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With the sheer volume of choices available to credit card users, trying to settle on one specific card is a tough decision. You'll be tempted to get a card with rewards, air miles, cash back or various other perks offered by credit card companies.
As you start comparing credit cards, you'll notice that many of the rewards credit cards come with annual fees, and some of these may cost you over $100 yearly. If one intends to use a credit card often, the rewards collected will often justify the fee. What if you want to use the credit card occasionally or carry it just for emergencies?
In such cases, a no annual fee credit card will make sense. As you continue to shop for the best credit card for your needs, you'll likely notice no annual fee credit cards sometimes do offer some incentives and also have competitive interest rates. It is possible to get a credit card that combines some good features such as cash back rewards without paying an annual fee.
However, be aware that some no annual fee credit cards may just waive the fee for a limited amount of time. For example, there are credit card companies that will offer you a no annual fee for a year and charge you fees after that time is up. You may also find your fee is waived annually due to a special promotion or discount offer.
It is also important to check for a suitable rate of interest. You don't necessarily want to save on the annual fee only to be charged a higher interest rate. You'll have to decide if the interest rate combined with the savings on the annual fee makes financial sense for your spending habits.
By carefully examining the terms and conditions of these no annual fee cards, and comparing them to alternatives, credit card shoppers will be able to make the right choice.
Many credit cards offer great rewards for purchases like travel, groceries, gas, and recurring bill payments. Credit cards like these make sense, as most people spend a significant amount of their monthly budgets in these categories — that is, most of the time. However, expenses can change month-over-month, and so can spending habits. Will your credit card reward you for your next home renovation or road trip? How about your daily parking fees or transportation costs? A versatile credit card that can keep up with your lifestyle can help you maximize your cash back.
That's where the Tangerine Mastercards shine. Tangerine is the only major bank in Canada that offers a credit card with bespoke reward categories. WIth both cards, every month, you have the option to choose which spending categories will earn you the most cash back rewards on your card, and all for no fee.
Learn more about the Tangerine World Mastercard® and Tangerine Money-back Credit Card below or use the RATESDOTCA Credit Card Marketplace to compare cash back cards to see how they stack up.
| First year value* | Credit score required | Winner | |
|---|---|---|---|
| $383 | Good | BMO CashBack® Mastercard®* | |
| $503 | Good | MBNA Rewards Platinum Plus® Mastercard® |
*The RATESDOTCA Best of Finance methodology assumes the cardholder spends an average of $2,000 a month on their card to determine the first-year value. The calculation includes all welcome bonuses and promotional offers at the time of publishing.
Just because a card charges no fee doesn’t mean it offers no value. Many no-fee credit cards offer hundreds of dollars in cash back for making everyday purchases and feature additional benefits like shopping coverage or exclusive offers.
We compared the top no-fee cash back credit cards using our Best of Finance methodology and ranked the cards that provided the highest first-year value.
| First year value* | Credit score required | Top features | |
|---|---|---|---|
|
1. BMO CashBack® Mastercard®* - WINNER |
$383 | Good | Earn 3% cash back on your first $500 in groceries monthly |
|
2. SimplyCash™ Card from American Express - Runner-up |
$465 | Good | Earn 1.25% cash back on all purchases |
|
3. Tangerine World Mastercard® - Runner-up |
$409 | Fair | Earn 2% cash back in up to three categories of your choice |
The BMO CashBack® Mastercard®* offers cardholders up to 5% cash back on all purchases for the first three months, up to $2,500 in spending. After the first three months, get 3% cash back on the first $500 in grocery purchases and 1% back on the first $500 in recurring bill payments monthly. Get 0.5% unlimited cash back on all other purchases.
This card rewards cardholders for buying everyday essentials and features basic shopping coverage, all for no annual fee.
According to our Best of Finance methodology, the average Canadian would earn around $383 cash back in the first year.
Cardholders of the SimplyCash™ Card from American Express earn 1.25% cash back on all purchases, no matter the category. That means cardholders can earn more on miscellaneous purchases like gifts and technology — items that usually fall outside the accelerated spending categories found on most credit cards.
According to our Best of Finance methodology, the average Canadian would earn around $465 cash back in the first year.
Annual fee:
$0
Limited time offer/bonus:
Offer expiry date: N/A subject to change without notice
Rewards:
The Tangerine World Mastercard® offers a rare feature only paralleled by the Tangerine Money-Back Credit Card — the ability to switch accelerated earning categories to maximize rewards. Cardholders can earn 2% cash back in up to three Money-Back Categories of their choice with options including groceries, gas, furniture, home improvements and even parking. Cardholders can choose the spending categories that reward them the most and tailor them to keep up with ever-changing circumstances.
This card also features mobile device insurance and basic travel perks.
According to our Best of Finance methodology, the average Canadian would earn around $409 cash back in the first year.
Annual fee:
$0
Limited time offer/bonus:
Offer expiry date: N/A subject to change without notice
Offer expiry date: November 30, 2021
Rewards:
Earn 2% cash back in up to three categories of your choice. Start with two Money-Back Rewards Categories and earn a third when depositing your rewards into a Tangerine Savings Account. Get 0.50% unlimited cash back on everything else.
Tangerine Money-Back Categories:
Change up your categories to match your spending style and maximize your rewards.
Access the top travel rewards programs with these no-fee cards. While they feature slightly lower earn rates than their counterparts with a fee, they still provide excellent value and great perks.
Plus, these cards can slide into your wallet as a primary or secondary credit card, and you don’t have to worry about another annual expense. You can use the card as often or sparingly as you like without having to justify its worth.
We compared the top no-fee travel credit cards using our Best of Finance methodology and ranked the cards that provided the highest value while also considering additional complimentary travel perks and benefits.
| First year value* | Credit score required | Top features | |
|---|---|---|---|
|
1. MBNA Rewards Platinum Plus® Mastercard® - WINNER |
$503 | Good | Flexible MBNA Rewards program |
|
2. CIBC Aventura® Visa * Card - Runner-up |
$527 | Good | Use Aventura Points to cover airfare, taxes and fees |
|
3. BMO AIR MILES† Mastercard* - Runner-up |
$343 | Good | Earn more with AIR MILES Partners |
The MBNA Rewards Platinum Plus® Mastercard® offers cardholders four points for every $1 spent on eligible grocery, restaurant, digital media, membership, and household utility purchases for the first 90 days, up to the $10,000 annual spend cap in each category. After, earn two points for every $1 spent in these categories ($10,000 annual cap in each category) and one point for every $1 spent on all other purchases.
This card also features $1,000,000 travel accident insurance, unexpected return home insurance and car rental accident insurance.
According to our Best of Finance methodology, the average Canadian would earn around $503 in rewards in the first year.
The CIBC Aventura® Visa * Card offers cardholders up to 10,000 bonus Aventura Points in the first year, a travel value of up to $100. This card also features basic travel insurance, not typically found on a no-fee card and Aventura Travel Assistant for personalized travel planning with no booking fees.
According to our Best of Finance methodology, the average Canadian would earn around $527 in rewards in the first year.
Annual fee:
$0
Interest rate:
Limited time offer/bonus:
Earn up to 10,000 Aventura Points in the first year. Get 7,500 Aventura Points when you make your first purchase using the card. Get an additional 2,500 Aventura Points, 500 points for completing each of the five following activities in the first 60 days:
Offer expiry date: N/A subject to change without notice
Rewards:
New cardholders of the BMO AIR MILES† Mastercard* can earn up to 800 AIR MILES Bonus Miles when they spend at least $1,000 in the first three months. That is $80 in AIR MILES Cash. Regularly earn one Mile for every $25 in purchases on the card and get three Miles for every $25 spent at participating AIR MILES Partners, like Metro, Foodland and Shell.
According to our Best of Finance methodology, the average Canadian could earn around $343 in Miles in the first year.
Annual fee:
$0
Limited time offer/bonus:
Offer expiry date: December 6, 2022
Rewards:
RATESDOTCA may receive compensation when you click on links to those products or services. however, our content and calculations are objective and free from bias. The opinions expressed are purely those of RATESDOTCA; thus, partners are not responsible for any editorials or reviews that may appear. For current term and conditions on any advertiser or partner’s product, please visit their website.
