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10 Types of Credit Cards in Canada: How Do They Work?

Updated:

Fact Checked

There are many types of credit cards in Canada, from secured credit cards to balance transfer credit cards. They are provided by major banks like BMO, CIBC and Scotiabank, and fintech companies.

If you are looking for a credit card in Canada, you might wonder which is the best card for your needs.

In this guide, you can find out all about the ten types of cards in Canada so you can make the best choice.

Table of Contents Show

Types of Credit Cards in Canada

From cash-back credit cards to travel credit cards, there is a type of credit card for everyone. Here are the ten most common types of credit cards in Canada to choose from.

1. Cash Back Credit Cards

With cash-back credit cards, you can earn money every time you spend using your card. For example, you may earn a flat percentage on all purchases or a higher percentage for specific categories like groceries or dining.

Often there are annual limits on the amount of cash back you can earn, but sometimes there is no limit.

Tangerine Money-Back Credit Card

Tangerine Money-Back Credit Card

Best no-fee cash back credit card

Annual fee: $0

Rewards: Earn up to 2% unlimited cash back in up to 3 spending categories and 0.50% on all other purchases.

Welcome offer: Get an extra 10% cash back on up to $1,000 in spending in the first 2 months ($100 value).

Interest rates: 19.95% for purchases, balance transfers, and cash advances.

Minimum income requirement: $12,000

Recommended credit score:
600
900

Fair to Good

Tangerine Cash Back Credit Card

On Tangerine’s website

  • No annual fee.
  • Unlimited 2% cash back in two spending categories. Get an extra 2% cash back spending category when you deposit your rewards in a free Tangerine savings account.
  • Unlimited 0.50% cash back on all other purchases.
  • Cash back earned is paid out monthly.
  • 1.95% promotional balance transfer for first 6 months; 3% balance transfer fee applies ($5 minimum).
  • Purchase assurance to cover loss, theft or damage of new items purchased using the card for up to 90 days.
  • Works with Apple Pay, Google Pay, and Samsung Pay.
  • Extended warranty for up to one extra year.

No annual fee

High cash back rates

Low-income requirement

Cash back paid monthly

Low-interest balance transfer

No travel insurance coverage

3% balance transfer fee

The Tangerine Money-Back Credit Card is one of the best cash back credit cards in Canada. It’s great for students and those who have a limited credit history. Cardholders can also enjoy no-fee chequing and a high interest savings account.

Scotia Momentum Visa Infinite Card

Scotiabank Momentum Visa Infinite Card

Best for cash back rewards and premium perks

Annual fee: $120

Rewards: Earn between 1% and 4% cash back on purchases.

Welcome offer: Earn 10% cash back on purchases for the first 3 months up to $2,000 in purchases. Annual fee waiver for the first year.

Interest rates: 20.99% for purchases, 22.99% for cash advances.

Minimum income requirement: $60,000

Recommended credit score:
760
900

Very Good

Scotiabank Momentum Visa Infinite Card

On Scotiabank’s website

  • Earn 4% cash back on groceries, subscriptions, and recurring bill payments.
  • Earn 2% cash back on gas and daily transit.
  • Earn 1% cashback.
  • Comprehensive travel insurance benefits are included when you use your card for 75% or more of trip costs.
  • New mobile device insurance included.
  • Access to Visa Infinite Hotel Collection with the best hotel rates and automatic room upgrades.
  • Enjoy savings on car rentals with AVIS and Budget in Canada and the United States.
  • $60,000 annual income or $100,000 minimum household income required.

Earn up to 4% cashback

Travel insurance included

Comes with several premium perks

High annual fee

High-income requirement

The Scotiabank Momentum Visa Infinite Card is a good option for anyone who wants to earn cashback on their everyday purchases. It also includes travel insurance and new device insurance coverage plus additional perks like access to the Visa Infinite Hotel Collection.

BMO CashBack World Elite MasterCard

BMO CashBack World Elite Mastercard

Good for travel rewards

Annual fee: $120

Rewards: Earn 5% cash back on groceries. Earn 4% cash back on transit. Earn 3% cash back on gas. Earn 2% cash back on recurring bills. Earn 1% cash back on all other purchases.

Interest rates: 20.99% for purchases and 23.99% for cash advances

Minimum income requirement: $80,000 minimum personal annual income and $150,000 for household income

Recommended credit score:
660
900

Good

On BMO’s website

  • Earn 5% cash back on groceries (up to $500 monthly spending).
  • Earn 4% cash back on ride-sharing, taxis, or public transportation (up to $300 monthly spending).
  • Earn 3% cash back on gas and EV charging (up to $300 monthly spending).
  • Earn 2% cash back on recurring bills (up to $300 monthly spending).
  • Earn 1% cash back on all other purchases.
  • Redeem cash back by paying off statement credits, direct deposits into your BMO account, or depositing to your Investorline account.
  • Free access to Wi-Fi hotspots worldwide when travelling through Boingo Wi–Fi.
  • Free roadside assistance.
  • Various travel insurance benefits, including medical and trip cancellation.

Comprehensive travel insurance

Access to a 24/7 concierge

Free roadside assistance (valued at approximately $69 per year)

High income requirements

Caps on spending in every category

The BMO Cashback World Elite Mastercard is an excellent card that keeps things simple. Rather than figuring out complicated conversion rates and being restricted to redeeming only on specific categories, this cash back card gives users more control over how their rewards are being spent.

Neo Financial Mastercard

Neo Credit

Excellent credit card for cash back

Annual fee: $0

Rewards: Earn up to 15% cash back for first purchases at eligible partners, 5% average cash back at partner stores for subsequent purchases, and 0.5% cash back on average on all purchases.

Welcome offer: $25 bonus on approval.

Interest rates: 19.99% – 22.99% for purchases.

Minimum income requirement: None

Recommended credit score:
600
900

Fair

neocreditwithbanner

On Neo Financial’s website

  • Earn up to 15% cashback on first purchases at eligible partners.
  • Earn 5% cashback at over 10,000 merchants.
  • Earn 0.5% cash back on all other purchases.
  • Unlimited cashback on purchases.
  • Use Subscription Bundles to get extra cashback by choosing from selected categories, or get other rewards on insurance or subscriptions.
  • App Insights provides a clear picture of spending habits.

Earn unlimited cashback

Earn up to 15% cashback on first purchases

No annual fee

Useful app

High-interest rate

No extra perks besides cashback

The Neo Financial Mastercard is a great way to earn up to 15% cashback without paying an annual fee. Subscription Bundles give you more control over where you make the most cash back, and the easy-to-use app provides insights into your spending habits.

Tangerine World Mastercard

Tangerine World Mastercard

Excellent no-fee cash back card with travel perks

Annual fee: $0

Rewards: Earn up to 2% unlimited cash back in 2-3 spending categories and 0.50% on all other purchases.

Welcome offer: Get an additional 10% cash back valued at $100 in the first 2 months.

Interest rates: 19.95% for purchases, balance transfers, and cash advances.

Minimum income requirement: $12,000

Recommended credit score:
660
900

Fair to Good

Tangerine Cash Back Credit Card

On Tangerine’s website

  • No annual fee.
  • Unlimited 2% cash back in two spending categories. Get an extra 2% cash back category when you deposit cash back earned in a free Tangerine savings account.
  • Unlimited 0.50% cash back on all other purchases.
  • Cash back earned is paid out monthly.
  • Complimentary Mastercard® Travel Pass Provided By DragonPass membership with access to over 1,300 airport lounges at $32 USD per visit.
  • Rental car and mobile device insurance are included.
  • Access to over 1 million Wi-Fi hotspots worldwide through Boingo Wi-Fi
  • 1.95% promotional balance transfer for first 6 months; 3% balance transfer fee applies ($5 minimum).
  • Purchase assurance to cover loss, theft or damage of new items purchased using the card for up to 90 days.
  • Compatible with Apple Pay, Google Pay, and Samsung Pay.
  • Extended warranty for up to one extra year.

No annual fee

Easy access to airport VIP lounges

Car rental and mobile device coverage

High cash back rates with unlimited earning potential

Lacks comprehensive travel benefits

The Tangerine World Mastercard offers premium perks without charging an annual fee. Its competitive cash back earn rate makes it worthwhile for any wallet, and the mobile device and car rental coverage are solid benefits to have up your sleeve.

2. Travel Credit Cards

If you love to travel, a travel credit card helps you earn travel-related rewards or makes it easy to save on your travel-related purchases.

You can earn miles, get discounts on hotels and car rentals, and more. Many of these cards also include travel insurance coverage.

Scotiabank Passport Visa Infinite Card

Scotiabank Passport Visa Infinite Card

Best for no FX fees and travel perks

Annual fee: $150

Rewards: Earn 3x Scene+ points on eligible grocery purchases, 2x pts. on dining, entertainment and transit, and 1x pts. on everything else.

Welcome offer: Up to 40,000 bonus Scene+ points and no annual fee for the first year.

Interest rates: 20.99% for purchases, 22.99% for cash advances.

Minimum income requirement: $60,000

Recommended credit score:
760
900

Very Good

scotiabank passport visa infinite card

On Scotiabank’s website

  • Earn 3x Scene+ points for shopping at select grocery stores, including Sobeys and Safeway.
  • Earn 2x points on dining, select grocery stores, entertainment venues and eligible transit options.
  • Earn 1 point for all other eligible purchases.
  • No foreign transaction fees on purchases overseas.
  • Includes Avis® Preferred Plus membership.
  • Access to over 1,200 global airport lounges with the Visa Airport Companion Program.
  • Comprehensive travel insurance benefits are included.
  • A minimum annual income of $60,000 or a minimum household income of $100,000 is required.

Earn up to 3x Scene+ points

No foreign transaction fees

Premium perks like travel insurance included

High-income requirement of $60,000

$150 annual fee

The Scotiabank Passport Visa Infinite Card is a great option for anyone who wants to earn Scene+ points on their purchases. Zero foreign exchange fees, comprehensive travel insurance coverage, and Visa Airport Companion Program membership also make it a good option for travelers.

American Express Aeroplan Reserve Card

American Express Aeroplan Reserve Card

Premium travel credit card

Annual fee: $599

Rewards: Earn 3 points per $1 spent on Air Canada purchases. Earn 2 points per $1 spent on dining. Earn 1.25 points per $1 spent on everything else.

Interest rates: 20.99% on purchases and 21.99% on cash advances.

Minimum income requirement: No minimum income requirements.

Recommended credit score:
660
900

Good

American Express aeroplan reserve card

On Amex’s website

  • Earn 3 points per $1 spent on Air Canada flights or Air Canada Vacation Packages.
  • Earn 2 points per $1 spent on food delivery and dining purchases.
  • Earn 1.25 points per $1 spent on everything else.
  • $100 Nexus statement credit every 4 years.
  • Travel perks such as free checked bags, priority check-in and boarding, and access to Maple Leaf Lounges.
  • Insurance for instances including flight delay, stolen baggage, and baggage delay.

No minimum income requirements

Comprehensive travel insurance

Access to Maple Leaf Lounges across Canada

High annual fees

Some vendors do not accept American Express

Travel benefits are limited to Air Canada

The American Express Aeroplan Reserve card offers several great travel benefits. While many of those benefits are limited to passengers on Air Canada flights, other benefits such as comprehensive insurance and the Nexus statement credit make this a great all-around card for frequent travelers.

American Express Cobalt Card

American Express Cobalt Card

Best for travel rewards and perks

Annual fee: $155.88 (in monthly payments of $12.99)

Rewards: Earn up to 5X points on high-spend categories.

Interest rates: 20.99% on purchases and 21.99% on cash advances.

Minimum income requirement: No minimum income or credit limit requirements.

Recommended credit score:
660
900

Good

amex cobalt new card

On Amex’s website

  • Earn 5X points on food and drink purchases, including delivery.
  • Earn 3X points on streaming subscription bills.
  • Earn 2X points on travel and transit purchases.
  • Earn 1X points on all other eligible purchases.
  • Get 1 additional point for every dollar you spend on hotel or rental car bookings through American Express Travel.
  • Redeem points on travel with 1:1 transfers to several frequent flyer programs.
  • Enjoy exclusive access to tickets, virtual events, live performances, and more through American Express Experiences.
  • Access various travel insurance benefits, including emergency medical ($5M), travel accident ($250K), flight delay, baggage delay, hotel burglary, and rental car insurance.
  • No minimum income or credit limit requirements.

Attractive point redemption options

Comprehensive travel coverages

No minimum income requirement

5x points category is limited

High purchase APR at 20.99%

The American Express Cobalt Card offers a competitive points system with attractive point redemption options. With no minimum income requirement, it is an accessible option for those interested in a strong rewards system with comprehensive travel benefits.

3. Rewards Credit Cards

With rewards credit cards, you earn reward points when you spend on your credit card. There are many reward schemes, including Scene+. With these schemes, you can earn rewards as you spend on your card, which you can use to get discounts on future purchases or other bonuses.

American Express Green Card

American Express Green Card

Entry-level Amex rewards credit card

Annual fee: $0

Rewards: Earn 1X points on everyday purchases.

Interest rates: 20.99% on purchases and 21.99% on cash advances.

Minimum income requirement: None

Recommended credit score:
660
900

Good

AMEX green card

On Amex’s website

  • Earn 1X points on all everyday purchases.
  • Earn 1 additional point on every dollar spent on eligible hotel or rental car bookings.
  • Redeem your Membership Rewards points for gift cards, merchandise, travel rewards, or purchases on Amazon.
  • Enjoy exclusive access to tickets, virtual events, live performances, and more through American Express Experiences.
  • Receive purchase protection for 90 days from the date of purchase in case of damage or theft.

Rewards points never expire and are unlimited

No annual fee

No minimum income or credit limit requirements

Limited travel and insurance benefits

High purchase APR at 20.99%

Limited categories with extra points

The American Express Green Card offers a broad points system with attractive options to redeem points. With no annual fee and no minimum income or credit limit requirements, it’s a great starter card to build your credit score.

Scotiabank Gold American Express Card

Scotiabank Gold American Express Card

Best travel credit card in Canada

Annual fee: $120

Rewards: Earn up to 6x Scene+ points on groceries, 5x pts. on dining, food delivery, & entertainment, 3x pts. on gas, and 1x pts. on everything else.

Welcome offer: Get up to 40,000 bonus Scene+ points in the first 12 months.

Interest rates: 20.99% for purchases, 22.99% for cash advances.

Minimum income requirement: $12,000

Recommended credit score:
660
900

Good

Scotiabank Gold American Express Card

On Scotiabank’s website

  • Zero foreign transaction fees when travelling overseas or shopping abroad.
  • Earn 6x Scene+ points at select grocery stores, including Sobeys and Safeway.
  • Earn 5x points on dining or food delivery at select stores and restaurants as well as select movies, theatres and ticket agencies.
  • Earn 3x points on eligible gas and transit purchases.
  • Earn 1 point for every $1 CAD spent on eligible purchases.
  • Comprehensive travel insurance benefits and extended warranty protection are included.
  • Priority Passâ„¢ membership discount to access VIP lounges.
  • Amex Offers® including deals on shopping, travel and dining.
  • Access to Front Of The Line® presale tickets to concerts, restaurants and events.
  • Minimum annual income of $12,000 required.

Earn up to 6x Scene+ point

Lots of premium perks included

No foreign transaction fees

Low income eligibility at $12,000

Expensive annual fee

$29 fee for each additional card

Scotiabank Gold American Express Card provides a great opportunity to earn Scene+ points on all purchases and extra points on select purchases. Its zero foreign transaction fees and travel insurance coverage make it a good choice for travellers.

Triangle World Elite Mastercard

Triangle World Elite Mastercard

Best for Triangle rewards

Annual fee: $0

Rewards: Earn 4% cash back in Canadian Tire money at eligible stores. Earn 3% cash back in Canadian Tire money at grocery stores. Earn up to 7 cents per litre in Canadian Tire money. Earn 1% cash back in Canadian Tire money everywhere else.

Welcome offer: N/A

Interest rates: 19.99% on purchases, 22.99% on cash advances

Minimum income requirement: $80,000 personal income and $150,000 household income.

Recommended credit score:
760
900

Very Good

Triangle World Elite Mastercard

On Triangle’s website

  • Earn 4% cash back at Canadian Tire stores, including Canadian Tire, Sport Chek, and Mark’s.
  • Earn 7 cents per litre cashback on premium fuel and 5 cents per litre on other fuel at Gas+ and Essence+ gas stations.
  • Earn 3% cash back on groceries (up to $12,000 annually).
  • Earn 1% cash back everywhere else.
  • Roadside Assistance Gold Plan, which includes service calls and towing within Canada and the US.
  • Minimum income requirements of $80,000 personal income and $150,000 household income.

Roadside assistance saves on the cost of CAA membership

No annual fee

Purchase security and extended warranty

Excludes Walmart and Costco from grocery earning rates

High minimum income requirements

Redemption options are limited to retailers that accept Canadian Tire Money

The Triangle World Elite Mastercard is a great no-fee option. Combined with perks such as roadside assistance and extended warranty protection, this card is worth keeping in your wallet for everyday use. 

4. Balance Transfer Credit Cards

If you carry a balance on your credit card, you might want to switch it to a balance transfer credit card. These cards provide low or no interest for a set period, like six months or more.

By transferring your balance, you can reduce your interest payments and pay off your balance sooner.

Scotiabank Value Visa

Scotiabank Value Visa Card

Best for low-interest rates

Annual fee: $29

Welcome offer: No annual fee for the first year and 0% interest rate for cash advances for the first 10 months.

Interest rates: 12.99% for purchases and cash advances.

Minimum income requirement: N/A

Recommended credit score:
660
900

Good

Scotiabank Value Visa Card

On Scotiabank’s website

  • The annual fee is waived in the first year.
  • Low-interest rate of just 12.99%.
  • 0% promotional balance transfer rate for 6 months; 1% balance transfer fee.
  • Save up to 25% on car rentals at AVIS and Budget in Canada and the United States.
  • Minimum gross income requirement of $1,000 per month.

Low-interest rate on purchases

Low-interest rate on cash advances

Low minimum income requirement

No rewards

Few premium perks

The Scotiabank Value Visa Card is a no-frills credit card that offers a very low-interest rate on purchases and cash advances. While it does not offer many other perks, it is a good option for anyone who carries a balance.

MBNA True Line Mastercard Credit Card

MBNA True Line Mastercard

Great for low-interest purchase rates

Annual fee: $0

Rewards: Low-interest rate of 12.99%.

Welcome offer: 0% interest rate on balance transfers for the first 12 months.

Interest rates: 12.99% for purchases, 24.99% for cash advance.

Minimum income requirement: N/A

Recommended credit score:
660
900

Good

MBNA True Line Mastercard

On MBNA’s website

  • Low 12.99% interest rate on purchases and balance transfers.
  • No annual fee for additional cardholders.
  • Save on car rentals at Budget and Avis.
  • MBNA Payment Plan allows you to break up large purchases into monthly payments.
  • Emergency Card Replacement included.

Low-interest rate

No annual fee

No rewards

Few perks included

The MBNA True Line Mastercard is a no-frills credit card with a low-interest rate. Whether you use it for general spending or to transfer your balance, its low-interest rate and no annual fee could help you to save money and pay off your balance sooner.

BMO CashBack MasterCard

BMO Cash Back Mastercard

Good entry-level card for students

Annual fee: $0

Rewards: Earn up to 3% cash back on groceries, 1% on subscriptions and utilities, and 0.5% on all other purchases.

Interest rates: 20.99% for purchases, 22.99% for cash advances.

Minimum income requirement: $15,000

Recommended credit score:
660
900

Good

BMO Cashback Mastercard

On BMO’s website

  • Earn 3% cash back on groceries ($500 monthly spend cap).
  • Earn 1% cash back on subscriptions and utilities ($500 monthly spend cap).
  • Earn 0.5% cash back on other purchases.
  • Redeem cashback at any time and set an automatic deposit.
  • Get extra cashback for additional cardholders.
  • Extended warranty and purchase protection included.
  • Get up to 25% off car rentals at Alamo and National Car Rental.
  • Save 15% on Cirque du Soleil shows in Canada.

Earn up to 3% cashback

Redeem cashback at any time

Includes extended warranty and purchase protection

No annual fee

Few extra perks included beyond cashback

Cashback rate of 0.5% for most purchases is on low end

$500 monthly spend cap on 1% and 4% cash back categories

The BMO CashBack Mastercard is a good way to earn up to 3% cashback without paying an annual fee. The ability to cash out your cashback at any time and set automatic deposits means no more waiting for your money.

5. Secured or Poor Credit

If you have bad credit, a secured credit card can be useful. With these, you make a security deposit using your own money, and you can then spend up to that amount on your credit card.

You don’t usually need a good credit score to apply for these cards, and you can use them to rebuild your credit.

Neo Secured Mastercard

Neo Secured Credit

Best secured credit card for bad credit

Annual fee: $0

Rewards: Earn up to 15% cashback on first purchases at eligible partners, 5% cash back at partner stores, and 0.5% unlimited cashback on everything else.

Welcome offer: $25 bonus

Interest rates: 19.99%-22.99% for purchases, 22.99%-28.99% for cash advances.

Minimum income requirement: None

Recommended credit score:
N/A

None

neosecuredwithbanner

On Neo Financial’s website

  • Earn up to 15% cashback on first purchase at eligible partners.
  • Earn 5% unlimited cashback at partner stores.
  • Earn 0.5% unlimited cashback on everything else.
  • Create Subscription Bundles to get extra cashback, insurance, or subscriptions.
  • Choose your own credit limit.
  • Minimum security fund requirement of $50.
  • No overlimit fees.
  • Use auto-pay to avoid missing payments.
  • Guaranteed approval and no hard credit checks.

Earn up to 15% cashback

Good rewards for a secured card

No annual fee or overlimit fees

Guaranteed approval

High-interest rate

Few additional perks

If you have a bad credit score or no credit history, the Neo Secured Mastercard gives you a way to start improving your score while earning up to 15% cashback. We also like that it has no annual or monthly fees and offers guaranteed approval.

Home Trust Secured Visa Card

Home Trust Secured Visa

Good credit card for bad credit

Annual fee: $0 or pay $59 for a lower interest rate

Rewards: None

Interest rates: 19.99% for purchases or 14.90% if you pay an annual fee.

Minimum income requirement: None

Recommended credit score:
N/A

None

Home Trust Secured Visa card

On Home Trust’s website

  • Credit-building secured card.
  • Improve your credit rating as you make payments.
  • Option to pay no annual fee.
  • High approval rate.
  • Use anywhere Visa is accepted.
  • Designed for people with bad credit or no credit record.
  • Set your limit by choosing a deposit amount between $500 and $10,000.

Option to pay an annual fee for a lower interest rate

Improve your credit rating using the card

Flexible deposit limits

High approval rate

No premium perks included

The Home Trust Secured Visa provides people with low credit scores a way to access a credit card and start improving their scores. The option to pay an annual fee for a lower interest rate may be useful if you carry a balance, and the flexible deposit amount means you can choose how much credit you want to access.

Capital One Guaranteed Secured Mastercard

Capital One Guaranteed Secured Mastercard

Good secured credit card

Annual fee: $59

Welcome offer: N/A

Interest rates: 19.8% for purchases and balance transfers, 21.9% for cash advances

Minimum income requirement: None

Recommended credit score:
N/A
N/A

Any credit

Capital One Guaranteed Mastercard gold card

On Capital One’s website

  • Guaranteed approval for those looking to improve or repair their credit scores.
  • Zero Liability protection helps protect against fraud and unauthorized usage.
  • Security funds between $75.00 and $300.00 are needed following card approval.
  • Purchase Assurance protects against theft, loss, or damage for up to 120 days.
  • Extended Warranty doubles the manufacturer’s warranty for up to 2 years.
  • Car Rental Collision/Loss Damage Waiver when you rent a car using this card.
  • Price Protection Service matches any lower price within 60 days of purchase for a price difference of up to $100.00.
  • Common Carrier Travel Accident Insurance for up to $250,000.00.
  • Baggage Delay covers up to $100.00 for three days if your luggage is lost.
  • Travel Assistance provides 24/7 medical referrals, emergency cash transfers, ticket replacement, or lost luggage.

Guaranteed Approval

Good travel coverage

Low annual fee

No rewards

High-interest rates

Security funds required

The Capital One Guaranteed Secured Mastercard is an excellent entry-level card from Capital One. It allows those with damaged credit histories to repair their credit score through a guaranteed approval process. On top of that, this card also provides excellent travel benefits, which was a nice surprise.

6. Prepaid Credit Cards

Prepaid credit cards are not actually credit cards. With these cards, you load funds to your card and then spend your own money. You can then enjoy the convenience of spending with a card instead of cash.

Some prepaid cards offer cash back and other rewards.

Neo Money card

Neo Money Account

Monthly fee: $0

Free transactions: Unlimited debits, Interac e-Transfers, bill payments, and deposits.

Sign-up bonus: $20 welcome bonus (after funding and making your first purchase), up to 15% cash back on your first purchases at partner stores.

Interest earned on deposit: 2.25% for spending account. Earn average of 5% cash back on purchases using the Neo Money card.

neologotransparent-img

On Neo Financial’s website

  • Earn 2.25% interest on your balance.
  • Earn an average of 5% cash back at thousands of Neo partners and up to 15% cash back on your first purchases.
  • Interest is calculated daily and paid monthly.
  • Transactions, including purchases, bill payments, transfers, and direct deposits, are free and unlimited.
  • No minimum deposit or balance is required.
  • Easily set up automatic bill payments.
  • Fund your account in 3 ways: Interac e-Transfer, link your existing accounts, or set up direct deposit.
  • Neo Money now comes with a Mastercard that gives you access to your balance for POS and online purchases.
  • Available throughout Canada, except Quebec.

Earn 2.25% interest on your balance

Up to 5% cash back on purchases

Easily fund your account in one of 3 ways

No minimum deposit or balance required

No free ATM withdrawals

A hybrid spending and savings account, Neo Money pays 2.25% interest on your balance with no monthly fees or balance requirements. It includes unlimited, free transactions, bill payments, payroll deposits, transfers, and more. You can easily request a Neo Money card to earn cash back.

CIBC AC Conversion Card

CIBC AC Conversion Visa Card

CIBC AC_Conversion Card Image

Earn 1%* cashback on purchases

Holds 10 currencies at once

No monthly account fees

Enjoy Visa’s Zero Liability

7. No Annual Fee

With many credit cards, you must pay an annual fee to use them. However, many cards do not have any annual fee, so they are free to use.

While they may not offer the same perks as premium credit cards, the best no-annual-fee credit cards allow you to earn cash back or other rewards.

SimplyCash Card from American Express

SimplyCash Card from American Express

Excellent credit card for students

Annual fee: $0

Rewards: Earn up to 2% cash back on eligible purchases and 1.25% unlimited cashback on other purchases.

Interest rates: 20.99% for purchases, 21.99% for cash advances.

Minimum income requirement: None

Recommended credit score:
660
900

Fair to Good

New SimplyCash_Card-img

On Amex’s website

  • Earn 2% cash back on gas.
  • Earn 2% cash back on groceries up to $300 annually.
  • Earn 1.25% unlimited cashback on other purchases.
  • Earn bonus cashback of up to $750 per year for referring a friend.
  • No annual fee for a primary card or additional cards.
  • Access to American Express® Experiences that provides exclusive bonuses for events, performances, dining, and shopping.
  • Coverage up to $100,000 for Accidental Death and Dismemberment Insurance.

Earn up to 2% cashback

No annual fee

Earn bonus cashback for referring a friend

Access to American Express® Experiences

Lower cashback than some other cards

$300 annual limit on 2% cashback rate for groceries

The SimplyCash Card from American Express provides you with the option to earn up to 2% cash back on gas and groceries plus 1.25% cash back on other purchases. It has no annual fee and comes with a few perks like access to American Express® Experiences.

CIBC Aventura Visa Card

CIBC Aventura Visa Card

Entry-level credit card for travel rewards

Annual fee: $0

Rewards: Earn CIBC Aventura points on every purchase you make with the card.

Interest rates: 20.99% for purchases and 22.99% for advances for non-Quebec residents and 21.99% for Quebec residents.

Minimum income requirement: $15,000

Recommended credit score:
760
900

Very Good

CIBC Aventura Visa Card For Students

On CIBC’s website

  • Earn 1 Aventura point for every $1.00 spent on gas, groceries, or drug stores.
  • Earn 1 Aventura point for every $1.00 spent on CIBC Rewards travel charges.
  • Earn 1 Aventura point for every $2.00 spent anywhere else.
  • Aventura Travel Assistant for personalized trip planning.
  • Extra protection of up to 90 days on new purchases.
  • Flexible travel with Aventura points that do not expire.
  • Use Aventura points for CIBC Rewards, travel, or paying down your credit card bill.
  • Auto rental collision and Loss Damage Insurance.
  • $100,000 Common Carrier Accident Insurance.
  • Purchase Security and Extended Protection Insurance.
  • CIBC Pace It allows you to buy now and pay at your convenience.

No annual or supplemental fees for up to 3 cards

Earn Aventura points that do not expire

Generous welcome bonus

High-interest rate

Slightly higher eligibility requirements

Limited travel insurance

The CIBC Aventura Visa Card is an excellent free rewards card with slightly higher than normal eligibility requirements. The Aventura point system is flexible and offers a long list of generous rewards and products and best of all the points do not expire.

BMO AIR MILES Mastercard

BMO Air Miles Mastercard

Entry-level card for Air Miles rewards

Annual fee: $0

Rewards: Get 3X Miles on purchases made at Air Miles partners.

Interest rates: 20.99% for purchases and 22.99% for cash advances.

Minimum income requirement: $0

Recommended credit score:
660
900

Good

On BMO’s website

  • Earn 3 Miles for every $25 you spend on purchases made at participating Air Miles partners.
  • Earn 2 Miles for every $25 you spend on eligible grocery purchases.
  • Get a 25% discount on rental cars at participating National Car Rental and Alamo Rent a Car locations.
  • Access entertainment benefits like discounted access to Cirque du Soleil shows touring Canada and resident shows in Las Vegas.
  • Redeem Miles for travel, merchandise, or vouchers. 

No annual fee

Up to 3X Miles on select purchases

Attractive Miles redemption options

High purchase APR at 20.99%

Limited insurance benefits

3X Miles category is fairly restricted

The BMO Air Miles Mastercard makes a travel rewards card accessible for those who want to avoid annual fees. With the ability to earn Miles on high-spend categories, it is a great starter card for frequent travelers.

8. Student Credit Cards

Student credit cards are cards that are specifically for students. Students often have no credit histories, making applying for standard credit cards more difficult.

These cards often have lower credit limits and usually, come with rewards and perks that appeal to students.

Scotiabank SCENE+ Visa Card

Scotiabank Scene+ Visa Card

Excellent entry-level credit card for students

Annual fee: $0

Rewards: Earn up to 2X Scene+ points on everyday purchases.

Welcome offer: Earn 5,000 bonus Scene+ points with $750 spend in the first 3 months.

Interest rates: 19.99% on purchases and 22.99% on cash advances.

Minimum income requirement: $12,000

Recommended credit score:
660
900

Good

scotiabank scene visa-img2

On Scotiabank’s website

  • Earn 2 Scene+ points on every $1 spent at eligible grocery stores.
  • Earn 2 Scene+ points on every $1 spent at Cineplex theatres or on cineplex.com.
  • Earn 1 Scene+ point on every $1 spent on all other eligible everyday purchases.
  • Save up to 25% on car rentals at participating AVIS and Budget locations in Canada and the U.S.
  • The minimum credit limit is $500.

No annual fee

Competitive purchase APR at 19.99%

Scene+ points are unlimited

Does not include insurance benefits

2X rewards categories are relatively limited

The Scotiabank Scene+ Visa Card has no annual fee and a competitive purchase APR. It is an excellent entry-level credit card for students and newcomers.

CIBC Dividend Visa Card for Students

CIBC Dividend Visa Card for Students

Good student credit card

Annual fee: $0

Rewards: Earn cash back on all of your purchases made with this card.

Interest rates: 20.99% for purchases and 22.99% for advances for non-Quebec residents, and 21.99% for Quebec residents.

Minimum income requirement: None

Recommended credit score:
660
900

Good to Excellent

CIBC Dividend Visa Card for Students

On CIBC’s website

  • No Annual Fees.
  • Earn 2% cash back on groceries.
  • Earn 1% cash back on gas, transportation, dining, and recurring payments.
  • Earn 0.5% cash back on all other purchases.
  • Redeem your cash back anytime you want.
  • Receive a free SPC+ membership with this card.
  • $100,000 common carrier accident insurance.
  • Purchase Security and Extended Protection Insurance.
  • CIBC Payment Protector Insurance.

No Annual Fees

Earn cash back on every purchase

Free SPC+ Membership

Limited travel coverage

High-interest rates

No vehicle or travel insurance

The CIBC Dividend Visa Card for Students serves a very specific need for students: cash back on every purchase. With no annual fees, it isn’t surprising that some of the extra coverages are limited. A solid free credit card which helps students cut down on some of their everyday costs.

TD Rewards Visa Card

TD Rewards Visa Credit Card

Good entry-level credit card

Annual fee: $0

Rewards: Earn TD Rewards Points on every purchase you make with the card.

Interest rates: 19.99% for purchases and 22.99% for advances.

Minimum income requirement: None

Recommended credit score:
600
900

Fair to Good

TD Rewards Visa Credit Card

On TD’s website

  • No Annual Fee or supplemental card fees.
  • Earn 4 TD Reward Points for every $1.00 spent at Expedia.
  • Earn 3 TD Reward Points for every $1.00 spent at groceries and restaurants.
  • Earn 2 TD Reward Points for every $1.00 spent on recurring bill payments.
  • Earn 1 TD Reward Point for every $1.00 spent on any other purchases.
  • Use TD Reward Points for travel, rewards, or to pay down your credit card balance.
  • Receive 10% at Avis Rent-a-Car and Budget Rent-a-Car.
  • Use TD Payment Plans to break down your bill payments.
  • Earn 50% more TD Rewards Points and Starts at participating Starbucks locations.
  • Mobile Device Insurance.
  • Purchase Security and Extended Warranty Protection.
  • Redeem your TD Rewards Points on Amazon.ca.

No Annual Fees

Earn TD Rewards Points on every purchase

Lots of participating partners

No travel insurance or coverage

There are higher-earning no-fee cards

Higher interest rates

The TD Rewards Visa Credit Card is as basic as it gets with the versatile TD Rewards Points system. It lacks extra features like travel insurance which is to be expected with an entry-level, no-fee card. A nice, simple rewards card for those who don’t want all of the frills.

9. Store Credit Cards

Store credit cards can be issued by retailers directly or in partnership with a bank. Closed-loop cards can only be used at a specific retailer, while open-loop cards can be used anywhere.

Approval is often easier with closed-loop store cards, making them a good option if you want to build your credit.

PC Financial Mastercard

PC Financial World Elite Mastercard

Best store credit card

Annual fee: $0

Rewards: Earn 30 points per $1 spent at PC grocery stores. Earn 45 points per $1 spent at Shoppers Drug Mart. Earn 30 points per litre at Esso Mobil gas stations. Earn 10 points per $1 spent everywhere else.

Interest rates: 20.97% interest rate, 22.97% Cash advance rate

Minimum income requirement: $80,000 per year personal income or $150,000 household income.

Recommended credit score:
700
900

Good to Very Good

PC financial world elite mastercard

On PC Financial’s website

  • Earn 30 points per $1 spent at No Frills, Real Canadian Superstore, Independent Grocer, and Wholesale Club.
  • Earn 45 points per $1 spent at Shoppers Drug Mart.
  • Earn 30 points per litre at Esso Mobil gas stations.
  • Earn 10 points per $1 spent everywhere else.
  • Redeem points for free products and groceries or at Esso gas stations.
  • Various travel insurance, including emergency medical insurance and car rental collision insurance.
  • Income requirements: $80,000 annual personal income or $150,000 household income.

No annual fees

Good earning rates for groceries

Offers useful insurance benefits

High-income requirements

Points can only be redeemed at PC-branded stores

Travel insurance only covers trips under 10 days

The PC Financial World Elite Mastercard is great for those who shop exclusively at PC-branded grocery and gas locations. Redemptions for gas and groceries can help cut down on monthly expenses, which makes this an ideal card for large households.

10. Business Credit Cards

Business credit cards are credit cards for business use. They often come with benefits and perks specific to businesses, and many businesses will use them to separate their business expenses from their personal expenses.

Marriott Bonvoy Business American Express

Marriott Bonvoy Business American Express

Excellent business credit card for travel rewards

Annual fee: $150 and $50.00 for each supplementary card

Rewards: Earn 5 points for every $1 spent at Marriot Bonvoy hotels. Earn 3 points for every $1 spent on gas, dining, and travel. Earn 2 points for every $1 on all other purchases.

Interest rates: 20.99% for purchases and 21.99% for fund advances.

Minimum income requirement: None

Recommended credit score:
660
900

Good to Excellent

Marriott Bonvoy Business American Express
APPLY NOW

On Marriott Bonvoy’s website

  • Earn 2 points per $1.00 spent on all purchases.
  • Earn 3 points per $1.00 spent on all gas, dining, and travel purchases.
  • Earn 5 points per $1.00 spent at all Marriott Bonvoy hotels.
  • Flexible payments let you pay balances in full or over time.
  • Add up to 99 supplementary cards at the cost of $50.00 per card.
  • Employee Card Misuse Protection up to $100,000.
  • 24/7 Travel Emergency Assistance.
  • $500,000 in travel insurance.
  • Insurance for flight delay, baggage delay, baggage loss, hotel burglary, or car rental damage.
  • Buyer’s Assurance Protection Plan and Purchase Protection Plan.
  • Access to American Express Front of the Line for event tickets.

Full travel protection

Great benefits for businesses

Earn points on every purchase

High annual fee of $150.00

Supplementary card fee of $50.00

High-interest rates

A great card for businesses that spend a lot on travel and hotels. Owning this card effectively ties you to Marriott Bonvoy for hotels for any travel plans. While it has a high annual fee it does offer full travel coverage for you and your employees.

BMO Cash Back Business Mastercard

BMO Cash Back Business Mastercard

Good no-fee business credit card

Annual fee: $0

Rewards: Earn cash back on all of your purchases made with this card.

Interest rates: 19.99% for purchases and 22.99% for all advances.

Minimum income requirement: N/A

Recommended credit score:
660
900

Good to Excellent

BMO Cash Back Business Mastercard

On BMO’s website

  • No Annual Fee and a Supplemental Card Fee of $50.00 per card.
  • Earn 1.75% cash back on gas or purchases from Shell gas stations.
  • Earn 1.5% cash back on gas, office supplies, and cell phone and internet bills.
  • Earn 0.75% cash back on all other purchases.
  • Get up to 22 additional cards for your employees.
  • 90-day purchase protection and extended warranty protection.
  • Get help anywhere in the world with Mastercard Global Services.
  • Liability Waiver Program to protect against employee misuse.

No Annual Fees

Earn cash back on all purchases

Global coverage and support

Limited travel coverage

High-interest rates

The BMO Cash Back Business Mastercard is a great free credit card for businesses. For having no annual fee, the possibilities of earning cash back on common business costs are excellent. One drawback is limited travel coverage for you and your employees.

How to Choose the Best Credit Card for You

Choosing the best credit card is not always easy, but start by looking over the different types of credit cards above.

Do you shop in a specific store regularly? Then, find a credit card with a reward scheme that lets you earn rewards for shopping there.

You may want to get a travel credit card if you travel frequently. You may be better off starting with a secured credit card if you don’t have good credit.

Think carefully about how you spend and why you want a credit card in the first place, then find a card that matches your needs.

FAQs

Is MasterCard or Visa better?

Neither is better than the other, and both are widely accepted all over the world. However, if you shop in a store where only one is accepted, this could influence your decision when applying for a new credit card.

Which bank is best in Canada?

There are many large and reputable banks in Canada, and which is best is subjective. Instead, consider which bank is best for your needs in terms of the products it provides, the credit cards it offers, its interest rates and costs, etc.

What is the minimum payment for a credit card?

This is the smallest amount of money that you must pay back when you receive your credit card statement. You can pay back more or all of your balance if you prefer, but you can’t pay less than the minimum.

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Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

About Savvy New Canadians

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