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In Canada, the variety of credit card options can be dizzying at times. Some have points, benefits, offer travel, insurance, you name it.
However, some cards come with fees, and some don’t, which leads us to the following question:
What is a no-fee credit card?
Simply put, it’s a credit card without a yearly fee. Aside from that, it operates the same way as cards with fees. It used to be that no-fee cards didn’t really come with any rewards the way other cards do. But that has changed as competition has grown and consumer demands have changed. Many no-fee cards do offer rewards (sometimes at a lower value than cards with fees).
Despite carrying the ‘no-fee’ moniker, these cards may still have fees associated with them, including:
| First year value* | Credit score required | Winner | ||
|---|---|---|---|---|
| $480 | Fair | Rogers Red World Elite® Mastercard® | ||
| $545 | Good | American Express® Green Card |
*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 doesn’t charge an annual fee doesn’t mean it skimps on rewards. 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 | ||
|---|---|---|---|---|
| $480 | Excellent | Rogers, Fido and Shaw customers can earn 2% cash back. A 3% cashback value when redeeming points on Rogers, Fido, and Shaw purchases. | ||
| $468 | Good | Earn 2% cash back on gas and grocery purchases. | ||
| $425 | Fair | Up to 4% cash back on eligible restaurant, bar, and coffee shop purchases |
The Rogers Red World Elite® Mastercard® offers excellent cash back benefits, especially for Rogers, Fido, or Shaw customers. If you’re one of these customers, you can still earn up to $480 annually if you maintain a $2,000 monthly balance. You’ll earn 2% cash back on all eligible purchases, and when you use your cash back rewards to pay for Rogers, Fido, or Shaw purchases, you’ll get 1.5x more value, letting you maximize your rewards.
For those who frequently pay in U.S. dollars—whether it’s traveling or shopping online—the card gives you 3% cash back on U.S. purchases. Even if you’re not a customer of Rogers, Fido, or Shaw, you can still earn unlimited 1.5% cash back on eligible non-U.S. dollar purchases. These features give all cardholders rewarding ways to save on daily spending.
According to our Best of Finance methodology, the average Canadian will have $480 within the first year.
Annual fee
$0
Welcome bonus
N/A
Rewards
Rogers, Fido and Shaw customers:
If you are not a Rogers customer:
Earning potential
How does this card stack up to other rewards credit cards? We crunched the numbers using our Best of Finance methodology to see how much an average Canadian could earn over a 12-month period.
Rewards earned over a 12-month period + Cash bonus + Welcome bonus = $480 + $0 = $480
Benefits
Insurance coverage
The Simplii Financial™ Cash Back Visa* Card is a great fit for people who love dining out and want to avoid paying an annual fee. You can earn up to 4% cash back at eligible restaurants and bars, which is the card’s top earn rate. It also offers 1.5% cash back on gas, groceries, and pre-authorized payments, helping you save on everyday expenses. For any other purchases, you’ll earn 0.5% cash back. It’s a simple and rewarding way to get more value from your spending without any added costs.
Annual fee
$0
Limited time offer/bonus
Earn up to 10% cash back† for your first 3 months up to $1,000 eligible spend
Offer expiry date:
Ongoing
Rewards:
Cardholders of the SimplyCash® Card from American Express earn 1.25% on all purchases, with no limit on how much cash back you can earn. As with all Amex cards, you get solid insurance and entertainment perks.
According to our Best of Finance methodology, the average Canadian would earn around $468 cash back in the first year and $368 a year thereafter.
Annual fee
$0
Annual fee for additional cardholders: $0
Limited time offer/bonus
Offer expiry date: N/A - subject to change without notice
Rewards
Access the top travel rewards programs with these no-fee cards. While this batch of cards have 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* | Annual fee | Top features | ||
|---|---|---|---|---|
| $595 | $0 | Welcome Bonus of 10,000 Membership Rewards® points (equal to $100) when you charge $1,000 in purchases to your card in the first 3 months. Transfer points 1:1 to several frequent flyer and other loyalty programs. | ||
| $545 | $0 | 5,000 bonus points after you make $500 or more in eligible purchases within the first 90 days. Plus, 5,000 bonus points once enrolled for paperless e-statements within the first 90 days of account opening. | ||
|
Runner up |
$527 | $0 | Flexible travel rewards program. Get up to 10,000 Aventura Points (up to $100 in travel value) for no annual fee. |
The American Express® Green Card is a rewarding choice for both everyday spending and travel. In the first year, you can earn $340 in rewards, and $240 in the years after. You get one Membership Point® for every dollar you spend, and every 1,000 points equals a $10 statement credit. When it comes to travel, your points can cover the base rate of a round-trip ticket, which is the cost before taxes and fees. You can use points for economy or business class seats, with a fixed number of points needed for redemption. For example, short-haul economy flights within Canada or to nearby U.S. destinations start at 15,000 points, and flights to Europe start at 60,000 points. Business class tickets require more points.
The card also offers flexibility with how you use your points. With the Flexible Points Travel Program, you can use points to cover fees, taxes, and surcharges not included in the base ticket price. Additionally, you can redeem points for hotels, car rentals, and vacation packages. The card allows you to transfer points to participating airline and hotel rewards programs at a 1-to-1 exchange rate, including Air Canada’s Aeroplan program. This flexibility makes it a great option for maximizing rewards and travel perks.
Annual fee
$0
Welcome bonus
Earn a welcome bonus of 10,000 Membership Rewards® points ($100 value) when you charge $1,000 in purchases to your card in the first 90 days.
Rewards
1x point for every $1 in card purchases
Benefits
Insurance coverage
The MBNA Rewards Platinum Plus® Mastercard® is a solid choice for travel due to its range of benefits, especially for a no-fee card. It offers flexible points redemption, allowing cardholders to use points for travel, merchandise, gift cards, or as a statement credit. While it doesn't include travel insurance, it provides up to $2,000,000 in travel medical insurance for the first 21 days of a trip for those under 65, along with coverage for delayed and lost baggage, and trip delays. Additionally, cardholders can enjoy perks like a $1,000 mobile device insurance, extended warranty, and purchase protection. These features make it a practical option for travelers looking to earn rewards without an annual fee.
Annual fee
$0
Limited time offer/bonus
5,000 bonus points after you make $500 or more in eligible purchases within the first 90 days of your account opening. Plus, 5,000 bonus points once enrolled for paperless e-statements within the first 90 days of account opening
Four points for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases during the first 90 days (until $10,000 is spent annually in the applicable category)
Offer expiry date:
N/A
Rewards
The CIBC Aventura® Visa Infinite* offers good value for globe-trotters who want to maximize travel rewards and minimize fees. The Aventura points you earn with this no-fee travel card never expire, there are no blackout periods, and you can choose from hundreds of airlines. Flights start from as low as 10,000 points (short-haul flights in Canada and the U.S.) Earn double the points when you spend on eligible grocery stores, gas stations, and electric charging stations up to a spend of $6,000.
According to our Best of Finance methodology, the average Canadian would earn around $527 in rewards in the first year.
Annual fee
$0
Limited time offer/bonus
Offer expiry date: NA – Ongoing Offer
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.
Choosing the best no-fee credit card can be a daunting task. There are many choices with different rewards and benefit programs, as well as other transactional fees associated with them. Here’s a list of pros and cons to help you navigate the no-fee credit card environment.
| Pros | Cons |
|---|---|
|
No annual fees |
Fewer rewards or benefits per spend than cards with fees |
|
Can help you gain a credit history without extra expenses |
Not too many options for travel cards or travel perks |
|
They save you money |
If you fail to pay off the balance(s) each month the benefit of the no-fee may be negated |
|
Often come with welcome benefits |
You may have to spend a minimum amount within a certain time frame after opening the card to unlock its benefits |
|
Because there is no fee, they can act as a ‘back-up’ to other cards you might have |
Higher interest rates than cards with fees |
|
No-fee cards generally require a lower credit score than cards with fees |
|
Choosing the best no-fee credit card takes a bit of time and research. Sites like RATESDOTCA offer information on the best no-fee cards and what they offer. Here are some of the things you should consider when looking at the landscape of no-fee credit cards:
Got more questions about no-fee credit cards? We got you covered.
Each person has different financial and credit card needs. A debit card and no-fee credit card do different things for different circumstances. For example, a no-fee credit card can offer inexpensive credit, with the chance to earn rewards, and perhaps most importantly, create a credit history.
A Visa debit card does not allow you to earn rewards and does not help you build your credit. It simply allows you to make transactions with money you already have, rather than borrowing or using credit.
A no-fee credit card is great for people who are on a fixed income or have limited resources. The no-fee element helps them save money, while providing them with the benefits of using a credit card that can earn rewards and build a credit history.
It really depends. Each cards’ reward system is different. Some cards with cash back features can earn valuable rewards for your spending. But that might not be what you’re after. Perhaps. you are after travel or other rewards bonuses that you know make more sense to your lifestyle. Also, travel reward cards may have higher fees than cash back cards. It’s best to compare the cards on sites like RATESDOTCA and see what suits you best.
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