Best Credit Cards in Canada - September 2025

How Do Credit Cards Work?

Credit is essentially a financial agreement that allows you to borrow money to make purchases with the understanding that you’ll repay the borrowed amount later. When you use credit, like with a credit card, you're temporarily using the lender's money, which you’ll need to pay back by a specified date. Typically, you’re given a grace period, which is between 21 and 25 days, to pay off the balance. If you repay the full amount within this period and by the due date, no interest is charged.

Here’s a quick breakdown of a typical credit card transaction when, for example, you purchase a coffee at your favourite coffee shop:

1. You use your credit card to buy the coffee.
2. Your card details are sent to the store's bank, known as the acquiring bank.
3. The acquiring bank seeks payment approval. This request is forwarded to the payment network associated with your card, such as Visa, Mastercard, or American Express.
4. The transaction is approved.
5. The amount for your coffee is deducted from your available credit. You then see the purchase on your credit card statement, along with the due date and the minimum payment required. If you settle the entire balance, no interest will be charged.

Different Types of Credit cards in Canada

When choosing the right credit card, it's important to know the various types available, especially if you're interested in earning cashback, points, or improving your credit. Here's a breakdown of the most common credit card options:

Cashback and Points Credit Cards in Canada

Cashback credit cards give you a percentage back on your purchases, typically in categories like groceries, gas, or dining. Some offer a flat rate on all spending, while others provide higher rewards for specific categories. Points cards allow you to accumulate points that can be redeemed for travel, merchandise, or gift cards, making them ideal for those who want flexibility in how they use their rewards.

You can review some of the best cashback credit cards here:

1. Neo World Elite Mastercard review
2. Simplii Financial Cash Back Visa Card review
3. SimplyCash Preferred Card from American Express review

You can also find reviews of some of the best points and rewards credit cards here.

1. American Express Cobalt Card review
2. MBNA Rewards World Elite Mastercard review
3. Scotiabank Gold American Express Card review

Student Credit Cards in Canada

Student credit cards are a great starting point for young adults building credit. They typically have low fees and offer simple rewards like cashback on daily expenses. Some cards even provide bonuses for maintaining good grades. By using these cards responsibly, students can establish a strong credit history for future financial needs. See best student credit cards to learn more.

Explore our curated list of the best student credit cards available in Canada below:

1. Students – BMO CashBack Mastercard
2. Tangerine Money-Back Credit Card
3. Scotiabank Scene+ Visa Card

High-Limit Credit Cards (Charge Cards) in Canada

If you have a strong credit score, high-limit credit cards or charge cards provide the ability to make larger purchases without negatively impacting your credit utilization. Charge cards, which often come with no pre-set spending limit, require that you pay the balance in full each month. These cards are useful for big purchases but demand disciplined financial management.

The American Express Platinum Card is one of the most famous charge cards in Canada. You can read our review here.

Secured Credit Cards in Canada

For individuals looking to build or rebuild their credit, secured credit cards are a valuable tool. These cards require a security deposit, which serves as your credit limit. While they may not offer many rewards, they report to credit bureaus and can help improve your credit score over time. Once your credit improves, you may transition to unsecured cards. See best secured credit cards in Canada to learn more.

Here’s our review of one of the best secured cards: Neo World Mastercard Secured review

Balance Transfer Credit Cards in Canada

Balance transfer credit cards are designed to help people pay off high-interest debt by offering a 0% APR for a set period on transferred balances. This allows you to consolidate your debt and pay it off interest-free, saving money in the long run. Just be mindful of any balance transfer fees and the terms after the introductory period ends. See best balance transfer credit cards in Canada to learn more.

Here’s a list of some of the best balance transfer cards:

1. MBNA True Line Mastercard review
2. Scotiabank Value Visa Card review
3. CIBC Select Visa Card review

Starter Cards for Building Credit in Canada

In addition to secured cards, starter credit cards are available for those new to credit or rebuilding their score. These cards typically have lower limits and fewer rewards but offer an essential stepping stone to building a solid credit history. See best credit building credit cards in Canada to learn more.

Find details on some of the best credit building cards below:

1. BMO CashBack Mastercard review
2. Scotia Momentum No-Fee Visa Card review
3. CIBC Dividend Visa Card review

Travel Credit Cards in Canada

Travel credit cards, including airline-branded and hotel-branded cards, are perfect for frequent travelers. Airline cards often include perks like free checked baggage and priority boarding, while hotel cards offer points for free nights and upgrades. Both types usually have sign-up bonuses, allowing you to earn rewards quickly.

Some credit cards waive foreign transaction fees, allowing individuals to save around 2.5% on purchases made abroad. You can find our top picks here: Best No Foreign Transaction Fee Credit Cards in Canada.

Selecting the right card, whether for cashback, travel, or improving your credit, can help you maximize your financial goals. Be sure to compare your options and choose the one that fits your lifestyle and spending habits. See best travel credit cards in Canada to learn more.

You can also review some of the best travel credit cards in Canada here:

1. Scotiabank Passport Visa Infinite Card review
2. TD First Class Travel Visa Infinite Card review
3. Marriott Bonvoy American Express Card review

How Many Credit Cards should you have?

When deciding how many credit cards to have in Canada, the answer isn’t one-size-fits-all. The ideal number of cards depends on your financial situation, spending habits, and how well you manage them. Some Canadians may get by just fine with one card, while others might find value in carrying multiple to take advantage of different rewards and benefits. It’s important to consider your goals—whether you want to maximize rewards for specific purchases like travel, groceries, or gas—or simply maintain a good credit score. The right setup will differ for each individual, and there’s no set rule for how many cards you should have.

Managing multiple cards effectively requires careful attention to a few key factors. For instance, avoid maxing out any card to keep your credit utilization low, and always pay your balance in full each month to avoid interest. Keeping older credit card accounts open can help lengthen your credit history, which contributes positively to your credit score. However, opening too many cards at once can have a negative impact on your score due to multiple credit inquiries. For many Canadians, managing 3-5 cards is a practical approach, allowing you to earn rewards in different categories while keeping your finances organized. As long as you stay disciplined with payments and track your spending, multiple cards can offer substantial benefits without leading to financial trouble.

How we picked these cards

There’s no single best credit card for everyone. The ideal card depends on factors like an individual’s spending habits, credit score, income, travel frequency, and the perks they value most. That’s why we’ve matched cards to different groups based on approval likelihood and overall value.

If you already know what you're looking for, you can explore our categories and choose a card that fits your needs. If you'd prefer a personalized recommendation, use our credit card comparison tool. Just enter your spending details, and we'll help you find the best match.