If you're banking savvy, you've probably heard about EQ Bank. They're the ones shaking things up in the online banking world. And while we're on the subject, let's clear something up: the EQ Bank card that's been getting all the buzz isn't a credit card at all – it's actually a prepaid card that comes with some cool credit card-like benefits.
In this article, I'm going to walk you through everything you need to know about EQ Bank's prepaid Mastercard. From the standout features to the real talk on pros and cons, I've got you covered. By the end of this read, you'll have all the info you need to decide if this card is the right fit for you.
Plus, it's true what they say – it's truly one of the best "no fee" cards, and that's hard to beat.
Ready to find out more? Let's jump in.
What is the EQ credit card (bank card)?
Let's set the record straight: there's no such thing as an EQ credit card. What people often refer to is the EQ Bank card, which you can get when you open any account with Equitable Bank.
EQ Bank operates entirely online. That means you won't find any physical branches – everything, including applying for the EQ Bank card, is done over the internet. This card comes with handy benefits for managing your finances and offers perks similar to those you'd find with traditional credit cards.
How can you get the EQ credit card (bank card)?
You need to start by opening an account at EQ Bank. You can do this by visiting their online website where you can find a bunch of account types. The most famous account is a Savings Plus Account. You can select the savings plus account, fill in the form, and open your account in a few clicks. Then you can add funds to your account and apply for an EQ bank card which will reach your doorstep in no later than 10 working days after applying.
Once you get your EQ bank card, you can activate your card and transfer the money from your EQ account to your card. This way you can load up the account to get access to your funds. Once the card is funded, you can use it anywhere you like.
Where can you use the EQ credit card (bank card)?
You can use the EQ bank card anywhere in Canada where Mastercard is accepted, so basically everywhere. In addition, you can use this card to withdraw cash from any ATM in Canada for free. EQ bank doesn’t have an ATM of its own and it allows the users to use any other ATM they want. They refund any charges charged on ATM withdrawals by other banks. This excessive reach of EQ bank cards makes them great for users.
Key Features of EQ Credit Card (bank card)
EQ bank card also famous as the EQ credit card has some distinctive features that makes it unique in comparison to other credit cards and prepaid cards.
Key distinctive features:
Reloadable card: You can reload the EQ bank card as many times as you want. Such cards are great for giving allowance to children since you can add a certain amount of funds every month. this not only offers an easy way out to parents to give allowance to children in a secure way (plastic money) but also trains children to use cards while managing their expenses on a fixed budget. In case you need more funds, you can reload any time for your emergency expenses.
No fee: EQ back card is a no-fee card in the truest sense as it doesn’t charge any hidden fees to users at any point. Like other credit cards, you won't be charged any surcharge, transaction fee especially foreign transaction fee, annual fee, inactivity fee, or ATM withdrawal fee. So, you can use the EQ bank card without paying any fee that can cut short your monthly deposit and affect your monthly budget.
No relevant risk charges: As the amount in the EQ card is prepaid, you won't be charged any interest rate on the expenditure like on traditional credit cards. This way you won't accumulate any debt in terms of interest rate which is a huge relief for users who are afraid to accumulate debt.
Cash back: Using your EQ card, you can earn cash back on anything you purchase. Yes, you read it right. You won't have to spend only a few chosen merchant stores to claim your cash back. Rather no matter where you spend and on whatever products you spend you will earn a 0.5% cash back which is quite generous if you compile it at the end of the month. offering cashback is one of the benefits due to which some users compare EQ cards with other credit cards.
Wide acceptance: The EQ bank card is accepted widely on all online purchases and physical stores where Mastercard is accepted. This implies that users won't have any trouble using their EQ card. Even worldwide you can use this card in around 210 countries.
High-interest rate: You can earn 2.5% interest on the amount in your account which is accumulated in your account and can be redeemed at the month's end. The interest rate of 2.5% is very generous if you compare it with other prepaid cards or savings accounts. You can earn substantial funds on the amount you have kept in your account. This way you can earn if you use the amount in your account (cash back) and both if you keep it saved in the account (interest rate). So, it is a win-win situation for you.
Free ATM withdrawals: EQ bank cards can be used in any ATM without incurring any additional fee. EQ Bank doesn’t own any ATM of their own and the users can use their cards to withdraw cash from any other bank’s ATM you like. The charges charged by the ATM will be reimbursed by the EQ bank at the end of the month. This way users get access to free ATM withdrawals with the liberty of using any ATM they desire without the limitation of visiting a few specified ATMs.
Foreign currency conversion rate: When you want to pay in foreign currency from Canada you will be charged the currency conversion rate as charged by Mastercard. You will be subject to only the conversion rate and won't be charged any additional dollars for your transaction which gives you the liberty of purchasing from any international vendor without the fear of escalated charges. Essentially that means no foreign transaction fees!
CDIC protection: EQ Bank is a member of the Canada Deposit Insurance Corporation (CDIC) which is why the money you deposit in the EQ account is under the protection of CDIC. You can get the protection of funds up to CAD 100,000 for one user as per the said terms and conditions of CDIC. This insurance protection gives users the confidence to use EQ bank accounts without any second thought.
The downside of using an EQ bank card
Along with the exceptional benefits, there are also a few setbacks that you will face by using an EQ bank card to manage your finances. Some of the major drawbacks or downside of using the card include:
No credit building: EQ bank does not report to any credit bureau in Canada. It means that no matter how much you spend on the card or how responsibly you use the funds they won't get reported to any credit bureau and won't help you build a credit history. This can be frustrating if you are yearning to build a credit history because in Canada your financial credibility and financial worth to get loans and credit depends upon the credit history. With no history to show, you are at a huge disadvantage because it hinders your future goals of getting credit on favorable terms.
Funds loading is restrictive: You can only load funds from your EQ savings account to your EQ bank card which is a huge restriction. Not being allowed to transfer funds from other bank accounts directly into the EQ bank card can be time-consuming and a little frustrating for the users.
No availability in Quebec: Sadly, the people in Quebec cannot enjoy the services of EQ bank cards. This is a huge downside as Quebec is the largest province among the 10 in Canada and is still deprived of the services of EQ bank cards. This implies that if you have an account in any other province and you move to Quebec then you won't be able to use it which is why you must have an alternate account if you frequently travel to Quebec.
After reading all this, will you get the EQ bank card?