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.
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:
Fair to Good
On Tangerine’s website
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:
Very Good
On Scotiabank’s website
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:
Good
On BMO’s website
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:
Fair
On Neo Financial’s website
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:
Fair to Good
On Tangerine’s website
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:
Very Good
On Scotiabank’s website
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:
Good
On Amex’s website
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:
Good
On Amex’s website
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:
Good
On Amex’s website
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:
Good
On Scotiabank’s website
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:
Very Good
On Triangle’s website
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:
Good
On Scotiabank’s website
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:
Good
On MBNA’s website
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:
Good
On BMO’s website
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:
None
On Neo Financial’s website
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:
None
On Home Trust’s website
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:
Any credit
On Capital One’s website
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.
On Neo Financial’s website
CIBC AC Conversion Card
CIBC AC Conversion Visa Card
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:
Fair to Good
On Amex’s website
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:
Very Good
On CIBC’s website
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:
Good
On BMO’s website
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:
Good
On Scotiabank’s website
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:
Good to Excellent
On CIBC’s website
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:
Fair to Good
On TD’s website
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:
Good to Very Good
On PC Financial’s website
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:
Good to Excellent
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:
Good to Excellent
On BMO’s website
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
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.
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.
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.