17 Best Credit Cards in Canada + Runners-Up for March 2024
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Updated: March 14, 2024
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Compare the best Canadian credit cards by category and find the best credit cards for you.
The range of Canadian credit cards available is vast, spanning cards that earn flexible cash back and travel rewards to those with low interest rates and low credit score requirements. But how do you separate the best new credit cards from the rest? Use our list of the best credit cards in Canada to help you choose.
Best credit card in Canada
American Express Cobalt
5x the points on eligible eats and drinks in Canada, including groceries and food delivery. Spend cap applies.
3x the points on eligible streaming subscriptions in Canada
2x the points on eligible ride shares, transit & gas in Canada
1x additional point on eligible hotel and car rental bookings via American Express Travel Online
1x point for every $1 in Card purchases everywhere else
$100 USD up to $100 USD hotel credit to use on amenities when charged to the room for a stay of 2 or more consecutive nights through The Hotel Collection from American Express Travel
$155.88 Annual Fee 12.99/mo
20.99% Purchase APR
21.99% Cash Advance APR
21.99% Balance Transfer Rate
2.50% Foreign Transaction Fee
Fair Recommended Credit Score
$0 Required Annual Personal Income
$0 Required Annual Household Income
Compare other top credit cards in Canada
Scotiabank Momentum® Visa Infinite
Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). No annual fee in the first year, including on additional cards.
$120 Annual Fee
Excellent Recommended Credit Score
$60,000 Required Annual Personal Income
TD® Aeroplan® Visa Infinite* Card
Earn up to $1,200 in value† including up to 50,000 Aeroplan points†. Conditions Apply. Account must be approved by June 3, 2024.
$139 Annual Fee
Excellent Recommended Credit Score
$60,000 Required Annual Personal Income
CIBC Aventura® Gold Visa
Get a total of up to 40,000 Aventura Points during your first year†
$139 Annual Fee
Good Recommended Credit Score
Best credit card for travel
Scotiabank Platinum American Express Card
2x Scene+ points for every $1 spent on all other eligible purchases
0% No foreign transaction fees
10 Complimentary airport lounge passes per year
$399 Annual Fee
9.99% Purchase APR
9.99% Cash Advance APR
22.99% Balance Transfer Rate
0.00% Foreign Transaction Fee
Good Recommended Credit Score
Welcome Offer Ends Oct 31, 2024
Earn up to $2,100* in value in the first 14 months, including up to 60,000 bonus Scene+ points
Learn moreCompare other best travel credit cards for travel
Scotiabank Gold American Express®
Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points.
$120 Annual Fee
Very Good Recommended Credit Score
Scotiabank Passport® Visa Infinite*
Earn up to $1,300* in value in the first 12 months, including up to 40,000 bonus Scene+ points and first year annual fee waived
$150 Annual Fee
Good Recommended Credit Score
$60,000 Required Annual Personal Income
The Platinum Card
Earn 70,000 Membership Rewards® points1*
$799 Annual Fee
Excellent Recommended Credit Score
Looking for more of the best credit cards for travel? Read more at our Best travel credit cards page.
Best credit card for cash back
CIBC Dividend Visa Infinite
4% Earn 4% cash back on gas, EV charging, and groceries.
2% Earn 2% cash back on dining, transportation, recurring payments or bills.
1% Earn 1% cash back on all other purchases with no limit.
10 cents Save 10 cents per litre with CIBC and Journie Rewards (Ultramar, Chevron, Pioneer, Fas Gas)
$120 Annual Fee First year rebated. Each additional card is $30 per year, max 3.
20.99% Purchase APR non-Quebec residents†
22.99% Cash Advance APR non-Quebec residents†
22.99% Balance Transfer Rate non-Quebec residents†
Good Recommended Credit Score
$60,000 Required Annual Personal Income
$100,000 Required Annual Household Income
Welcome Offer
Get a first-year annual fee rebate and earn 10% cash back welcome bonus of up to $250!†
Learn moreCompare other great credit cards for cash back
BMO CashBack® World Elite® Mastercard
Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year.
$120 Annual Fee
Excellent Recommended Credit Score
$80,000 Required Annual Personal Income
SimplyCash® Card from American Express
Earn up to $100 in Statement Credits in your first 10 months as a new cardmember
$0 Annual Fee
Good Recommended Credit Score
$0 Required Annual Personal Income
TD Cash Back Visa Infinite* Card
Earn up to $500 in value†, including 10% in Cash Back Dollars in the first 3 months on Bonus Eligible Purchases up to a total spend of $3,500†. Conditions apply. Account must be approved by June 3, 2024.
$139 Annual Fee
Excellent Recommended Credit Score
$60,000 Required Annual Personal Income
Read more: Best cash back credit cards in Canada
Best credit card for students
BMO CashBack MasterCard
3% Cardholders earn 3% (up to a monthly max of $500) cash back on groceries
1% Cardholders can earn 1% (up to $500 per month) on any recurring bill payments*
0.5% Cardholders can earn 0.5% (no monthly max) on all other eligible purchases*
$0 Annual Fee
20.99% Purchase APR
22.99% Cash Advance APR 21.99% for Quebec residents
Good Recommended Credit Score
$15,000 Required Annual Personal Income
Compare other fantastic credit cards for students in Canada
Tangerine Money-Back Credit Card
Get 10% cash back on up to $1,000 in everyday purchases made within 2 months. Pay only 1.95% balance transfer interest for the first 6 months.
$0 Annual Fee
Fair Recommended Credit Score
$12,000 Required Annual Personal Income
Neo Secured Credit Card
Up to 15% on first new purchases with Neo partners
$0 Annual Fee
Poor Recommended Credit Score
$0 Required Annual Personal Income
American Express Cobalt® Card
Earn up to 15,000 Membership Rewards points
$155.88 Annual Fee
Fair Recommended Credit Score
$0 Required Annual Personal Income
Read more: Best student credit cards
Best credit card for balance transfers
MBNA True Line® Mastercard®
0% New cardholders can enjoy a 0% promotional annual interest rate† (a 3% transfer fee applies) for 12 months on any balance transfer✪ completed within 90 days of opening the account
$0 Annual Fee
12.99% Purchase APR
24.99% Cash Advance APR
12.99% Balance Transfer Rate
Good Recommended Credit Score
Welcome Offer Ends Dec 31, 2024
Get a 0% promotional annual interest rate (“AIR”)† for 12 months on balance transfers✪ completed within 90 days of account opening.
Learn moreCompare other top credit cards for balance transfers
Scotiabank Value Visa
0% introductory interest rate on balance transfers for the first 10 months (12.99% after that; annual fee $29), plus no annual fee for the first year.¹
$29 Annual Fee
Fair Recommended Credit Score
$0 Required Annual Personal Income
BMO AIR MILES®† MasterCard®*
Get 800 AIR MILES Bonus Miles!* That’s enough for $80 towards purchases with AIR MILES Cash*
$0 Annual Fee
Good Recommended Credit Score
$15,000 Required Annual Personal Income
BMO Preferred Rate Mastercard®*
Get a 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee5 and BMO will waive the $29 annual fee for the first year.*
$29 Annual Fee
Good Recommended Credit Score
$0 Required Annual Personal Income
Read more: Best balance transfer credit cards
Best credit card for rewards
CIBC Aventura® Gold Visa* Card
2 Earn 2 points for every $1 spent on eligible travel purchased through the CIBC Rewards Centre†
1 Earn 1.5 points for every $1 spent at eligible gas stations, EV charging, grocery stores and drug stores†
1 Earn 1 point for every $1 spent on all other eligible purchases†
$139 Annual Fee
20.99% Purchase APR non-Quebec residents†
22.99% Cash Advance APR for non-Quebec residents†
22.99% Balance Transfer Rate for non-Quebec residents†
Good Recommended Credit Score
$15,000 Required Annual Household Income
Compare other best credit cards for rewards
Scotiabank Gold American Express®
Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points.
$120 Annual Fee
Very Good Recommended Credit Score
MBNA Rewards World Elite Mastercard
Earn up to 30,000 bonus MBNA Rewards Points†† for cash back, gift cards and more.
$120 Annual Fee
Good Recommended Credit Score
$80,000 Required Annual Personal Income
American Express Cobalt® Card
Earn up to 15,000 Membership Rewards points
$155.88 Annual Fee
Fair Recommended Credit Score
$0 Required Annual Personal Income
Read more: Best rewards credit cards
Best credit card for airport lounge access
American Express The Platinum Card
2x Earn 2 points for every $1 in Card purchases on eligible dining and food delivery in Canada
2x points for every $1 in Card purchases on eligible travel
1x point for every $1 in all other Card purchases
$799 Annual Fee Includes $200 annual travel credit and $200 annual dining credit
20.99% Purchase APR The Preferred rate of 20.99% applies to your Flexible Payment Option balance.
2.50% Foreign Transaction Fee
Excellent Recommended Credit Score
Compare other great credit cards for airport lounge access
Scotiabank Passport® Visa Infinite*
Earn up to $1,300* in value in the first 12 months, including up to 40,000 bonus Scene+ points and first year annual fee waived
$150 Annual Fee
Good Recommended Credit Score
$60,000 Required Annual Personal Income
TD® Aeroplan® Visa Infinite Privilege* Card
Earn up to $2,900 in value† including up to 85,000 Aeroplan points†. Conditions Apply. Account must be approved by June 3, 2024.
$599 Annual Fee
Excellent Recommended Credit Score
$150,000 Required Annual Personal Income
Scotiabank Platinum American Express® Card
Earn up to $2,100* in value in the first 14 months, including up to 60,000 bonus Scene+ points
$399 Annual Fee
Good Recommended Credit Score
Read more: best airport lounge access credit cards
Best credit card with no annual fee
Tangerine Money-Back Credit Card
2% Earn 2% cash back on 2 categories of your choice (e.g. groceries, recurring bills, gas, drug stores, etc.)
3 Get a Tangerine Savings account and add a 3rd 2% cash back category.
0.5% Earn 0.50% on all your other everyday purchases.
$0 Annual Fee $0 for additional cardholders
19.95% Purchase APR
19.95% Cash Advance APR $3.50 within Canada, $5.00 outside Canada
1.95% Balance Transfer Rate 1.95% interest for first 6 months, 19.95% after that.
3.00% Balance Transfer Fee 3.00% of the amount transferred, or minimum of $5.00
2.50% Foreign Transaction Fee
Fair Recommended Credit Score
$12,000 Required Annual Personal Income
Welcome Offer Ends Apr 30, 2024
Get 10% cash back on up to $1,000 in everyday purchases made within 2 months. Pay only 1.95% balance transfer interest for the first 6 months.
Learn moreCompare the other best credit cards with no annual fee
MBNA Rewards Platinum Plus Mastercard
Earn 4 points per $1 spent on eligible restaurant, grocery, digital media, membership, and household utility purchases until $10,000 is spent annually. You could also receive up to 10,000 bonus points.
$0 Annual Fee
Good Recommended Credit Score
American Express® Green Card
Earn 10,000 Membership Rewards® points1*
$0 Annual Fee
Good Recommended Credit Score
RBC Cash Back Mastercard
Enjoy 0.99% introductory interest rate on cash advances and balance transfers for the first 10 months
$0 Annual Fee
Good Recommended Credit Score
Read more: Best no annual fee credit cards
Best credit card for bad credit
Neo Secured Credit
15% Up to 15% on first new purchases with Neo partners
5% With Neo Partners
1%-3% on gas and groceries
3%-4% Streaming, ridesharing, and food delivery services
2%-3% With retail partners
0.5% On everything else
$0 Annual Fee Option to pay $4.99/month for premium membership to unlock higher cash back rewards
19.99% - 26.99% Variable APR
24.99% - 28.99% Cash Advance APR Plus a $2.50 fee in Canada, $5 fee anywhere else
Poor Recommended Credit Score
$0 Required Annual Personal Income
$0 Required Annual Household Income
$50 Min Security Deposit
Other best credit cards for bad credit (secured cards)
Capital One Guaranteed Secured Mastercard
$59 Annual Fee
Poor Recommended Credit Score
$0 Required Annual Personal Income
Home Trust Secured Visa
No annual fee
$0 Annual Fee
Good Recommended Credit Score
$0 Required Annual Personal Income
KOHO Extra
$84 Annual Fee
Fair Recommended Credit Score
$0 Required Annual Personal Income
Read more: Best secured credit cards
Best credit card in Canada for no foreign transaction fees
Scotiabank Gold American Express® Card
6x Scene+ points on every $1 you spend at Sobeys, Safeway, Freshco, Foodland and more
5x Scene+ points for every $1 you spend on dining, food delivery and other eligible grocery stores. Includes popular food delivery and food subscriptions.
5x Scene+ points for every $1 you spend in Canada eligible entertainment purposes. Includes movies, theatre and ticket agency stores.
3x Scene+ points for every $1 CAD you spend in Canada on eligible gas and daily transit options. Includes ride shares, buses, subway, taxis and more.
3x Scene+ points for every $1 CAD you spend in Canada on eligible select streaming services.
1x Scene+ point for every $1 spent on all other eligible everyday purchases.
$120 Annual Fee $29 for each supplementary card
20.99% Purchase APR
22.99% Cash Advance APR
22.99% Balance Transfer Rate
0.00% Foreign Transaction Fee
Very Good Recommended Credit Score
Welcome Offer Ends Jul 1, 2024
Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points.
Learn moreComparing other credit cards with no foreign transaction fees
Scotiabank Passport® Visa Infinite*
Earn up to $1,300* in value in the first 12 months, including up to 40,000 bonus Scene+ points and first year annual fee waived
$150 Annual Fee
Good Recommended Credit Score
$60,000 Required Annual Personal Income
Rogers™ World Elite Mastercard
$25 Welcome Bonus in cash back rewards upon first card purchase within 3 months of receiving your card2
$0 Annual Fee
Excellent Recommended Credit Score
$80,000 Required Annual Personal Income
Home Trust Preferred Visa
No annual fee and no foreign exchange fees
$0 Annual Fee
Good Recommended Credit Score
$15,000 Required Annual Personal Income
Read more: Best no foreign transaction fee credit cards in Canada
Best credit card for travel insurance
Scotiabank Gold American Express® Card
6x Scene+ points on every $1 you spend at Sobeys, Safeway, Freshco, Foodland and more
5x Scene+ points for every $1 you spend on dining, food delivery and other eligible grocery stores. Includes popular food delivery and food subscriptions.
5x Scene+ points for every $1 you spend in Canada eligible entertainment purposes. Includes movies, theatre and ticket agency stores.
3x Scene+ points for every $1 CAD you spend in Canada on eligible gas and daily transit options. Includes ride shares, buses, subway, taxis and more.
3x Scene+ points for every $1 CAD you spend in Canada on eligible select streaming services.
1x Scene+ point for every $1 spent on all other eligible everyday purchases.
$120 Annual Fee $29 for each supplementary card
20.99% Purchase APR
22.99% Cash Advance APR
22.99% Balance Transfer Rate
0.00% Foreign Transaction Fee
Very Good Recommended Credit Score
Welcome Offer Ends Jul 1, 2024
Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points.
Learn moreComparing other great credit cards with travel insurance
Scotiabank Platinum American Express® Card
Earn up to $2,100* in value in the first 14 months, including up to 60,000 bonus Scene+ points
$399 Annual Fee
Good Recommended Credit Score
RBC Avion Visa Infinite
Get 35,000 welcome Avion points on approval
$120 Annual Fee
Very Good Recommended Credit Score
$60,000 Required Annual Personal Income
BMO Ascend™ World Elite®* Mastercard®
Get up to 90,000 points and the annual fee waived in the first year for both the primary cardholder and authorized users.*
$150 Annual Fee
Excellent Recommended Credit Score
$80,000 Required Annual Personal Income
Read more: Best travel insurance credit cards
Best credit card for groceries
Scotiabank Momentum Visa Infinite
4% For every $1 you spend on grocery store purchases, recurring bill payments and subscription purchases
2% For every $1 you spend on gas and daily transit purchases
1% Cash back on all other purchases with no cash back limit
$120 Annual Fee $50 per supplementary card
20.99% Purchase APR
22.99% Cash Advance APR
22.99% Balance Transfer Rate
2.50% Foreign Transaction Fee
Excellent Recommended Credit Score
$60,000 Required Annual Personal Income
$100,000 Required Annual Household Income
Welcome Offer
Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). No annual fee in the first year, including on additional cards.
Learn moreCompare runner up credit cards for groceries
Scotiabank Gold American Express®
Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points.
$120 Annual Fee
Very Good Recommended Credit Score
BMO CashBack® MasterCard®
Get 5% cash back in your first 3 months*
$0 Annual Fee
Good Recommended Credit Score
$15,000 Required Annual Personal Income
CIBC Dividend® Visa Infinite
Get a first-year annual fee rebate and earn 10% cash back welcome bonus of up to $250!†
$120 Annual Fee
Good Recommended Credit Score
$60,000 Required Annual Personal Income
Read more: Best grocery credit cards
@moneydotca Uncovering the Secrets: Are Credit Card Points Truly Rewarding or Just a Scam? A #creditcardpoints #personalfinance #fyp #tiktokfinance #creditcard #money ♬ this feeling - Øneheart
Best credit card for gas
TD Cash Back Visa Infinite* Card
3% Earn 3% cash back on groceries, gas, and recurring bill payments†
1% Earn 1% cash back on all other purchases†
50% Earn 50% more Starbucks Stars when you link your TD card to your Starbucks account.†
$139 Annual Fee First additional cardholder is $50. After that, each card is $0.
20.99% Purchase APR APR for purchases 20.99%†
22.99% Cash Advance APR APR for cash advances 22.99%†
22.99% Balance Transfer Rate APR for balance transfers 22.99%†
Excellent Recommended Credit Score
$60,000 Required Annual Personal Income
$100,000 Required Annual Household Income
Welcome Offer Ends Jun 3, 2024
Earn up to $500 in value†, including 10% in Cash Back Dollars in the first 3 months on Bonus Eligible Purchases up to a total spend of $3,500†. Conditions apply. Account must be approved by June 3, 2024.
Learn moreCompare other best credit cards for gas
CIBC Dividend® Visa Infinite
Get a first-year annual fee rebate and earn 10% cash back welcome bonus of up to $250!†
$120 Annual Fee
Good Recommended Credit Score
$60,000 Required Annual Personal Income
SimplyCash® Preferred Card
Welcome Bonus of up to $400 in Statement Credits
$119.88 Annual Fee
Excellent Recommended Credit Score
Tangerine Money-Back Credit Card
Get 10% cash back on up to $1,000 in everyday purchases made within 2 months. Pay only 1.95% balance transfer interest for the first 6 months.
$0 Annual Fee
Fair Recommended Credit Score
$12,000 Required Annual Personal Income
Read more: Best gas credit cards
Best credit card welcome bonus
TD First Class Travel® Visa Infinite* Card
8 Points Earn 8 TD Rewards Points for every $1 you spend through ExpediaForTD†
6 Points Earn 6 TD Rewards Points for every $1 you spend on groceries and restaurants.†
4 Points Earn 4 TD Rewards Points for every $1 you spend on recurring bill payments.†
2 Points Earn 2 TD Rewards points for every $1 you spend using your card.†
10% Bonus Points Each year, received a birthday bonus equal to 10% of the total number of points earned over the 12 preceding months.†
$100 Get an annual TD Travel Credit when you book at Expedia For TD†
USD The annual fee is in USD
$139 Annual Fee Annual fee is in USD. First additional cardholder is $50, subsequent cardholders are $0.
20.99% Purchase APR APR for purchases 20.99%†
22.99% Cash Advance APR APR for cash advances 22.99%†
22.99% Balance Transfer Rate APR for balance transfers 22.99%†
Good Recommended Credit Score
$60,000 Required Annual Personal Income
$100,000 Required Annual Household Income
Welcome Offer Ends Jun 3, 2024
Earn up to $800 in value†, including up to 100,000 TD Rewards Points† and no Annual Fee for the first year†. Conditions Apply. Account must be approved by June 3, 2024.
Learn moreCompare other great welcome offer credit cards
American Express ® Aeroplan ®
Earn up to 40,000 Welcome Bonus Aeroplan®* points
$120 Annual Fee
Good Recommended Credit Score
$0 Required Annual Personal Income
BMO CashBack® World Elite® Mastercard
Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year.
$120 Annual Fee
Excellent Recommended Credit Score
$80,000 Required Annual Personal Income
CIBC Dividend® Visa Infinite
Get a first-year annual fee rebate and earn 10% cash back welcome bonus of up to $250!†
$120 Annual Fee
Good Recommended Credit Score
$60,000 Required Annual Personal Income
Read more: Best credit card offers
Best USD credit card in Canada
BMO U.S. Dollar Mastercard
$35 Annual Fee USD, rebated if you spend $1,000 USD per year on your card
20.99% Purchase APR
Very Good Recommended Credit Score
$15,000 Required Annual Personal Income
Compare other great US Dollar credit cards
TD U.S. Dollar Visa* Card
$39 Annual Fee
Good Recommended Credit Score
$0 Required Annual Personal Income
Scotiabank U.S. Dollar Visa Card
No U.S. dollar currency conversion fee
$35 Annual Fee
Good Recommended Credit Score
Best credit cards for AIR MILES
BMO AIR MILES World Elite Mastercard
3x Cardholders earn an accelerated 3x the Miles per $12 spent at participating AIR MILES partners*,
2x 2x the Miles for every $12 spent at any eligible grocery store*
1x reward mile for every $12 in credit card purchases, everywhere you spend*
25% discount on one worldwide AIR MILES flight redemption during the calendar year.*
$120 Annual Fee
20.99% Purchase APR
23.99% Cash Advance APR 21.99% for Quebec residents
23.99% Balance Transfer Rate
Excellent Recommended Credit Score
$80,000 Required Annual Personal Income
$150,000 Required Annual Household Income
Welcome Offer
Get 2,000 AIR MILES Bonus Miles and we’ll waive the $120 annual fee for the first year*.
Learn moreCompare other awesome credit cards for Air Miles
BMO AIR MILES®† MasterCard®*
Get 800 AIR MILES Bonus Miles!* That’s enough for $80 towards purchases with AIR MILES Cash*
$0 Annual Fee
Good Recommended Credit Score
$15,000 Required Annual Personal Income
BMO AIR MILES Mastercard - Student
Get 800 AIR MILES Bonus Miles!* That’s enough for $80 towards purchases with AIR MILES Cash*
$0 Annual Fee
Good Recommended Credit Score
$0 Required Annual Personal Income
Read more on our best Air miles credit cards page.
Best credit card for Aeroplan
TD Aeroplan Visa Infinite*
1.5 points for every $1 spent on eligible gas, grocery and direct through Air Canada® purchases (including Air Canada Vacations®)†
1 point Earn 1 point for every $1 you spend on all other purchases†
2x Earn points twice with Aeroplan partner brands and on the Aeroplan eStore.†
50% Earn 50% more Aeroplan points at Starbucks when you link your card to your account.†
1 NEXUS application fee rebate every 48 months†
1st checked bag free for you and up to 8 travel companions†
$139 Annual Fee Additional cardholder is $75.†
20.99% Purchase APR APR for purchases 20.99%†
22.99% Cash Advance APR APR for cash advances 22.99%†
22.99% Balance Transfer Rate APR for balance transfers 22.99%†
2.50% Foreign Transaction Fee Foreign transaction fee: 2.50%†
Excellent Recommended Credit Score
$60,000 Required Annual Personal Income
$100,000 Required Annual Household Income
Welcome Offer Ends Jun 3, 2024
Earn up to $1,200 in value† including up to 50,000 Aeroplan points†. Conditions Apply. Account must be approved by June 3, 2024.
Learn moreCompare other credit cards for Aeroplan
TD® Aeroplan® Visa Infinite* Card
Earn up to $1,200 in value† including up to 50,000 Aeroplan points†. Conditions Apply. Account must be approved by June 3, 2024.
$139 Annual Fee
Excellent Recommended Credit Score
$60,000 Required Annual Personal Income
American Express ® Aeroplan ®
Earn up to 40,000 Welcome Bonus Aeroplan®* points
$120 Annual Fee
Good Recommended Credit Score
$0 Required Annual Personal Income
CIBC Aeroplan® Visa* Card
Earn up to 10,000 Aeroplan points (up to $200 in value)
$0 Annual Fee
Fair Recommended Credit Score
For even more, read our: Best Aeroplan credit cards
How do credit cards work?
Let’s get back to basics for a moment and talk about how credit cards actually work from the application process to paying off your balance.
Applying for a credit card
When you apply for a credit card, you are typically authorizing a credit card issuing to do a hard credit check to determine your eligibility. They’ll analyze your credit file for the following:
- Borrowing history and payments
- Credit history and mix of accounts
- The total amount of debt you owe
- The age of your credit accounts
Overall, they’re looking for your creditworthiness, or how likely you are to repay your debt.
If you’re approved, you’ll be assigned a credit limit based on what the issuer believes you would reasonably be able to pay back based on your credit experience and cash flow. This credit limit, also referred to as a credit line or spending limit, is the total amount you’re permitted to spend on your card. You may not be permitted to exceed this limit.
Traditional credit cards are unsecured, meaning they don’t require you to make a deposit when opening. Instead, they have credit and income criteria they’re looking for to decide if you’re a good candidate for new credit. Secured cards, on the other hand, work differently. They do require you to make a deposit as a form of collateral, which protects the issuers in the event that you’re not able to pay back what you owe. Issuers are far more likely to accept applicants with lower credit scores and more imperfect credit histories for secured cards because of this.
While many secured card applications still include a credit check, these cards typically determine your credit limit based on the amount you deposit rather than your credit. Usually, your security deposit is equal to your credit line. So if you deposit $1,000, you can spend up to $1,000.
Spending with a credit card
A credit card is a revolving line of credit. Essentially, you can use it and pay it off for as long as your account is still open. Each time you pay back what you owe, your credit limit resets and you can borrow up to your credit limit again. In some cases, you can exceed your credit limit, but this depends on what your card issuer is willing to let slide.
Every time you put money on your card, you’re going into debt until you repay your balance. How long you carry that debt is up to you.
Making credit card payments
You make credit card payments every month to repay some or all of your balance. You can either make the minimum payment, which is calculated as a percentage of your balance (usually 2% or 3%), a full payment of the statement balance, or a custom amount between these two. Paying off your full balance each month is key to avoiding debt and interest.
Most issuers grant cardholders an interest-free payment grace period (usually 21 days), after which at least the minimum payment is required. After the grace period, interest begins to accrue on any remaining debt.
Building credit with a credit card
Using credit affects your credit. Issuers report your payment activity to the credit bureaus, which can work against you or in your favour depending on if you’re staying on top of your payments.
If you make your credit card payments on time every month, your score should steadily increase. If you make your payments after the due date or miss them entirely, your score may rapidly fall. Other factors such as how much of your credit limit you use, how many other credit accounts you have, and how old your credit cards are can affect your credit.
The more responsible you are with your credit card and the less debt you carry, the more creditworthy you appear in the eyes of lenders. Remember that everything lands on your report eventually and avoid maxing out your cards, missing payments, etc.
Read more: 7 Ways To Improve Your Credit Score
How does credit card interest work?
Credit card interest is charged when you don’t pay off your balance in full. You’ll pay the regular purchase APR on whatever portion of your credit card balance remains on your account after its posted due date. Every month, you’ll receive a statement that tells you how much you’ve spent and what you owe. More specifically:
- What your full statement balance is or the total amount you spent in the previous statement period
- The minimum payment you’re required to make
- When the minimum payment is due
You need to pay at least the minimum payment to keep your account in good standing. But if you pay only the minimum, you’ll owe interest on what remains of your statement balance.
Take this example. Say your credit card charges a regular purchase APR of 19.99%. Over the course of a month, you spend $2,000 on that card. Your minimum payment is $20, and this is what you pay on the due date. You carry the remaining balance of $1,980 into the next statement period. You’ll continue owing interest on this amount until it’s paid off in full. If you take six months to repay the balance and don’t spend any more on the card until then (or for the sake of this example make other payments), you will pay a total of $117.09 in interest for a grand total of $2,097.09.
Credit card interest rates are usually variable, so they can change at the issuer’s discretion. Click the link below for more information about how interest is calculated.
Read more: Understanding and Calculating Credit Card Interest
Types of credit cards in Canada
As you can probably guess from the fact that we’ve chosen 14 different credit cards just for this list, there are a lot of different types of credit cards. On the surface, credit cards all serve the same purpose of giving us an easy way to spend money and borrow. But when you get down to the details, different cards can help borrowers achieve very different end goals.
Take a look at the seven main categories of cards.
Rewards credit cards
Rewards cards pay you in some way when you spend. This can be in the form of cash back, travel, or points. Redemption options and earnings rates will vary by card, but the general idea is that you’re earning something on some or all of your spending. Rewards cards often earn the most rewards in a certain category such as groceries or travel.
Branded credit cards
Branded credit cards are offered by credit card issuers in partnership with other corporations such as retailers, airlines, or hotels. These typically earn the most rewards for loyalty programs specific to the associated brand and may also offer perks like preferred bookings, discounts, or priority treatment.
Student and beginner credit cards
Credit card issuers for student and starter cards don’t expect to see applicants with polished, well-rounded credit histories and shiny credit scores. There’s definitely a time and a place for starter cards. College students, new immigrants to Canada, and people rebuilding after bankruptcy are just a few examples of those who might benefit from these cards.
Balance transfer cards
Balance transfer credit cards are different from your typical credit card. They’re not meant to replace your other cards but rather provide a vehicle for debt repayment. By transferring multiple card balances to one single balance transfer credit card, you can save on interest and make your life easier as you work to pay back what you owe. These cards often offer promotional 0% APRs for a set number of months from account opening so you don’t have to start paying interest right away.
Low-interest credit cards
Like a balance transfer credit card, a low-interest credit card is designed to give you a break. But rather than a low introductory rate, these have regular APRs that are lower than comparable cards so that when you do carry a balance, you won’t owe as much interest in the long run. These can be smart for people who struggle with debt and overspending.
Secured credit cards
Secured cards are unlike unsecured cards in that they require refundable security deposits when you sign up. But functionally, secured and unsecured cards work in the same way.
You can spend up to your limit and will owe a portion of your balance each statement period. You’re responsible for making your payments on time and your activity is reported to the bureaus. Secured cards are easier to get, so they can be better for those with bad or brand-new credit.
Business credit cards
Business cards can help business owners and entrepreneurs simplify their business-related spending and save money on certain expenses. For example, if you travel a lot for work, you could get a business card that offers benefits for frequent travel. If you spend a lot on marketing, you could get a rewards card that earns points in this category.
Business cards can fit into almost any of the categories already mentioned but are specifically for business owners.
What credit card should I get? | 5 ways to compare the best credit cards in Canada
When choosing the right credit card for you, you should be mindful of the good and the bad. Try to look into all of the following details when comparing your options.
Fees
Any fees your card has will eat into your rewards earning – and budget. This is why it’s important to be mindful of annual fees, foreign transaction fees, and more when thinking about signing up for a card.
But free isn’t always better. Often, great cards are worth paying for. A card’s value can easily cancel out an annual fee in just a month or two if it includes a variety of statement credits, discounts, and perks. Consider what fees you’re willing to pay for the benefits of having a particular card.
Read more: Why Pay for a Credit Card with an Annual Fee?
Credit card rewards
One of the most significant features of any reward/cash-back card is how fast and easy it is to earn rewards/cash. Overall, the higher the earn rate, the better.
However, to really understand a card’s value, it’s essential to know what points are actually worth in real-world terms as well as how easy they are to use. Flexible redemption is almost always more important than higher rates. Bonus points (sorry) if rewards can be transferred to other programs.
Credit card perks
Cards can offer a wide variety of perks. Often, the type of card dictates what types of perks you may get. For example, a card that earns travel rewards may include complimentary travel insurance. Low-interest credit cards may include purchase protection.
Whenever you get to the perks section of a card’s sales page, you should think as realistically as possible. Sure free stuff is nice, but which perks are you actually going to use and which ones are you going to forget you have? Which ones do you already pay for that you could save money on and which ones would you never pay for but use if you had them for free?
Examples of credit card perks include:
- Extended warranties
- Insurance (e.g. travel interruption insurance)
- Emergency assistance services (e.g. roadside dispatch)
- Airport lounge access
- Free checked bags
- Hotel upgrades
- Early/Late check-in
- Concierge services
Credit card interest
APRs are a huge factor for any kind of credit card, especially for people who don’t pay off their balance in full each statement period. Pay close attention to how much interest you might pay if you carry a balance, make a balance transfer, request a cash advance, or miss a due date on your card payment.
Credit card sign-up bonuses
The bigger the welcome bonus, the better. But we generally favour substance over flash, and we’re critical of cards that won’t deliver repeated value over time. Even the best credit card sign-up bonus won’t make a mediocre card worth signing up for, so don’t sign up for a card to get a bonus unless you would sign up if it didn’t have that bonus too.
Read more: Best credit card offers
Best credit card company (or what you need to know about credit card customer service)
When selecting the best credit card, it's crucial to evaluate the quality of customer service, which encompasses the ease of accessing support and the variety of contact methods available. As we reflect on our own experiences at Money.ca, customer service and hold times are critically important. When we ask some of our writers about their best and most frustrating moments, long wait times is a consistent theme.
To shore up our best credit card rankings, we charted J.D. Power’s Canada Credit Card Satisfaction Studies from 2018, 2019, 2020, 2021, 2022, and 2023. In addition to some credit card issuers consistently performing better than others, like Tangerine, 2023 highlights a declining trend in customer satisfaction across Canadian issuers.
If customer satisfaction was the only determining factor, the best credit card issuers in Canada would continually be Tangerine, Canadian Tire Financial, and PC Financial. Traditional issuers like RBC credit cards and BMO credit cards consistently rank in the middle or the bottom with MBNA bringing up the rear.
How to sign up for a credit card in Canada
To apply for a credit card in Canada, you’ll need to fill out an application. Typically, this asks for the following items:
- Your personal information including your full legal name and date of birth
- Your Social Insurance Number (SIN)
- Your permanent address
- Details about your income and employment (often including how much you earn and the terms of your employment)
After providing these details, the issuer of the card you’re applying for will review your application. If you qualify or disqualify automatically, you’ll receive a near-instant decision. If the issuer has concerns about some of the information you’ve given or just needs to take a closer look at your application, you may be asked to wait a few business days for a final decision.
Before you fill out any application, check for prequalification if it’s an option. This is a good idea because applications almost always do hard credit checks, which can negatively impact your credit, especially if you have several new ones together on your credit report. Prequalification uses a soft credit check, which doesn’t impact your credit.
If you’re approved, you’ll usually receive your physical card in the mail a week or two after applying. Some cards offer a digital version you can start using right away.
Note: Got a sign-up bonus you think you can easily qualify for? Make sure to adjust your spending as needed to hit the spending requirements for the bonus, within reason. Maybe swap a bill payment or two over to this new card or use this one for the majority of your grocery purchases for a few weeks.
Activate your card when it arrives and start using it right away.
Tips for using a credit card
Credit cards can empower you to spend more freely and even save money on your expenses. But they can also be dangerous. If you’re not careful, you can quickly go into debt or damage your credit with a credit card.
Here are five tips for using credit safely.
Pay your bill on the same day every month – Rather than trust yourself to remember to pay your bill when it’s due, set yourself a reminder for the same day each month. Or, better yet, schedule your payments to come out of a linked bank account automatically before or on the due date.
Make more than your minimum payment – Whenever you can, try to pay off your full statement balance each month rather than the minimum payment. Though you can get away with only paying the minimum, you’ll get charged interest on the rest of your balance.
Check your statements often – Get into a habit of reading through your credit card transactions on a regular basis, maybe weekly or biweekly. This way, you have a better idea of your spending habits and can catch any suspicious charges as early as possible.
Watch your credit score – You can check your credit score at any time without impacting your credit, and this is an especially great idea if you’re working to improve your score. Even if your credit is in good shape, it doesn’t hurt to keep an eye on how it’s changing.
Use it like a debit card – Some of the best advice we can give credit card users new and old is to pretend your card is actually a debit card. Use only what you know you have in the bank and pay it off right away. Do your best to stay well under your credit limit.
Should you get a credit card?
Above all, a credit card is a convenient tool that can have serious consequences on your financial life. It’s important to remember that when you use a card, you’re taking out a temporary loan from your issuer. This is a big deal and you shouldn’t take using your credit card lightly.
Credit cards have both pros and cons. They, of course, offer purchasing convenience, and smart use of a card can help you build a solid credit score and thus make it easier to be approved for a loan or a mortgage in the future. Add to that the potential for rewards and freebies and there are a lot of reasons to sign up for one.
But the possible downsides are just as dramatic, often even more. Poor credit card use can lead to overspending, unsustainable debt levels, and bad credit that can take years to repair.
If you feel nervous about your ability to use a credit card safely and responsibly, consider an alternative until you’re ready.
Read more: Credit Card Alternatives: Debit Cards, Prepaid Cards and Charge Cards
American vs. Canadian credit cards
American and Canadian credit card products are surprisingly different. Some cards are available to both Americans and Canadians while others are available in only one country.
Many U.S. credit cards do permit Canadian citizens to apply, but there are a few barriers to consider. One is your credit. U.S. and Canadian credit histories are separate, and your Canadian credit history (unfortunately) won’t usually count when you’re applying for a U.S. card. So if you’ve got your eye on an American credit card as a Canadian citizen, get to work on your U.S. credit for a better chance of approval.
Read more: U.S. Credit Cards That We’re Unabashedly Jealous of in Canada
Credit card issuer vs. credit card network
If you’re going to make the most of your credit cards, it’s important to understand the distinction between an issuer and a network. A credit card issuer is a financial institution (like a bank or credit union) that issues and manages your credit card. They approve or deny your application, establish a card’s earning rate and perks, and process your payments.
While there are hundreds of different issuers in Canada, there are only three main networks: Visa, Mastercard, and American Express. (Discover is also a network somewhat popular in the U.S., but few Canadian merchants accept their cards.) Networks set the fees that merchants pay for processing a credit card transaction. American Express is both an issuer and a network while Visa and Mastercard are networks only.
For a breakdown of the best of each network, check out our top credit card picks for Visa, Mastercard and American Express in Canada.
Best Canadian credit card FAQs
Summary: Best credit cards in Canada
Canadian credit cards come in many different shapes and sizes. Okay, so they’re all pretty much the same shape and size, but they’re really varied in terms of what they require, what they offer, and who they’re best for.
If you’re searching for your next credit card or your very first one, be sure to give yourself plenty of time to make the decision. Finding the right card for you is well worth it.
BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.
American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information click the Apply now link. Conditions apply.
More of Canada's best credit cards
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