MoneySense has ranked the perfect bank cards in Canada throughout quite a few classes of playing cards. On this web page, nonetheless, you’ll discover the perfect of the perfect: the playing cards that prime their respective classes and cater to the wants of most Canadians. Use the device beneath to check bank card choices, or preserve scrolling for our editors’ prime picks.
Bank card comparability device
Why belief us
MoneySense is an award-winning journal, serving to Canadians navigate cash issues since 1999. Our editorial staff of educated journalists works intently with main private finance consultants in Canada. That can assist you discover the perfect monetary merchandise, we examine the choices from over 12 main establishments, together with banks, credit score unions and card issuers. Study extra about our advertising and trusted partners.
Finest bank card by class
| Finest playing cards by class | Why we adore it |
|---|---|
| Finest money again bank card SimplyCash Preferred Card from American Express Annual price: $120 |
4% again on groceries and fuel, and a couple of% again on all different purchases |
| Finest journey rewards bank card American Express Cobalt Annual price: $156 |
Among the highest earn charges in Canada (with as much as 5x the factors on eating and groceries), mixed with a versatile factors, equals your finest return on spending |
| Finest airline journey bank card (Air Canada) TD Aeroplan Visa Infinite Card Annual price: $139 |
Excessive earn charges on fuel, groceries and Air Canada purchases, straightforward redemptions and a $100 Nexus price rebate each 2 years |
| Finest airline journey bank card (WestJet) WestJet RBC World Elite Mastercard Annual price: $119 |
1.5% earn charge paired with an annual round-trip companion voucher on WestJet |
| Finest low-interest bank card Flexi Visa Annual price: $0 |
10.90% buy rate of interest |
| Finest stability switch bank card MBNA True Line Mastercard Annual price: $0 |
earn a 0% promotional annual rate of interest (“AIR”) for 12 months on stability transfers accomplished inside 90 days of account opening, with a 3% switch price. |
| Finest secured bank card Home Trust Secured Visa (low-rate option) Annual price: $0 |
Assured approval no matter credit score rating, with the choice to pay no annual price or obtain a low APR (annual proportion charge) of 14.90% should you decide to pay an annual price |
Finest total money again bank card
At a look: With stellar returns on groceries and fuel, a higher-than-average base earn charge, and a bunch of Amex benefits, the SimplyCash Most popular Card from American Specific takes the highest spot for cash back credit cards.
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Amex SimplyCash Most popular
Annual price: $120
Welcome supply: earn a $40 assertion credit score for every month-to-month billing interval by which you spend $750 in purchases in your card.
Card particulars
| Rates of interest | 21.99% on purchases, 21.99% on money advances |
| Earnings required | None specified |
| Credit score rating | 725 or increased |
Execs
- In contrast to different comparable money again bank cards with a 0.5% to 1% base charge, the SimplyCash Most popular card ensures not less than 2% money again on each greenback spent, no matter spending class, whether or not in-store or on-line. That’s double or quadruple the benefit over comparable money again playing cards. Plus, there’s no restrict to how a lot you may earn at this charge.
- With fuel and groceries being two main spending classes for many Canadians, the 4% returns add up shortly. For instance, spending $200 monthly on fuel and $400 on groceries would web you $288 money again yearly.
- Arrange your loved ones members with supplementary playing cards to earn much more for no further price. Sometimes, further playing cards run between $30 and $50 per card yearly.
- Entry Amex advantages, together with eating and retail experiences and Amex Entrance of the Line, which will get you early entry to occasion tickets. Obtain bonus factors or assertion credit via Amex Affords tailor-made to you.
- Comes with an insurance coverage package deal that features $100,000 in journey accident insurance coverage and $500 in mixed baggage and flight delay protection. Probably the most spectacular insurance coverage packages typically include travel credit cards, so this can be a uncommon perk for a money again card.
Cons
- Though American Specific is accepted at tens of hundreds of places throughout Canada, there are locations that don’t take the cardboard, together with Loblaw-affiliated shops. Plus, impartial retailers and mom-and-pop retailers usually tend to settle for Visa and Mastercard.
- In contrast to with some bank cards, you don’t have any flexibility as to when you may redeem your rewards. Money again is barely redeemed as soon as yearly, in September.
Finest journey rewards bank card
At a look: The American Specific Cobalt card impresses with among the highest earn charges on prime spending classes like “eats and drinks,” which incorporates any spends at from grocery shops to espresso retailers to meals supply. Plus, the journey factors are straightforward to redeem, and you’ve got extra redemption choices to select from than with different journey playing cards in Canada.
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American Specific Cobalt
Annual price: $156
Welcome supply: earn 1,250 factors for every month you spend $750, as much as a most of 15,000 factors.
Card particulars
| Rates of interest | 21.99% on purchases, 21.99% on money advances |
| Earnings required | None specified |
| Credit score rating | 725 or increased |
| Level worth | 1 Amex Membership Rewards level = $0.01 when redeemed with the Versatile Factors Journey Program, $0.015 on common with the Fastened Factors Journey Program, and as much as $0.02 with airline factors transfers. |
Execs
- You may rack up factors somewhat shortly as this bank card has among the highest earn charges of any journey card in Canada, with 5 factors per greenback on groceries and eating.
- Bonus classes are expansive, which means that you simply’ll get boosts on extra purchases. The journey and transit class is strong and consists of flights, motels and holidays, in addition to fuel, public transportation, taxis and rideshares—incomes you 2 factors per greenback on all these purchases.
- You may simply redeem your factors on any airline three other ways primarily based in your preferences: redeem for any journey expense charged to your card at a flat, easy-to-understand charge of 1 level for $0.01 in journey financial savings; switch them to a collaborating airline or resort loyalty program (together with Aeroplan) at a 1:1 ratio, which mainly doubles their worth; or use the Fastened Factors Journey chart to discover a beneficial charge with out worrying in regards to the service or blackout dates.
- There’s no price for supplementary cardholders so you may earn extra factors, quicker.
Cons
- The American Specific card shouldn’t be as broadly accepted as Visa or Mastercard.
- The annual price, charged at $12.99 month-to-month, comes out to $155.88, which is a noticeable soar from the $120 charged by comparable playing cards.
- In contrast to our honourable point out decide beneath, the Scotia Gold American Specific, this Amex card doesn’t waive international transaction charges, so that you’ll be paying an additional 2.5% on prime of trade charges for purchases made overseas.
- Though there’s an included complete journey insurance coverage package deal, it does lack journey cancellation protection.
Finest airline journey bank cards
For Air Canada frequent flyers
At a look: Whereas the quickest strategy to accumulate Aeroplan factors could also be to make use of the Amex Cobalt—the perfect journey rewards card total ranked by MoneySense—after which switch your Amex factors one to at least one, the TD Aeroplan Visa Infinite Card gives a branded Aeroplan card with easy redemptions. Of the 11 Aeroplan playing cards in the marketplace, this card has just a few differentiators just like the $100 Nexus price rebate that earn it the highest spot.
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TD Aeroplan Visa Infinite Card
Annual price: $139 (waved first yr)
Welcome supply: Earn as much as $1,300 in worth, together with as much as 40,000 Aeroplan factors and no annual price for the primary yr. Circumstances apply. Account should be authorized by Jan. 6, 2025.
Card particulars
| Rates of interest | 20.99% on purchases, 22.99% on money advances, 22.99% on stability transfers |
| Earnings required | Private earnings of $60,000 or family earnings of $100,000 |
| Credit score rating | 660 or increased |
| Anniversary bonus | Earn a one-time anniversary bonus of 15,000 Aeroplan factors if you spend $12,000 inside 12 months of opening the account. Circumstances apply. Account should be authorized by Jan. 6, 2025. |
| Level worth | Aeroplan factors are value $0.02 on common. |
Execs
- The earn charges are good and you may get the Aeroplan Standing Qualifying Miles that provide help to advance in Aeroplan standing on on a regular basis purchases, placing you nearer to distinctive Air Canada advantages, like precedence seat choice, free checked baggage, airport lounge entry and eUpgrades like free Wi-Fi, quicker.
- Though Aeroplan is an Air Canada loyalty rewards program, you may redeem factors on a dozen Star Alliance associate airways like United and Lufthansa, providing you with extra flexibility to redeem your factors.
- You’ll earn priceless perks like free first checked baggage for as much as eight journey companions on North American flights and a $100 Nexus price rebate each 48 months.
- Get emergency medical journey protection for longer than with different playing cards. That’s 21 days, or 4 days for these 65 and older. It additionally has a aggressive insurance coverage package deal that features hotel-motel housebreaking protection. Relying on what you prioritize for journey insurance coverage, this card could also be the perfect Aeroplan choice for many Canadians.
Cons
- Technically, you may earn extra Aeroplan factors through the use of a card just like the Amex Cobalt and transferring rewards to Aeroplan at a one-to-one worth. Nonetheless, should you’re on the lookout for simplicity or for the perfect Aeroplan particular card, that is our prime decide.
- Aeroplan gives a tonne of potential worth, however as a dynamic program with fluctuating level values, it’s not perfect for cardholders who desire a very easy rewards construction.
- The annual price of $139 is increased than another playing cards in its class.
For WestJet frequent flyers
At a look: In case your airline of selection is WestJet, this bank card is value contemplating. It not solely supplies a powerful base charge of 1.5% in WestJet reward {dollars} and a easy redemption course of, but it surely additionally has some worthy perks like an annual round-trip companion voucher and a free first checked bag for you and as much as eight journey companions.
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WestJet RBC World Elite Mastercard
Annual price: $119
Welcome supply: earn as much as $700 in WestJet {dollars} with the WestJet RBC World Elite Mastercard, Plus a Spherical-Journey Companion Voucher Each Yr
Card particulars
| Rates of interest | 20.99% on purchases, 22.99% on money advances |
| Earnings required | Private earnings of $80,000 or family earnings of $150,000 |
| Credit score rating | None specified |
| Level worth | 1 WestJet Greenback = $1 CAD when redeemed for eligible flights or trip packages. |
Finest low-interest bank card
At a look: When you’re on the lookout for a low-interest credit card, you gained’t discover a extra aggressive APR than this card’s 10.90%. For individuals who continuously carry a stability, the Flexi Visa is value a glance. The financial savings on curiosity expenses with this card may simply outweigh the worth of rewards you’d earn with a rewards or money again bank card should you can’t repay your stability.
Flexi Visa
Annual price: $0
Low rates of interest: 10.90% on purchases and 12.90% on money advances
Card particulars
| Rates of interest | 10.90% on purchases and 12.90% on money advances |
| Earnings required | Not specified |
| Credit score rating | Not specified |
Finest stability switch bank card
At a look: With regards to making balance transfers, our decide is the MBNA True Line Mastercard, which has a 12.99% rate of interest and edges out its nearest competitor, the Scotia Worth Visa, as a result of it has no annual price. That mentioned, this bank card’s 3% stability switch price is far bigger than the 1% commanded by the Worth Visa, so that you may wish to contemplate the latter should you’re transferring a serious stability.
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MBNA True Line Mastercard
Annual price: $0
Low rate of interest: 12.99%
Steadiness switch supply: earn a 0% promotional annual rate of interest (“AIR”) for 12 months on stability transfers accomplished inside 90 days of account opening, with a 3% switch price. This supply shouldn’t be out there for residents of Quebec.
Card particulars
| Rates of interest | 24.99% on money advances, 17.99% on stability transfers |
| Earnings required | None specified |
| Credit score rating | 660 or increased |
Finest secured bank card
At a look: For these with poor or no credit score, a secured credit card makes a whole lot of sense because it permits you the flexibleness of utilizing plastic whereas build up your credit score historical past. What’s nice about this House Belief card is that you simply’re given a selection: When you’re prepared to pay a modest annual price of $59, you’ll save on curiosity with a 14.90% buy APR. Or, should you desire no price, you’ll be charged a better rate of interest of 19.99%. We like that this card provides you the choice to decide on what works finest for you.
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House Belief Secured Visa
Annual price: $0
Rewards: None (designed for individuals seeking to rebuild credit score)
Welcome supply: None
Card particulars
| Rates of interest | 19.99% on purchases and 19.99% on money advances |
| Earnings required | None specified |
| Credit score rating | 300 or increased |
Our choice course of
Many web sites that examine monetary merchandise let pc programs make their bank card suggestions. Utilizing formulation and a listing of information factors, they crunch the numbers and spit out an “neutral” or “unbiased” record of playing cards. The issue is bank card suggestions aren’t a precise science—they’re subjective by nature. Do 5 free airport lounge visits per yr trump no international transaction charges on worldwide purchases? Reply: Relies upon who you ask.
As an alternative of counting on algorithms, MoneySense editors contemplate and debate how Canadians really use bank cards. Our editors apply their bank card experience, intensive analysis within the advantageous print (we’ll even telephone up the banks!) and data of Canadians’ monetary targets to give you choice standards that finest mirror the class and kind of card. Our suggestions are subjective—and sure, open to debate—however they’re at all times made with you in thoughts.
First off, any bank card issued in Canada has the potential to be featured as one in all our picks—not simply affiliate companions like another websites. Most often, there are solely a handful of sturdy playing cards in any given class which can be worthy of an in depth point-by-point comparability.
As soon as we’ve got our shortlist of playing cards, we dig into the advantageous print to see how they stack up on the standards that matter most for the class—it could possibly be the speed of return in your spending (for journey playing cards), the rates of interest supplied (for stability switch and low-interest playing cards), or the eligibility standards (for scholar playing cards). Oftentimes, it’s a mixture of some components.
This focus helps us discover the merchandise which can be principally possible that can assist you obtain your targets. In the long run, further options and advantages are sometimes higher handled as an added bonus—not the primary motive to get a card, however good to have anyway.
What to do in case your bank card utility is declined
You’ll have issue getting a brand new bank card for a wide range of causes, from not assembly the cardboard’s earnings necessities to not having a excessive sufficient credit score rating. In case your utility is denied, Doris Asiedu, a licensed credit score counsellor with Credit score Canada, recommends you are taking these four steps.
How bank cards work
While you use a bank card, you’re taking out a short-term mortgage with a stability that comes due each month. As you pay down your stability, the credit score out there to you the next month begins to return as much as the utmost credit score restrict in your card. There are lots of methods you should use a bank card. For instance, many playing cards can be utilized for purchases, for balance transfers and/or money advances. As helpful as they’re, it’s necessary to grasp tips on how to use bank cards responsibly to keep away from falling into monetary bother.
The way to calculate bank card curiosity
Bank card curiosity is expressed as an annual proportion charge, or APR. It’s a price charged for borrowing cash from the bank card issuer. When you’ve paid your bank card stability in full by the tip of the billing cycle, you gained’t be charged any curiosity. However should you carry a bank card stability, curiosity expenses start to build up, and also you’ll proceed to pay curiosity till you pay your stability again in full.
Although APRs are expressed in annual phrases, bank card curiosity is calculated every day and charged month-to-month. (The APR represents the entire price of borrowing cash for a yr.) You may determine your every day rate of interest by dividing your APR by 365 (or 366 throughout a intercalary year). For a bank card with a 19.99% APR, your every day charge is 0.0548%.
This implies a $1,000 stability will incur $0.54 in curiosity expenses in a single day. And the curiosity compounds every day, which signifies that the subsequent day, assuming you don’t make any further purchases, you’d be charged curiosity on a complete of $1,000.54, and so forth. Lastly, on the finish of the billing cycle, you’re charged curiosity primarily based on the typical every day stability throughout every one of many days within the billing cycle. So, to find out the quantity of curiosity owed:
- Calculate your every day rate of interest by dividing the APR by 365.
- Discover your common every day stability by including up the balances for every day of the billing cycle and dividing it by the variety of days in your assertion interval.
- Multiply your common every day stability by the every day rate of interest, and multiply this whole by the variety of days within the assertion interval.
That’s why it’s finest to pay down your debt as shortly as attainable. When you don’t repay your stability in full by the date famous in your assertion, you’ll owe curiosity, beginning on the day that you simply made your buy.
Federally regulated monetary establishments (suppose main banks) are required to supply an interest-free grace interval of not less than 21 days, which begins on the final day of your billing interval. Some issuers supply as much as 30 days. (Observe: This rule doesn’t apply to money advances or stability transfers.)
What are some great benefits of utilizing a bank card?
One of many main advantages of a bank card is comfort. You may merely pay on your buy understanding you may be billed for the excellent stability the next month—no want to hold money in your pockets, plus you may store on-line.
Different advantages embrace the flexibility to accrue rewards and factors—comparable to money again or travel points—primarily based on a proportion of your purchases every month; relying on the cardboard you select, it begins at 1% and goes as much as 4%. You may then redeem these factors for reward playing cards, journey or different objects supplied via the bank card firm’s on-line rewards catalogue.
Bank cards may provide help to construct credit score. At all times paying on time will assist you obtain a excessive credit score rating (650 plus), permitting you to borrow for a mortgage or a automotive mortgage sooner or later at an inexpensive rate of interest from a monetary establishment.
Kinds of bank cards
With regards to rewards credit cards, the identify says all of it. These are playing cards that provide you with one thing again if you spend with them, whether or not it’s factors or money. The extra you spend, the extra rewards you get. For individuals who repay their stability in full each month, these playing cards can actually add worth. There are 4 essential forms of rewards playing cards:
Money again bank cards
Money again playing cards supply a rebate credited to your stability, normally calculated as a proportion of the greenback worth of your purchases. Most of those playing cards have accelerated earn charges in sure classes (groceries and fuel, for instance), they usually all have a minimal base charge for spending outdoors these classes. Your money again rewards can assist you save on something you should purchase along with your card. See our picks for the best cash back cards in Canada.
Journey bank cards
These playing cards supply factors or miles to be redeemed in direction of travel-related purchases comparable to flights, motels, cruises and trip packages. Rewards won’t be as easy as money again, however journey factors playing cards can assist you save large on upcoming journeys, with many providing perks together with sign-up bonuses, complete journey insurance coverage and airport lounge entry. See our picks for the best travel credit cards in Canada.
Retailer bank cards
These bank cards reward you with factors for on a regular basis purchases that may be redeemed for reductions off objects out of your favorite retailer. The thought is to reward model loyalty with priceless advantages. The PC Monetary Mastercard and the Canadian Tire Mastercard bank cards are nice examples. See our picks for the best store credit cards in Canada.
Lodge bank cards
Much like journey playing cards, resort bank cards reward customers with factors redeemable for resort stays and perks. These playing cards are sometimes linked or co-branded with a particular resort model or loyalty program, like Marriott Bonvoy or Finest Western Rewards.
Selecting the perfect card: What else to contemplate
When you’ve chosen the class of card that you really want, contemplate the earn charge, further advantages and kind of factors earned with every card. When you occur to spend so much on gas and groceries, search for a card with a excessive earn charge for these classes. The annual price also needs to be thought-about. There’s a big selection of no-fee credit cards in Canada. Though nobody likes to pay an annual price merely to make use of their card, annual-fee playing cards usually supply extra in perks and worth again—which means you may nonetheless simply come out on prime financially.
Widespread bank card protections
When evaluating bank cards in Canada, it’s necessary to think about the protections that include your chosen card. Listed below are among the most typical ones:
- Buy safety: Many bank cards present buy safety to cowl eligible purchases towards loss, harm or theft for a specified interval after the acquisition is made. The protection quantity and length can fluctuate amongst bank cards, so it’s necessary to assessment the phrases and situations of your particular bank card.
- Zero legal responsibility: In Canada, most bank cards supply zero legal responsibility safety, which means you gained’t be held answerable for unauthorized expenses made in your bank card account. Nonetheless, it’s extraordinarily necessary to report any suspicious transactions or unauthorized exercise to your card issuer.
- Prolonged guarantee: Some bank cards supply prolonged guarantee safety, which extends the producer’s guarantee on eligible purchases for a further interval. This could present added peace of thoughts, significantly for higher-value purchases.
- Journey insurance coverage: Sure bank cards might embrace journey insurance coverage advantages comparable to journey cancellation/interruption insurance coverage, emergency medical protection, baggage loss/delay insurance coverage, and rental automotive insurance coverage. The precise protection and situations fluctuate, so assessment the main points of your bank card’s journey insurance coverage coverage.
- Fraud safety: Bank card issuers usually have sturdy fraud safety measures in place. In case your bank card is misplaced or stolen, you may report it to your card issuer instantly, and they’re going to normally deactivate the cardboard to stop unauthorized use.
Continuously requested questions
Your choice for which bank card is finest for you and your loved ones will come down as to if a cash back or travel rewards bank card most accurately fits your wants and spending habits. Journey rewards will be profitable, however what you earn from a money again card will be spent on something—or saved.
When contemplating a money again card, take inventory of your spending habits and decide the cardboard that can earn you probably the most rewards. For instance, should you spend quite a bit on fuel, then decide a card that earns you extra cash back at gas stations. Excessive earn charges are nice, however remember the fact that lots of the prime playing cards have a excessive earnings requirement.
Additionally be aware that some money again bank cards will solely provide you with what you’ve earned after you attain a minimal quantity or as soon as per calendar yr. Learn the way you’ll receives a commission, and ensure you’re okay with it earlier than you apply. When you’re contemplating a card with an annual price, be sure the money again you earn is value greater than the price. If it’s not, stick with a no-fee card.
