Comparing Canadian vs US Credit Card Brands: What You Need to Know

It’s nearly impossible to exist without a credit card in today’s society. These borrowing tools are useful for both online and in-store purchases. They can help you build credit, manage cash flow and earn rewards. 

With many benefits to credit cards, it’s no wonder that they are popular throughout North America. As of 2019, 83% of Americans owned a credit card and 90% of Canadians had at least one credit card. While the use of a credit card is similar in both countries, there are key differences among the credit card brands available on each side of the border.

While both countries share similar card types and benefits, their credit card markets differ significantly. In the US, intense competition among issuers results in higher rewards, larger sign up bonuses, and more premium features, often with no annual fee. Canadian cards, on the other hand, tend to offer fewer perks and more modest bonuses but operate in a more regulated and stable environment dominated by major banks. Interest rate structures also differ, with fixed rates common in Canada and variable APRs in the US. Ultimately, while American cards generally offer richer rewards, Canadian cards provide simpler, more predictable options for consumers.

We’ll now break down the mentioned items in more detail below.

The Credit Card Landscape in Canada vs. the US

How does a credit card in Canada compare to a credit card in the United States? To begin, they both offer rewards and have multiple card types, allowing users to choose the best cashback credit cards, best travel credit cards, and best low-interest credit cards. They may even provide promotions such as introductory interest rates or waived annual fees. However, once you dig a little deeper, the differences begin to emerge.

In Canada, the 5 major banking institutions dominate the credit card market. These include RBC, TD, Scotiabank, CIBC and BMO. Recently, fintech firms (including KOHO and Neo) have also entered the Canadian credit card market. Most of the cards these companies offer are through partnerships with Visa and Mastercard, though some have American Express options.

South of the border, the US credit card market has a wider array of issuers ranging from large banks (Chase and Citibank) to smaller institutions (credit unions and regional banks). American consumers have access to hundreds of options.

Rewards and Perks

With more credit card offerings in America, competition is fierce. This brings issuers to offer more perks. For example, US credit cards are known for large sign-up bonuses, higher credit limits and generous rewards programs. The payoff for these perks is more fine print and sometimes stricter eligibility requirements, especially for non-US residents.

In comparison, Canadian credit cards typically offer more modest rewards. For example, on Oct 15th 2025, the US version of the American Express Platinum card provides cardholders with up to 175,000 Membership Rewards points. Whereas the Canadian version only offers up to 150,000 Membership Rewards points.

Annual Fees and Interest Rates

A key element of choosing a credit card is the costs involved. This is where you’ll notice a difference between Canadian and US credit cards. In the United States, there are plenty of no-annual-fee credit card options, some even offer premium perks like cash back rewards. There are no-fee credit cards available in Canada too; however, they tend to have fewer perks. Canadians will usually need to pay an annual fee to unlock premium perks. This difference stems from the regulatory environment of each country as well as the degree of issuer competition.

Then there are interest rates, which represent the cost of borrowing. In Canada, the standard interest rate on credit cards is between 19.99% and 25.99%. Low-interest credit card options do exist though, offering rates between 9.99% and 13.99%. American credit cards have a different setup altogether. Instead of having a fixed interest rate, these cards have variable APRs that depend on both the applicant’s credit score and the overall market conditions. As of August 2025, the average credit card rate in America was 25.34%.

Credit Score Requirements

As many of you know, getting approval on a credit card application will depend on your credit history. While this is true in both Canada and the US, credit scoring models change based on the country. Canadian scores rely on Equifax and TransUnion data which factor in your credit utilization ratio and account history.

In America, credit card issuers rely on a FICO score, which includes similar information. There are different versions of the calculation, though. For example, FICO Score 8 is the most commonly used method for credit card applications. FICO Score 9 includes additional information like rent and utilities history.

So, how do Canadian credit scores and FICO scores differ? They may seem similar at first, but the formulas are not the same. This means that your credit score could be different in Canada than in the US (even with similar credit behaviour).

Customer Service & User Experience

When it comes to managing your credit card, customer service can make all the difference. One way you interact with the bank is through their mobile app. In Canada, app quality has improved, though major banks still place more emphasis on in-branch service. Across the border, major credit card providers offer 24/7 support as well as advanced mobile features. You can see the difference in these apps through their ratings in the Google Play Store. RBC’s mobile app has a rating of only 2.5 stars, while the American Chase mobile app gets a much higher ranking of 4.5.

Frequently Asked Questions (FAQ)

Can a Canadian get a US credit card?

Canadians can, in fact, get a US credit card, but the process is complicated. In order to apply for a US card, Canadians must complete an application showing a US address and an Individual Taxpayer Identification Number (ITIN). Or, they can also show evidence of an existing banking relationship with a US institution.

Are US reward programs better than Canadian ones?

In many cases, they are. With more competition, US credit card rewards programs tend to offer larger welcome bonuses, higher earn rates, and more attractive perks, especially for travel rewards. In Canada, rewards programs are generally less valuable than their American counterparts. While some cards offer strong value, the incentives often pale in comparison to those available south of the border.

What’s the best Canadian credit card for cross-border use?

While American credit cards require a different qualification process, some Canadian financial institutions do have US dollar cards. For example, consider the RBC US Dollar Visa Gold and the BMO US Dollar Mastercard which are both convenient for Canadians without US bank access. If you are an Ontario resident then you can also apply for the Meridian Visa US Dollar Card.

How do US and Canadian credit scores compare?

The difference between US and Canadian credit scores comes down to a slightly different structure and credit reporting. In the US, lenders use FICO scores (ranging from 300 to 850). Canadian credit scores come from Equifax and TransUnion, with scores reaching as high as 900. Similar to FICO, these Canadian scores consider payment history and credit utilization. Check out our article about Canadian credit bureaus for more information.