Compare Credit Cards in Canada and Find the Best Credit Card for You
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We've implemented extensive features in our tool to help you find your best credit cards.
Compare and Find
We've gathered nearly all credit cards in Canada into one place, complete with their details about benefits, insurance options, rewards, and requirements. You can input specific information about yourself to quickly narrow down the best credit cards.
Rewards Calculator
FinlyWealth's Advanced Calculator tool provides a clear estimate of the cashback or points you can earn with each card. Since rewards are often the most significant differentiating factor for many people when choosing a card, we have focused on making this feature as accurate as possible, whether you are seeking the best points-based or cashback credit card.
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Scotiabank Passport® Visa Infinite* Card
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What's on this Page
- Compare Credit Cards
- Methodology
- Best Credit Card in Canada
- Best Cashback Credit Card
- Best Rewards (Points) and Best Flexible Redemption Credit Card
- Best Signup Bonus Credit Card
- Best Travel Credit Cards
- Best Insurance Credit Card
- Best Secured Credit Card
- Best Low Interest Credit Card
- Best Balance Transfer Credit Card
- How Do Credit Cards Work?
- How Does Credit Card Interest work?
- Different Types of Credit cards
- How Credit Card Rewards Work?
- How Many Credit Cards should you have?
- Who is the Best Credit Card issuer in Canada?
- FAQ
Methodology
As part of our process, we looked at all available credit cards in Canada including cashback cards, reward cards, travel cards, and signup bonus cards.
For each card, we gathered information that potential cardholders might use in their decision-making such as:
- Annual Fees
- Reward Categories
- Perks and benefits
- Insurance
- Welcome Bonus
- Interest rate
Each of these information points is weighted depending on which category the card is being chosen for, and the best card is then selected.
See more on our best Credit Card list
- Best Travel Card
- Best Cash-Back Card
- Best Balance Transfer Credit Card
- Best Student Credit Card
- Best Secured Credit Card
- Best Card for Gas
- Best Cards for Groceries
- Best Cards for Signup bonus
Best Credit Card in Canada
Our choice for: Overall Best Credit Card in Canada, great at earning points to be used for travelling
American Express Cobalt® Card
American Express Cobalt® Card
go to American Express' website
Welcome Bonus*
Up to 15,000 points
Annual Fee*
$155.88
$12.99 Paid Monthly
Interest Rates
21.99%* / 21.99%*
This card was voted the Best Credit Card in Canada by FinlyWealth. The rewards earned on this card for a person with average spending exceed those of other credit cards in Canada by a huge margin! In addition, this card has a good benefits coverage, a flexible points redemption program (1:1 transfer to Aeroplan® or Avios), making it the best candidate to become the main credit card for the majority of people.
Pros
- Points can be transferred to Air Canada Aeroplan® at a 1:1 ratio, making this card a solid Aeroplan® points earner as an alternative to Aeroplan® branded credit cards
- Generous welcome bonus of up to 15,000 points
- 4+ different ways of redeeming your points for great value
- 10 different types of insurance, including travel
- Often referred to as the Best Credit Card in Canada
Cons
- Less acceptance of American Express at different merchants across Canada
- Not all types of travel insurance are covered, especially trip cancellation and interruption insurance
Rewards*
- 5x points per $1 spent on eligible eats and drinks in Canada, including groceries and food delivery (up to 12,500 points per month)
- 3x points per $1 spent on eligible streaming subscriptions in Canada
- 2x points per $1 spent on eligible gas, transit & ride share in Canada
- 1x point per $1 spent on all other purchases
Insurance*
Coverage*
Emergency Out of province Medical
15 days
Flight Delay
$500Baggage Delay
$500
Hotel Burglary Insurance
$500
Lost or Stolen Baggage
$500
Travel Accident
$250,000.svg)
Car Rental Damage & Theft
yes
Mobile Device Insurance
$1,000
Purchase Protection
90 days
Extended Warranty
Up to 1 year
Benefits*
Details*
Amex Experiences™
Access Front Of The Line® Amex Presale & Reserved Tickets to some of your favourite concerts and theatre performances and special offers and events curated for Cardmembers with Amex Experiences™.svg)
Travel Credit
Book two or more consecutive nights at participating properties through The Hotel Collection with American Express Travel to receive a $100 credit for amenities or a complimentary room upgrade, if available.
Eligibility*
Credit Score
FairAnnual Income
N/A
When someone asks, "What's the best credit card for me?" the Amex Cobalt is usually the first card that comes to mind. It offers a winning combination of high reward rates, valuable perks, a reasonable annual fee, and flexible point redemption options. Plus, it's easy to qualify for, making it accessible to a wide range of users.
Best Cashback Credit Card
Our choice for: High cash back on groceries & gas
Neo World Elite® Mastercard®
Neo World Elite® Mastercard®
4.6
go to Neo Financial's website
Welcome Bonus
N/A
Annual Fee
$125
Interest Rates
19.99% - 26.99% (or 19.99% - 23.99% in Newfoundland and Quebec) / 22.99% - 28.99%
This card offers one of the highest cash back rates in Canada for gas (up to 4%), grocery (up to 7%) and recurring purchases (up to 5%) which is pretty hard to beat. While the cash back rates are very high, you need to mind the spend caps set for each category to see if your earning potential is really that high compared to most other credit cards. However, for a typical person who's spending is generally below $12k per year in grocery, $6k per year in recurring bills and $12k per year in gas then you'll be doing pretty well, especially with the great insurance and benefit offers.
Pros
- Highest cash back rates in Canada for highest spending categories like Grocery (up to 7%), especially if you keep at least $5k in a Neo everyday account
- 12 different types of insurance coverage
- Airport lounge access with DragonPass with $32 USD per visit
- Additional cash back earning at over 10,000 Neo partners
Cons
- High income requirements of $80,000 personal or $150,000 household
- Cash back spend caps can limit your rewards
- Having to keep at least $5k in an everyday account to boost your cash back tier
Rewards
- 5% cash back on grocery purchases up to $1,000 spending per month (6% cash back if you have $5k in a Neo everyday account, or 7% cash back with $10k in a Neo everyday account) - drops to 1% cash back after hitting spend cap
- 4% cash back on recurring purchases up to $500 spending per month (4.5% cash back if you have $5k in a Neo everyday account, or 5% cash back with $10k in a Neo everyday account) - drops to 1% cash back after hitting spend cap
- 3% cash back on gas purchases up to $1,000 spending per month (3.5% cash back if you have $5k in a Neo everyday account, or 4% cash back with $10k in a Neo everyday account) - drops to 1% cash back after hitting spend cap
- 1% cash back on all other purchases with no spending caps
- 5% average cash back at Neo Partners
Note: our reward calculations use the base cash back rates assuming you do not hold any money in a Neo everyday account to earn the higher tier (boosted) cash back rates, otherwise the reward estimates may be higher.
Insurance
Coverage
Emergency Out of province Medical
Up to $1,000,000
Trip Cancellation
$1,000
Trip Interruption
$1,000Flight Delay
$500Baggage Delay
$1,000Lost or Stolen Baggage
$1,000Hotel Burglary Insurance
$1,000
Car Rental Accident
$100,000 for cardholder, up to $10,000 per Spouse or Dependent ChildCar Rental Damage & Theft
Yes.svg)
Car Rental Personal Effects
$1,000Purchase Protection
90 daysExtended Warranty
1 year
Benefits
Details
Airport Lounge - Dragon Pass
Pass only - pay $32 USD per visit
Eligibility
Credit Score
GoodAnnual Income
$80,000 personal or $150,000 household
With massive cashback on groceries and gas and recurring purchases, a very high cashback rate on other purchases, and a good coverage of benefits, the Neo World Elite is another alternative cashback card if the Rogers card is not for you or you don't have any qualifying service.
Best Rewards (Points) and Best Flexible Redemption Credit Card
Our choice for: Overall Best Credit Card in Canada, great at earning points to be used for travelling
American Express Cobalt® Card
American Express Cobalt® Card
go to American Express' website
Welcome Bonus*
Up to 15,000 points
Annual Fee*
$155.88
$12.99 Paid Monthly
Interest Rates
21.99%* / 21.99%*
This card was voted the Best Credit Card in Canada by FinlyWealth. The rewards earned on this card for a person with average spending exceed those of other credit cards in Canada by a huge margin! In addition, this card has a good benefits coverage, a flexible points redemption program (1:1 transfer to Aeroplan® or Avios), making it the best candidate to become the main credit card for the majority of people.
Pros
- Points can be transferred to Air Canada Aeroplan® at a 1:1 ratio, making this card a solid Aeroplan® points earner as an alternative to Aeroplan® branded credit cards
- Generous welcome bonus of up to 15,000 points
- 4+ different ways of redeeming your points for great value
- 10 different types of insurance, including travel
- Often referred to as the Best Credit Card in Canada
Cons
- Less acceptance of American Express at different merchants across Canada
- Not all types of travel insurance are covered, especially trip cancellation and interruption insurance
Rewards*
- 5x points per $1 spent on eligible eats and drinks in Canada, including groceries and food delivery (up to 12,500 points per month)
- 3x points per $1 spent on eligible streaming subscriptions in Canada
- 2x points per $1 spent on eligible gas, transit & ride share in Canada
- 1x point per $1 spent on all other purchases
Insurance*
Coverage*
Emergency Out of province Medical
15 daysFlight Delay
$500Baggage Delay
$500Hotel Burglary Insurance
$500Lost or Stolen Baggage
$500Travel Accident
$250,000Car Rental Damage & Theft
yesMobile Device Insurance
$1,000Purchase Protection
90 daysExtended Warranty
Up to 1 year
Benefits*
Details*
Amex Experiences™
Access Front Of The Line® Amex Presale & Reserved Tickets to some of your favourite concerts and theatre performances and special offers and events curated for Cardmembers with Amex Experiences™Travel Credit
Book two or more consecutive nights at participating properties through The Hotel Collection with American Express Travel to receive a $100 credit for amenities or a complimentary room upgrade, if available.
Eligibility*
Credit Score
FairAnnual Income
N/A
Sometimes, you're unsure how you want to use your rewards—you might want the flexibility to convert them into cash, gift cards, or use them for travel. The American Express points that come with this card offer excellent flexibility in how they can be redeemed. Additionally, with the massive rewards earned by the Cobalt card, it stands out as the best option for both point redemption and overall rewards.
Best Signup Bonus Credit Card
American Express Gold Rewards Card®
American Express Gold Rewards Card®
4.2
go to American Express' website
Welcome Bonus*
Up to 60,000 points
Annual Fee*
$250
Interest Rates
21.99%* / 21.99%*
The American Express® Gold Rewards Card is an excellent choice for travelers seeking an entry-level card that offers a strong balance of generous travel benefits without excessive costs. With a relatively low annual fee, this card provides flexibility and a range of perks that make it stand out among other options. It’s ideal for those who want to maximize their travel rewards without being tied to a specific airline or compromising on the benefits offered.
Pros
- Flexible Rewards: Enjoy flexible Membership Rewards point conversion with up to 2 points per $1 spent.
- Travel Perks: Includes $100 annual travel credit and 4 free passes to Plaza Premium lounges in Canada.
- Comprehensive Insurance: Comes with 11 types of insurance coverage.
- Multiple Redemption Options: Offers 4 ways to redeem points for maximum value.
Cons
- High Annual Fee: The card comes with a $250 annual fee.
- Foreign Transaction Fees: A 2.5% fee applies to foreign transactions.
- Limited Travel Insurance for Seniors: No travel medical insurance coverage for those over 65.
- Lower Acceptance: As an American Express card, it may have lower acceptance compared to Visa or Mastercard.
Rewards*
- 2x points per $1 spent on gas, groceries and drugstore purchases
- 2x points per $1 spent on travel (eligible flights, hotels, tours and more)
- 1x point per $1 spent on all other eligible purchases
Insurance*
Coverage*
Emergency Out of province Medical
15 daysTrip Cancellation
$1,500 per person, $3,000 combinedTrip Interruption
$1,500 per person, $6,000 combinedFlight Delay
$500Baggage Delay
$500Hotel Burglary Insurance
$500Lost or Stolen Baggage
$500Travel Accident
$500,000Car Rental Damage & Theft
yesPurchase Protection
90 daysExtended Warranty
Up to 1 year
Benefits*
Details*
Travel Credit
$100
Nexus Program Rebate
$50 statement credit every 4 yearsAirport Lounge - Priority Pass
Pass only. No Complimentary visits!Airport Lounge - Plaza Premium
4 Free complimentary visits
Complimentary Hotel Benefits
Hotels booked American Express Travel.svg)
Status lift
Hertz Gold Plus Rewards® loyalty programAmerican Express® Experiences
Extra points
Earn 2 points on Amex Travel Online purchases and extra points on American Express offers
Eligibility*
Credit Score
FairAnnual Income
N/A
The American Express Gold Rewards Card currently offers the best signup bonus among all credit cards. With spending requirements that align with the average budget, this is the top choice if you're seeking significant first-year value.
Best Travel Credit Cards
Best Overall Travel Card
Our choice for: Premium Travel Perks and Lounge Access
Scotiabank Passport® Visa Infinite* Card
Scotiabank Passport® Visa Infinite* Card
4.8
go to Scotiabank's website
Welcome Bonus*
Up to 40,000 Scene+ points
Annual Fee*
$150
Interest Rates
20.99% / 22.99%
The Scotiabank Passport Visa Infinite is a strong choice for frequent travelers, especially those who value flexibility and premium perks. It stands out with its rare benefit of no foreign transaction fees, making international purchases more cost-effective. Additionally, the card offers a valuable blend of travel perks, including airport lounge access, comprehensive insurance coverage, and flexible rewards, making it an ideal companion for those who frequently travel abroad and want to avoid extra fees while enjoying premium benefits.
Pros
- High Rewards on Select Purchases: Earn up to 3 points per $1 spent on select categories.
- No Foreign Transaction Fees: Shop abroad without additional charges.
- Comprehensive Insurance: Includes 11 types of insurance coverage.
- Airport Lounge Access: Enjoy up to 6 airport lounge passes per year through the Visa Airport Companion program.
Cons
- High Income Requirements: Requires $60,000 personal or $100,000 household income.
- Lower Overall Rewards: Rewards potential is lower compared to premium credit cards.
- High Annual Fee: Comes with a significant annual fee.
- Average Insurance Coverage: Insurance benefits are standard, not exceptional.
- Mediocre Earnings Potential: The card’s rewards structure might not offer the highest returns for every spender.
Rewards*
- Earn 3x Scene+ points on every $1 you spend at Sobeys, Safeway, IGA, Foodland and participating Co-ops and more
- Earn 2x Scene+ points for every $1 you spend on other eligible grocery stores, dining, eligible entertainment purchases and eligible daily transit options(including rideshares, buses, subways taxis and more)
- Plus earn 1 Scene+ point for every $1 spent on all other eligible everyday purchases
- Earn additional benefits + up to 4x Scene+ points for every dollar you spend on hotel bookings, car rentals, and things to do with Scene+ Travel, Powered by Expedia
Insurance*
Coverage*
Emergency Out of province Medical
$2M/insured up to 25 daysEmergency Medical Over 65
$2M/insured up to 3 daysTrip Cancellation
$1,500/person, $10,000/tripTrip Interruption
$2,500/person, $10,000/tripFlight Delay
$500/person after 4 hoursLost or Stolen Baggage
$1000Baggage Delay
$1000Travel Accident
$500,000/insured, $1M combinedCar Rental Damage & Theft
$65,000 up to 48 daysHotel Burglary Insurance
$1,000Purchase Protection
90 daysExtended Warranty
1 year
Benefits*
Details*
No Foreign Transaction Fees
Avoid the usual 2.5% forex fees on your purchases when you travel outside of CanadaAirport Lounge - Dragon Pass
6 Free complimentary visitsStatus lift
Avis® Preferred Plus membership.svg)
Concierge Services
Visa Infinite Exclusive Benefits
Eligibility*
Credit Score
GoodAnnual Income
$60,000 personal or $100,000 household
If you're looking for a card with strong insurance coverage and travel-related benefits, the Scotia Passport card is the best option that offers all of these!
Best Insurance Credit Card
BMO CashBack® World Elite® Mastercard®
BMO CashBack® World Elite® Mastercard®
go to BMO's website
Welcome Bonus*
10% cash back in your first 3 months up to $200
Annual Fee*
$120 $0
Interest Rates
21.99% / 23.99%□
If you're seeking a cashback credit card, the BMO CashBack® World Elite® Mastercard® stands out for its excellent balance between rewards and benefits. It offers a robust rewards program and a comprehensive benefits list, making it a solid choice. The high first-year value is enhanced by the annual fee waiver, and those with a BMO Premium Chequing Account can enjoy continued fee waivers. While it's highly ranked for rewards alone, it may not be the absolute top choice if benefits are less important to you.
Pros
- Offers one of the highest cashbacks on groceries and gas, two of the most frequently spent categories, compared to other credit cards in Canada.
- Includes roadside assistance, a rare but valuable benefit for people on the road.
- Provides a comprehensive list of insurance coverage and benefits.
- High first-year value.
Cons
- Does not include restaurant purchases as a reward category, which is one of the most important spending categories.
- Monthly limits on cash back could be higher
Rewards*
- 5% cash back on groceries (capped at $500 spending per statement, maximum of $25 in cashback per statement cycle)
- 4% cash back on daily transit (capped at $300 spending per statement, maximum of $12 in cashback per statement cycle)
- 3% cash back on gas (capped at $300 spending per statement, maximum of $9 in cashback per statement cycle)
- 2% cash back on recurring payments (capped at $500 spending per statement, maximum of $10 in cashback per statement cycle)
- 1% cash back on all other eligible purchases.
Insurance*
Coverage*
Emergency Out of province Medical
$5M up to 8 days per covered personTravel Accident
$500,000Flight Delay
$500 After 4 hours delayLost or Stolen Baggage
$500/person, $1,000 maximumBaggage Delay
$500/person, $1,000 maximum After 6 hoursHotel Burglary Insurance
$1,000Car Rental Damage & Theft
$65K up to 48 daysPurchase Protection
90 daysExtended Warranty
1 year
Benefits*
Details*
Airport Lounge - Dragon Pass
Complimentary membership in Mastercard Travel Pass provided by DragonPass. As a member enjoy lounge access for a fee of just US$32 per person, per visit.
Roadside Assistance
Including battery boosts, flat-tire change, lockout service and towing – a $69/year value.
Car Rental Discount
Save up to 20% on National Car Rental® and Alamo Rent A Car® and up to 5% on Enterprise Rent-A-Car® at locations worldwide using the Car Rental Booking tool
Hotel Booking Discount
Save up to 7% on your Booking.com prepaid hotel or property rental bookings at booking.com/mastercardcanada.
Global Data Roaming plan
With FlexiRoam, stay connected around the world without a SIM card and get up to 15% off a Global Data Roaming plan plus up to 3GB of data, without any additional charges, if apply..svg)
Gas Discount
Get up to 7 cents off per litre on Shell® fuel, only for BMO cardholders.
Eligibility*
Credit Score
GoodAnnual Income
$80,000 personal or $150,000 household
The BMO Cashback World Elite offers one of the most comprehensive lists of insurance coverage and a strong rewards program, securing its position as the top choice in this category.
Best Secured Credit Card
Our choice for: Guaranteed approval and earning cashback
Neo Secured Mastercard®
Neo Secured Mastercard®
4.5
go to Neo Financial's website
Welcome Bonus
N/A
Rewards Rate
1% - 4%
Annual Fee
$60
$5 Paid Monthly
Interest Rates
19.99% - 29.99%□ / 22.99% - 31.99%□
If you have a poor credit score and are looking to rebuild it with a secured card, then the Neo Financial Secured Credit Card is the best card to go for. This card offers so much more compared to other secured credit cards on the market, including no monthly fees, a low deposit amount needed to get started, and it is the only credit card that offers some rewards on your purchases!
Pros
- The minimum deposit requirement is only $50, making it accessible to all consumers
- High cashback rates of up to 5% on average at Neo Partners
Cons
- Interest rate could go really high for some customers
- A monthly fee of $5
Rewards
- 1% cash back on grocery purchases up to $500 spending per month (3% cash back with $5k in a Neo everyday account, and 4% cash back with $10k in a Neo everyday account) - drops to the 0.5-1% cash back tier after hitting spend cap
- 1% cash back on gas purchases up to $500 spending per month (3% cash back with $5k in a Neo everyday account, and 4% cash back with $10k in a Neo everyday account) - drops to the 0.5-1% cash back tier after hitting spend cap
- 0% cash back on all other purchases with $0 in a Neo everyday account, or 0.5% cash back with $5k in a Neo everyday account up to $1,667 spending per month, or 1% cash back with $10k in a Neo everyday account up to $1,667 spending per month - drops to 0% cash back again after hitting spend cap
- +5% earned on average at Neo Partners.
Note: our reward calculations use the base cash back rates assuming you do not hold any money in a Neo everyday account to earn the higher tier (boosted) cash back rates, otherwise the reward estimates may be higher.
Benefits
Details
Neo Premium ($4.99/month)
optionalNeo Travel Benefits ($4.99/month)
optional
Neo Food Cashback boost ($1.99/month)
optional
Neo Mind and Body Perks ($9.99/month)
optional
Eligibility
Credit Score
PoorAnnual Income
N/A
The Neo Secured Card is the only secured credit card that offers rewards comparable to its unsecured counterpart, along with numerous benefits. This is something that almost no other secured card even comes close to offering!
Best Low Interest Credit Card
Our choice for: Luxury Travel + No FX Fees
Scotiabank Platinum American Express® Card
Scotiabank Platinum American Express® Card
3.8
go to Scotiabank's website
Welcome Bonus*
Up to 80,000 Scene+ points ($800 value)
Annual Fee*
$399
Interest Rates
9.99% / 9.99%
The Scotiabank Platinum American Express is the perfect choice for those seeking a super premium credit card without steep income requirements. With a high flat rate of rewards on all purchases, extensive insurance coverage, and flexible travel redemption options, it offers full-featured perks that cater to frequent travelers and savvy spenders alike.
Pros
- Low Interest Rate: Offers a competitive interest rate of 9.99%.
- Strong Rewards: Earn 2x Scene+ points on all purchases.
- Airport Lounge Access: Enjoy 10 complimentary lounge visits, including Plaza Premium Lounges, through Priority Pass (membership required).
- Comprehensive Travel Insurance: Includes extensive coverage for travel-related needs.
- Flexible Travel Rewards: Points can be redeemed for travel bookings with any provider.
- No Foreign Transaction Fees: Shop internationally without extra charges.
Cons
- High Annual Fee: The annual fee is steep compared to similar cards offering similar perks.
- Limited Premium Perks: Lacks top-tier travel benefits like free checked baggage and priority boarding.
Rewards*
- Earn 2x Scene+ points for every $1 spent on all other eligible purchases
- Earn additional benefits + up to 4x Scene+ points for every dollar you spend on hotel bookings, car rentals, and things to do with Scene+ Travel, Powered by Expedia
Insurance*
Coverage*
Emergency Out of province Medical
$2M, Up to 31 daysEmergency Medical Over 65
$2M, Up to 10 daysTrip Cancellation
$2500/person, $10000/tripLost or Stolen Baggage
$500/person, $1000/tripTrip Interruption
$5000/person, $25000/tripBaggage Delay
$1000 After 4 hoursFlight Delay
$1000/personTravel Accident
$500K/person, $1M/occurrenceCar Rental Damage & Theft
$65K up to 48 daysHotel Burglary Insurance
$1000/occurrenceMobile Device Insurance
$1000Purchase Protection
120 daysExtended Warranty
Up to a year
Benefits*
Details*
No Foreign Transaction Fees
Airport Lounge - Plaza Premium
10 visits, 4 visits for secondary card (combined with the Priority pass)Airport Lounge - Priority Pass
10 visits, 4 visits for secondary card (combined with the Plaza Premium)American Express® Experiences
Concierge Services
Discount
Discount on PriorityPass MembershipStatus lift
Hertz #1 Club Gold MemberExtra points
Extra 4 Scene+ points per Canadian dollar spent on hotel and car rental bookings made through Scene+ Travel using your Scotiabank Platinum American Express Card
Eligibility*
Credit Score
GoodAnnual Income
$12,000 personal or $12,000 household
The Scotia Platinum card offers an interest rate lower than that of some lines of credit. Additionally, it provides many premium rewards and benefits, making it our top choice in this category.
Best Balance Transfer Credit Card
Our choice for: Balance transfer and interest savings
MBNA True Line® Mastercard®
MBNA True Line® Mastercard®
go to MBNA's website
Welcome Bonus*
0% rate on balance transfers for 12 months (3% fee and not available in Quebec)†
Rewards Rate*
0%
Annual Fee*
$0
Interest Rates
12.99%* / 24.99%*
Even though this card offers no benefits or rewards, the amount you can save on interest is substantial, making it an excellent option for reducing your monthly payments.
Pros
- Great to reduce monthly interest payments during the promotional period.
- Low purchase interest rate for people planning to put some balance on their credit card.
Cons
- A flat fee has to be paid on the balance to make the transfer happen.
- Not a good card other for purposes other than balance transfer.
Rewards*
- No rewards earned on purchases.
- Standard Annual Interest Rates of 12.99% on eligible purchases, 17.99% on balance transfers✪, and 24.99% on cash advances.
- You could get a 0% promotional annual interest rate (“AIR”)† for 12 months on balance transfers✪ completed within 90 days of account opening, with a 3% transfer fee. This offer is not available for residents of Quebec.
- Use available credit on your credit card to transfer funds right to your chequing account.
- Around-the-clock fraud protection.
Benefits*
Details*
Car Rental Discount
10% off base rate of Avis Rent A Car and Budget Rent A Car in Canada and US and 5% internationally
Eligibility*
Credit Score
GoodAnnual Income
N/A
With the promotional welcome offer on this card, you'll be able to significantly reduce your monthly interest rate payments. Be sure to take advantage of it while the offer lasts!
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:
- You use your credit card to buy the coffee.
- Your card details are sent to the store's bank, known as the acquiring bank.
- 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.
- The transaction is approved.
- 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.
How Does Credit Card Interest work?
In Canada, credit card interest is applied when the full balance is not paid by the due date. The most common types of interest rates include the payment interest rate, which ranges between 19% and 23%, and is charged on the remaining balance after paying the minimum payment amount.
There are also penalty rates for missed payments, higher rates for cash advances, and promotional rates that offer temporary low or zero interest. Interest is calculated annually (APR), but you can approximately estimate it monthly by dividing the APR by twelve.
To avoid paying interest, pay off the full balance each month and avoid cash advances because credit card interest payments can quickly grow. If you want to learn more about this topic you can read the blog how credit card interest works to learn more.
Finding the best credit card can save you hundreds, and potentially thousands, each year. Finding a credit card can be complicated, but we'll give you the information necessary so that you can match yourself with the best credit card for your needs.
Different Types of Credit cards
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
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.
Student Credit Cards
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.
High-Limit Credit Cards (Charge Cards)
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.
Secured Credit Cards
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.
Balance Transfer Credit Cards
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.
Starter Cards for Building Credit
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.
Travel Credit Cards
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.
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.
How Credit Card Rewards Work?
Credit card rewards come in a variety of forms, but the two most common are cash back and points or miles. Cash back rewards allow you to reduce your balance or deposit the amount directly into your bank account. Some cards even give the option to receive it as a check. Meanwhile, points or miles can be exchanged for travel, merchandise, gift cards, or even statement credits. Both types of rewards help you benefit from your everyday purchases, but the right option depends on how you prefer to redeem your earnings.
There are two primary types of rewards programs: fixed-rate rewards and category-based rewards. With a fixed-rate program, you earn the same rate on all purchases—such as 3% back or 3 points per dollar, regardless of where you shop. This type of card is simple to use and great for people who want consistent earnings. Category-based programs provide a base rate, like 1%, on all purchases but offer higher rates for specific spending, such as 5% on groceries or gas. Some cards even feature rotating categories that change every few months, letting you earn higher rewards in areas that shift quarterly.
Each credit card issuer sets up its own rewards structure, and it's important to understand how each one works. Flat-rate rewards offer consistent earnings, ideal for people who don't want to track specific categories. Category-based cards go a step further by offering enhanced rewards in areas like dining, groceries, or travel. For instance, one card may offer 5% back on grocery store purchases while giving 1% back on everything else. This structure can help you earn more, but it requires you to pay attention to where and how you're spending.
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.
Who is the Best Credit Card issuer in Canada?
There are many credit cards available from different issuers in Canada. Your top priority should be finding the card that best suits your needs, with the credit card issuer being a secondary consideration. However, it's important to ensure that the issuer is responsive and can address your concerns quickly when needed. To gauge their support, you can read reviews of credit card issuers on review websites and forums. In our experience, American Express stands out as the best credit card issuer, offering excellent customer service, often connecting you with a representative in less than a minute.
FAQ
What is the best Credit Card in Canada?
There’s no one-size-fits-all when it comes to credit cards, as the ideal card depends on your personal spending patterns, financial objectives, and credit score. If you have a strong credit profile, you’re likely eligible for cards that offer perks like cash back, points, or travel miles. These types of cards are most beneficial when you pay off your balance in full each month to avoid interest charges that could offset the rewards. However, if you typically carry a balance or need to finance a large purchase, a card with an introductory 0% APR might be a better fit, allowing you to spread payments without paying interest for a set period.
For individuals aiming to build or repair their credit, secured cards or those specifically designed for people with limited credit histories can be a solid choice. While these cards may not offer as many perks, they can help improve your credit over time, especially if they report to all three major credit bureaus. In the end, the right credit card should align with your financial habits and goals, whether you’re looking to earn rewards, minimize interest costs, or strengthen your credit profile.
What is the Easiest Credit Card to get in Canada?
If you don't have a high credit score or are just starting out, secured credit cards, newcomer credit cards, and student credit cards are the easiest to qualify for.