Credit cards not only help you make purchases and payments, but they’re also a great financial tool that can truly complement your lifestyle. Not all credit cards are the same, and the key is to choose one that matches your spending habits, financial goals, and lifestyle preferences. Whether you’re applying for your very first credit card or looking to upgrade to a credit card that better meets your credit needs, it’s important to research the market before making a decision.
At RATESDOTCA, you can compare all the top credit cards available in Canada and find the right one for you.
Finding a credit card which complements your lifestyle and spending habits can be daunting. There are so many to choose from, and nobody has time for all that fine print! Well, nobody except for us that is. Our team analyzed over 150 credit cards across 13 categories for the best value, to help take the guesswork out of shopping for a new card.
Scroll through the categories below, or click here for the full list of Best of Finance 2020 award winners.
Best Rewards Credit Card
Best No-Fee Credit Card
Best Travel Credit Card
Best Cash Back Credit Card
Best Premium Perks Credit Card
Best Credit Card for Paying Down Your Balance
Best Credit Card for Rebuilding Credit
Best Credit Card for Young Professionals
Best Credit Card for Students
Best Credit Card for Frequent Flyers
Best Credit Card for Snowbirds or Cross-Border Shoppers
Best Credit Card for Newcomers to Canada for 2020
Best Credit Card for Families
Before beginning your credit card search ask yourself the following questions to narrow down your selection criteria
Each Canadian credit card comes with different terms and conditions, but all of them offer similar basic features and benefits. This applies to Canadian Mastercard, Visa and American Express credit cards.
These features and benefits include:
When it comes to picking the best credit card for you, you must truly understand your spending habits and credit card eligibility. If you are a new credit card user, then you might want to look for a no-frills credit card to start building your credit score. If you’re a small business owner who is looking to make important business investments, then a business credit card will help you better carry out your business purchases. Frequent traveler? A travel card might be more in line with your spending habits and interests.
At RATESDOTCA, you can conveniently compare the top credit cards in Canada by sorting them by features such as interest rates, rewards type and annual fee.
Applying for a credit card in Canada is easy and simple. Whether you’re a new Canadian resident or a post-secondary student, finding the right credit card is very important.
Follow these four steps to find the best credit card today:
1) Understand your credit card needs: Decide what kind of purchases you intend to make with your credit card. Understanding your purchases can help you look for the perfect credit card that can offer you great perks such as, reward points and cashback offers.
2) Determine your eligibility: What is your credit score? Do you have a comprehensive credit history? Or are you a new credit card user in Canada? A high credit score, coupled with a fair amount of credit card experience will increase your eligibility.
3) Compare all credit cards: Compare the best credit cards by assessing the key features and benefits to see if they appeal to you and your needs. Don’t jump at the first option you find. Explore and compare different credit cards on the market and choose the one that best suits your needs.
4) Apply online: At RATESDOTCA, you can select the credit card you want and apply online on the credit card issuer’s website.
In Canada, credit scores are officially calculated by two major credit bureaus, Equifax and TransUnion. These credit unions assess the information in your credit file to calculate your credit score. Your credit file has information about your payment frequency, loan history, and credit card debt. Credit scores range from 300 to 900. The higher your credit score, the better your chances of being approved for a credit card. High scores indicate that you’re less likely to miss any payments.
Here’s a simple breakdown of credit scores in Canada:
How fast you get approved for a credit card in Canada depends on your credit report and credit score. If you have a high credit score, you can expect instant approval. Usually, credit card approvals take anywhere between 5-7 days. In some cases, it can also take up to 30 days.
When it comes to credit cards in Canada, you have several different options to choose from. Each type of credit card offers you a unique advantage.
Learn about all the credit cards available in Canada.
Pro tip: You can also use a combination of rewards credit cards to meet your lifestyle needs. A no-fee credit card can function as a great secondary card for people who want to avoid any annual fee on their second credit card.
A balance transfer credit card allows you to transfer your existing credit card debt to another card and take advantage of a low interest rate. The interest rate may come with a time limit of 180 days, a few month or a year. By using a balance transfer credit card, you can reduce your credit card debt at a faster rate and rebuild your credit score.
If you use your balance transfer credit card for any new purchases before you pay off your existing credit card debt, you’ll be charged a standard interest rate, most cards charge a rate of 19.99% or more.
Also, be aware of the applicable transfer fee that comes with the new card. The transfer fee can be anywhere between 3%–5% of the amount of your total credit card debt.
Credit card lenders are financial institutions who offer credit cards to customers. They are authorized to change interest rates and rewards points on any purchases and cash advances at their discretion.
The major credit card lenders serving customers in Canada are: