MoneySense has ranked the perfect bank cards in Canada throughout quite a few classes of playing cards. On this web page, nevertheless, you’ll discover the perfect of the perfect: the playing cards that high their respective classes and cater to the wants of most Canadians. Use the software under to match bank card choices, or maintain 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 consultants in Canada. That can assist you discover the perfect monetary merchandise, we examine the choices from over 12 main establishments, together with banks, credit score unions and card issuers. Be taught extra about our advertising and trusted partners.
The general finest bank cards in Canada
Most Canadians need a new bank card for one among 5 causes: to earn rewards on their spending, to borrow cash at a low interest rate (in comparison with different playing cards), to transfer a current balance to a different card, to access perks and benefits, or to establish or improve their credit score. The 5 playing cards under are the perfect the nation has to supply, as a result of they’re the perfect at serving to Canadians obtain these widespread targets.
| Greatest card by class | Highlights | Particulars | Eligibility necessities |
|---|---|---|---|
| FEATURED American Express Cobalt  GO TO SITE |
Award: Greatest rewards bank card
Who ought to get it: Canadians who will cost many bills to the cardboard and need to earn a few of the most useful and versatile journey factors out there |
Annual payment: $156
Rewards: 1 to five Membership Rewards factors per greenback Rates of interest: 21.99% on purchases, 21.99% on money advances |
Revenue: None specified
Credit score rating: 725 or greater |
Flexi Visa |
Award: Greatest low-interest bank card
Who ought to get it: Canadians who anticipate to hold a stability on their card and need to decrease the curiosity costs |
Annual payment: $0
Rewards: No rewards Rates of interest: 10.90% on purchases and 12.90% on money advances |
Revenue: None specified
Credit score rating: None specified |
| FEATURED MBNA True Line Mastercard  GO TO SITE |
Award: Greatest stability switch bank card
Who ought to get it: Canadians who at present carry a bank card stability and need to switch it to a card charging 0% curiosity for one 12 months |
Annual payment: $0
Rewards: No rewards Rates of interest: 24.99% on money advances, 17.99% on stability transfers |
Revenue: None specified
Credit score rating: 660 or greater |
American Express Platinum |
Award: Greatest premium bank card for perks and advantages
Who ought to get it: Canadians with a excessive annual revenue who need entry to all kinds of perks and advantages, like limitless airport lounge entry and concierge companies |
Annual payment: $799
Rewards: 1 to 2 Membership Rewards factors per greenback Rates of interest: N/A (you need to pay your stability off in full each month) |
Revenue: None specified
Credit score rating: 760 or greater |
| FEATURED Home Trust Secured Visa (low-rate option)  GO TO SITE |
Awards: Greatest bank card for constructing credit score
Who ought to get it: Canadians with a low or no credit score rating, reminiscent of college students and newcomers, who need to present they’ll handle credit score nicely |
Annual payment: $0
Rewards: No rewards Rates of interest: 19.99% on purchases and 19.99% on money advances |
Revenue: None specified
Credit score rating: 300 or greater |
Possibility 1: Getting a rewards bank card
Rewards bank cards, like people who earn cash back and travel points, are most fitted for Canadians who use bank cards for a lot of sorts of transactions and who typically keep away from carrying a stability. Rewards bank cards present a return in your spending, both in money or in factors that may be redeemed for issues like flights and lodge stays. Nonetheless, many rewards playing cards additionally cost an annual payment. When you don’t anticipate to make use of the cardboard fairly often, or in the event you usually carry a stability in your card, the annual payment and/or curiosity costs could value you greater than the rewards are value. For these conditions, there are various good no-fee or low-interest credit card choices.
Greatest rewards bank card in Canada
At a look: The American Categorical Cobalt card impresses with a few 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 payment: $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 |
| Revenue required | None specified |
| Credit score rating | 725 or greater |
| Level worth | 1 Amex Membership Rewards level = $0.01 when redeemed with the Versatile Factors Journey Program, $0.015 on common with the Mounted Factors Journey Program, and as much as $0.02 with airline factors transfers. |
Regularly requested questions
Your choice for which bank card is finest for you and your loved ones will come down as to if a cash back or travel rewards bank card most accurately fits your wants and spending habits. Journey rewards might be profitable, however what you earn from a money again card might be spent on something—or saved.
When contemplating a money again card, take inventory of your spending habits and decide the cardboard that may earn you essentially the most rewards. For instance, in the event you spend so much on fuel, then decide a card that earns you extra cash back at gas stations. Excessive earn charges are nice, however take into account that lots of the high playing cards have a excessive revenue requirement.
Additionally notice that some money again bank cards will solely offer you what you’ve earned after you attain a minimal quantity or as soon as per calendar 12 months. Learn the way you’ll receives a commission, and be sure to’re okay with it earlier than you apply. When you’re contemplating a card with an annual payment, be certain that the money again you earn is value greater than the payment. If it’s not, stick with a no-fee card.
Possibility 2: Getting a low-interest bank card
Bank cards in Canada usually cost about 20% curiosity on purchases and about 22% on money advances and stability transfers. Nonetheless, low-interest cards are designed to avoid wasting you cash on curiosity (and provide help to repay your stability sooner). When you usually carry a stability, a low-interest fee card could also be a greater choice than a perk-filled, rewards-earning choice that costs a extra customary rate of interest.
Greatest low-interest bank card in Canada
At a look: When you’re on the lookout for a low-interest bank card, you gained’t discover a extra aggressive buy annual proportion fee (APR) than this card’s 10.90%. The cardboard’s 12.90% on money advances can also be very low in comparison with the business customary. Plus, with the Flexi Visa, you get entry to a couple perks that you just’ll typically solely discover with annual-fee bank cards.
Flexi Visa
Annual payment: $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 |
| Revenue required | Not specified |
| Credit score rating | Not specified |
Regularly requested questions
Bank card curiosity is expressed as an annual proportion fee, or APR. It’s a payment charged for borrowing cash from the bank card issuer. When you’ve paid your bank card stability in full by the top of the billing cycle, you gained’t be charged any curiosity. However in the event you carry a bank card stability, curiosity costs start to build up, and also you’ll proceed to pay curiosity till you pay your stability again in full.
Although APRs are expressed in annual phrases, bank card curiosity is calculated each day and charged month-to-month. (The APR represents the whole value of borrowing cash for a 12 months.) You may work out your each day rate of interest by dividing your APR by 365 (or 366 throughout a intercalary year). For a bank card with a 19.99% APR, your each day fee is 0.0548%.
This implies a $1,000 stability will incur $0.54 in curiosity costs in a single day. And the curiosity compounds each day, which implies that the following day, assuming you don’t make any extra 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 typical each day stability throughout every one of many days within the billing cycle. So, to find out the quantity of curiosity owed:
- Calculate your each day rate of interest by dividing the APR by 365.
- Discover your common each day stability 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 each day stability by the each 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 rapidly as potential. When you don’t repay your stability 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 (assume main banks) are required to supply an interest-free grace interval of at the very least 21 days, which begins on the final day of your billing interval. Some issuers supply as much as 30 days. (Be aware: This rule doesn’t apply to money advances or stability transfers.)
Possibility 3: Getting a stability switch bank card
Whereas some playing cards stand out for the common low buy rate of interest, there are additionally balance transfer credit cards, which provide an extra-low rate of interest (typically 0%) for a restricted time. Stability switch playing cards are most fitted for Canadians who at present have a bank card stability and need to pay it off sooner (or just lower your expenses on curiosity costs).
Greatest stability switch bank card in Canada
At a look: In relation to making stability transfers, our decide is the MBNA True Line Mastercard, which has a 12.99% rate of interest and no annual payment. That mentioned, this bank card’s 3% stability switch payment is bigger than some competing playing cards, so that you may need to think about the latter in the event you’re transferring a serious stability.
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MBNA True Line Mastercard
Annual payment: $0
Low rate of interest: 12.99%
Stability switch supply: earn a 0% promotional annual rate of interest (“AIR”) for 12 months on stability transfers accomplished inside 90 days of account opening, with a 3% switch payment. This supply isn’t out there for residents of Quebec.
Card particulars
| Rates of interest | 24.99% on money advances, 17.99% on stability transfers |
| Revenue required | None specified |
| Credit score rating | 660 or greater |
Possibility 4: Getting a premium bank card
A premium bank card is right for Canadians who can totally make use its perks and advantages, reminiscent of frequent travellers and excessive spenders. These playing cards usually include many travel-related perks, reminiscent of airport lounge access, complete travel insurance, eating and journey credit, concierge companies, and extra. In addition they usually supply accelerated earn charges and beneficiant welcome provides—all of which assist offset the hefty annual payment. Total, premium playing cards are finest fitted to people with excessive spending habits and particular life-style wants.
Greatest premium bank card for perks and advantages in Canada
At a look: The Amex Platinum provides new that means to the outdated saying, “You get what you pay for.” On this case, the $799 annual payment pays for itself by way of a smorgasbord of unimaginable perks. Your journey expertise will likely be reworked with limitless airport lounge entry, partnerships at Advantageous Resort + Resorts properties and precedence remedy at Toronto Pearson Airport. The numerous perks—like a number of hundred {dollars} value of annual journey and eating credit, and a Nexus payment rebate—go a good distance towards offsetting the value tag.
American Categorical Platinum
Annual payment: $799
Welcome supply: earn as much as 100,000 rewards factors ($1,000 worth). Situations apply.
Card particulars
| Rates of interest | N/A (as a cost card, you’re required to repay your stability in full each month) |
| Revenue required | None |
| Credit score rating | 760 or greater |
| Anniversary bonus | $200 annual eating credit score to make use of at a curated listing of Canada’s high eating places. Plus, $200 annual journey credit score when reserving by way of American Categorical Journey On-line. |
| Level worth | 1 Amex Membership Rewards level = $0.01 when redeemed with the Versatile Factors Journey Program, $0.015 on common with the Mounted Factors Journey Program, and as much as $0.02 with airline factors transfers. |
Execs
- Credit offset the annual payment: You’ll get a $200 journey credit score every year that may be redeemed in direction of a journey buy made by way of American Categorical Journey On-line. Spend your extra annual $200 eating credit score at choose eating places around the globe, together with 100 in Canada.
- Greatest-in-class airport lounge entry: Get entry to The American Categorical International Lounge Assortment composed of greater than 1,300 lounges in over 140 international locations, together with American Categorical Centurion Lounges, Plaza Premium and Delta Sky lounges. Cardholders could have limitless free visits and companion passes at no extra value, relying on the lounge.
- Platinum Concierge service: Acquire personalised help from a concierge, who could make restaurant reservations, receive tickets to particular occasions, e book companies for you, and extra—at no extra value to you.
- No credit score restrict: As a result of it’s a cost card, high-volume spenders aren’t restricted by a traditional credit score restrict.
Cons
- Excessive payment for licensed customers: Further playing cards value $250 every yearly.
- Lackluster journey medical insurance coverage: Whereas some playing cards supply 20 days or extra, this card solely covers you for as much as 15 consecutive days and doesn’t supply any insurance coverage to those that are 65 or older.
- Can’t carry a stability: Cost no matter you need to the cardboard, however as a result of it’s a cost card, you’re required to repay the stability in full each month
Possibility 5: Getting a secured bank card
Secured credit cards are choice for Canadians who need to set up or rebuild their credit score rating. These playing cards require a money deposit as collateral, which typically turns into the credit score restrict. This makes secured playing cards extra accessible than different sorts of playing cards, as a result of if the cardholder doesn’t make their funds, the lender is protected. As a result of secured card issuers typically report account exercise to one of many Canadian credit score bureaus (or each), the playing cards can be utilized to determine or rebuild a credit score rating. There are different non-secured playing cards which can be additionally extraordinarily accessible to folks with no credit score historical past, reminiscent of newcomers and students.
Greatest bank card for constructing credit score in Canada
At a look: What’s nice about this House Belief card is that you just’re given a alternative: When you’re keen to pay a modest annual payment of $59, you’ll save on curiosity with a 14.90% buy APR. Or, in the event you desire no payment, you’ll be charged a better rate of interest of 19.99%. We like that this card provides you the choice to decide on what works finest for you.
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House Belief Secured Visa
Annual payment: $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 |
| Revenue required | None specified |
| Credit score rating | 300 or greater |
How we decide the perfect playing cards
Many web sites that examine 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 a precise science—they’re subjective by nature. Do 5 free airport lounge visits per 12 months trump no international transaction charges on worldwide purchases? Reply: Relies upon who you ask.
As a substitute of counting on algorithms, MoneySense editors think about and debate how Canadians truly use bank cards. Our editors apply their bank card experience, intensive analysis within the fantastic print (we’ll even telephone up the banks!) and information of Canadians’ monetary targets to provide you with choice standards that finest replicate the class and kind of card. Our suggestions are subjective—and sure, open to debate—however they’re all the time made with you in thoughts.
First off, any bank card issued in Canada has the potential to be featured as one among our picks—not simply affiliate companions like another websites. Usually, there are solely a handful of robust playing cards in any given class which can be worthy of a detailed point-by-point comparability.
As soon as we’ve got our shortlist of playing cards, we dig into the fantastic print to see how they stack up on the standards 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 provided (for stability 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 can be principally doubtless that will help you obtain your targets. Ultimately, extra options and advantages are sometimes higher handled as an added bonus—not the principle cause to get a card, however good to have anyway.
How bank cards work
While you use a bank card, you’re taking out a short-term mortgage with a stability that comes due each month. As you pay down your stability, 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 a lot of methods you should utilize a bank card. For instance, many playing cards can be utilized for purchases, for stability transfers and/or money advances. As helpful as they’re, it’s vital to know the right way to use bank cards responsibly to keep away from falling into monetary hassle.
What are the benefits of utilizing a bank card?
One of many main advantages of a bank card is comfort. You may merely pay to your buy understanding you can be billed for the excellent stability the next month—no want to hold money in your pockets, plus you possibly can store on-line.
Different advantages embrace the flexibility 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 provided by way of the bank card firm’s on-line rewards catalogue.
Bank cards also can provide help to construct credit score. All the time paying on time will assist you obtain a excessive credit score rating (650 plus), permitting you to borrow for a mortgage or a automotive mortgage sooner or later at an affordable rate of interest from a monetary establishment.
