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Rewards Cards are the best bet for people who pay off their balance and don't pay interest every month.
Low Interest Cards are helpful for individuals who are working to pay off their credit card balance.
Cash+ cards reward you with cashback, statement credits or points that can be exchanged in retail stores.
Travel cards reward you with points to be used for travel purchases and may come with travel perks like complimentary lounge visits.
Fee cards often offer superior rewards to no-fee cards, but we understand fees may not be for everyone. If you select "I Don't Mind" we will show you the best fee and no-fee cards.
Use our tool to select the card that best fits your lifestyle, compare the potential rewards or savings based upon your spending habits and the Perks and Insurance that come with each card.
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.
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Credit Card |
Category |
First Year Value |
|
Best credit card for earning rewards and for young professionals |
$1,822 |
|
|
$510 |
||
|
$415 |
||
|
$571 |
||
|
$269 |
||
|
$41 |
||
|
$364 |
||
|
Best travel credit card for Snowbirds and Cross Border Shoppers |
$874 |
|
|
$383 |
||
|
$476 |
To help consumers find the best money products, RATESDOTCA's Best of Finance team annually audits and analyzes the leading credit cards on the Canadian market. We converted miles and points into cash values, so every card was on equal terms. All interest rates on purchases and balance transfers were considered. To come up with the total first-year value of each card, the team scoured annual fees, promotional offers and each product’s fine print, deciphering the smallest of details. The credit cards that offered the highest first-year value ranked at the top of each category, except for one or two cards we couldn’t help but feel outweighed their competitors with their special qualities.
A great rewards credit card fits your lifestyle, rewarding you with points, travel miles or cashback. Not to mention exclusive access to variety of benefits such as, gift cards, retail discounts, hotel upgrades and more. When you use a rewards credit card to pay for a good or service, your transaction earns rewards, making paying with debit or cash seem unrewarding.
The American Express Cobalt cards is also a great option for you if you're a young professional, as you earn up to 5x the rewards on purchases like eats and drinks, food delivery, and groceries .
Looking for the best rewards credit card in Canada? Here's our Best of Finance pick for the top rewards credit card and the top card for young professionals.
Cardmembers of the American Express Cobalt Card can earn up to 45,000 bonus Membership Rewards® in the first year. That is equal to roughly $787 toward travel.
Earn 2,500 points each month you spend at least $500 on the card. Plus, when you apply by May 5, 2021, you can earn 15,000 Membership Rewards® points when you spend at least $3,000 in the first three months of opening the account.
This card is great for earning rewards on everyday purchases, and redemption is made easy. Cardholders can redeem their rewards for almost anything, and members can shop directly through Amazon.ca using their rewards.
According to our Best of Finance methodology, the average Canadian will see $1,822 in Membership Rewards® points in the first year.
Credit score requirement for approval
Fair: You have had a credit card or loan for one or more years. For the last two years or more, you’ve paid back debts to creditors with no defaults. You haven’t missed more than two payments on your credit in the last three months.
Monthly fee: $10 ($120 per year)
Limited time offer/bonus
Offer expiry date: May 5, 2021
Rewards
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 = 111,000 Membership Rewards® points
Monetary value= $1,942
Annual fee = $120
Total earned over the first year (rewards minus annual fee) = $1,822
*The $10 monthly fee was multiplied by 12 months to get the annual fee.
You can redeem your points for:
Insurance:
Other perks:
Are you looking for a no fee credit card? A no fee credit card is a great option for a new or occasional credit card user who doesn't want to pay an annual fee, yet still take advantage of the great rewards and perks from paying through a credit card. No fee cards also make great secondary credit cards to compliment a fee card. Here's our Best of Finance pick for the best no fee credit card in Canada.
Apply for the MBNA Rewards Platinum Plus Mastercard and get four times the MBNA Rewards points per dollar you spend on gas, groceries and restaurant purchases for the first 90 days, up to the $5,000 annual spending cap in each of in these categories.
Plus, earn 5,000 bonus points when you make at least $500 in eligible purchases within the first 90 days. Get another 5,000 bonus points when you sign up for paperless e-statements within the same period. Redeem your rewards through the MBNA Rewards Catalogue for travel, merchandise and more.
According to our Best of Finance methodology, the average Canadian will see $510 in MBNA Rewards points within the first year.
Credit score requirement for approval
Good: You’ve had a credit card or loan for at least six years. You’ve had good credit for the last seven years (no bankruptcies or defaults on credit as a result of failing to pay debts back to creditors). You haven’t opened a new credit card account, loan, or line of credit in the last nine months. You’ve made the minimum payments on any existing credit cards for the past three months.
Annual fee: $0
Limited time offer/bonus
Offer expiry date: N/A subject to change without notice
Rewards
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 = 51,000 MBNA Rewards points
Monetary value= $510
Annual fee = $0
Total earned over the first year (rewards minus annual fee) = $510
You can redeem your points for:
Insurance:
Other perks:
A great travel credit card allows you to earn rewards points or miles through every transaction. Amongst all credit cards these rewards are usually the greatest value when you use them for travel related redemptions. If you're a traveller who enjoys discovering new cities, cultures and cuisines, why not supplement your lifestyle with a travel credit card? Get rewarded for purchases you were already going to make and enjoy perks like complimentary insurance or skip the need for foreign currency exchange with the a travel credit card that doesnt card a fee on foreign transactions.
For snowbirds or those that enjoy cross-border shopping, a great travel credit card for you can allow you to easily plan your trips across the border, without having to worry about dealing with any foreign currency as well. Plus, feel like you are covered with benefits like complimentary medical insurance.
Here's the Best of Finance top travel credit card and best credit card for snowbirds and cross-border shoppers.
Apply for the Scotiabank Gold American Express Card and earn 25,000 bonus Scotia Rewards points when you make at least $1,000 in purchases in your first three months. That is a $250 travel value. Plus, pay no foreign transaction fees on purchases made abroad or at foreign merchants online. Although the exchange rate still applies, cardholders will not pay the foreign transaction charges, which are typically around 1.5% to 3% of the purchase price.
Scotiabank Gold American Express® Cardmembers can also take advantage of the Best Price Guarantee on airfare booked through the Scotia Rewards Travel Service and the extensive travel insurance coverage included on the card.
According to our Best of Finance methodology, the average Canadian will see $874 in Scotia Rewards points within the first year.
Credit score requirement for approval
Good: You’ve had a credit card or loan for at least six years. You’ve had good credit for the last seven years (no bankruptcies or defaults on credit as a result of failing to pay debts back to creditors). You haven’t opened a new credit card account, loan, or line of credit in the last nine months. You’ve made the minimum payments on any existing credit cards for the past three months.
Annual fee: $120
Limited time offer/bonus
Offer expiry date: February 28, 2021
Rewards
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 = 99,400 Scotia Rewards points
Monetary value= $994
Annual fee = $120
Total earned over the first year (rewards minus annual fee) = $874
You can redeem your points for:
Insurance:
Other perks:
Are you a frequent traveler? Use this travel credit card and take advantage of great travel benefits, such as lounge access and trip cancellation insurance to make your sure your trips are as stress free as possible. Plus enjoy no fee foreign transaction if you pay with your card while you are abroad. Best of all, you can save money by using your earned travel rewards to book your next trip. Here's our top travel credit card for the frequent traveler.
Frequent flyers will enjoy the Scotiabank Passport Visa Infinite Card. Pay no foreign transaction fees on purchases and access a full suite of travel insurance. Plus, get six free lounge visits per year and the Best Price Guarantee on airfare when you book through the Scotia Rewards Travel Service.
For a limited time, get 20,000 bonus Scotia Rewards points when you spend at least $1,000 in the first three months. Get an additional 10,000 Scotia Rewards points when you spend at least $40,000 annually.
According to our Best of Finance methodology, the average Canadian will see $415 in Scotia Rewards points in the first year.
Credit score requirement for approval
Excellent: You’ve had a credit card or loan for at least 10 years. You’ve had good credit for the last seven years (no bankruptcies or no defaults on credit as a result of failing to pay debts back to creditors). You haven’t opened a new credit card account, loan, or line of credit in the last nine months. You’ve made the minimum payments on your existing credit cards for the past six months.
Annual fee: $139 - Get your first supplementary card for free. Each additional card has a $50 annual fee.
Limited time offer/bonus
Offer expiry date: February 28, 2021
Rewards
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 = 55,400 Scotia Rewards points
Monetary value= $554
Annual fee = $139
Total earned over the first year (rewards minus annual fee) = $415
You can redeem your points for:
Insurance:
Other perks:
When you get a cash back credit card, you can save money all of your purchases by earning instant cash back or statement credits, allowing you to cover more than just the annual fees. For simplicity, cashback cards take the guess work out of how you want to use your rewards. Here is our pick for the best cash back credit card in Canada. Easily earn cash back on eligible grocery and gas purchases and much more.
Apply for the TD Cash Back Visa Infinite Card and get 6% cash back on everything you buy for the first three months, up to $2,000 in total purchases. Plus, TD will rebate the annual fee for both the primary and secondary cardholders for the first year.
Regularly earn 3% cash back on grocery and gas purchases, as well as recurring bill payments. Get 1% back everywhere else you shop.
According to our Best of Finance methodology, the average Canadian will see $571 cash back in the first year.
Credit score requirement for approval
Good: You’ve had a credit card or loan for at least six years. You’ve had good credit for the last seven years (no bankruptcies or no defaults on credit as a result of failing to pay debts back to creditors). You haven’t opened a new credit card account, loan, or line of credit in the last nine months. You’ve made the minimum payments on my existing credit cards for the past three months.
Annual fee: $120 - Each supplementary card has a $50 annual fee.
Limited time offer/bonus
Offer expiry date: May 30, 2021
Rewards
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 = $571 TD Cash Back Dollars
Annual fee = $0
Total earned over the first year (rewards minus annual fee) = $571
*The $120 annual fee is waived for the first year.
Redeem points
You can redeem points for:
Insurance:
Other perks:
If you're a newcomer to Canada, you probably will have little to no Canadian credit history. Using a credit card to build your credit history is a very important, as a healthy credit score can help you become eligible to apply for a variety of goods and services such as, mortgages and mobile phones. Even more than just earning on purchases, our top pick has great programs to help newcomers adjust to Canadian financial life. Here is our Best of Finance pick for the best credit card for newcomers.
Newcomers to Canada can start on the right foot with the BMO CashBack Mastercard. This card has high approval rates, and it offers great rewards. Plus, for a limited time, cardholders can earn 5% cash back for the first three months. Conditions apply. After, earn 3% cash back on the first $500 in groceries each month, 1% back on the first $500 in recurring bill payments monthly, and 0.5% unlimited cash back on everything else you buy.
According to our Best of Finance methodology, the average Canadian will earn $383 back in the first year.
Credit score requirement for approval
Typically, this credit card requires a good credit score. However, for newcomers (or those with a thin credit profile), applications are evaluated on a case-by-case basis.
Good: You’ve had a credit card, or loan for at least six years. You’ve had good credit for the last seven years (no bankruptcies or no defaults on credit as a result of failing to pay debts back to creditors). You haven’t opened a new credit card account, loan, or line of credit in the last nine months. You’ve made the minimum payments on my existing credit cards for the past three months.
Annual fee: $0
Limited time offer/bonus
Offer expiry date: October 31, 2021
Rewards
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 = $383
Annual fee = $0
Total earned over the first year (rewards minus annual fee) = $383
You can redeem your points for:
Insurance:
Other perks:
As a student, saving money to cover tuition and living expenses is very important. A student credit card can help you save money on annual credit card fees, while also providing great student rewards such as cash back and retail discounts. Not to mention the opportunity to build your credit history before you graduate and tackle a world full of opportunities. Here is our top pick for the best student credit card in Canada.
The BMO CashBack Mastercard lets students earn cash back on their necessities, including groceries, recurring bill payments and everything else they buy like textbooks and pub grub. For a limited time, students can earn 5% cash back for the first three months. Conditions apply.
According to our Best of Finance methodology, the average Canadian will earn $364 back in the first year.
Credit score requirement for approval
Good: You’ve had a credit card or loan for at least six years. You’ve had good credit for the last seven years (no bankruptcies or defaults on credit as a result of failing to pay debts back to creditors). You haven’t opened a new credit card account, loan, or line of credit in the last nine months. You’ve made the minimum payments on any existing credit cards for the past three months.
Annual fee: $0
Limited time offer/bonus
Offer expiry date: October 31, 2021
Rewards
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 = $364
Annual fee = $0
Total earned over the first year (rewards minus annual fee) = $364
You can redeem your points for:
Insurance:
Other perks:
Tired of being rejected due to a bad credit rating? Rebuild your credit by using a secured credit card. You can get a secured credit card in Canada by putting down a security deposit to protect you and the lender from missed payments. Best of all, with a secured credit card, you can exercise good credit habits by making small transactions and paying your credit card bill on time. Such habits will help you rebuild your credit. Having an improved credit score can help you gain access to more goods and services such as, a mortgage or a financed vehicle. Here is our Best of Finance pick for the best secured credit card.
The Home Trust Secured Visa card has a low-interest rate of 14.90% on purchases. Cardholders can set their own limit with the amount of their secured deposit and build their credit rating. This card allows users to buy online, pay bills and shop anywhere Visa is accepted.
Credit score requirement for approval
No credit: You currently do not have a credit card or loan in your name. You need to improve your credit due to a recent bankruptcy or default on a loan.
Annual fee: $59 - Or, pay monthly: $5
Credit limit (deposit):
$500 to $10,000
Insurance:
Carrying a hefty balance on your credit statement month-over-month? It may be time to pay off your credit card balance once and for all. A low interest credit card will help you pay off your balance quicker, as a majority of your payment will go to your amount owing, rather than your interest. Our pick not only has a low interest rate to help you pay down your balance, it is also rewards users for their purchases on the card, which is very rare for low interest credit cards. Here is our top pick for the best credit card for paying off your balance.
The HSBC +Rewards™ Mastercard offers cardholders an annual interest rate of 11.9% on purchases, balances transfers and cash advances for a low annual fee of $25 per year. Not only that, but this card also offers HSBC Rewards points and price protection.
According to our Best of Finance methodology, the average Canadian will see $244 in HSBC Rewards points within the first year. Not only that, but this card also has a low-interest rate and would save the average Canadian $161.80 in interest charges over the first 12 months. That makes the first-year value for this credit card roughly $405.80.
Credit score requirement for approval:
Fair: You’ve had a credit card or loan for one or more years. For the last two years, you’ve paid back debts to creditors (with no defaults). You haven’t missed more than two payments on your credit in the last three months.
Annual fee: $25 - Supplementary cards have an annual fee of $10.
Limited time offer/bonus
Offer expiry date: December 28, 2020
Rewards
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 = 48,800 HSBC Rewards points
Monetary value= $244
Annual fee = $0
Total earned over the first year (rewards minus annual fee) = $244
*The primary cardholder receives a rebate for the $25 annual fee for the first year.
First-year savings
We compared a credit card with a $2,000 balance and a standard interest rate of 19.99% to the HSBC +Rewards Mastercard with an interest rate of 11.90%. The average Canadian could save roughly $161.80 in interest charges with this low-interest credit card.
Credit card balance = $2,000
19.99% interest rate = $399.80
11.90% interest rate = $238.00
First-year savings (what you would be paying on a standard credit card – what you would be paying on a low-interest credit card) = $161.80
*The annual fee is accounted for in the rewards calculation.
You can redeem your points for:
Insurance:
Other perks:
The right credit card can help you and your family save money on your day-to-day transactions, becoming a great savings tool. So why not use a credit card that rewards you when you purchase groceries, pay your bills or buy your family gifts? With no fee, getting the perfect credit card for your family's lifestyle will help you maximize the value of your money today. See our top pick for the Canadian best credit card for families.
The President’s Choice Financial World Elite Mastercard is offering new cardholders 20,000 bonus PC Optimum points when they make their first purchase using the card. Not only will this card earn free groceries, but you can also earn rewards faster as a household. PC Optimum points are easy to redeem, and you only need a $10 value before you can cash in on free products and groceries. Plus, you can double-dip on points when you use your loyalty program card at the check-out.
According to our Best of Finance methodology, the average Canadian will see $476 in PC Optimum points within the first year.
Credit score requirement for approval:
Fair: You have had a credit card or loan for one or more years. For the last two years or more, you’ve paid back debts to creditors with no defaults. You haven’t missed more than two payments on your credit in the last three months.
Annual fee: $0
Limited time offer/bonus
Offer expiry date: December 31, 2020
Rewards
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 = 476,000 PC Optimum points
Monetary value= $476
Annual fee = $0
Total earned over the first year (rewards minus annual fee) = $476
Redeem points
Start to redeem your rewards as soon as you collect 10,000 PC Optimum points, which is a $10 value.
Redeem points at Loblaw banner stores, including Loblaws, No Frills, Real Canadian Superstore, Valu-Mart, Zehrs, Independent, Fortinos, and Wholesale Club, as well as Shoppers Drug Mart locations.
Redeem points online through:
Insurance:
Other perks:
*Rates, product information and rewards estimates are subject to change at any time and do not constitute financial advice.
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:
