RATESDOTCA aims to help Canadians make better money decisions by recognizing the best credit cards in Canada at its 9th annual Best of Finance Awards.
Canadians’ spending behaviours are evolving during the COVID-19 pandemic, according to a recent survey by RATESDOTCA, suggesting a long-term shift toward e-commerce and contactless payment choices.
One such payment method is the credit card, a safe and often rewarding choice. Most cards allow users to make contactless payments through the physical card or a virtual e-wallet and typically offer an extra layer of protection when shopping online. Many credit cards also offer cash back, rewards, savings and perks.
To help consumers find the best money products, we annually audit and analyze the leading credit cards on the Canadian market, so you don’t have to. The Best of Finance Awards acknowledges some of the top products in the finance industry and weeds out the average contenders. We aim to help consumers—like you—find the right fit year-over-year.
At RATESDOTCA, we believe your credit card should match your lifestyle and spending needs, which is why we have revamped our awards categories. Our award winners focus on unique profiles, from the young professional to snowbirds and those looking to pay down their balance.
Our category nominees showcase the top benefits and perks from the best credit card providers in Canada. They feature a range of insurance coverages, flexible rewards redemption options, security features and countless extra perks. Not only that, but the Best of Finance methodology can tell you the first-year value of each card in the winner’s circle, whether it’s the return on rewards or savings in your pocket.
To carefully compare and select the 2020 Best of Finance Awards winners, 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.
So, without further ado, here are the 2020 Best of Finance winners:
This year we’ve highlighted the best rewards card in Canada and the four runners-up. It is clear to see that the American Express CobaltTM Card offers members an extraordinary amount of rewards within the first year. However, it’s not only about the cash back earned or points acquired with the top rewards credit cards. We compared every detail down to the insurance coverages and the eligibility requirements to determine the card that would be victorious.
Learn more: Best Rewards Credit Card in Canada for 2020
Learn more: Best No-Fee Credit Card in Canada for 2020
Learn more: Best Travel Credit Card in Canada for 2020
Learn more: Best Cash Back Credit Card in Canada for 2020
Learn more: Best Premium Perks Credit Card in Canada for 2020
Learn more: Best Credit Card for Paying Down Your Balance in Canada for 2020
Learn more: Best Credit Card for Rebuilding Credit in Canada for 2020
Learn more: Best Credit Card for Young Professionals in Canada for 2020
Learn more: Best Credit Card for Students in Canada for 2020
Learn more: Best Credit Card for Frequent Flyers in Canada for 2020
Learn more: Best Credit Card for Snowbirds or Cross-Border Shoppers in Canada for 2020
Learn more: Best Credit Card for Newcomers to Canada for 2020
Learn more: Best Credit Card for Families in Canada for 2020
To calculate the first-year value on each Canadian rewards credit card, we assumed a total monthly spend on the card of $2,000*, divided into the following categories:
Additional assumptions:
The Best of Finance methodology assumes the cardholder redeems their rewards for the highest point value. The RATESDOTCA comparison tool assumes the user redeems their points for travel when “travel” is selected and statement credits when “cash+” is selected to determine the first-year value.
*Source: Statistics Canada
To calculate the best overall rewards credit card, we weighed the perks, bonuses, and benefits of each card.
Each category was weighted as follows:
To calculate the first-year value of low-interest credit cards, we assumed the following:
To calculate the value of low balance transfer credit cards, we assumed the following:
Rates, product information, and rewards estimates are subject to change at any time and do not constitute financial advice. Information in this article is accurate as of the date of this posting, December 7, 2020. This article was first published on August 19, 2020.
This post has been updated.