Best Credit Cards Canada 2023: Some of the best things in life are free—so why should you expect anything different from a credit card?
Canada has an impressive array of no-fee credit cards that don’t charge cardholders an annual fee, as well as offering respectable rewards like cash back and travel points.
Many of these no-fee cards have attractive extra features like solid welcome bonuses, no foreign transaction fees and useful travel insurance. People who don’t pay off their balance in full each month will be happy that some of these cards also have standard low interest rates or attractive balance transfer
promos. We’ve been picked for the best credit cards with no fees in Canada.
What is a no-fee credit card?
Think of a no-fee card as a free credit card, because that’s essentially what it is. Most credit cards have an annual fee, which is how the company makes money for the services they provide you. Well, some companies are offering their services without charging an annual fee.
Don’t worry, that doesn’t mean the cards aren’t valid, it’s just that banks and card issuers have so many ways to make money that they can afford such services.
Some cards are available completely free of charge, some may require more credit for the application process, while others will issue cards 100% free.
This may vary from company to company, but either way, the charges are symbolic and can be borne by anyone.
You may stumble upon free first-year cards during your financial journey and find yourself wondering if they’re the same thing. While first-year-free credit cards charge no fees for the first year, no-fee credit cards allow you to use your card for free for as long as you want. Huh.
How to Get a Credit Card With No Annual Fee
The first step to becoming a credit card holder is to research your options. Our list of the best cards without annual fees, like the one above, makes a great starting point and comparison tool, but be sure to read the fine print on any card you apply for before applying.
A Schumer Box, or a standard chart listing the card’s fees and terms, should be included with any legitimate credit card offer and can help you confirm that the card doesn’t actually charge an annual fee.
Applying for a credit card is a fairly straight forward process. Card issuers typically offer online applications that you can fill out with personal and financial information, including your name, address, Social Security number, income and residential status. Applications often result in immediate decisions, but anyone applying for a credit card should be aware of the credit consequences.
When a consumer submits a credit card application, the card issuer will usually conduct a hard inquiry on the consumer’s credit report.
Searching too hard in a short period of time can be off-putting to some lenders, so be careful to choose carefully so you only have to apply once, or hopefully twice at most. Hold off on card applications for a few months to help your credit recover from a tough search.
Best No-Fee Credit Cards in Canada for 2023
An annual fee is an annual fee that credit card issuers typically add to credit card account statements for using the card. While many credit card accounts include an annual fee – especially those that offer high-end rewards or those marketed to consumers with poor credit — many do not. Our list of the best cards without annual fees includes a selection of cards, but many credit cards don’t charge annual fees, so this list doesn’t completely exhaust your options.
(1): RBC Cash Back MasterCard Review
The RBC No Annual Fee Credit Card comes with some convenient features. Why is this one of the best no annual fee credit cards?
In addition to the $30 welcome bonus, Royal Bank expects cardholders to earn up to $252 in annual rewards. The card helps you earn 2% cash back on eligible grocery purchases and 0.5% on other select purchases.
That said, if you spend $2,000 per month, for example, you’ll earn about $252 in statement credits. It’s basically another trip to the grocery store, right?
(2): Simplii Financial Cash Back Visa Review
According to Simply Financial, first-time users deposit an average of less than $354, with experienced users able to deposit much more. This can be an amazing earning opportunity for anyone, so let’s take a closer look.
This Simply Cash Back Visa allows you to earn up to 4% per year up to $5,000 per month or about $400 per month on purchases at select restaurants, bars and coffee shops. Also, the card costs $15,000 annually or about $70 on a monthly basisOffers 1.5% cashback on select gas, grocery and drug store payments with an upper limit of 0.
That’s not all yet. Considering every purchase is rewarded with Simply Visa, you’ll earn an additional 1.5% cashback on all credit card purchases with no upper limit. Seems obvious, right?
(3): MBNA Smart Cash Platinum Plus Mastercard Review
The MBNA Smart Cash Card offers a solid 0.5% cashback on general purchases. But there is a surprise. The card will give you less than 5% back on qualifying gas and grocery purchases for the first six months, after which the cashback rate drops to 2%, making it one of the best cashback credit cards.
What’s more, you get an attractive $81 welcome bonus after you spend your first $2000.
The card offers a 1-year extended warranty, 90-day purchase protection, up to $1,000,000 in travel accident compensation and up to $2,000 in travel interruption refunds.
But not only that, MBNA Smart Cash offers more benefits, such as rental car theft and damage reimbursement, up to $200,000 in rental car accident reimbursement, as well as up to $1,000 reimbursement, if applicable. Rental car personal effects.
(4): Rogers World Elite Mastercard Review
In addition to asking literally $0 in annual fees, the Rogers World Elite Card also offers a $25 welcome bonus. What’s more, you get 1.5% unlimited cash back rewards on select purchases.
The card comes with some generous travel benefits, including airport lounges at more than 1,000 lounges in more than 100 countries, free bingo WiFi at more than 1 million hotspots around the world, but also some cash discount offers.
This Rogers Bank credit card also covers insurance, including extended warranty and purchase protection, rental damage, out-of-province/in-country medical emergencies, as well as travel interruption and cancellation.
(5): Tangerine World Elite Mastercard Review
Tangerine World Elite MasterCard does not require a specific credit score to issue the card, which is surprising and rare these days.
- Annual personal income of at least $60,000
- Annual household income of $100,000 or
- A total balance of $250,000 or more in a Tangerine savings account and/or investment fund account.
If you get the card, you’ll enjoy a myriad of benefits, including 2% cashback on select categories and 0.50/5 on everything else, Bingo Wi-Fi, on-demand and membership services, travel rewards for MasterCard, as well as MasterCard Airport. Doesn’t this sound like the best no fee MasterCard in Canada?
Types of Credit Cards
Although all credit cards can be used to make purchases, there are many different types of credit cards, each designed for a different purpose.
(1): Rewards Credit Card
A rewards credit card is one that gives you back a percentage of your spending in the form of cash back, points or miles. The amount of cash back you earn can vary widely by card, with some offering the same flat-rate cash back for all your spending and others offering tiered rewards with certain purchase categories earning higher rates in other categories.
(2): Balance Transfer Credit Card
A balance transfer card is one that offers a low or 0% APR for transfers to the card during the initial term. Transferring a loan to a balance transfer card may incur a balance transfer fee, typically 3% to 5% of the amount transferred.
(3): Low Interest Credit Cards
A low interest credit card is one that has a low interest rate, usually much lower than the industry average APR for other cards. For those who typically carry a balance on their card, this can be a more beneficial option as interest charges will be lower over time than a card with a higher interest rate. This differs from cards with 0% APR in that low interest card rates are ongoing and do not expire after the promotional period.
(4): 0% APR credit card
A 0% APR credit card is one that offers an initial 0% interest period on purchases, balance transfers, or both. Think of 0% APR offers as interest-free loans with expiration dates. If used responsibly, it can give you time to pay off your debt without incurring extra money charges. But, also know that the zero-interest period doesn’t last forever and when it ends, your balance card value will accrue interest at a variable rate.
(5): Student Credit Card
College student credit cards aren’t really different from other credit cards, they’re only marketed to college students or other people with thin credit files who have credit cards that can be a challenging time for
A student credit card, which is the first credit card for many people, usually has more forgiving underwriting standards than cards designed for people with poor credit. It means upYou can qualify with a lower credit score than the standard version of the NI card. Some college credit cards also offer rewards and cash bonuses for good grades.
(6): Credit Cards To Build Credit
When you’re just starting out with credit or you want to remove past credit missteps, there are credit cards that help you prove responsible payment behavior and thereby boost your credit profile.
The best beginner credit card for you will offer a balance between benefits, such as reporting to the credit bureaus and helping to raise your credit score, and costs, including annual fees or other maintenance costs.
(7): Business Credit Cards
A business credit card can be a great way to separate your personal expenses from your work, even if it’s just a part-time.
This means that you will be personally liable for the debts accumulated on the card, even if they are from your business and that business fails.
The issuer will also consider other factors when reviewing your application, including your business income and credit history.
Best credit card
Amazon Prime Rewards Visa Signature Card: Best for Amazon.
Blue Cash Preferred Card from American Express: Best for groceries.
Petal 1 “No Annual Fee” Visa Credit Card: Best for Bad Credit.
Discover It Secured Credit Card: The Best Secured Card.
In Canada, a good credit score typically ranges from 660 to 724. If your credit score is between 725 and 759, it can be considered very good.
A credit score of 760 and above is generally considered an excellent credit score. Credit scores range anywhere from 300 to 900.
In Canada, your credit score ranges from 300 to 900, with 900 being a perfect score. If your score is between 780 and 900, that’s great. If your score is between 700 and 780, it’s considered a strong score and you shouldn’t have too much trouble getting accepted with a higher rate.
Those with a credit score below 660 may be less likely to qualify for loan terms. Those with low scores that fall into the “poor” credit range (typically below 560) are more likely to have difficulty getting credit or qualifying for better loan terms. How does your job affect your credit score?
Having a Canadian credit card and making regular payments on it is one of the easiest ways to establish a credit history and build a good credit score in Canada, which can help you qualify for other loan options and lower interest rates in the future
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