24,000, we estimated annual rewards value at up to $0.

That’s equivalent to a 0.00% return on spending.

The RBC RateAdvantage Visa has an annual fee of $0. After deducting this, we predicted net annual rewards of $0.

This puts it in the bottom 20% of credit cards for net rewards after fees.

In comparison, the average card earns net annual rewards of $254.

Fees

The RBC RateAdvantage Visa has a $0 annual fee.

The average card charges $85. So, the RBC RateAdvantage Visa is in the bottom 50% of cards based on the cost of the annual fee.

Perks

We manually review the perks of each credit card to determine how they compare to other cards.

The RBC RateAdvantage Visa scored a 0.0 out of 5 for perks, putting it in the bottom 10% of cards.

The average card scores 1.6 out of 5 for perks.

Interest Rates

Purchase11.69%
Cash Advance11.69%
Balance Transfer11.69%

The average (median) credit card has a purchase interest rate of 19.99% and so the RBC RateAdvantage Visa charges 8.3% less than the average.

For cash advances it costs 11.69% compared to the average of 19.96%.

Testing the RBC RateAdvantage Visa with a $2,000 starting balance, you can see in the graph how the 8.3% less in interest rates impacts the interest over a year, compared to the average card.

Insurance coverage

InsuranceThis CardAverage
Extended Warranty1 year1 year
Purchase Protection90 days90 days

We scored it 0.0 out of 5 for insurance.

It offers 2 types of insurance, whereas the average card has 5 types of coverage.

Approval and qualifying

Do I qualify?
Estimated Credit Score760 – 900
Personal Income$0
Household Income$0
Fees
Annual Fee$0
Extra Card Fee$0
Card typeVisa

We scored it 2.5 out of 5 for approval.

We predict that you will require a credit score of at least 760 to qualify for the RBC RateAdvantage Visa, while the average card requires 652 to qualify.

This puts it in the top top 10% of cards by approval difficulty.

The personal income requirements are $0, while the average card requires $23,896.

This puts it in the top 50% of cards by the income required to qualify.

The RBC RateAdvantage Visa credit card is an ideal choice for those looking for a straightforward and low-interest-rate card. The following review highlights its earning potential, benefits, and drawbacks to help you decide whether this card is right for you.

Earning potential: 

The primary focus of the RBC RateAdvantage Visa card is its low-interest rate, rather than earning points or cash back. The card does not offer any specific rewards for different categories of spending (e.g., dining, travel, grocery, etc.). Its value lies in the competitive interest rates it offers compared to other credit cards.

Benefits

  1. Low Variable Annual Interest Rate: The first major advantage of this card is its low variable annual interest rate, tailored specifically for the cardholder based on your credit score. This means the better your credit score, the lower your interest rate, potentially spanning from prime + 4.99% to prime + 11.99%
  2. No Annual Fee: Another advantage of this card is that there’s no annual fee, making it a cost-effective option for those preferring a simple, low-cost credit card without the hassle of annual fees and extensive rewards programs.
  3. Purchase Security and Extended Warranty Protection: The RBC RateAdvantage Visa card offers purchase security and extended warranty protection, which means eligible purchases made with the card are covered against theft, loss, or damage, and their manufacturer’s warranty period is doubled up to one additional year.
  4. Emergency Card Replacement: This card also offers emergency card replacement in case your card is lost or stolen, providing you with an assurance that you have access to critical funds even during unforeseen circumstances.

Drawbacks

  1. Drawback: A significant drawback of this card is its lack of rewards or cashback earning potential. The focus on low-interest rates means that the RBC RateAdvantage Visa may not appeal to those who prefer a credit card with rewards for their spending.
  2. Drawback: Another significant drawback of this card is the absence of travel benefits, such as travel insurance or travel-related perks. This makes the RBC RateAdvantage Visa less suitable for frequent travelers prioritizing those features in a credit card.

Additional information

Overall, the RBC RateAdvantage Visa credit card is an attractive choice for people interested in a simple, low-interest, and no annual fee card. It may not suit those looking for rewards or travel benefits, but it remains an excellent option for individuals preferring simplicity and low costs over points or cashback programs.

Interested in other credit cards? If the RBC RateAdvantage Visa credit card isn’t perfect for you, you might want to consider the RBC ION Visa. Plus, many Canadian’s that like the RBC RateAdvantage Visa like the RBC Cash Back Preferred World Elite MasterCard, and the RBC Visa Platinum.

FAQ

The RBC RateAdvantage Visa credit card does not offer rewards points for redemption. Instead, this card is focused on offering competitively low interest rates based on the cardholder’s credit score. As such, there are no options to redeem points for goods, services, or travel with this specific card.

The RBC RateAdvantage Visa credit card does indeed have foreign transaction fees associated with it. When using this card for foreign currency purchases, a 2.5% foreign transaction fee will be applied to the converted Canadian dollar amount of the transaction.

For example, if you purchase an item for 100 USD, it will be converted to CAD based on the exchange rate, and an additional 2.5% will be charged as the foreign transaction fee.

The RBC RateAdvantage Visa credit card does not have any minimum income requirement for applicants. This means that individuals with varying income levels can apply for this card without the need to meet a specific minimum threshold.

Key benefits

  • Variable annual interest rate based on prime rate + individual’s credit score
  • No foreign transaction fees
  • Up to 97% credit limit utilization
  • 21 day grace period on purchases before interest charges
  • Embedded chip and PIN technology for enhanced security
  • Visa Infinite Concierge hotline for reservations and assistance
  • Visa Zero Liability policy for unauthorized card transactions
  • Convenient payment flexibility with online and mobile banking options
  • Option to enroll in My Rate Compass for personalized financial tips

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