The best credit cards in Canada are the ones that give you the most bang for your buck. Whether you’re looking for cash back or travel rewards, there’s a credit card for everyone. But how do you find the best card for your needs? In this article, we’ll learn how to compare different cards and what features are essential when choosing a new one. We’ll also give an overview of some of our top picks!
What you should know about credit cards in Canada
You’re probably wondering how to pick a credit card.
Well, I’m here to help! There are a few things you should know about credit cards in Canada.
First, credit cards are an excellent way to build your credit score. If you pay off your balance every month and don’t incur late fees or interest charges, this will show lenders that you’re responsible with money and make them more likely to give you loans in the future.
That said, most people find themselves deep in debt after getting their first card because they don’t know how much they can afford! This is why it’s essential to keep track of all spending and never use more than 30% – 50% of your available limit at once (the smaller amount is recommended if possible). Remember: Your goal should be paying off the monthly minimum before using any other money towards bills or other expenses.
How do you find the best credit card in Canada?
If you’re looking for the best credit card in Canada, it’s likely because you want to take advantage of all the perks and rewards without ending up in debt.
An excellent way to start is by comparing credit cards online. There are plenty of websites that compare and review different products, but only a few are worth your time and attention. There are also ways to find out which cards work best for Canadians specifically, so don’t worry if this isn’t an area where you’re exceptionally knowledgeable!
Compare different credit cards against each other.
Now that you know what to look for in a credit card let’s see how the best credit cards in Canada stack up against each other.
- Interest rates and fees: After assessing your financial situation and considering the likelihood of you paying the balance in full each month, you must consider how much interest you’ll be spending on any given card. You can add up all your monthly payments, including principal and interest costs, then divide them by 12 (to get an annualized figure). That gives you an idea of how much interest will be added over everything else during one year.
- Rewards: This is where things get exciting! Rewards programs vary from one card to another but typically offer points or cash back for shopping at certain businesses; redeeming these rewards isn’t always as simple as using them towards purchases either—some providers require particular types of assets (like groceries) or specific brands before awarding any points towards your next purchase. In addition, some programs have higher redemption values than others—so make sure there’s something worthwhile waiting for you at the end!
Will this be my only credit card or just one of many?
If you’re wondering if your credit card will be the only one in your wallet, don’t worry about it. This is a self-explanatory factor and shouldn’t even be on this list.
However, if you are considering applying for multiple cards at once (which we highly recommend), this is an important question. To make sure that all of your accounts are compatible and to avoid any weird fees or other issues along the way, all of your cards must have similar interest rates and rewards programs so that everything runs smoothly when you apply for them all at once online or over the phone with customer service representatives who will likely not give a crap about how many different types of cards they need to know about so long as they get paid their commission at the end of each call (and who can blame them?).
How do I qualify for the best credit cards in Canada?
To qualify for the best credit cards in Canada, you need a good credit score and a decent income. You also must have used your current card responsibly while keeping an eye on your debt-to-income ratio.
So as long as you’re not running up thousands of dollars in debt every month or banking all your paycheques, we think you should be able to qualify for some of these great offers.
What’s the best way to decide between different credit cards?
The best way to decide between different credit cards is to compare them based on your spending habits.
This should be straightforward—credit card companies will generally make it easy for you to see their rates and rewards programs so that you can pick the best one.
If you’re trying to decide between two cards with similar features, think about what kind of rewards program would be most beneficial. If all three of your credit cards offer 1% cash back on every purchase, but one has an annual fee, and another has no foreign transaction fees, then it makes sense to choose the third option (unless those two extra benefits are worth more than the annual fee).
What features should I look for when choosing a new credit card?
- Interest rate: the interest rate is how much you’ll pay for borrowing money, and the lower it is, the better.
- Foreign transaction fees: you can use your card worldwide, but watch out for foreign transaction fees. A credit card with a foreign transaction fee will charge you a percentage of every dollar spent outside of Canada. For example, if you’re in France and buy something with your Canadian credit card with no foreign conversion fee, say USD 100, then that’s what you’ll be charged on top of other costs (like currency conversion fees). However, if there were a 3% foreign conversion fee on top of those costs in this example ($3), then $103 would be deducted from your balance before any other charges are made (assuming they exist).
- Annual fee: annual fees are paid upfront each year and add up quickly unless they’re waived or refunded after meeting certain conditions, such as making purchases within specific time durations or spending limits per month/year, etcetera). You should avoid annual fees at all costs!
Choosing a new credit card can be complicated, but comparing different options can make your decision easier.
Choosing a new credit card can be complicated, but comparing different options can make your decision easier. You can compare credit cards online and use a comparison tool to help you decide on the best card for your needs. If you want to get started fast, check out our handy guide below:
- Compare different cards against one another
- Use a credit card comparison tool
Best over cashback credit card
A No Annual Fee rewards credit card is the best option if you’re looking for a credit card that gives you cash back on every purchase. These cards don’t have annual fees and come with high-value rewards programs that give you cash back on almost every purchase.
To learn more about how Canadians spend their money, we analyzed millions of dollars in purchases made using our users’ cards over the past year. We looked at the average amount spent per month by region and which categories Canadians spend most on overall.
Best rewards cards for everyday spending
There are a lot of factors to consider when choosing the perfect rewards credit card, but one of the most important is how much you can earn in rewards if you’re looking for a card to pay out the most cash back; keep reading. We’ve put together a list of some of the best options available today—no matter which way you like to spend!
A cashback credit card is a type of credit card that rewards you with a set percentage of your purchases back in cash.
How do they work?
Cash-back cards are simple. You make purchases with the card and receive a percentage of those purchases as a refund, usually within 30 days after the transaction. The ratio determines the amount you receive on your card and how much you spend per month. For example, if you have an American Express Gold Rewards Card and spend $500 per month through it (which would be considered average), you’ll get 1% back each time you use it (1% x 500 = 5 dollars). That’s $5 off every purchase!
What are some good examples?
Best Visa travel credit card
If you’re looking for the best travel credit card and don’t want to pay an annual fee, then the Visa Infinite Avion is your best bet. It comes with some great perks that include:
- No annual fee
- 1 Aeroplan Miles per $1 spent on eligible purchases made directly with Air Canada and Aeroplan partners
- 2 Aeroplan Miles per $1 spent at gas stations, grocery stores, drugstores and on Air Canada purchases within Canada using your registered Infinite Avion Card or CIBC Aerogold VISA card (up to a maximum of 10,000 bonus miles annually)
A best no-caskack card
Want your cashback to be as flexible as possible?
The MBNA Rewards World Elite Mastercard offers 1.5% cash back on all purchases (with no annual fee), but you’ll get an extra 1.65% if you pay your balance in full every month, and there’s no minimum spend required for the bonus. You can use your rewards for travel, dining out,t or even a new smartphone. If you’re looking for a way to earn more from each dollar spent and want flexibility with how you redeem rewards, this card is worth considering.
Best no-fee card for travel rewards
Travel rewards cards are the best no-fee card for travel rewards. They give you reward points and miles based on your purchases, which you can redeem for flights and other travel experiences. And they’re usually fee-free since they don’t charge interest or annual fees.
Travel rewards credit cards have been a great way to earn free flights over the last few years (and will continue to be), but there’s a downside: the number of options has increased dramatically during that time. Now there are so many travel credit cards out there—each with different benefits and features—that it can be challenging for consumers to find the right one for their needs.
Best Aeroplan card
Aeroplan is a rewards program for Canadians that are frequent flyers. It’s owned by Air Canada, which means you can redeem your miles for flights with them and their partners.
If you’re looking for ways to earn more Aeroplan miles, some great credit cards offer significant value when paired with the Aeroplan program. Here are two of the best:
- The TD Aeroplan Visa Infinite Card offers 50,000 bonus miles after spending $3,000 in the first three months – worth $750 in travel rewards! This card has no annual fee and 2x points on gas/grocery store purchases and restaurants worldwide plus 1x points everywhere else (which is still double what most other cards give). You also get priority check-in at most airports and priority boarding on all Air Canada flights (and selected partner airlines).
Best Air Miles credit card
If you’re a frequent flyer, the best Air Miles credit card for you is the American Express AIR MILES Platinum Credit Card. It comes with the highest rewards rate on all purchases, plus a bonus of 10,000 miles for your first year—that’s enough for two round-trip flights within Canada or 1 flight to the U.S.
It’s easy to use your Air Miles: link them to one of your banking accounts (you can do this at any time), then use them at travel agencies or online retailers when purchasing plane tickets, hotels and car rentals.
You can also redeem them for gift cards from places like Amazon, Apple Music and iTunes; merchandise from sites like Dell and Simons; toys from Toys R Us; sporting goods from Sport Chek; music downloads from eMusic; magazine subscriptions through Texture (which includes Vanity Fair); and much more!
Best low-interest credit card
The best low-interest credit card is the one on which I have to pay any interest. That has been a general rule of thumb for years, but it can be hard to find such a card in today’s market.
If you’re considering getting a low-interest credit card, it’s essential to know that there are two main types: no interest for a specific period and low-rate cards. The former is pretty straightforward: you’ll pay no good if you carry over your monthly balance until your purchase has been paid off in full (or at least within the introductory offer period). The latter offers lower rates on purchases and balance transfers but with an annual fee attached—and some even charge more than others!
This guide will help you decide which type would work best for your needs by breaking down all the details into simple bullets so that we can compare apples with apples.
Best credit card for gas
Once you figure out which kind of rewards you’re looking for, it’s time to narrow down your choices. Here are a few questions to ask yourself:
- Do I want cash back or points?
- How much do I spend on gas? (Cash back or points)
- Am I willing to pay an annual fee? (Cashback)
- Do I need a card with no interest on purchases if my balance is paid off every month? (No interest)
So which credit card is right for you? If you want to get the most out of your credit card, we recommend one with a rewards program that matches your spending habits. If you consistently spend more than $500 per month on gas, groceries or dining out, consider getting a card that offers points toward gift cards and travel rewards.
If you’re looking to build up your credit history or prefer cash back over travel rewards, then it may be best to select a card with no annual fee and low-interest rates. The best credit cards in Canada are also great for helping keep track of all transactions, so make sure you choose one with convenient features such as online bill payment options or mobile payments apps so no matter where life takes them next, they can stay on top of their finances!