Best Credit Cards of 2024 in Canada (2024)

Best Credit Cards in Canada 2024

Best Overall Rewards Credit Card

Credit cards offer cardholders travel points, cash back or low interest rates for making day-to-day purchases. However, some rewards programs stand out in the crowd with countless redemption options and more ways for cardholders to save money.

Our top picks feature flexible reward programs to help cardholders maximize the value of their daily spending. Additionally, extra perks and benefits provide users access to comprehensive travel insurance coverage, exclusive deals and, most importantly, high earn rates for everyday purchases like gas and groceries.

We compared the leading rewards credit cards using our Best of Finance methodology and ranked the cards with the highest first-year value, the most flexible rewards and robust benefits.

Winner: American Express Cobalt^® Credit Card

The American Express Cobalt^® Credit Card is one of the most reward-packed credit cards on the market. Cardholders pay a budget-friendly $12.99 monthly to access top-tier rewards and exclusive offers.

Earn five points for every $1 spent on eligible restaurant, grocery, and food delivery purchases in Canada (spending caps apply). Get three points for every $1 spent on eligible streaming subscriptions. Earn two points for every $1 spent on eligible travel and transit purchases. Get one point for every $1 spent on all other purchases. Cardholders should notice their reward balance growing steadily from their usual everyday purchases.

According to our Best of Finance methodology, the average Canadian would earn an impressive $1,361 in rewards in the first year.

Many other cards offer higher first-year values due to their welcome bonuses, but the Cobalt^® offers high recurring rewards. This means that in your second year of holding the card (after fees), you could earn $999 in rewards. Our analysis shows the Cobalt^® card offers the most versatile points of any other card, so these are points you actually look forward to collecting and redeeming.

American Express Cobalt^® Credit Card

Best Overall Travel Credit Card

Travel is back, and people are making up for lost time by experiencing great food and culture in new locales. It's never too late to start collecting travel points for your next sojourn. Travel points are added when you make everyday purchases on a travel credit card and can be redeemed for flights, hotel stays and vacation packages.

Travel cards also feature great additional perks, like shopping coverage, mobile device insurance and exclusive offers.

We compared the top travel credit cards using our Best of Finance methodology and ranked the cards that provided the highest first-year value.

Winner: CIBC Aventura^® Visa Infinite^* Card

Cardholders of the CIBC Aventura® Visa Infinite* Card can access loads of travel perks, from four free annual airport lounge passes to a NEXUS application fee rebate every four years. This card also features travel insurance and Visa Infinite^* benefits, such as complimentary breakfast at over 900 properties worldwide and exclusive tours of Wine Country.

Pay no booking fees through the Aventura Travel Assistant and use points to cover airfare costs, including taxes and fees.

According to our Best of Finance methodology, the average Canadian would earn around $1,536 in rewards in the first year.

CIBC Aventura^® Visa Infinite^*

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Best Credit Card With No Foreign Transaction Fees

Retailers around the globe are increasingly pivoting to cashless payments meaning travellers can forgo the foreign currency exchange line and pack a smaller wallet for their next trip. These credit cards offer no foreign transaction fees on purchases, sparing cardholders the extra 1.5% to 3% providers typically charge. Only the exchange rate applies.

Cardholders also get the added convenience of tracking all their transactions, from little trips to the grocery store to tours and excursions, all in one place. Plus, travellers won’t get stuck with extra foreign coins and bills at the end of their trip.

These credit cards also feature various benefits and travel insurance to help make trips more comfortable and carefree. Spend points on flights, rental cars, hotel stays or merchandise and get the most out of your next adventure.

We compared the top credit cards with no foreign transaction fees using our Best of Finance methodology and ranked the cards that provided the highest first-year value.

Winner: Scotiabank^®* Gold American Express^®Card

The Scotiabank®* Gold American Express® Card offers a great return on spending. Earn five Scotia Scene+ points for every $1 spent on groceries, restaurants, food delivery and entertainment purchases. Get three Scotia Scene+ points for every $1 spent on gas, daily transit purchases and select streaming services and earn one Scotia Scene+ point for every $1 spent everywhere else.

Cardholders pay no foreign transaction fees on foreign currency purchases, typically around 2.5%. Only the exchange rate applies. Plus, the card allows users to access discounts through the Scotia Rewards Travel Service and purchase a wide range of travel insurance.

According to our Best of Finance methodology, the average Canadian would earn around $1,194 in rewards in the first year.

Scotiabank^®* Gold American Express^® Card

Want to learn more about how the Scotiabank^®* Gold American Express^®Card stands up against the competition? Read more from our "In the Ring" series:

In the Ring: American Express Cobalt Credit Card vs. Scotiabank Gold American Express Card

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Best Credit Card for Earning Travel Points

Travel programs typically offer the best redemption value of all the rewards credit cards. Whether they offer rewards, points or miles, these cards will always provide more value than cash-back cards. However, cardholders get the best value for their rewards when redeeming for travel rather than gift cards or statement credits (but it's nice to have the option).

Most programs allow members to redeem rewards for flights, vacation packages, upgrades and other travel savings. Some programs also allow point conversions to other popular travel programs. Additionally, many of our top picks feature insurance coverage and exclusive offers like lounge access or benefits at hotels and resorts.

We compared the best credit cards with travel points using our Best of Finance methodology and ranked the cards that provided the highest first-year value.

Winner: American Express Cobalt^® Credit Card

The American Express Cobalt^® Credit Card is one of the best cards for amassing rewards, offering cardholders five points for every $1 spent on restaurants and food deliveries, three points for every $1 spent on eligible streaming subscriptions, two points for every $1 spent on eligible travel and transit and one point for every $1 spent anywhere else.

Not only that, but the Membership Rewards^® program is incredibly flexible, allowing members to redeem points for almost anything — travel, merchandise and more. Eligible cards, including the American Express Cobalt^® Credit Card, can access the Fixed Points Travel Program and American Express Travel Online for travel offers and special rates. Cardholders can even use Membership Rewards^® to pay taxes, fees and carrier surcharges.

According to our Best of Finance methodology, the average Canadian could earn around $1,361 in rewards in the first year!

American Express Cobalt^® Credit Card

Want to learn more about how the American Express Cobalt^® Credit Card stands up against the competition? Read more from our "In the Ring" series:

In the Ring: American Express Cobalt Credit Card vs. Scotiabank Gold American Express Card

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Best Balance Transfer Credit Card

Carrying a balance costs you — sometimes dearly if you carry it long enough. It's time to pay off your high-interest credit card debt.

Cardholders with outstanding debt can transfer their existing balance to another card with a balance transfer promotion to take advantage of lower interest rates.

Some introductory rates can be as low as 0% for a set time, anywhere from a few months to a year. Conditions apply, however. New purchases typically incur standard interest rates. Misusing the card (missing payments, for example) may void the introductory offer altogether.

Cardholders must typically pay a balance transfer fee of around 1% for the service. However, the cost is generally less than the interest charges on a standard credit card with a 20.99% interest rate. If used responsibly, cardholders can focus on payments and reduce debt faster.

We compared balance transfer rates in Canada using our Best of Finance methodology and ranked the cards that provided the most savings.

Winner: MBNA True Line Mastercard

With the True Line® Mastercard®, you'll pay 0% interest on balance transfers for 12 months, plus a 3% fee to transfer. It goes up to 12.99% after the first year. This is simply the best balance transfer offer on the market!

MBNA True Line^® Mastercard^®

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Best Low-Interest Credit Card

The best way to avoid paying costly interest charges is to pay off your credit card balance in full each statement period. However, that isn't always possible. Sometimes, you may carry a balance month-over-month even if you're aggressively paying off debt. In that case, interest would start to accrue on the unpaid balance at an annualized rate that compounds daily.

Most credit cards charge a standard annual interest rate of around 20.99% on purchases, which can add up quickly.

Although some credit cards' welcome offers and perks can be enticing, the mounting interest charges can outweigh any advantages if you carry a balance. Switching to a low-interest credit card may allow cardholders to tackle their debt faster and pay less interest. This decision can put cardholders in a healthier financial position for the future.

We compared low-interest credit cards in Canada using our Best of Finance methodology and ranked the cards that provided the most potential savings.

Winner: Scotiabank^®* Platinum American Express^® Card

The Scotiabank®* Platinum American Express® Card has a 9.99% annual interest rate (many credit cards charge between 19% to 20.99%). This interest rate extends to cash advances (typically 24%) and balance transfers. It also doesn't charge foreign exchange fees, making it a great card for anyone looking to trim costs. On top of that, cardholders can also earn valuable Scotia Scene+ Points on all their purchases. New card holders can earn over $1,000 in rewards value within the first year. Frequent card swipers who know how to use credit responsibly will get the best value from this card, as the annual cost to hold this card is $399.

Scotiabank^®* Platinum American Express^® Card

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Best Overall Cash-Back Credit Card

Cash-back credit cards are straightforward: cardholders earn a small percentage of each purchase back in rewards. Still, there are differences between the two types of cash-back cards:

• Category cash back: This type of card rewards the user for shopping in specific spending categories like gas or groceries at an accelerated rate — for example, 4% cash back for some purchases and 1% back on everything else. Routine shoppers can maximize their rewards with a category card.
• Flat-rate cash back: This card rewards the user for all their purchases, no matter the category, at one rate. For example, earn 1.25% cash back on everything you buy. Cardholders who shop broadly may benefit the most from this type of card.

Cashback is usually applied as a statement credit every month or once per year on a specific date. It can also be deposited directly into a savings account.

We compared the top cash-back credit cards using our Best of Finance methodology and ranked the cards that provided the highest first-year value.

Winner: AMEX SimplyCash^® Preferred Card

The SimplyCash^® Card from American Express offers 2% cash back on gas and grocery purchases. You earn 1.25% cash back on all other purchases.

The program is simple, and that's what makes it great. According to our Best of Finance methodology, you could potentially earn $940 in rewards annually with the SimplyCash® Card. Earn up to $400 in statement credits in your first four months with 4% cash back on gas/groceries and 2% on all other purchases.

The card includes access to a decent travel insurance package and AMEX's well-known entertainment perks. You can earn more cash by way of Amex's friend referral bonus.

SimplyCash^® Preferred Card from American Express

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Best No-Fee Travel Credit Card

Find the best top travel rewards programs with these no-fee cards. While they feature slightly lower earn rates than their counterparts with a fee, they still provide excellent value and great perks.

Plus, these cards can slide into your wallet as a primary or secondary credit card, and you don’t have to worry about another annual expense. You can use the card as often or sparingly as you like without having to justify its worth.

We compared the top no-fee travel credit cards using ourBest of Finance methodology and ranked the cards that provided the highest value while considering additional complimentary travel perks and benefits.

Winner: MBNA Rewards Platinum Plus^® Mastercard^®

The MBNA Rewards Platinum Plus^® Mastercard^® offers cardholders four points for every $1 spent on eligible grocery, restaurant, digital media, membership, and household utility purchases for the first 90 days, up to the $10,000 annual spend cap in each category. After, earn two points for every $1 spent in these categories until the $10,000 cap is met annually and one point for every $1 spent on all other purchases.

This card also features $1,000,000 travel accident insurance, unexpected return home insurance and car rental accident insurance.

According to our Best of Finance methodology, the average Canadian could earn around $645 in rewards in the first year.

MBNA Rewards Platinum Plus^® Mastercard^®

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Best Secured Credit Card for Building Credit

It can be challenging to get approved for credit, particularly if you have little or no credit history. But to build a credit history, you often need access to credit. So, what's a person to do?

A secured credit card is an excellent first step. This handy little product can benefit those new to credit or need to improve their credit, and it works much like a standard credit card. Cardholders can usually pay bills, purchase items in-store and online, and access a credit limit. However, the credit limit is determined by a deposit set by the cardholder and is secured on the card.

The cardholder is responsible for paying their statement each month and will also owe interest if they carry a balance. With each payment made on time, the positive information is reported to the credit bureaus in Canada and should slowly build or increase the cardholder's credit score.

Over time, the cardholder may qualify for unsecured products and should be able to get their initial deposit back.

We compared secured credit cards in Canada using our Best of Finance methodology and ranked the cards that provided the highest value. However, in this case, we felt that annual rewards and savings were not the most important benefits. Cardholders would get the best value from a no-fee card that focused strictly on building credit.

Winner: Neo Secured Mastercard

Neo Secured Mastercard allows you to start with as little as $50 in security funds, bypassing hard credit checks. That’s because your credit limit is equal to the amount of security funds you set aside.

The offering comes with guaranteed approval and no annual fees, allowing you to build your credit history – provided you continue to pay on time. And thanks to Neo Financial’s Insights app, you can get a complete view of your spending habits, including your purchases, your average, and details by category.

You can also make use of flexible credit limits and earn cashback rewards on all your purchases, including:

• Up to 4% cash back on gas and groceries
• 1% cash back everywhere else

Finally, you can enhance your rewards with perks and flexible monthly subscriptions that boost your cashback and unlock extra benefits for your account.

Neo Secured Mastercard

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Best Family Credit Card for Gas and Groceries

The right credit card can benefit the entire family. Whether it’s earning groceries at your favourite store or redeeming rewards for streaming services, top credit cards can save you money where you least expect it.

We compared the leading credit cards for grocery and gas purchases using our Best of Finance methodology and ranked the cards that provided the highest first-year value.

Winner: President’s Choice Financial^® World Elite Mastercard^®

Cardholders of the President’s Choice Financial^®World Elite Mastercard^® can earn points on their grocery purchases at President’s Choice banner brands, including Loblaws, No Frills, Real Canadian Superstore and Zehrs, as well as their drugstore purchases at Shoppers Drug Mart. Earn at least 30 points per litre at Esso and Mobil gas stations.

Cardholders also have two ways to earn rewards faster. The first is to present their PC Optimum card at the checkout and double dip on points. The second is by creating a “household” within the PC Optimum app and pooling points to earn and redeem rewards as a family.

According to our Best of Finance methodology, the average Canadian would earn around $476 in rewards in the first year.

PC^® World Elite Mastercard^®

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Best Credit Card for Subscriptions

As we move deeper into a subscription–based economy, you may have found yourself attached to several accounts – whether on a streaming platform, food delivery app or something else. Either way, all the accompanying expenses are likely taking a toll on your reward balance.

If your current rewards card isn’t specifically designed for online subscriptions and other expenses, you may be receiving a lower number of rewards or cash back than you otherwise could. Luckily, our top picks reward cardholders for their subscriptions as well as takeout and delivery purchases while offering some great perks for maintaining your favourite subscriptions.

We compared the best credit cards for delivery and takeout purchases using our Best of Finance methodology and ranked the cards that provided the highest first-year value.

Winner: Scotiabank^®* Gold American Express^® Card

The Scotiabank®* Gold American Express® Card rewards cardholders for everyday purchases, from takeout and delivery to streaming services. Get five Scotia Scene+ points for every $1 spent on eligible groceries, takeout, food subscription boxes, and entertainment purchases. Earn three Scotia Scene+ points for every $1 spent on gas, transit and select streaming services like Netflix. Get one Scotia Scene+ point for every $1 spent on all other purchases.

Rack up rewards quickly and redeem them for thousands of options, including travel, merchandise, gift cards and statement credits. Plus, pay no foreign transaction fees on purchases made abroad or online in foreign currency. Only the exchange rate applies.

According to ourBest of Finance methodology, the average Canadian would earn around $1,194 in rewards in the first year.

Scotiabank^®* Gold American Express^® Card

Want to learn more about how the Scotiabank^®* Gold American Express^®Card stands up against the competition? Read more from our "In the Ring" series:

In the Ring: American Express Cobalt Credit Card vs. Scotiabank Gold American Express Card

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Best Credit Card for Young Professionals

Young professionals are often tech-savvy, ambitious individuals looking to make their mark on the world — working hard during the day and spending as much time as they can with friends in the evenings.

Our top picks reward cardholders who are trying to do it all. Earn cash back or rewards for everyday purchases like trips to the store, rideshares to meetings and interviews, takeout, and even binge-watching movies or TV shows on Netflix.

We compared the best credit cards for young professionals using our Best of Finance methodology and ranked the cards that provided the highest first-year value.

Winner: American Express Cobalt^® Credit Card

The American Express Cobalt® Credit Card rewards cardholders for an urban lifestyle. Get five points for every $1 spent on restaurant and food delivery purchases in Canada. Earn three points for every $1 spent on eligible streaming subscriptions. Get two points for every $1 spent on eligible travel and transit, including rideshare services. Earn one point for every $1 spent on all other purchases.

Members can access Cobalt Perks and American Express® Experiences for exclusive offers, presale tickets and curated events.

According to ourBest of Finance methodology, the average Canadian would earn around $1,361 in rewards in the first year.

American Express Cobalt^® Credit Card

Want to learn more about how the American Express Cobalt^® Credit Card stands up against the competition? Read more from our "In the Ring" series:

In the Ring: American Express Cobalt Credit Card vs. Scotiabank Gold American Express Card

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Best Prepaid Card

This type of card is popular among consumers trying to restrict their credit usage. Prepaid credit cards are backed by a pre-existing balance, which you supply by loading your money onto the credit card before you can use it. The user doesn’t assume any debt following the transaction, and the purchase is not subject to any interest charge. The user also earns points for every transaction and gets an opportunity to build a credit history while earning other benefits unique to the card.

Winner: KOHO Prepaid Mastercard® (KOHO Easy)

The KOHO Prepaid Mastercard® (KOHO Easy) is a rare prepaid no-credit card that earns you cashback rewards (0.5% on all purchases) for no annual fee. The user also earns 5% cash back on select KOHO partnered merchants like food, drink and merchandize. This card also offers its users the advantage of a low foreign exchange fee (1.5%).  The KOHO Prepaid Mastercard^® is widely considered a good tool for consumers to develop strong financial habits. It even offers a low-fee option to help the cardholder build their credit score. According to our Best of Finance methodology, the average Canadian would earn around $120 in cash-back rewards annually.

KOHO Prepaid Mastercard (KOHO Easy)

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Best Overall Mastercard

Mastercard offers you one of the largest payment networks in the world, allowing you to make payments easily wherever you go. When you use a Mastercard credit card, you are protected from any unauthorized transactions through Mastercard’s Zero Liability coverage. Here’s our top pick for the best Mastercard of 2024.

Winner: MBNA Rewards World Elite® Mastercard®

The MBNA Rewards World Elite® Mastercard® offers you five points for every $1 spent on groceries, restaurants, digital media and utilities. Best of all, you can earn one point on every $1 spent on everything else. This card also comes with great insurance perks such as a unique annual birthday bonus, mobile insurance and rental car discounts. According to ourBest of Finance methodology, you can earn up to $924 in rewards in the first year. This makes the MBNA Rewards World Elite® Mastercard® the most rewarding Mastercard credit card.

MBNA Rewards Platinum Plus^® Mastercard^®

Learn more: Best Mastercard Credit Cards

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Best Overall Visa Card

Visa credit cards are hugely popular as they are widely accepted in more than 200 countries and territories. Visa credit cards offer a secure and convenient way to pay for what you need anywhere and anytime. Visa’s Zero Liability policy protects you from any fraudulent transactions. We’ve analyzed the top Visa credit cards in Canada to find the best pick.

Winner: CIBC Aventura® Visa Infinite Card

The CIBC Aventura^® Visa Infinite^* Card card is a great travel rewards card that allows you to quickly rack up points due to a generous welcome bonus and points program. It offers good earning rates across various categories and flexible redemption on points.

The CIBC Aventura® Visa Infinite card also offers a very generous welcome bonus in the first three months of having the card, which, if you played your cards right, could add up to $900 you could put towards travel. It is the maximum redemption value for 45,000 Aventura Points on a long-haul economy-class airfare purchase.

Card users will also receive one statement credit up to a maximum value of $100 CAD when NEXUS application fee is charged to an eligible card, regardless of NEXUS application approval. Other perks include lots of additional travel perks and benefits including Mobile insurance and NEXUS rebate. 

According to ourBest of Finance methodology, you can earn up to $1,536 in rewards in the first year, making this the best Visa credit card in Canada.

CIBC Aventura^® Visa Infinite^*

Learn more: Best Visa Credit Cards

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Best Credit Card for Newcomers to Canada

Settling in a new country can be an exciting but challenging experience. Canadian banks have some of the most lucrative offers for newcomers and immigrants are always on the lookout for deals to save the last dollar. What better than finding the right credit card for your financial needs that helps you save while meeting all your needs? Here's our pick for the best credit card for newcomers to Canada in 2024:

Winner: BMO CashBack® Mastercard®

The BMO CashBack® Mastercard® is our pick for the best card for newcomers because of its generous welcome offer: 5% cash back in your first three months. Newcomers can also get a 0.99% introductory interest rate on balance transfers for nine months (a 2% fee applies to balance amounts transferred). Users also get 3% cash back on grocery purchases, 1% cash back on recurring bill payments and 0.5% unlimited cash back on all other purchases.

There is no annual fee, and newcomers can enjoy the most cash back on groceries in Canada without paying an annual fee. Per our Best of Finance methodology, newcomers get $388 in first-year value.

BMO CashBack Mastercard^®*

Learn more: Best Credit Card for Newcomers to Canada

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Best Overall American Express Card

American Express is known to be a high-end credit card brand offering elite rewards and lucrative perks to users.

Winner: American Express Cobalt® Card

The American Express Cobalt^® Credit Card is one of the best credit cards on the Canadian market. Get five times the points at coffee shops, bars, restaurants, grocery stores, and even food delivery services. Earn three times the points on select streaming subscriptions and two times the points for every dollar spent on public transport, taxis, rideshare, and gas. Also, access exclusive benefits for members of the American Express Cobalt^® Credit Card. Based on our Best of Finance methodology, the average Canadian will earn an astonishing $1,361 in rewards for the first year. That is a staggering return for such a reasonably priced card. Once you have your points, you can redeem them for almost anything — even on Amazon purchases.

American Express Cobalt^® Credit Card

Learn more: Best Overall American Express Card

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Best Overall Aeroplan^® Credit Card

Aeroplan credit cards are a great saving hack for frequent travellers. You can earn great annual rewards value and travel perks with an Aeroplan credit card if you are on the go most of the time. Here are the best Aeroplan credit cards you can find in Canada:

Winner: TD Aeroplan® Visa Infinite

With theTD® Aeroplan® Visa Infinite* Card, you can earn up to $1,300 in value, including up to 40,000 Aeroplan points. There are many more features, and more make it the best Aeroplan credit card available in Canada. With this card, you can enjoy travelling lightly through the airport and saving on baggage fees (check your first bag for free!). Users can also enroll in NEXUS and, once every 48 months, get an application fee rebate of up to $100.

Your Aeroplan points will not expire as long as you are a TD® Aeroplan® Visa Infinite Primary Cardholder in good standing. You can earn 1.5 points for every $1 spent on eligible gas, grocery and direct through Air Canada® purchases (including Air Canada Vacations®) made with your card. Earn 1 point for every $1 spent on all other Purchases made with your card. You can earn 50% more Aeroplan points at Starbucks when you link your TD card with your Starbucks® Rewards account.

According to our Best of Finance methodology, the card offers a first-year value of $1,370.

TD^® Aeroplan^® Visa Infinite* Card

Learn more: Best Overall Aeroplan Credit Card

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Topcredit cards picks fromleading credit card providers in Canada

Credit card providers are financial institutions, like banks or credit unions, that work with credit card networks to issue credit cards to consumers. Some examples of such providers would include Scotiabank and Home Trust. Each provider offers unique card options, and the one you pick depends on your personal financial needs, such as annual credit card fee preferences and rewards preferences.

Top credit cards picks from leading credit card networks

Credit card networks process credit card transactions between merchants and issuers. For example, when you use a Mastercard credit card to pay for a new T-shirt at a store, your network, in this case, Mastercard, provides the infrastructure to collect the funds and transfer them to the store merchant.

The most popular credit card networks in Canada are Visa, Mastercard and American Express. Credit cards from these networks are globally accepted, but it is important to note that not all merchants in Canada accept American Express cards, although their acceptance rate has improved. Most American Express card holders also have another credit card from Visa or Mastercard for this reason.

Pros and cons of credit cards in Canada

With Canadian credit cards, the benefits you receive depend on the type of credit card you choose.

1. Rewards: Most top Canadian rewards credit cards can give you hundreds of dollars in rewards and, in some cases, thousands of dollars in cash back or points to trade for cash equivalent rebates on purchases. More credit card providers are now coming out with flexible rewards that you can use to pay down your credit card bill (like a cash back card) or use the points to trade for gift cards, merchandise, flights, and hotel stays.
2. Credit building: Having a credit card and using it responsibly is an excellent way to build your credit history and increase your credit score. Credit bureaus like TransUnion and Equifax need at least six months of data to assign you a credit score. Building a long history of responsible credit use will help your credit score.
3. Perks and insurance: Credit cards frequently come with perks and benefits. Here are some of the best credit card perks in Canada.
   • Roadside assistance: Basic CAA membership costs $75 annually, but some credit cards include roadside assistance as a perk.
     
   • Companion flights: Some travel credit cards enable you to earn discounted flights for a second passenger when you buy the primary ticket with your credit card.
     
   • Lounge access: Some credit cards offer complimentary lounge access for free, letting you enjoy exclusive airport lounges when you waiting for your flight. Usually, such lounge passes cost $100 or more annually if you decide to buy them separately.
     
   • Front-of-the-line service: Credit cards can come with exclusive memberships that allow you to access events before they open to the general public. Visa and AMEX memberships provide such front-of-the-line services to their customers, granting you access to get the tickets before the general public.
     
   • Concierge service: With a credit card with concierge service, you can call and have a customer service agent help you make travel arrangements, reservations, and booking events.
     
   • Convenient currency conversion: Some top travel credit cards do currency conversions at no fee so you can access a great exchange rate when making payments in foreign currency while travelling or online shopping.
     
   • Convenience: When you use a credit card, you enjoy the flexibility of going cashless and the convenience of making payments easily online and in-store. Credit cards allow you to easily make purchases during trips, without having to worry about carrying foreign currency.
     
   • Security: Making payments with a credit card helps you avoid losing money if you become a victim to fraud or theft. For example, with cash, you instantly lose money. In the case of a credit card, you can immediately notify your credit card provider and restore your lost credit amount. Most importantly, credit card networks such as, Visa and Mastercard provide zero liability coverage for all unauthorized purchases, adding an additional layer of security to your credit card.
     

1. Overspending: Just because you have a credit limit doesn’t mean you have to spend all of it. Having a large credit limit is nice, but maxing out your card is a bad idea. Frequently using more than 30% of your allotted credit will bring your credit score down if you miss your credit card payments and continue to carry a high balance month-to-month. The basic idea is not to spend outside your means and pay off your credit card balance responsibly.
2. High interest rates: If you track your spending and pay the full balance every month, you probably won’t have any issues with interest rates. But for those who find it hard to rein in their spending, high interest rates on credit cards are one of the most expensive ways to borrow money in the long run. When you carry a balance on your credit card from month to month, interest charges will continue to pile on the balance, making it harder for you to pay it off.
3. Transactional fees: Many people pay an annual fee to get a card that earns them more points faster, and this usually helps them offset the annual fee cost. Some just opt for a no annual fee credit card. But other credit card fees for services such as cash advances (using your card at an ATM) and overdrafts can easily add up, depending on how you use your card.

Best of Finance methodology: How we chose the best credit cards

The RATESDOTCA Best of Finance methodology has evolved over the last 12 years. Here is how we calculate our winners today:

Our team analyzed 80 credit cards using 100+ data points over several weeks to determine the first-year value of each card.

Rewards credit card categories

To calculate the first-year value for each Canadian rewards credit card, we assume cardholders spend $2,000* a month on the card across the following categories:

• Groceries: $500.00
• Gas: $250.00
• Drugstore: $150.00
• Travel: $200.00
• Restaurants: $250.00
• Entertainment: $150.00
• Recurring bills: $300.00
• Retail store: $100.00
• Local transit: $50.00
• Other: $50.00

*Source: Statistics Canada

Additional assumptions:

• The cardholder pays the credit card balance in full each month, with no interest charges accrued.
• The cardholder always uses the card at partnered retailers, if applicable (e.g., all gas purchased at Esso locations or entertainment purchased at Cineplex.com).
• We convert all points and miles into a cash value to compare cards equally.
• Calculations are based on a 12-month spending period, considering all signup bonuses, welcome offers, good standing bonuses, first-purchase bonuses, annual fees and waivers.

The Best of Finance methodology assumes the cardholder redeems their rewards for the highest point value. The RATESDOTCA comparison tool assumes the user redeems their points for travel when “travel” is selected and statement credits when “cash+” is selected to determine the first-year value.

Best Overall Rewards Credit Card category

We weigh each card’s perks, bonuses and benefits to calculate the Best Overall Rewards Credit Card.

Each category is weighted as follows:

• Ongoing annual rewards ($2,000 monthly spend – annual fee and welcome bonus) - 35%
• Welcome offer - 10%
• Benefits - 10%
• Flexibility of rewards (how easy rewards are to redeem) - 15%
• Insurance - 20%
• Eligibility (income and credit score requirements) - 5%
• Interest rates - 5%

Best Low-Interest Credit Card category

To calculate the first-year value of low-interest credit cards, we assume the following:

• The cardholder starts with a credit card balance of $2,000.
• The interest paid on the balance over the 12-month period is compared to that of the average credit card with a 20.99% APR. The value of low-interest credit cards is how much the cardholder will save.
• The total card value considers all signup bonuses, welcome offers, good standing bonuses, first-purchase bonuses, annual fees and waivers.

Best Balance Transfer Credit Card category

To calculate the value of balance transfer credit cards, we assume the following:

• The cardholder starts with a credit card balance of $2,000.
• The cardholder has transferred the balance from another card to activate the promotional balance transfer interest rate.
• The interest paid on the balance over the 12-month period is compared to that of the average credit card with a 20.99% APR.
• The total card value considers all signup bonuses, welcome offers, good standing bonuses, first-purchase bonuses, annual fees and waivers.

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By Credit Card Type

By Credit Card Provider

Aeroplan

Air Miles

Balance Transfer

Business

Cash Back

Gas Reward

Guaranteed approval

Low Cash Advance

Low Interest

No Fee

No Foreign Transaction Fees

Newcomers to Canada

Rewards

Secured

Student

Travel

American Express

BMO

CIBC

Home Trust

KOHO

Mastercard

MBNA

Neo Financial

PC Financial

Royal Bank of Canada

Scotiabank

TD

Vancity

Visa