Scotiabank No-Fee Value Visa Review (2020): The Ultimate “No-Frills” Card?

The Scotiabank No-Fee Value Visa may be the ultimate “no-frills” card. There are no rewards, but there’s no annual fee either and the interest rate is very competitive.

Features of the Scotiabank No-Fee Value Visa 

  • Annual fee: None
  • Supplementary cards: Free
  • Interest rates: ‌16.99%‌ ‌(purchases)/16.99%‌ ‌(cash‌ ‌advances)‌ ‌
  • Foreign currency conversion 2.5%
  • Minimum credit limit $500
  • Visa payWave™, Apple Pay and Android Pay

Benefits of the Scotiabank No-Fee Value Visa

The benefits of the Scotiabank No-Fee Value Visa are summed up in the name. There’s no annual fee and the interest rate is great value.

There are no rewards as such. Cardholders do benefit from discounts of up 25% on car rentals made at participating outlets of AVIS and Budget in both Canada and the U.S. This is, however, standard on Scotiabank cards rather than being a reward for choosing this particular product.

Drawbacks of the Scotiabank No-Fee Value Visa 

There aren’t any real drawbacks to the Scotiabank No-Fee Value Visa. That said, there are no rewards for using it either. This means that the Scotiabank No-Fee Value Visa is really only likely to be a good choice for people who only use their card occasionally.

If you use your card regularly but don’t carry a balance, then you’ll probably be better choosing a card with a meaningful rewards program. If you use your card regularly and frequently carry a balance, then you’d probably be better paying $29 for the regular Scotiabank Value Visa.

Scotiabank No-Fee Value Visa Compared to Other Popular Credit Cards

The nearest points of comparison to the Scotiabank No-Fee Value Visa are the other no-fee credit cards

If you were prepared to pay an annual fee, there is also the regular Scotiabank Value Visa card ($29/year) and potentially even the regular Scotia Momentum® Visa* card ($39/year).

These cards are all issued on essentially similar terms. In particular, they have:

  • $500 minimum credit (except for the Scotiabank American Express® Card which has $1000 minimum credit).
  • $2.5% foreign currency conversion fees
  • Apple‌ ‌Pay‌ ‌and‌ ‌Android‌ ‌Pay‌ ‌

The Visa cards and Mastercard also have contactless payments (Visa‌ ‌payWave™/Mastercard Tap & Go).

All cards entitle the holder to discounts of up to 25% when they rent a car at participating outlets of AVIS and Budget. These discounts apply in the U.S.A. as well as Canada.

Let’s see how these cards compare to each other otherwise:

Card

Interest rate

Benefits

 

Scotia Momentum® No-Fee Visa* Card

  • 19.99%/22.99%
  • Earn 1% cash back at gas stations, grocery stores and drug stores and on recurring bill payments.  Earn 0.5% cash back on all other eligible purchases.

 

Scotia Momentum® Mastercard®* Credit Card

  • 9.99%/22.99%
  • As above

 

SCENE®* Visa* Card

  • 19.99%/22.99%
  • Earn SCENE points with purchases and redeem them for movies and meals.

 

Scotiabank Rewards® Visa* Card

  • 19.99%/22.99%
  • Earn 1 Scotia Rewards point for every $2 you spend.  Convert Scotia Rewards points to SCENE points and vice versa.  Redeem your Rewards points for flights and benefit from a Best Price Guarantee on airfares.

 

Scotiabank® GM®* Visa* Card

  • 19.99%/22.99%
  • Earn 5% in GM Earnings up to $5,000 per year, and 2% thereafter.  Use your GM Earnings towards the purchase or lease of any eligible new Chevrolet, Buick, GMC, or Cadillac

 

Scotiabank American Express® Card

  • 19.99%/22.99%
  • Earn 1 Scotia Rewards point per $1 on eligible purchases.  Convert Scotia Rewards points to SCENE points and vice versa.  
  • Redeem your Rewards points for flights and benefit from a Best Price Guarantee on airfares.
  • Benefit from special Offers with Scotia Rewards Travel Advantage
  • Exchange points on merchandise and gifts at Scotia Rewards
  • Enjoy Special Offers, Access and Experiences with American Express Invites®
  • Travel Emergency Medical Insurance
  • Trip Interruption Insurance
  • Rental Car Collision Loss/Damage Insurance
  • Travel Accident Insurance

 

Scotiabank Value Visa

  • 12.99%/12.99%

 

Scotia Momentum No-Fee Visa* Card

  • 19.99%/22.99%
  • Earn 2% cash back at gas stations, grocery stores, drug stores and recurring payments. Earn 1% cash back on everything else. 

Scotiabank No-Fee Value Visa vs the Momentum Cards

If your main interest is maximizing your cash rather than earning rewards, then the obvious choice is either a card with a low interest rate or a card with cash back. In simple terms, the more likely you are to carry a balance, the more you should lean towards low interest rates and vice versa.  

Scotiabank No-Fee Value Visa vs the SCENE®* Visa* Card and the Scotiabank Rewards® Visa* Card

Essentially the same comments apply here. If you’re confident that you can pay off your balance in full each month, then it may be worthwhile to look for a card that comes with rewards. That said, if you’re only using the card occasionally, you may not get all that much benefit from them. You might, therefore, want to play it safe and go for a card with a low interest rate.

Scotiabank No-Fee Value Visa vs Scotiabank® GM®* Visa* Card

There’s no real comparison here as these two cards are very different products. The Scotiabank® GM®* Visa* Card is tailored to a very niche market and it’s either for you or it isn’t. Realistically, the Scotiabank® GM®* Visa* Card is unlikely to be much use to the average small business.

Scotiabank No-Fee Value Visa vs Scotiabank American Express® Card

This is another difficult comparison to make. Other than the fact that the two cards are both no-fee cards, they really have very little in common. The Scotiabank American Express® Card is really a rewards card, so, in principle, if you’re sure you can pay off your balance in full most of the time, it may be worth a look.

There are, however, a couple of points to keep in mind. Firstly, the fact that this card has a much higher minimum credit limit than the others ($1000 versus $500) means that it’s likely to be more of a challenge to get one in the first place.

Secondly, American Express lags behind Visa and Mastercard in terms of merchant acceptance. The difference varies by country. In some places, like the U.S., it’s barely noticeable. In other places, however, using an American Express card can be more of a challenge.

Scotiabank No-Fee Value Visa vs Scotiabank Value Visa

This choice hinges on a simple question. Do you use your revolving credit facility enough to justify paying the $29/year for the lower interest rate of the regular Scotiabank Value Visa?

Scotiabank No-Fee Value Visa: Good Features for a Small Business

There are three main features that make the Scotiabank No-Fee Value Visa card a good credit card for a small business.

It’s straightforward to qualify

If you’re a new business without any credit history, then you’re probably going to be restricted to entry-level credit products. The Scotiabank No-Fee Value Visa card has a minimum credit level of just $500. This makes it very low-risk for the lender and hence fairly straightforward to obtain.

No annual fee and a low interest rate

The absence of an annual fee means that there’s no fee for supplementary cards either. This can be very useful if you want to give cards to several members of staff. The low interest rate is useful for keeping down costs if you need to carry a balance.

Visa Zero Liability Policy

Credit cards are a very secure method of payment. Visa cards have layers of security features including chip technology for face-to-face transactions and “Verified by Visa” technology for internet transactions.  

Visa is so confident about its security that it operates a “Zero Liability Policy”. This is exactly what it sounds like. In the unlikely event that there are unauthorized transactions on your card, you will not be held liable for them.

Who is the Scotiabank No-Fee Value Visa best for?

The Scotiabank No-Fee Value Visa is best for people who want an absolute “bare-bones” credit card for occasional use. If you’re only using a card from time-to-time then you’re not going to get much, if any, benefit from rewards programs. It might not even be worthwhile to pay an annual fee to unlock the lowest possible interest rates. It would, however, be a benefit to know that you would get decent interest rates if you needed to carry a balance.


Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *