Credit cards are widely used by Canadians, with the average household holding at least one credit card.
Using the right credit card can save you a lot of money. Unfortunately, choosing the best credit card in Canada can be overwhelming.
This is because the Canadian credit card market is huge with hundreds of cards offering rewards, perks and features.
There are even some cards that have no annual fee. As a result, it’s essential to find the right fit for your financial situation.
To help narrow down your search, this article will cover some of the best credit cards in Canada and how you can choose the right one for your needs.
So continue reading to find out!
Table of Contents
Overview of Credit Cards in Canada
A credit card is a type of plastic payment method that allows you to make purchases and then pay them off later with a minimum monthly payment.
You can use them to pay for things you don’t have cash on hand for, such as groceries or gas, medical bills or other unexpected expenses.
Credit cards are similar in all ways except for one thing – they have different interest rates based on their terms and conditions.
Credit cards are not just for those who want to spend money without having to worry about paying it back. They are also useful for people who want to build their credit history.
Additionally, most credit cards offer rewards programs so you can earn several rewards such as cash back, airline miles and hotel points when you spend with them.
However, if you miss a payment or do not pay off your balance in full each month, interest charges begin accruing immediately. Missing or delaying payment will also affect your credit score.
Types of Credit Cards in Canada
Not all credit cards are created equal. In Canada, several different credit card types are appropriate for varied spending styles. Here are the most common ones:
1. Rewards Credit Cards
These cards will give you points or miles when you use your card for eligible purchases
These points can be redeemed for gift cards or other rewards according to the terms and conditions of the card.
2. Cash Back Credit Cards
As the name implies, these types of credit cards offer you cash back when you use them to make eligible purchases.
They are a great option because they help reduce your loan by giving you back a portion of what you spent.
3. Low-Interest Credit Cards
These types of credit cards charge a low-interest rate on your balance.
If you use a credit card that charges high interest and want to reduce the amount of interest rate on your balance, you can transfer it to a low-interest credit card.
4. Secured Credit Cards
This type of card requires you to make a small upfront deposit. The deposit is then used as collateral in case you are unable to make payments.
The interest rates on these cards can be high so they’re not for everyone. But if you have a poor or no credit history and need to rebuild it, this might be the best way to do it.
5. Balance Transfer Credit Cards
Balance transfer credit cards are the type of cards that permits you to move the balance on one type of debt credit card to another.
The beauty of a balance transfer credit card is that it can save you money in the long run by moving your balance from a high-interest credit card to a low-interest one.
6. Travel Credit Cards
Travel credit cards are the type that gives you redeemable miles or points when you use the card to make eligible purchases.
If you’re someone who frequently travels or shops abroad, a travel credit card is a good choice because it’s generally accepted at places like airport lounges and gives you extra incentive to book travel through an airline partner.
7. Hotel Credit Cards
These are credit cards that offer several benefits, including rewards points that can be redeemed for free stays in hotels around the world or other perks like free breakfast and free Wi-Fi.
8. Student Credit Cards
Student credit cards are ideal for people who are just starting in life and having to manage their finances. They give you the chance to build a credit history while helping you get used to the idea of making payments on time.
The best student credit cards don’t charge annual fees and offer rewards programs that can help you save money on your purchases and pay off those purchases faster.
18 Best Credit Cards in Canada
Now that you know what a credit card is and some of the popular types, you may be wondering what are the best credit cards in Canada.
Here is a list of the best credit cards in Canada:
Best Rewards Credit Cards
Here are some of the best rewards credit cards in Canada:
American Express Cobalt Card
- Monthly Fee: $12.99
- Annual Fee: No annual fee
- Interest Rate on Purchases: 20.99%
- Interest Rate on Cash Advances: 21.99%
- Rewards: 2,500 rewards points per month for purchases of up to $500
The American Express Cobalt Card is our overall best rewards credit card in Canada.
The card offers you up to 2,500 rewards points for using the card to make purchases of up to $500 in a month.
These points can add up to a maximum of 30,000 points per year. You can redeem the points for things like gas or groceries.
1,000 points equal to $10 which you can redeem for any qualified purchase. This means if you accumulate up to 30,000 points, you can redeem your points for $300.
BMO AIR MILES World Elite Mastercard
- Annual Fee: $120 (waived for the first year)
- Interest Rate on Purchases: 20.99%
- Interest Rate on Cash Advances: 23.99% ( 21.99% for residents of Quebec)
- Rewards: 2,000 bonus AIR MILES if you spend at least $3,000 with your card within the first 3 months
The BMO AIR MILES World Elite Mastercard is our overall best rewards credit card in terms of AIR MILES rewards.
Apart from the bonus AIR MILES of 2,000, you get when you spend up to $3,000 within your first 3 months of getting the card, here are the additional perks that come with the card.
For every $12 you spend at participating stores, you will get 3 AIR MILES. You will also get 2 Miles for every $12 you spend at any qualified grocery store.
Additionally, for every $12 you spend on all other purchases using your BMO AIR MILES World Elite Mastercard, you will get 1 Mile.
Scotia Momentum Mastercard Credit Card
- Annual Fee: No annual fee
- Interest Rate on Purchases: 20.99% (Introductory rate of 7.99%)
- Interest Rate on Cash Advances: 22.99%
- Rewards: 1% cash back on all qualified grocery stores, drug stores, gas station purchases, and recurring bill payments. 0.5% cash back on all other qualified purchases you make with the card
Scotia Momentum Mastercard Credit Card is our overall best rewards credit card for newcomers to Canada.
If you are a Canadian newcomer and you are looking for a secure way of making payments and also building your credit score, this card is for you.
The card has no annual fee and offers an introductory interest rate of 7.99% on purchases.
Also, the card offers 1% cash back on all grocery stores, drug stores, gas station purchases, and recurring bill payments you make with it. You will also get a cash back of 0.5% on all other purchases.
Best Cash Back Credit Cards
Here are some of the best cash back credit cards in Canada:
BMO CashBack World Elite Mastercard
- Annual Fee: $120 (waived in the first year)
- Interest Rate on Purchases: 20.99%
- Interest Rate on Cash Advances: 23.99% (21.99% for residents of Quebec)
- Cash Back: 5% on groceries purchases, 4% on transit, 3% on gas, 2% on recurring bill payments and get 1% on all other purchases. Plus 10% cash back within your first 3 months of getting the card
BMO CashBack World Elite Mastercard is our overall cash back card. The card offers several cash back rewards which are as follows:
You get 5% cash back on eligible grocery purchases and 4% cash back on transit. You will also get 2% on all recurring bill payments you make with the card.
Additionally, 1% cash back on all other purchases you make with the card. Plus, you will get 10% cash back within your first 3 months of getting the card.
The best part is that, so long as your account remains active, the cash back you get will not expire until you are ready to cash out.
MBNA Smart Cash Platinum Plus Mastercard
- Annual Fee: No annual fee
- Interest Rate on Purchases: 19.99%
- Interest Rate on Cash Advances: 24.99%
- Cash Back: 2% on groceries and gas, 0.5% cash back on all other qualified purchases. Plus 5% cash back on gas and groceries purchases of up to $500 a month for the first 6 months
MBNA Smart Cash Platinum Plus Mastercard is our choice for the overall best no-fee cash back card in Canada.
The card has no annual fee and covers some of the purchases you make with the card within 90 days of getting the card up to the limit of $60,000.
Also, the card offers 2% cash back on grocery and gas purchases and 0.5% cash back on all other qualified purchases you make with the card.
Additionally, if you use the card to purchase gas and groceries worth $500 within your first 6 months, you will get up to 5% cash back.
Tangerine Money-Back Credit Card
- Annual Fee: No annual fee
- Interest Rate on Purchases: 19.95%
- Interest Rate on Cash Advances: 19.95%
- Rewards: 2% cash back on daily purchases in any two categories and 0.50% on all other qualified purchases. Plus 15% cash back on everyday purchases of up to $1,000 within your first 2 months
The Tangerine Money-Back Credit Card is our best option in terms of flexible rewards and no annual fee.
This card offers up to 15% cash on all purchases worth $1,000 within your first two months of getting the card.
Also, you will get 2% cash back when you make purchases in any two qualified categories. Plus, you will get a cash back of 0.50% on all other qualified purchases.
The best part about the Tangerine Money-Back Credit Card is that your earnings are unlimited. This means you can earn as much as you want so long as you continue making daily purchases with your card.
Best Low-Interest Credit Cards
Here is our choice of the best low-interest credit cards in Canada:
CIBC Select Visa Card
- Annual Fee: $29 (Rebated for the first year)
- Interest Rate on Purchases: 13.99%
- Interest Rate on Cash Advances: 13.99%
- Rewards: 10 cents off per litre on gas at eligible gas stations
CIBC Select Visa Card is one of the best low-interest credit cards in Canada. The card has an annual fee of $29 but is rebated in the first year.
Also, the card has a low-interest rate on both purchases and cash advances which is charged at 13.99%.
The CIBC Select Visa Card also comes with insurance coverage and you get 10 cents off per litre on gas at eligible stations.
BMO Preferred Rate Mastercard
- Annual Fee: $20 (Rebated for the first year if you open a BMO Performance chequing account)
- Interest Rate on Purchases: 12.99%
- Interest Rate on Cash Advances: 15.99%
- Rewards: N/A
BMO Preferred Rate Mastercard is another great low-interest rate credit card in Canada.
The card has a low interest of 12.99% on purchases and 15.99% on cash advances. You can even get an introductory interest rate of 0.99% on balance transfers for your first 3 months.
Also, you can add a card holder at no cost and also get a free CreditView using the BMO mobile or online banking portal.
Best Secured Credit Cards
Here are some of the best secured credit cards in Canada:
Refresh Financial Secured Card
- Annual Fee: $12.95
- Interest Rate on Purchases: 17.99%
- Interest Rate on Cash Advances: N/A
- Rewards: N/A
Refresh Financial Secured Card is our overall best secured credit card for people with bad credit.
The card charges a low annual fee of $12.95 and an interest rate of 17.99% on purchases.
You can use the card to build your credit history without any effect because it doesn’t require a hard credit check.
Home Trust Secured Visa
- Annual Fee: No annual fee
- Interest Rate on Purchases: 19.99%
- Interest Rate on Cash Advances: N/A
- Rewards: N/A
The Home Trust Secured Visa is one of the best no-fee secured credit cards in Canada.
This card is accepted almost everywhere Visa cards are accepted. By using the card for your everyday purchases, you are building your credit history.
To build your credit with the card, all you have to do is continue making payments on the due date and your credit will be improving by the day.
Best Balance Transfer Credit Cards
CIBC Select Visa Card
- Annual Fee: $29 (Rebated for the first year)
- Balance Transfer Rate: 1% for the first 10 months
- Interest Rate on Purchases: 13.99%
- Interest Rate on Cash Advances: 13.99%
- Rewards: 10 cents off per litre on gas at eligible gas stations
CIBC Select Visa Card is one of the best balance transfer credit cards in Canada. The card charges a 1% transfer fee for the first 10 months.
Also, the card comes with insurance coverage and gives you 10 cents off a litre of gas at eligible stations.
Additionally, the card has a low-interest rate of 13.99% on both purchases and cash advances.
BMO CashBack Mastercard
- Annual Fee: No annual fee
- Balance Transfer Rate: 0.99% introductory interest rate for the first 9 months
- Interest Rate on Purchases: 20.99%
- Interest Rate on Cash Advances: 22.99% (21.99% for residents of Quebec)
- Rewards: Up to 5% cash back within your first 3 months of getting the card
BMO CashBack Mastercard is another great credit card for a balance transfer. It charges an interest rate of 0.99% for the first 9 months.
Also, you will get up to 5% cash back when you use the card to make purchases within the first 3 months.
The best part is that you can redeem your cash back at any time no matter the amount. Also, so long as your account remains active, your cash back will not expire.
Best Travel Credit Cards
Here is our choice of the best travel credit cards in Canada:
TD Aeroplan Visa Infinite Card
- Annual Fee: $139
- Interest Rate on Purchases: 19.99%
- Interest Rate on Cash Advances: 22.99%
- Rewards: Up to 50,000 Aeroplan points
TD Aeroplan Visa Infinite Card is our overall best travel credit card in Canada.
The card offers up to 50,000 Aeroplan points which you can redeem for merchandise and gift certificates.
You can add up to eight cardholders who will get their first bags checked for free when travelling on a Canada flight.
American Express Cobalt Card
- Monthly Fee: $12.99
- Annual Fee: No annual fee
- Interest Rate on Purchases: 20.99%
- Interest Rate on Cash Advances: 21.99%
- Rewards: 2,500 rewards points per month for purchases of up to $500
The American Express Cobalt Card is another great travel credit card in terms of perks.
With the card, you can get 2,500 membership rewards points when you spend at least $500 a month using the card.
You can accumulate up to 30,000 points per year. For every 1,000 points, you will get $10 which you can redeem when making an eligible purchase.
Best Hotel Credit Cards
Marriott Bonvoy American Express Card
- Annual Fee: $120
- Interest Rate on Purchases: 19.99%
- Interest Rate on Cash Advances: 21.99%
- Rewards: Up to 65,000 welcome bonus Points
Marriott Bonvoy American Express Card is one of the best hotel credit cards in terms of free nights.
The card offers welcome bonus points of up to 65,000 which you can redeem anytime you like because they don’t expire.
Also, you can earn a referral bonus of up to 150,000 points as a basic card member.
American Express Cobalt Card
- Monthly Fee: $12.99
- Annual Fee: No annual fee
- Interest Rate on Purchases: 20.99%
- Interest Rate on Cash Advances: 21.99%
- Rewards: 2,500 rewards points per month for purchases of up to $500
The American Express Cobalt Card is also a good option when it comes to hotel credit cards.
The card offers rewards points up to the maximum of 30,000 points in a year which you can redeem for travel and streaming services.
Best Student Credit Cards
American Express Green Card
- Annual Fee: No annual fee
- Interest Rate on Purchases: 20.99%
- Interest Rate on Cash Advances: 21.99%
- Rewards: Up to 10,000 rewards points when you make purchases of $1,000 within the first 3 months of getting the card
The American Express Green Card is one of the best no-fee rewards cards for students in Canada.
If you use the card to make purchases of up to $1,000 within your first 3 months, you get 10,000 points which you can redeem for rewards of your choice.
Simplii Financial Cash Back Visa Card
- Annual Fee: No annual fee
- Interest Rate on Purchases: 19.99% (Introductory interest rate of 9.99% for the first six months)
- Interest Rate on Cash Advances: 22.99%
- Rewards: 10% bonus cash back when you spend at least $500 at eligible restaurants and bars
Simplii Financial Cash Back Visa Card is another great rewards credit card for students in Canada.
The card has no annual fee and you can use it to make purchases anywhere Visa cards are accepted.
Also, the card allows you to add up to 3 other cardholders and you can also set spending limits on it.
Overall Best Credit Card in Canada
So which card is the overall best credit card in Canada? Based on this review, the American Express Cobalt Card is the overall best credit card in Canada.
The card offers 2,500 reward points per month if you make purchases up to a total of $500 with the card.
You can accumulate these reward points up to 30,000 in a year and every 1,000 points is equal to $10.
As you can see above, the American Express Cobalt Card is a great card for rewards, travel perks and hotel rewards.
The card also doesn’t have an annual fee. Although it has a monthly fee of $12.99, it is still the overall best because it offers several perks that make it stand out from the crowd.
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How to Choose the Best Credit Card
So now that you have gone through our list of the best credit cards out there, how do you choose the best one for your financial needs?
There are a lot of factors that go into making this decision, which makes choosing the best card difficult.
The first step in selecting the best credit card is knowing what to look for.
As you can see, there are different types of credit cards that suit various spending habits. Therefore, you have to choose a credit card that fits your spending habit.
Here are some of the factors you need to consider when choosing the best credit card in Canada:
- Rewards: Rewards credit cards are a great option for people without a credit balance. This is because these types of credit cards usually come with high-interest rates but they compensate you with the rewards points they offer.
- Low interest: These types of credit cards are a great option for you if you have a high credit balance. When you move your balance to a low-interest credit card, you will be able to pay off the balance faster because you will be charged a lower interest rate.
- Interest Rates: From the above list, you can see that almost all credit cards have different interest rates. So when looking for the best credit card, look out for one with a low-interest rate.
Final Thoughts
This article has discussed different types of the best credit cards in Canada and has provided you with a list of the best ones based on different categories.
To ensure you choose the best credit card, it is important to compare different options to determine the one that best fits your needs and goals.
Hopefully, choosing the best credit card for your financial needs has been made easy with this article.
If you have any questions or concerns, feel free to drop them in the comments section below.
