MoneySense has ranked the most effective bank cards in Canada throughout quite a few classes of playing cards. On this web page, nevertheless, you’ll discover the most effective of the most effective: the playing cards that high their respective classes and cater to the wants of most Canadians. Use the software under to check bank card choices, or hold scrolling for our editors’ high picks.
Bank card comparability software
Why belief us
MoneySense is an award-winning journal, serving to Canadians navigate cash issues since 1999. Our editorial group of educated journalists works intently with main private finance specialists in Canada. That will help you discover the most effective monetary merchandise, we evaluate the choices from over 12 main establishments, together with banks, credit score unions and card issuers. Study extra about our promoting and trusted companions.
Finest bank card by class
| Finest playing cards by class | Why we like it |
|---|---|
| Finest money again bank card SimplyCash Most popular Card from American Categorical Annual price: $120 |
4% again on groceries and gasoline, and a pair of% again on all different purchases |
| Finest journey rewards bank card American Categorical Cobalt Annual price: $156 |
A few of the highest earn charges in Canada (with as much as 5x the factors on eating and groceries), mixed with a versatile factors, equals your finest return on spending |
| Finest airline journey bank card (Air Canada) TD Aeroplan Visa Infinite Card Annual price: $139 |
Excessive earn charges on gasoline, groceries and Air Canada purchases, simple redemptions and a $100 Nexus price rebate each 2 years |
| Finest airline journey bank card (WestJet) WestJet RBC World Elite Mastercard Annual price: $119 |
1.5% earn fee paired with an annual round-trip companion voucher on WestJet |
| Finest low-interest bank card Flexi Visa Annual price: $0 |
10.90% buy rate of interest |
| Finest steadiness switch bank card MBNA True Line Mastercard Annual price: $0 |
earn a 0% promotional annual rate of interest (“AIR”) for 12 months on steadiness transfers accomplished inside 90 days of account opening, with a 3% switch price. |
| Finest secured bank card Dwelling Belief Secured Visa (low-rate possibility) Annual price: $0 |
Assured approval no matter credit score rating, with the choice to pay no annual price or obtain a low APR (annual proportion fee) of 14.90% when you decide to pay an annual price |
Finest total money again bank card
At a look: With stellar returns on groceries and gasoline, a higher-than-average base earn fee, and a number of Amex advantages, the SimplyCash Most popular Card from American Categorical takes the highest spot for money again bank cards.
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Amex SimplyCash Most popular
Annual price: $120
Welcome supply: earn a $40 assertion credit score for every month-to-month billing interval by which you spend $750 in purchases in your card.
Card particulars
| Rates of interest | 21.99% on purchases, 21.99% on money advances |
| Earnings required | None specified |
| Credit score rating | 725 or increased |
Finest journey rewards bank card
At a look: The American Categorical Cobalt card impresses with a number of the highest earn charges on high spending classes like “eats and drinks,” which incorporates any spends at from grocery shops to espresso retailers to meals supply. Plus, the journey factors are simple to redeem, and you’ve got extra redemption choices to select from than with different journey playing cards in Canada.
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American Categorical Cobalt
Annual price: $156
Welcome supply: earn 1,250 factors for every month you spend $750, as much as a most of 15,000 factors.
Card particulars
| Rates of interest | 21.99% on purchases, 21.99% on money advances |
| Earnings required | None specified |
| Credit score rating | 725 or increased |
| Level worth | 1 Amex Membership Rewards level = $0.01 when redeemed with the Versatile Factors Journey Program, $0.015 on common with the Fastened Factors Journey Program, and as much as $0.02 with airline factors transfers. |
Professionals
- Excessive earn charges: A few of the highest of any journey card in Canada, with 5 factors per greenback on groceries and eating.
- Expansive classes: This implies you’ll get level boosts on extra purchases. For instance, the journey and transit class consists of flights, resorts and holidays, in addition to gasoline, public transit, taxis and rideshares.
- Versatile redemptions and level transfers: Redeem your factors on any airline three alternative ways: redeem for any journey expense charged to your card at a flat fee of 1 level for $0.01 in journey financial savings; switch them to a taking part airline or lodge loyalty program (together with Aeroplan) at a 1:1 ratio, which might double their worth; or use the Fastened Factors Journey chart to discover a beneficial fee with out worrying in regards to the service or blackout dates.
- Free supplementary cardholders: So you possibly can earn extra factors, sooner.
Cons
- Restricted acceptance: The American Categorical card just isn’t as extensively accepted as Visa or Mastercard.
- Excessive annual price: Charged as $12.99 month-to-month, the annual price involves $155.88, whereas comparable playing cards cost $120.
- No journey cancellation protection: It’s the one kind of protection lacking from an in any other case complete journey insurance coverage package deal.
Finest airline journey bank cards
For Air Canada frequent flyers
At a look: Whereas the quickest approach to accumulate Aeroplan factors could also be to make use of the Amex Cobalt—the most effective journey rewards card total ranked by MoneySense—after which switch your Amex factors one to 1, the TD Aeroplan Visa Infinite Card presents a branded Aeroplan card with easy redemptions. Of the 11 Aeroplan playing cards in the marketplace, this card has a number of differentiators just like the $100 Nexus price rebate that earn it the highest spot.
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TD Aeroplan Visa Infinite Card
Annual price: $139 (waived first yr)
Welcome supply: Earn as much as $1,300 in worth, together with as much as 40,000 Aeroplan factors and no annual price for the primary yr. Circumstances apply. Account should be permitted by Jan. 6, 2025.
Card particulars
| Rates of interest | 20.99% on purchases, 22.99% on money advances, 22.99% on steadiness transfers |
| Earnings required | Private earnings of $60,000 or family earnings of $100,000 |
| Credit score rating | 680 or increased (really useful) |
| Level worth | Aeroplan factors are value $0.02 on common. |
For WestJet frequent flyers
At a look: In case your airline of alternative is WestJet, this bank card is value contemplating. It not solely offers a robust base fee of 1.5% in WestJet reward {dollars} and a easy redemption course of, however it additionally has some worthy perks like an annual round-trip companion voucher and a free first checked bag for you and as much as eight journey companions.
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WestJet RBC World Elite Mastercard
Annual price: $119
Welcome supply: earn as much as $700 in WestJet {dollars} with the WestJet RBC World Elite Mastercard, Plus a Spherical-Journey Companion Voucher Each 12 months
Card particulars
| Rates of interest | 20.99% on purchases, 22.99% on money advances |
| Earnings required | Private earnings of $80,000 or family earnings of $150,000 |
| Credit score rating | None specified |
| Level worth | 1 WestJet Greenback = $1 CAD when redeemed for eligible flights or trip packages. |
Finest low-interest bank card
At a look: If you happen to’re searching for a low-interest bank card, you gained’t discover a extra aggressive APR than this card’s 10.90%. For many who continuously carry a steadiness, the Flexi Visa is value a glance. The financial savings on curiosity prices with this card might simply outweigh the worth of rewards you’d earn with a rewards or money again bank card when you can’t repay your steadiness.
Flexi Visa
Annual price: $0
Low rates of interest: 10.90% on purchases and 12.90% on money advances
Card particulars
| Rates of interest | 10.90% on purchases and 12.90% on money advances |
| Earnings required | Not specified |
| Credit score rating | Not specified |
Finest steadiness switch bank card
At a look: On the subject of making steadiness transfers, our choose is the MBNA True Line Mastercard, which has a 12.99% rate of interest and edges out its nearest competitor, the Scotia Worth Visa, as a result of it has no annual price. That mentioned, this bank card’s 3% steadiness switch price is far bigger than the 1% commanded by the Worth Visa, so that you may need to take into account the latter when you’re transferring a serious steadiness.
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MBNA True Line Mastercard
Annual price: $0
Low rate of interest: 12.99%
Stability switch supply: earn a 0% promotional annual rate of interest (“AIR”) for 12 months on steadiness transfers accomplished inside 90 days of account opening, with a 3% switch price. This supply just isn’t out there for residents of Quebec.
Card particulars
| Rates of interest | 24.99% on money advances, 17.99% on steadiness transfers |
| Earnings required | None specified |
| Credit score rating | 660 or increased |
Finest secured bank card
At a look: For these with poor or no credit score, a secured bank card makes quite a lot of sense because it permits you the pliability of utilizing plastic whereas increase your credit score historical past. What’s nice about this Dwelling Belief card is that you just’re given a alternative: If you happen to’re keen to pay a modest annual price of $59, you’ll save on curiosity with a 14.90% buy APR. Or, when you desire no price, you’ll be charged a better rate of interest of 19.99%. We like that this card offers you the choice to decide on what works finest for you.
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Dwelling Belief Secured Visa
Annual price: $0
Rewards: None (designed for folks seeking to rebuild credit score)
Welcome supply: None
Card particulars
| Rates of interest | 19.99% on purchases and 19.99% on money advances |
| Earnings required | None specified |
| Credit score rating | 300 or increased |
Our choice course of
Many web sites that evaluate monetary merchandise let laptop programs make their bank card suggestions. Utilizing formulation and a listing of knowledge factors, they crunch the numbers and spit out an “neutral” or “unbiased” listing of playing cards. The issue is bank card suggestions aren’t an actual science—they’re subjective by nature. Do 5 free airport lounge visits per yr trump no overseas transaction charges on worldwide purchases? Reply: Relies upon who you ask.
As an alternative of counting on algorithms, MoneySense editors take into account and debate how Canadians really use bank cards. Our editors apply their bank card experience, in depth analysis within the advantageous print (we’ll even cellphone up the banks!) and data of Canadians’ monetary objectives to provide you with choice standards that finest mirror the class and sort of card. Our suggestions are subjective—and sure, open to debate—however they’re at all times made with you in thoughts.
First off, any bank card issued in Canada has the potential to be featured as considered one of our picks—not simply affiliate companions like another websites. Generally, there are solely a handful of sturdy playing cards in any given class which might be worthy of an in depth point-by-point comparability.
As soon as now we have our shortlist of playing cards, we dig into the advantageous print to see how they stack up on the factors that matter most for the class—it may very well be the speed of return in your spending (for journey playing cards), the rates of interest supplied (for steadiness switch and low-interest playing cards), or the eligibility standards (for scholar playing cards). Oftentimes, it’s a mixture of some components.
This focus helps us discover the merchandise which might be principally possible that will help you obtain your objectives. Ultimately, further options and advantages are sometimes higher handled as an added bonus—not the principle cause to get a card, however good to have anyway.
What to do in case your bank card utility is declined
You could have issue getting a brand new bank card for a wide range of causes, from not assembly the cardboard’s earnings necessities to not having a excessive sufficient credit score rating. In case your utility is denied, Doris Asiedu, a licensed credit score counsellor with Credit score Canada, recommends you’re taking these 4 steps.
How bank cards work
Once you use a bank card, you’re taking out a short-term mortgage with a steadiness that comes due each month. As you pay down your steadiness, the credit score out there to you the next month begins to return as much as the utmost credit score restrict in your card. There are numerous methods you should utilize a bank card. For instance, many playing cards can be utilized for purchases, for steadiness transfers and/or money advances. As helpful as they’re, it’s vital to know methods to use bank cards responsibly to keep away from falling into monetary bother.
The right way to calculate bank card curiosity
Bank card curiosity is expressed as an annual proportion fee, or APR. It’s a price charged for borrowing cash from the bank card issuer. If you happen to’ve paid your bank card steadiness in full by the top of the billing cycle, you gained’t be charged any curiosity. However when you carry a bank card steadiness, curiosity prices start to build up, and also you’ll proceed to pay curiosity till you pay your steadiness again in full.
Although APRs are expressed in annual phrases, bank card curiosity is calculated day by day and charged month-to-month. (The APR represents the whole price of borrowing cash for a yr.) You may work out your day by day rate of interest by dividing your APR by 365 (or 366 throughout a bissextile year). For a bank card with a 19.99% APR, your day by day fee is 0.0548%.
This implies a $1,000 steadiness will incur $0.54 in curiosity prices in a single day. And the curiosity compounds day by day, which signifies that the following day, assuming you don’t make any further purchases, you’d be charged curiosity on a complete of $1,000.54, and so forth. Lastly, on the finish of the billing cycle, you’re charged curiosity primarily based on the common day by day steadiness throughout every one of many days within the billing cycle. So, to find out the quantity of curiosity owed:
- Calculate your day by day rate of interest by dividing the APR by 365.
- Discover your common day by day steadiness by including up the balances for every day of the billing cycle and dividing it by the variety of days in your assertion interval.
- Multiply your common day by day steadiness by the day by day rate of interest, and multiply this whole by the variety of days within the assertion interval.
That’s why it’s finest to pay down your debt as shortly as potential. If you happen to don’t repay your steadiness in full by the date famous in your assertion, you’ll owe curiosity, beginning on the day that you just made your buy.
Federally regulated monetary establishments (suppose main banks) are required to supply an interest-free grace interval of a minimum of 21 days, which begins on the final day of your billing interval. Some issuers supply as much as 30 days. (Word: This rule doesn’t apply to money advances or steadiness transfers.)
What are some great benefits of utilizing a bank card?
One of many main advantages of a bank card is comfort. You may merely pay to your buy realizing you may be billed for the excellent steadiness the next month—no want to hold money in your pockets, plus you possibly can store on-line.
Different advantages embrace the power to accrue rewards and factors—reminiscent of money again or journey factors—primarily based on a proportion of your purchases every month; relying on the cardboard you select, it begins at 1% and goes as much as 4%. You may then redeem these factors for reward playing cards, journey or different gadgets supplied via the bank card firm’s on-line rewards catalogue.
Bank cards may make it easier to construct credit score. At all times paying on time will assist you obtain a excessive credit score rating (650 plus), permitting you to borrow for a mortgage or a automobile mortgage sooner or later at an affordable rate of interest from a monetary establishment.
Sorts of bank cards
On the subject of rewards bank cards, the title says all of it. These are playing cards that provide you with one thing again if you spend with them, whether or not it’s factors or money. The extra you spend, the extra rewards you get. For many who repay their steadiness in full each month, these playing cards can actually add worth. There are 4 fundamental kinds of rewards playing cards:
Money again bank cards
Money again playing cards supply a rebate credited to your steadiness, often calculated as a proportion of the greenback worth of your purchases. Most of those playing cards have accelerated earn charges in sure classes (groceries and gasoline, for instance), they usually all have a minimal base fee for spending exterior these classes. Your money again rewards might help you save on something you should purchase along with your card. See our picks for the most effective money again playing cards in Canada.
Journey bank cards
These playing cards supply factors or miles to be redeemed in the direction of travel-related purchases reminiscent of flights, resorts, cruises and trip packages. Rewards won’t be as simple as money again, however journey factors playing cards might help you save large on upcoming journeys, with many providing perks together with sign-up bonuses, complete journey insurance coverage and airport lounge entry. See our picks for the most effective journey bank cards in Canada.
Retailer bank cards
These bank cards reward you with factors for on a regular basis purchases that may be redeemed for reductions off gadgets out of your favorite retailer. The concept is to reward model loyalty with helpful advantages. The PC Monetary Mastercard and the Canadian Tire Mastercard bank cards are nice examples. See our picks for the most effective retailer bank cards in Canada.
Lodge bank cards
Much like journey playing cards, lodge bank cards reward shoppers with factors redeemable for lodge stays and perks. These playing cards are sometimes linked or co-branded with a particular lodge model or loyalty program, like Marriott Bonvoy or Finest Western Rewards.
Choosing the most effective card: What else to take into account
When you’ve chosen the class of card that you really want, take into account the earn fee, further advantages and sort of factors earned with every card. If you happen to occur to spend so much on gasoline and groceries, search for a card with a excessive earn fee for these classes. The annual price also needs to be thought-about. There’s a big selection of no-fee bank cards in Canada. Though nobody likes to pay an annual price merely to make use of their card, annual-fee playing cards sometimes supply extra in perks and worth again—that means you possibly can nonetheless simply come out on high financially.
Widespread bank card protections
When evaluating bank cards in Canada, it’s vital to think about the protections that include your chosen card. Listed below are a number of the commonest ones:
- Buy safety: Many bank cards present buy safety to cowl eligible purchases towards loss, harm or theft for a specified interval after the acquisition is made. The protection quantity and period can fluctuate amongst bank cards, so it’s vital to overview the phrases and situations of your particular bank card.
- Zero legal responsibility: In Canada, most bank cards supply zero legal responsibility safety, that means you gained’t be held accountable for unauthorized prices made in your bank card account. However, it’s extraordinarily vital to report any suspicious transactions or unauthorized exercise to your card issuer.
- Prolonged guarantee: Some bank cards supply prolonged guarantee safety, which extends the producer’s guarantee on eligible purchases for a further interval. This may present added peace of thoughts, notably for higher-value purchases.
- Journey insurance coverage: Sure bank cards could embrace journey insurance coverage advantages reminiscent of journey cancellation/interruption insurance coverage, emergency medical protection, baggage loss/delay insurance coverage, and rental automobile insurance coverage. The precise protection and situations fluctuate, so overview the main points of your bank card’s journey insurance coverage coverage.
- Fraud safety: Bank card issuers sometimes have strong fraud safety measures in place. In case your bank card is misplaced or stolen, you possibly can report it to your card issuer instantly, and they’re going to often deactivate the cardboard to forestall unauthorized use.
Ceaselessly requested questions
Your choice for which bank card is finest for you and your loved ones will come down as to if a money again or journey rewards bank card most closely fits your wants and spending habits. Journey rewards could be profitable, however what you earn from a money again card could be spent on something—or saved.
When contemplating a money again card, take inventory of your spending habits and choose the cardboard that may earn you essentially the most rewards. For instance, when you spend so much on gasoline, then choose a card that earns you more money again at gasoline stations. Excessive earn charges are nice, however remember that most of the high playing cards have a excessive earnings requirement.
Additionally notice that some money again bank cards will solely provide you with what you’ve earned after you attain a minimal quantity or as soon as per calendar yr. Learn how you’ll receives a commission, and be sure you’re okay with it earlier than you apply. If you happen to’re contemplating a card with an annual price, be certain that the money again you earn is value greater than the price. If it’s not, persist with a no-fee card.