The Best Credit Cards In Canada

Wallets filled with coins and bills have gradually given way to sleek ‘n slim credit cardholders.

The Canadian Bankers Association numbers from 2021 indicate that there are 76.2 million Visa and Mastercard credit cards in circulation in Canada. In addition, 70% of Canadians pay their credit card balance in full each month making their interest $0. Not all credit cards are created equal and given that the average Canadian has a balance of $4,500, knowing what you are getting reward-wise, or what hit you’re taking interest-wise, is key to successful money management.

How do credit cards work?

Essentially, they’re little plastic cards that allow you to spend and pay it back later, normally on a monthly basis.

The credit provided via the card allows you to either make purchases, transfer balances from other cards, or give cash advances. Each card has different interest rates and sometimes rewards, but all require a minimum monthly payment towards whatever balance you have on the card. The amount of credit you have access to will also vary, based on the card company, card use and the applicant’s personal credit.

What is the best credit card for me?

Though not all, most credit cards offer incentives or rewards for use. For some, the reward is simply a low-interest rate, and others provide points or cash back. Some of the cards will charge an annual fee while others have none. Typically, it’s the cards with the greatest rewards that carry the largest annual fee. Annual fees can vary but it’s not abnormal for a card to charge $100 to $150 annually for the privilege of use. At this stage in the Canadian market, there are a ton of credit card products available and it can take some time to find one that suits your unique needs.

Deciding which card makes the most sense for you depends on many factors including your discipline to pay off balances and the types of rewards you think you’d benefit from the most. If you typically carry a balance, it’s wise to stay away from travel rewards cards and instead stick to cashback or low-interest cards. Also, credit cards are a great way to get and grow your personal credit score, as long as they are used wisely.

Something important to keep in mind as you review our list: while the type of benefits and costs don’t typically change drastically, they do change often and sign-up bonuses change all the time! Credit card companies are always looking for new and great ways to entice you to apply. 

How many credit cards should I have?

When used properly, credit cards are a great way to build a strong credit score. Because of this, you should try to have at least one credit card that works well for your lifestyle and financial situation. Furthermore, the credit card you choose should complement your personal finances. However, it’s not uncommon for Canadians to have more than one credit card. Perhaps one is for daily spending and another is reserved for emergency expenses. It’s up to you to decide how many credit cards you need to sustain your finances comfortably.

Related Reading: Best Cash Back Credit Cards in Canada

Points vs. Cash Back Credit Cards

Rewards cards offer a variety of benefits and come in a variety of forms but they all fall under the same two umbrellas: points or cash back.

Points Card

These types of rewards cards allow you to earn points, based on whatever formula the card company offers. The points can be traded in for a reward when you have accumulated enough. Points can be in the form of miles earned (usually seen with travel cards) or dollar value (such as for supermarkets). How quickly you earn points and the value of the rewards vary widely, so it’s best to shop around for a card that makes sense for your particular spending habits and reward preferences.

Cashback Card

Unlike rewards cards, where you get a certain number of points for a certain amount of money spent, cashback cards typically come in the form of a percentage of cash back for every dollar you spend. So, they’re exactly what they sound like — use your card and get cash in return! Your earned cashback is typically paid out as a credit on your card once per year, but the payout terms vary based on the card company.

Best Credit Cards in Canada

Category	Credit Card
Best rewards credit card	American Express Cobalt Card
Best travel rewards credit card	TD First Class Travel Visa Infinite
Best travel rewards credit card (no fee)	CIBC Aeroplan Visa Card
Best cash back credit card	Scotia Momentum Visa Infinite
Best credit card for dining and transit	BMO eclipse Visa Infinite Card
Best student credit card	BMO Student No Fee CashBack Mastercard
Best low-interest credit card	American Express Essential Credit Card
Best balance transfer credit card	MBNA True Line Mastercard
Best business credit card	BMO World Elite Business Mastercard
Best prepaid credit card	KOHO
Best secured credit card	Home Trust Secured Visa
Best credit card with a sign-up/welcome bonus	American Express Cobalt Card
Best credit card with car rental insurance	BMO Ascend World Elite Mastercard
Best no-annual-fee credit card	MBNA True Line Mastercard
Best US dollar credit card	RBC US Dollar Visa Gold

Best Rewards Credit Card in Canada

It really depends on what your goals are when deciding what type of reward you think will benefit you the most. There are so many different types of rewards — from travel to groceries — what is best for one might not be best for another.

That said, of all of the rewards cards on the market, when it comes to getting the best bang for your buck for your average, everyday spender, the American Express Cobalt Card is likely going to be your best bet.

What you get:

• Five points for every dollar spent on eligible restaurant and food delivery
• Three points for every dollar spent on streaming subscriptions
• Two points for every dollar spent on travel and transit
• One point for every dollar spent on everything else
• Access to the AMEX Memberships Rewards program where you can redeem points for movie tickets, dining experiences, retail and more (1,000 points = $10)
• Access to The Hotel Collection and a $100 USD hotel credit
• Comprehensive travel insurance and mobile coverage
• Beginner bonus of 2,500 points for each billing period you spend $500 on your Cobalt card in the first year, up to a maximum of 30,000 points

What you pay:

• $12.99 monthly fee
• $0 for a supplementary card
• 20.99% interest on purchases
• 21.99% on cash advances

Best Credit Card in Canada for Travel Rewards

If travelling is your goal and getting the most points with the least restrictions is going to help you get there, the best card on the market is the TD First Class Travel®Visa Infinite* Card. There are cards out there that will get you more bonuses, but they come with massive annual fees (we’re talking up to $700 per year!) For the average consumer, the TD First Class will do the job. 

What you get:

• Three points for every dollar you spend
• Nine points for every dollar spent when you book travel through Expedia for TD
• Earn 50% more points when you link your Starbucks rewards card
• Redeem for travel and travel-related purchases
• Redeem for retail merchandise and gift cards, or for a cash credit to your account
• No blackouts on travel or seat restrictions
• Extensive suite of travel insurance
• Points don’t expire as long as your card is active
• Beginner bonus of up to 100,000 points and an annual fee rebate for the primary and additional card holders for the first year

What you pay:

• $120 annual fee
• $50 for first supplementary card, $0 for additional cards
• 19.99% interest on purchases
• 22.99% on cash advances

Best Credit Card in Canada for Travel Rewards (No-Fee)

Given that rewards often come at a cost, there aren’t many travel reward cards in Canada that come with no fee. Those that do obviously have fewer perks than a fee-based card. However, if no fee is what you need, then the CIBC Aeroplan Visa Card is a good bet.

What you get:

• One point for every dollar spent on gas, grocery and with Air Canada directly
• One point for every $1.50 spent elsewhere
• Basic insurance benefits
• Get 3 months of free Uber Pass
• Earn 10,000 Aeroplan points ($200 value) when you make your first purchase

What you pay:

• $0 annual fee
• $0 supplementary cards (up to 3 additional cards)
• 20.99% interest on purchases
• 22.99% interest on cash advances (21.99% for Quebec residents)

Best Cashback Credit Card in Canada

Cashback cards are a really great option for those of us who either aren’t keen on earning for travel, or who want to make some money off of the money we spend. Makes sense! There are a growing number of cashback cards on the market, but our favourite is the Scotia Momentum Visa Infinite card for its value and rewards.

What you get:

• 4% cashback on groceries and recurring bill payments
• 2% cashback on gas and daily transit
• 1% cashback on all other purchases
• 24/7 concierge service
• Access to the VISA Infinite Luxury Hotel Collection and the VISA Infinite Dining Series
• Comprehensive insurance coverage
• Waived annual fee the first year for primary and additional card holders
• Earn 10% cashback on the first $2,000 you spend in your first 3 months as a special offer

What you pay:

• $120 annual fee
• $50 supplementary card
• 20.99% on purchases
• 22.99% on cash advances

Best Travel Credit Card for Dining and Transit

If you’re big into travel and want a card that will help you get around and enjoy your trip, we are fans of the BMO eclipse Visa Infinite Card. It’s an extremely versatile card that allows you to earn points and use points in a variety of ways.

What you get:

• Earn 5 points for every dollar spent on takeout, dining, food delivery, groceries, gas, rideshare and transit
• Earn 1 point for every dollar spent on everything else
• Access Visa Infinite Luxury Hotel Collection, Visa Infinite Concierge and Visa Infinite Dining Series
• Travel and mobile device insurance
• Purchase security and extended warranty coverage

What you pay:

• $120 annual fee
• 20.99% interest on purchases
• 23.99% interest on cash advances (21.99% for Quebec residents)

Best Student Credit Card in Canada

Anyone who has been on a university or college campus the first weeks of school have surely seen tables of credit companies wanting to sign up students for their first cards. The fact is, it’s important to responsibly build credit as early as possible so that you have a healthy credit score when you really need it. Of all of the cards out there, the best value is BMO Student No Fee CashBack Mastercard. We love it because it gives cashback as a reward instead of points. Though you may want the points, it’s probably not the best use of rewards as you start trying to build credit.

What you get:

• Special offer cash bonus of $100 and no monthly fees when you open a BMO Student Chequing Account
• Special offer cash bonus of $500 when you open a BMO Student Line of Credit
• Welcome bonus of up to $125 cashback in your first 3 months of card ownership
• 3% cashback on grocery purchases
• 1% cashback on recurring bill payments
• 0.5% cashback on all other purchases
• Extended warranty and purchase protection
• Access to additional discounts

What you pay:

• $0 annual fee
• $0 for supplementary cards
• 20.99% interest on purchases
• 22.99% interest on cash advances

Best Low-Interest Credit Card

We know that the best way to manage a credit card is to pay it off in full every month. We also know that many of us fail to do that (see above about the average $8,000+ balance we all carry). If the greatest reward you can think of having is not having to get hit with massive interest on your balances, the American Express Essential Credit Card is a fantastic, super-low interest credit card that will make you feel a little bit less guilty about that balance you can’t seem to kick.

What you get:

• Competitive interest rate
• Basic travel insurance
• Access to Front Of The Line and other unique AMEX experiences

What you pay:

• $0 annual fee
• $0 supplementary card
• 12.99% interest rate on purchases and cash advances

Best Balance Transfer Credit Card

Because of credit cards’ many great introductory offers, it’s often worthwhile to transfer credit debt from a card with high interest to a card with no or low interest. Many credit card companies offer low-interest rates for balance transfers in perpetuity while others will only allow it once, and early. For the best deal on a balance transfer, we like the MBNA True Line® Mastercard®.

What you get:

• Welcome offer of a 0% promotional balance transfer rate for the first 12 months
• Up to nine authorized users allowed on the account
• Access to special offers and discounts
• Utilize the MBNA Payment Plan to manage large purchases
• Competitive interest rate

What you pay:

• $0 annual fee
• $0 supplementary card
• 12.99% interest on purchases
• 24.99% interest on cash advances
• 12.99% on balance transfers

Best Business Credit Card in Canada

If you’re in business, your credit needs are quite a bit different than what you require for personal use. There are a plethora of business credit cards on the market and it can be tedious to wade through them all to figure out which one is best suited to your particular needs. When it comes to the most well-rounded, accessible card, we recommend the BMO World Elite Business Mastercard.

What you get:

• Welcome offer of no annual fee the first year
• Earn up to 70,000 bonus points in your first year
• Earn 4 points for every dollar spent on gas, office supplies, cell phone and internet bill payments
• Earn 1.5 points for every dollar spent elsewhere
• Access to the Mastercard Travel Pass
• Comprehensive travel insurance

What you pay:

• $149 annual fee
• 17.99% interest on purchases
• 22.99% on cash advances

Best Prepaid Credit Card Canada

Pre-paid cards are a really great way to both manage money in and money out, and to build credit. By preloading a card, you will never get yourself into a situation where you become one of the many who get into the habit of carrying large balances. We really like KOHO, which is more of a bank card. 

What you get:

• 0.5% cashback on all purchases
• Perks such as RoundUps, extra cashback with select vendors, and lock your card in the app

What you pay:

• Only the money you load onto the card!
• $0 monthly fee

Best Secured Credit Card in Canada

A secured credit card is like a secured loan. You provide collateral of some sort to ensure that you have the funds to pay back what is owed. With a credit card, you give money to the lender upfront so they know the money is there to pay. The benefit of a secured credit card is that it gives you access to purchases that can only be made by credit, and also to build a good credit score. There are many out there on the market but we really like the Home Trust Secured Visa Card.

What you get:

• Ability to make purchases online
• Able to build and improve credit

What you pay:

Option 1

• $0 annual fee
• 19.99% interest on purchases

Option 2

• $59 annual fee
• 14.90% interest on purchases

Best Credit Card with a Sign-up/Welcome Bonus in Canada

Sign-up bonuses and incentives change constantly so it’s a good idea to do some research when picking a card. For right now, in the Fall/Winter of 2023, the best one we’ve seen is the above-mentioned American Express Cobalt Card.

Sign-up bonus:

• Five times the points on eligible restaurants up to $30,000 annually

What you get:

• Five points for every dollar spent on eligible restaurant and food delivery
• Three points for every dollar spent on streaming subscriptions
• Two points for every dollar spent on travel and transit
• One point for every dollar spent on everything else
• Access to the AMEX Memberships Rewards program where you can redeem points for movie tickets, dining experiences, retail and more (1,000 points = $10)
• Access to The Hotel Collection and a $100 USD hotel credit
• Comprehensive travel insurance and mobile coverage
• Beginner bonus of 2,500 points for each billing period you spend $500 on your Cobalt card in the first year, up to a maximum of 30,000 points

What you pay:

• $12.99 monthly fee
• $0 for a supplementary card
• 20.99% interest on purchases
• 21.99% on cash advances

Best Credit Card for Car Rental Insurance Canada

If you travel a lot or don’t own your own vehicle and often rely on rentals, a card that makes renting a car easier and covers insurance would be a definite plus. We think the BMO Ascend World Elite Mastercard is probably the best value with the best coverage.

What you get:

• Car rental insurance for any personal items stolen or damaged during an accident
• Welcome offer of up to 60,000 points and the annual fee is waived in the first year for primary and additional card holders
• Five points for every dollar spent on eligible travel purchases
• Three points for every dollar spent on eligible dining, entertainment and recurring bill payments
• One point for every dollar spent elsewhere
• Complimentary membership to Mastercard Travel Pass
• Utilize over 1 million Wi-Fi hotspots across the globe
• Travel and medical insurance coverage
• Extended warranty and purchase protection

What you pay:

• $150 annual fee
• 20.99% interest on purchases
• 23.99% interest on cash advances (21.99% for Quebec residents)

Best No-Annual Fee Credit Card in Canada

There is a wide variety of no-annual-fee credit cards out there on the market, and the benefits they offer are broad. So, the best card for one might not be the best for another. That said, as far as well-rounded benefits and rewards, we think the earlier mentioned MBNA True Line® Mastercard® Credit Card is going to be your best bet.

What you get:

• Welcome offer of a 0% promotional balance transfer rate for the first 12 months
• Up to nine authorized users allowed on the account
• Access to special offers and discounts
• Utilize the MBNA Payment Plan to manage large purchases
• Competitive interest rate

What you pay:

• $0 annual fee
• $0 supplementary card
• 12.99% interest on purchases
• 24.99% interest on cash advances
• 12.99% on balance transfers

Best US Dollar Credit Card in Canada

If you require a credit card that keeps money in American funds and charges you in American funds so that you don’t get hit with painful exchange fees, then a USD credit card is the best option for you. They’re useful if you make a lot of purchases or are paid in American dollars, travel regularly in the U.S., or have a bank account in the U.S. We like the RBC U.S. Dollar Visa Gold.

What you get:

• One point for every $1 spent
• Ability to spend in U.S. currency without dealing with exchange rates
• Comprehensive suite of travel and purchase insurance
• Low annual fee

What you pay:

• $65 USD annual fee
• $30 USD supplementary card
• 19.99% interest on purchases
• 22.99% interest on cash advances

Read More: Best Rewards Credit Cards in Canada