With so many credit card options for Canadians to choose from, selecting one of the best credit cards Canada offers can be overwhelming. You can find options for every lifestyle, from students to business owners. Between extra benefits, annual fees, and rewards on purchases, it’s crucial to understand your credit card’s details.
The last thing you want is to select a card incompatible with your spending or lifestyle. Students have options that help them build credit while saving money, while Canadians with an already established credit score can choose between several options with excellent cashback rewards. Whether you prioritize travel points, cashback benefits, accident insurance, or no annual fee, you can find the right option for you.
It doesn’t have to be challenging to pick the right card. Keep reading as we detail the top credit cards in Canada for rewards, cash back, low interest rates, and more, and learn how to choose the right card for your needs.
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Many credit cards offer rewards for everyday purchases at restaurants, grocery stores, and more. Canadians with frequent purchases like these can get rewards every time they use their card. Several cards provide meagre rewards, so finding one that offers significant value is crucial.
Mastercard and other top credit card companies offer rewards for travelling, grocery shopping, gas purchases, and more. Cash back, travel points, insurance offerings, and unique birthday bonuses are among the top rewards. You can get specific cashback reward rates for purchases in particular categories, while other categories may have a decreased earning rate.
The more rewards a credit card offers, the higher the eligibility requirements may be. Those with annual fees typically require a good credit score and no past bankruptcy.
The MBNA Rewards Platinum Plus® Mastercard® is one of the best credit cards Canada residents can get for its minimal eligibility requirements and excellent rewards for everyday purchases of groceries and restaurants. Applicants must have a fair credit score, be residents, and be the province’s age of majority.
Cardholders get extra rewards points on select categories during the first three months of having the card, and points decrease by half afterward. The yearly $10,000 spending limit is ideal for smaller households. Interest rates are 19.99% for purchases, while cash advances have a 24.99% APR.
You can earn extra points for hitting spending minimums and completing other tasks. Cardholders get 5,000 different points by purchasing a $500 minimum within the first 90 days. An additional 5,000 points are available after signing up for electronic statements.
Why We Picked It
We picked the MBNA Rewards Platinum Plus® Mastercard® because it gives excellent rewards for standard purchases compared to competing cards. Cardholders get additional birthday bonuses and multiple ways to redeem points, while decreased earning rates still offer decent money back. Among the top options are travel points, cash back, and gift cards.
Pros and Cons
Pros
No annual fee
Included Mobile Device Insurance
Up to 10,000 points as a birthday reward, depending on previous yearly spending
Cons
The points earning rate significantly decreases after 90 days and after meeting spending limits
The $10,000 spending cap is not ideal for some large budgets
Quebec residents are ineligible for extra rewards points
Best Cashback Card
Cashback credit cards are an easy way to save money while making purchases. Canadians wanting rewards for all their purchases can choose a cashback card to get maximum direct cash rewards while reaping additional benefits.
Cashback cards typically feature a higher introductory earning rate that decreases after a set period. By hitting certain spending limits within a specific amount of time before the initial rate decreases, you can earn several rewards and get excellent cash back on your favourite purchase types.
The CIBC Dividend® Visa Infinite* Card is a top credit card for Canadians with excellent cashback rewards. It has reasonable eligibility requirements, including an annual minimum income of $60,000, a good credit score, and no recent bankruptcy. The card has a 20.99% APR and 22.99% cash advance and balance transfer interest rates.
A welcome offer gives you four months of 5% cash back on four bills worth $2,000 or less. Regular rates provide 2% cash back on groceries and 1% on many everyday purchases. High spending limits mean you can get higher cashback amounts for more extended periods. Cardholders with large budgets have an ample cap.
Additional perks from Visa include Visa Infinite benefits for all your other purchases. Concierge, hotel perks, and dining benefits give you everything necessary to save in all areas of your life.
Why We Picked It
We select the CIBC Dividend® Visa Infinite* Card for its quality rates for cash back on purchases. It’s possible to gain up to $3,200 in cash back on select purchases.
Pros and Cons
Pros
Decent annual fee of $120
Simple redemption process
Generous cashback rewards in many spending categories
Cons
$120 yearly fee after the first year
Only five types of insurance
Significantly decreased cashback rates after hitting $80,000 in spending.
High minimum income eligibility requirements
Best No-Annual-Fee Card
A credit card’s annual fee is how much you’ll pay to have the card and its perks. Cards with annual fees bring significantly more benefits, but you can save more with no annual fee. Individuals with low monthly or yearly spending habits may find that a card with no annual fee fits them best.
A no-annual-fee card is among the best credit cards Canada offers for its low yearly prices and excellent rewards. Many cards with no annual fee are ideal for students and those with lower credit scores. Several offer cashback rewards but have significantly lower accelerated earning rates.
The Tangerine Money-Back Credit Card features minimal eligibility requirements and outstanding cashback rewards, all with no annual fee. It has a 19.95% APR. Users must have a minimum income of $12,000 and cannot have bankruptcy filings within the past seven years.
Multiple categories gain 2% cashback, including groceries, home improvement, public transportation, and entertainment. You can swap cashback rewards between two categories and get further cashback eligibility with a savings account. A flat rate of 0.5% cash back applies to every other general purchase, while interest rates face 19.95%.
Why We Picked It
The Tangerine Money-Back Credit Card offers excellent flexibility with no cashback collection limits and no annual fee. Lowered interest rates and purchase assurance provide additional benefits.
Pros and Cons
Pros
No annual fee
Free cards for additional users
Monthly cashback crediting
Less-typical spending categories
Cons
Limitations on the number of categories for cash back
No physical locations
Meagre rate compared to other cards
Best Travel Rewards Card
As one of the top benefits of having a credit card is rewards points, travel rewards cards are among the top offerings for those who are frequent flyers or hotel attendees. These cards give points towards travel expenses to help you save money. You can get excellent treatment while travelling and save money on high-end hotels and first-class flights with discounted hotel stays and flight tickets from these perks.
The TD® Aeroplan® Visa Infinite* Card features a worthwhile introduction offer for eligible applicants and excellent travel savings. An annual fee of $139 applies. You’ll get additional travel insurance and other rewards benefits at this price.
You’ll earn two points per one dollar for flights, 1.5 points on grocery and other general travel purchases, and 1.25 points for all other purchases. Working with Aeroplan partners can get you additional points.
Whether you need standard carrier travel accident insurance or trip delay insurance, the TD® Aeroplan® Visa Infinite* Card covers all bases for travelling by plane or car. Additional benefits include Visa Infinite Concierge and luxury hotel rooms.
Why We Picked It
This card is one of the best credit cards Canada offers for its travel medical insurance and trip cancellation insurance. Comprehensive insurance protects you while you travel over age 65. Excellent travel benefits give you access to top hotels offering Aeroplan.
Pros and Cons
Pros
Expanded travel insurance for all situations
Ample limitations on spending and insurance
Generous rewards giveback program with Aeroplan points
Cons
Potentially expensive
Offer is not available for those in Quebec
Best Business Card
Many Canadian business owners opt to open a line of credit to cover their company’s expenses. The best business card provides high value for business owners, with various payment options and rewards on daily business-related purchases.
Perks for groceries, office supplies, travelling, and more help you save money on regular business costs. Canadian business owners can choose a credit card that fits their needs to save on business expenses and get money back to cover their card balance or use it on additional spending needs.
The American Express Business Edge™ Card is a highly favourable card offering multiple benefits for cardholders. Interest rates begin at 19.99% for purchases and 21.99% on cash advances.
When you want a full suite of tools and savings perks, this card has them. This card features up to 67,000 or 45,000 in welcome points, depending on how much you spend in the first few months of being a cardholder. A new enrollee welcome offer adds 1,000 extra points towards your business expenses or savings.
You’ll also get excellent points benefits like ten points per dollar spent. Cardholders can redeem points at their own pace or up to three times the regular rate for things like electronics, gas, office supplies, and more. Additional non-business purchases receive one point.
You’ll also get access to Aeroplan and other travel point systems for flying and hotels. Business management tools also come with these benefits to keep your business afloat.
Why We Picked It
We chose the American Express Business EdgeTM Card as one of the best credit cards Canada offers for its excellent cashback rewards and flexibility regarding payment and getting new business with minimal risk. Included management tools are especially helpful in maintaining new spending habits.
Pros and Cons
Pros
Reasonable introduction offer
Up to 99 other cards with additional coverage for your employees
Cons
Few insurance options
American Express cards face less acceptance across Canada
Best for Credit-Score-Builder Card
Individuals with no credit score or a low credit score have limited options for Canadian credit cards. Building your score is essential to gain more rewards and card options. Among the best credit cards Canada residents can choose from, credit-score-builder cards are a top selection for students and other individuals looking to begin building their credit scores.
Whether you’re a business owner, student, or senior, you can use a credit card to improve your current score and reap multiple benefits. While these cards have fewer rewards than options with annual fees, you’ll be able to build your credit to switch to a better Canadian credit card.
Home Trust Secured Visa
Interest: 19.99% Annual Fee: $0 Top Perks:
Excellent for those in not-so-perfect credit situations
The Home Trust Secured Visa provides an easy way for cardholders to build credit without extensive fees. There are minimum eligibility requirements, no annual fee, and no rewards for this card. High approval rates make this card the perfect choice for bankrupt individuals.
Applicants choose the amount of credit they want to deposit, up to $10,000. They’ll receive a credit limit of the same value. No matter how often you use the card, you won’t accrue points, but your credit score will increase with regular payment activity.
Secured credit cards feature higher interest rates, but you get automatic reporting to credit unions. Reduced interest rate of 14.99% if you wish to pay an annual fee of $59.
Why We Picked It
We selected the Home Trust Secured Visa as one of the best credit cards Canada features due to its straightforward setup and easy way to boost your credit score. While it offers no rewards, individuals looking to repair their credit score have nothing to lose.
Pros and Cons
Pros
Easily helps rebuild credit for Canadians with poor scores
No annual fee
High approval rates, even with previous bankruptcy filings
Cons
Requires a security deposit
Not always possible to get your full deposit back
Best Student Card
Student cards are excellent for building credit and maintaining affordable prices despite regularly using one of the best credit cards Canada has. Whether you need to build your credit or purchase books for school, this card type makes it easy. Few eligibility requirements make it possible for students to get their first credit card.
High flexibility with these cards allows Canadian college students to qualify for a credit line without paying the extra expenses of a security deposit. Student cards’ inclusions often don’t feature an annual fee but may include some cashback rewards. A student card also allows individuals to build positive spending habits to avoid interest charges and have an excellent credit score by their graduation date.
With no minimal personal income requirement or annual fees, the BMO CashBack® Mastercard For Students is a simple card that offers reasonable signup rewards and a decent rate for cash back. This card is ideal for beginners, students, and those requiring extra purchase protection.
A regular cashback rate of up to 3% applies to groceries and other general purchases. A signup bonus of 5% cash back is available during the first 90 days. Other features include an extended warranty to protect students from theft or other issues.
Why We Picked It
We chose the BMO CashBack® Mastercard For Students for its excellent cashback rates and additional rewards, such as no annual fee or limits on redeeming cash back. College students receive all the perks they need to save money, pay their card balance regularly, and learn about interest.
Pros and Cons
Pros
Included purchase protection
Up to 5% cash back on eligible purchases, including groceries
A minimum of $1 cash back redeemable
Cons
$500 limit on higher cashback earning
Limited insurance types
Best Low-Interest Card
As interest causes your total card balance to increase, it can be tough to save money or pay off your credit card’s bill. The best credit cards that Canada offers with low interest rates tend to feature significantly lower or zero percent interest rates to help save money for those who often have rolling credit balances.
Typical rates for credit cards with average interest can quickly add to your total unpaid balance. Reduced interest rates may go from around 20% to 15% or lower. With these decreased interest rates, you can pay off your outstanding balance sooner and prevent further debt from accruing.
Canadians can use the MBNA True Line® Gold Mastercard® Credit Card to pay off their rising credit balances more easily. With no minimum personal income requirements, it’s an excellent option for maintaining a low rate. The card’s 8.99% APR is considerably more reasonable than that of competing cards.
The MBNA True Line® Gold Mastercard® Credit Card features an introductory balance transfer rate of 0% for your first year with the card. After that, a balance transfer rate of 8.99% applies. The purchase interest rate is also 8.99%, while the card offers interest rates for a cash advance at 24.99%.
Why We Picked It
We selected the MBNA True Line® Gold Mastercard® Credit Card for its competitive interest rate and high affordability compared to other cards. Additional perks like car rental services make it a top choice for those wanting to benefit from quality solutions with reasonable interest rates.
Pros and Cons
Pros
No minimum income requirements
Additional discounts and fraud insurance
Lowest interest rate possible for card charges
Cons
No insurance
Late payments increase the base 12.99% interest for transfer balances
Want more low-interest credit card options? See a full line up of the best credit cards for low-interest here.
Best Balance-Transfer Card
Canadian business owners and residents can use distinctive credit cards to reap further savings. Thanks to specific card types, you no longer have to suffer from high interest rates and outstanding credit card balances. By strategically moving your debt between cards, you can reduce your interest and reap the other benefits of having a credit card.
Some of the best credit cards Canada offers are balance-transfer credit cards. They allow high-interest debt to transfer between the balance of that card to one with a more affordable interest rate. These significantly decreased interest rates make having a credit card less expensive.
The CIBC Select Visa* Card helps Canadians manage their credit card debt by dispersing it to other cards. The CIBC Select Visa* allows you to transfer your credit card balance to get 0% interest for the next ten months. You’ll lower your rate from your high-interest credit card and save significantly with the lower interest rate of this card.
The purchase interest rate, the balance transfer annual interest rate, and the cash advance annual interest rate are 13.99%, significantly lower than other Canadian credit cards. Other benefits include accident insurance and discounts on car rentals.
Eligibility requirements for the CIBC Select Visa* Card include a minimum annual income of at least $15,000. You’ll pay a $29 annual fee and get a rebate for the first year.
Why We Picked It
We picked the CIBC Select Visa* Card for its excellent low interest rates and its included additional perks. Its affordability and higher approval rating help Canadians who have significant debt combine their debt into one bucket to prevent costs from other credit cards’ higher interest.
Pros and Cons
Pros
Highly affordable annual cost
Significantly lower interest rate than competing cards
$100,000 in accident insurance
Cons
Few perks compared to other cards
How Did We Compare and Choose These Cards?
We determined the most popular card types and located the best credit cards Canada has for different needs. We compared and chose the cards here based on their most compelling offerings, such as rewards, travel perks, cash back, no annual fees, and low interest rates.
Despite multiple cards existing in each category, we selected what we think are the top offerings based on the benefits the cardholder gets, depending on the introductory deal, annual fee, and other elements. For example, a combination of no annual fees and low interest will beat out a card with no annual fees and high interest.
We chose one card from each type of credit card category, as they offer the highest level of balance between affordability, accessibility, approval rating, eligibility requirements, and more. We selected credit cards with the optimal benefits for higher expenses as well as budget options.
Choosing the Right Credit Card
Choosing the right credit card can take time, considering the many options. You’ll need to think through your priorities and wants, then compare them to your budget, the available credit cards, and their offerings. The last thing you want is to choose a card that doesn’t benefit you maximally.
Your current credit score, spending habits, and more are determining factors you should consider when choosing a credit card. Higher credit scores make you eligible for credit cards with better perks and spending limits. However, several options are ideal for students or those with lower credit scores.
Do you want excellent rewards on everyday purchases, or are you looking for a card with a low interest rate to offload credit card debt? What about a card that provides travel points for flights and hotels? With so many different options, there’s no shortage of flexible cards and those having the specific benefits and rates you want.
Credit Card FAQs
Many of the best credit cards Canada offers can be challenging to understand if you’re not already familiar with the diverse options. Comparing the top cards isn’t always enough. Between travel cards and those offering high cashback rewards, many Canadian individuals have questions regarding their credit cards.
Not everyone has the same budget or financial flexibility. Instead of reflecting on your budget, consider whether you need certain purchases. A credit card with an annual fee can offer more affordable interest rates, flexible spending limits, and better perks than options with no fee.
Individuals with high spending budgets may significantly benefit from a card with an annual fee as they can save more on everyday purchases and enjoy lower interest rates on balances carrying to the next month. Frequent spending on cards with annual fees may also bring higher rewards earnings.
A credit card with an annual fee may not be feasible for Canadians with low monthly spending budgets. A yearly fee’s cost may not outweigh the possibly low rewards earnings, resulting in decreased value for individuals with lower spending patterns.
The earning process for getting cash back from a credit card is relatively straightforward. You can get some money back from a Canadian credit card by spending on purchases like groceries, gas, restaurants, hotels, and more. Depending on your chosen credit card’s details, you’ll get a specific cashback rate.
For example, an introductory credit card rate of 5% cash back means that you’ll get $5 back for every $100 that you pay. When the introductory rate ends, your cashback rate will decrease to the average amount.
Some credit cards have certain rates for specific types of purchases and lower rates for less popular purchases. If your introductory cash back rate is 2%, you’ll receive up to $2 every time you make an eligible purchase of $100. Many cards only allow 0.5% cash back after the introductory period ends.
Redeeming your cashback awards may involve going through a specific process, such as meeting a minimum cashback amount, while others have no requirements and allow you to withdraw or apply the cash to your card’s total balance. Other credit card companies make it easy to get bonus cash and have no withdrawal minimums.
A credit card’s interest rate is how much you’ll pay in extra costs if you don’t pay off your entire credit card balance before the bill’s deadline each month. Many credit cards have an interest rate of about 20%, but the card type factors into the overall interest. Some card types have specific low interest rates to help Canadians save money on credit card bills.
Most credit cards have different interest rates for cash advances and regular charges. Cash advance interest rates could be as high as 24.99%.
When you have an outstanding credit card balance (that is, you don’t pay it off at the end of the billing cycle), you’ll pay interest. This rate can add up quickly, making it difficult to pay off the remaining debt as it accrues.
Instead of suffering from significant credit card debt, individuals can also transfer a portion of their debt to another card with lower interest rates. This is the purpose of balance-transfer offers.
Conclusion
While you may find plenty of options to choose from, determining the best of the credit cards Canadian banks can offer you will depend on your needs. Considering the many Canadian credit card types, it’s essential to understand your priorities and choose a card that fits your lifestyle best. Factors like budgets, card benefits, and annual fees are vital things to consider when selecting a card.
Options for students and those with poor or no credit make it affordable to improve your credit score. Individuals with low budgets benefit best from a low-interest credit card or a balance transfer card to pay off their debt more quickly. Business owners also have excellent choices of cards to pay for travel or in-office expenses.
Look no further than Insurdinary for assistance in finding the best credit card for Canadian residents or business owners. We work with Canada’s leading credit card companies. No matter your level of eligibility or credit card reward preferences, our website helps you find the best option that matches your lifestyle, enables you to save money, and provides you with worthwhile rewards.
