20 Best No-Fee Credit Cards in Canada for 2023

NerdWallet Canada selected the best no-fee cards in Canada across numerous categories after analyzing dozens of no-annual-fee credit cards. Whether you’re looking for cash back, valuable travel rewards, impressive perks, lower interest rates, or more, our list of the best no-fee cards offer spectacular benefits without the burden of an annual fee. Consider our selections to choose the best option for your lifestyle and financial goals.

• The best no-fee credit cards in Canada
• Why you should trust us
• Summary of our selections
• How no-fee credit cards work in Canada

Neo Credit

Get $25 cash back and access up to $8,000 in credit when you sign up for Neo Credit. Skip the fees and earn up to 15% cash back on first-time purchases and an average of 5% cash back at 10,000+ partners.

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Best no-fee credit cards in Canada

Best no-fee points card

MBNA Rewards Platinum Plus® Mastercard®

• Annual Fee
  $0
• Interest Rates
  19.99% / 24.99%

  19.99% on purchases, 24.99% on cash advances.
• Rewards Rate
  1x-4x Points

  Earn 4 points†† for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases during the first 90 days, and 2 points‡ for every $1 spent on eligible purchases in those categories thereafter – in both cases, these earn rates apply until $10,000 is spent annually in the applicable category. 1 point‡ for every $1 spent on all other eligible purchases.
• Intro Offer
  Up to 10,000 Points

  Earn 5,000 bonus points†† ($25 in cash back value) after you make $500 or more in eligible purchases within the first 90 days of your account opening. Earn 5,000 bonus points††($25 in cash back value) once enrolled for paperless e-statements within the first 90 days of account opening.

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Our Take

Why we like it

The MBNA Rewards Platinum Plus Mastercard offers bonus rewards on common spending categories, along with flexible options for redemption.

Pros

• Flexible redemption options, including cash back, brand-name merchandise, gift cards, charitable donations and travel, and points never expire.
• You can receive up to 10,000 Birthday Bonus Points every year.

Cons

• Accelerated earn rate drops to 2x after the first 90 days, and 1x after $10,000 in spending. Considering how many categories fit into the cap, hitting the limit will be easy for families and big spenders.
• Lack of travel insurance may disappoint some cardholders.

Product Details

• Earn 4 points†† for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases during the first 90 days, and 2 points‡ for every $1 spent on eligible purchases in those categories thereafter – in both cases, these earn rates apply until $10,000 is spent annually in the applicable category.
• Earn 1 point‡ for every $1 spent on all other eligible purchases.
• 5,000 bonus points†† ($25 in cash back value) after you make $500 or more in eligible purchases within the first 90 days of your account opening.
• 5,000 bonus points††($25 in cash back value) once enrolled for paperless e-statements within the first 90 days of account opening.
• Each year, you will receive Birthday Bonus Points‡ equal to 10% of the total number of Points earned in the 12 months before the month of your birthday, to a maximum Birthday Bonus each year of 10,000 Points.
• Redeem points‡ for cash back, brand-name merchandise, gift cards from participating retailers, charitable donations, and travel.
• Mobile Device Insurance*** With Mobile Device Insurance, you’ve got up to $1,000 in coverage for eligible mobile devices in the event of loss, theft, accidental damage or mechanical breakdown.
• No annual fee.
• ‡, ††, ✪, ***, Terms and Conditions apply.
• This offer is not available for residents of Quebec.
• Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.

Best no-fee American Express card

American Express® Green Card

• Annual Fee
  $0
• Interest Rates
  20.99% / 21.99%

  20.99% on purchases, 21.99% on cash advances.
• Rewards Rate
  1x-2x Points

  2x on eligible hotel and car rental bookings, and 1x on all other eligible purchases.
• Intro Offer
  10,000 Points

  Earn 10,000 Membership Rewards points when you spend $1,000 in the first three months. New cardmembers only.

Apply Now

Our Take

Why we like it

The American Express Green Card has a simple rewards program with an accelerated earn rate on hotel and rental car bookings, and it’s easy to transfer your points to other loyalty programs for maximum redemption value. Oh, and the card itself is made from 99% recycled plastic.

Pros

• No limits on rewards spending, and more ways to redeem your points than other no-fee rewards credit cards on this list.
• Cardholders who enjoy VIP treatment will enjoy access to a multitude of perks through American Express Experiences.

Cons

• Reward earn rates are lower than some other no-fee credit cards.
• Lacks some of the travel perks and insurance options offered by other cards.

Product Details

• Get the Card that lets you live in the moment while getting ready for the future.
• The American Express® Green Card lets you go for it with every swipe or tap of your Card.
• As a new American Express® Green Cardmember, you can earn a Welcome Bonus of 10,000 Membership Rewards® points when you charge $1,000 in purchases to your Card in the first 3 months of Cardmembership. That’s $100 towards groceries or concert tickets.
• Earn 1x the points on Card purchases.
• Charge an eligible purchase to your Card and redeem your Membership Rewards points for a statement credit (All eligible purchases: 1,000 points = $10 statement credit).
• With American Express Experiences and Front Of The Line®, American Express Cardmembers get access to amazing events in Canada.
• Transfer points 1:1 to several frequent flyer and other loyalty programs.
• 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.

Best no-fee card for groceries + our pick for SCENE+ points

Scotiabank Red American Express® Card

• Annual Fee
  $0
• Interest Rates
  19.99% / 22.99%

  19.99% for purchases, 22.99% for cash advances.
• Rewards Rate
  1x-3x Points

  Earn 3X Scene+ points for each dollar charged to your account on all eligible purchases¹ at Sobeys, IGA, Safeway, Foodland, FreshCo, Voilà by Sobeys, Voilà by IGA, Voilà by Safeway, Chalo! FreshCo, Thrifty Foods, IGA West, Les Marchés Tradition, Rachelle Béry and Co-Op. Earn 2X Scene+ points for every $1 CAD spent on eligible grocery stores, restaurants, fast food, and drinking establishments. Includes popular food delivery and food subscriptions. Earn 2X Scene+ points for every $1 CAD spent on eligible entertainment, including movies, theatres and ticket agencies Earn 2X Scene+ points for every $1 CAD spent on eligible gas and daily transit. Includes rideshare, buses, taxis, subway, and more. Earn 2X Scene+ points for every $1 CAD spent on eligible select streaming services. Earn 1X Scene+ point for every $1 spent on every other purchase.
• Intro Offer
  Up to 7,000 Points

  To qualify for the 7,000 bonus Scene+ points offer: 1. Earn 5,000 bonus Scene+ points by making at least $750 in everyday eligible purchases in your first 3 months. 2. Plus, for a limited time, you are eligible to earn a 2,000 Scene+ point bonus when you spend at least $5,000 in everyday eligible purchases in your first year. Offer Ends October 31, 2023.

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Our Take

Why we like it

Use the Scotiabank American Express® Card to earn flexible Scene+ point rewards on everyday spending categories and redeem rewards for travel, entertainment and more.

Pros

• Great earn rates on everyday purchases.
• Includes mobile device insurance.
• Enjoy special offers, experiences and more with American Express Invites.

Cons

• Insurance is limited to mobile device insurance and purchase security & extended warranty protection.

Product Details

• Earn up to 7,000 bonus Scene+ points within your first year (that’s up to $70 towards travel). NEW OFFER May 1, 2023 – October 31, 2023.
• Earn 2X Scene+ points for every $1 CAD spent on eligible grocery stores, restaurants, fast food, and drinking establishments. Includes popular food delivery and food subscriptions.
• Earn 2X Scene+ points for every $1 CAD spent on eligible entertainment, including movies, theatres and ticket agencies.
• Earn 2X Scene+ points for every $1 CAD spent on eligible gas and daily transit. Includes rideshare, buses, taxis, subway, and more.
• Earn 2X Scene+ points for every $1 CAD spent on eligible select streaming services.
• Earn 1X Scene+ point for every $1 spent on every other purchase.
• You’ll earn 3X Scene+ points for each dollar charged to your account on all eligible purchases¹ at Sobeys, IGA, Safeway, Foodland, FreshCo, Voilà by Sobeys, Voilà by IGA, Voilà by Safeway, Chalo! FreshCo, Thrifty Foods, IGA West, Les Marchés Tradition, Rachelle Béry and Co-Op.
• Scene+ points can be redeemed for travel purchase, merchandise and other non-travel rewards such as gift cards and prepaid cards.
• No annual fee.
• Enjoy Special Offers, Access and Experiences with American Express Invites®.
• To be eligible, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.
• Terms and Conditions Apply. Click ‘Apply Now’ for complete details.

Best no-fee Mastercard

BMO CashBack® Mastercard®*

• Annual Fee
  $0
• Interest Rates
  20.99% / 22.99%

  20.99% on purchases, 22.99% on cash advances (21.99% for Quebec residents).
• Rewards Rate
  0.5%-5%

  5% intro offer. Then earn 3% cash back on grocery purchases, 1% cash back on recurring bill payments and 0.5% unlimited cash back on all other purchases!*
• Intro Offer
  Up to $125

  Earn up to 5% cash back in the first three months on qualified spend up to $2,500. For new cardholders only. Expires on July 31, 2023. Terms and conditions apply.

Apply Now

Our Take

Why we like it

The BMO CashBack® Mastercard®* offers attractive earn rates on everyday purchases like groceries and utility bills, making it easy to quickly rack up rewards that you can turn into cold hard cash.

Pros

• Attractive introductory offer, especially if you’re interested in a balance transfer.
• No minimum threshold for redeeming your cash-back rewards. Redeem as little as $1 if you want.

Cons

• Accelerated earn rates for groceries and recurring bills are capped at $500 per billing cycle, a ceiling that might be easy to hit if you have a family or higher monthly balances.
• Offers fewer travel perks and types of insurance than some other cards.

Product Details

• Welcome offer: Get 5% cash back in your first 3 months.*
• Then get 3% cash back on grocery purchases, 1% cash back on recurring bill payments and 0.5% unlimited cash back on all other purchases!*
• Now earn the highest cash back on groceries in Canada without paying an annual fee!†
• Get a 0.99% introductory interest rate on Balance Transfers for 9 months, 2% fee applies to balance amounts transferred.*
• No Annual fee.*
• Want to get your cash back ASAP? Now you can redeem your cash back anytime through direct deposit, as a credit on your statement or into your BMO InvestorLine account.*
• Extended Warranty.*
• Purchase Protection.*
• Receive a discount on car rentals.*
• *Terms and conditions apply.
• †Statement based on a comparison of the non-promotional grocery rewards earn rate on Canadian cash back credit cards as of January 4, 2023.
• 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.

Best no-fee AIR MILES card

BMO AIR MILES®† Mastercard®*

• Annual Fee
  $0
• Interest Rates
  20.99% / 22.99%

  20.99% on purchases and 22.99% on cash advances (21.99% for Quebec residents).
• Rewards Rate
  0.04x-0.12x Miles

  Earn 3x the Miles for every $25 spent at participating AIR MILES Partners and 2x the Miles for every $25 spent at any eligible grocery store*. Earn 1 Mile for every $25 spent everywhere else.*
• Intro Offer
  800 Miles

  Spend $1,000 in the first three months to earn 800 AIR MILES Bonus Miles (applications must be received by July 31, 2023 to be eligible). New accounts only. Terms and conditions apply.

Apply Now

Our Take

Why we like it

It’s rare to find a 0.99% balance transfer offer on a dedicated travel rewards credit card, especially with a low 2% balance transfer fee. Sure, the introductory period is only for nine months, but the BBMO AIR MILES®† Mastercard®* makes it worth its while by adding an extra introductory perk: 800 bonus AIR MILES.

Pros

• No annual fee.
• Ability to earn unlimited rewards.

Cons

• The introductory APR period for transfers is only nine months, so make sure you can pay off your balance during that window of time.

Product Details

• Welcome offer: Get 800 AIR MILES Bonus Miles!* That’s enough for $80 towards purchases with AIR MILES Cash.*
• Get a 0.99% introductory interest rate on Balance Transfers for 9 months, 2% fee applies to balance amounts transferred.*
• Get 3x the Miles for every $25 spent at participating AIR MILES Partners and 2x the Miles for every $25 spent at any eligible grocery store.*
• Get 1 Mile for every $25 spent everywhere else.*
• Use your BMO AIR MILES Mastercard and AIR MILES Collector Card at an AIR MILES Partner to earn Reward Miles from both.*
• No annual fee.*
• Receive a discount on car rentals.*
• Extended Warranty.*
• Purchase Protection.*
• *Terms and conditions apply.
• 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.

Best no-fee card with flexible reward categories + our pick for for fair credit

Tangerine Money-Back Credit Card

• Annual Fee
  $0
• Interest Rates
  19.95%

  19.95% on purchases and cash advances.
• Rewards Rate
  0.5%-10%

  10% intro offer, 2% unlimited cash back on up to three categories. 0.50% unlimited cash back on everything else.
• Intro Offer
  Up to $100

  Apply for a Tangerine Money-Back Credit Card by July 5, 2023 and earn an extra 10% back* on up to $1,000 in everyday purchases made within your first 2 months.

Apply Now

Our Take

Why we like it

You can earn unlimited cash back at a 2% rate in up to three categories of your choice — all while earning 0.50% back on everything else.

Pros

• You can tailor the 2% rewards to your spending by choosing up to three categories from Tangerine’s list of 10, which includes basics like gas and groceries as well as unusual picks like furniture and home improvement.
• Transfer balances within your first 30 days and pay only 1.95% interest on the transferred balance for the first six months (19.95% after that).

Cons

• 2% cash back is a competitive rate, but many cards offer double the rewards on specific categories.
• Tangerine is a virtual bank with no physical bank branches.

Product Details

• 2% on two categories of your choice: grocery, furniture, restaurants, hotel-motel, gas, recurring bill payments, drug store, home improvement, entertainment, or public transportation and parking.
• Get a third cash-back category by choosing to have your rewards deposited into a Tangerine Savings Account.
• 0.50% on everything else.
• Redeem cash back monthly as a statement credit or deposited into a Tangerine Savings Account.
• No annual fee.
• Transfer balances within your first 30 days and pay only 1.95% interest on the transferred balance for the first six months (19.95% after that). 1% balance transfer fee applies to the amount transferred.
• Get free cards for any authorized users on your account.
• It only includes purchase assurance and extended protection insurance. For more insurance, consider the Tangerine World Mastercard which requires a minimum personal income of $60,000. If you meet this requirement, you will automatically be considered for the World card if you apply for the Money-Back card.
• Preferred rates: 19.95% for purchases and cash advances.
• To be eligible, a $12,000 (individual) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.

Best no-fee card for newcomers to Canada

Scotia Momentum® No-Fee Visa* card

• Annual Fee
  $0
• Interest Rates
  19.99% / 22.99%

  19.99% for purchases, 22.99% for cash advances.
• Rewards Rate
  0.5%-1%

  Earn 1% cash back on all eligible gas stations, grocery stores, drug stores purchases and recurring payments. Earn 0.5% cash back on all other eligible purchases.
• Intro Offer
  Up to $100

  Earn 5% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). Must open a new account by June 30, 2023.

Apply Now

Our Take

Why we like it

The Scotia Momentum No-Fee Visa Card doesn’t provide any bells or whistles, but it also doesn’t charge an annual fee, making it an option for people looking to build credit while earning cash back on everyday purchases.

Pros

• No annual fee.
• Benefit from a 0.99% introductory interest rate on balance transfers for the first 6 months (22.99% after that).
• Earn up to 1% cash back on eligible purchases and recurring bill payments.
• Opportunity to earn 5% cash back for a limited time with new cards opened by June 30, 2023.

Cons

• No premium perks or benefits.
• The balance transfer promotional period cannot be used to transfer a balance from another Scotiabank Account.

Product Details

• Earn 5% cash back on all purchases for the first 3 months (up to $2,000 in total purchases).¹ Plus, get a 0.99% introductory interest rate on balance transfers for the first 6 months (22.99% after that; annual fee $0). May 1, 2023 – June 30, 2023.
• No annual fee.
• Earn 1% cash back on all eligible gas stations, grocery stores, drug stores purchases and recurring payments.
• Earn 0.5% cash back on all other eligible purchases.
• Save up to 25% off base rates at participating AVIS locations and at participating Budget locations in Canada and the U.S.
• Preferred rates: 19.99% on purchases, 22.99% on cash advances.
• To be eligible, $12,000 (individual) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident that is the age of majority in the province or territory where you live.
• Terms and Conditions Apply. Click ‘Apply Now’ for complete details.

Best no-fee card for gas

MBNA Smart Cash Platinum Plus® Mastercard®

• Annual Fee
  $0
• Interest Rates
  19.99% / 24.99%

  19.99% on purchases, 22.99% on balance transfers & access cheques, and 24.99% on cash advances.
• Rewards Rate
  0.5%-5%

  5% intro offer. 2% on gas and groceries, and 0.5% on everything else.
• Intro Offer
  Up to $150

  Earn 5% Cash Back on gas and groceries for the first 6 months until the total gas and grocery purchases in the applicable month reaches $500.

Apply Now

Our Take

Why we like it

The MBNA Smart Cash Platinum Plus Mastercard is a no-frills cash back card that can help cardholders earn a useful amount of rewards on gas and grocery purchases.

Pros

• The welcome offer, 5% cash back on gas and groceries, can help cardholders save more during the first six months of activity. The 2% cash back earn rate after that isn’t bad, either.
• No annual fee, which applies to a maximum of nine additional cards.

Cons

• The 2% cash back earn rate on gas and groceries only applies to the first $500 spent every month.
• The interest rate on cash advances is higher than what many other cards charge.

Product Details

• Accelerate cash back on common purchases!
• No annual fee.
• Get 5% Cash Back†† on eligible gas and grocery purchases for the first 6 months (until the total gas and grocery purchases in the applicable month reaches $500).
• Get 2% Cash Back‡ on eligible gas and grocery purchases thereafter (until the total gas and grocery purchases in the applicable month reaches $500).
• Get 0.5% Cash Back‡ for all other eligible purchases.
• Standard Annual Interest Rates of 19.99% on purchases, 22.99% on balance transfers✪ and access cheques, and 24.99% on cash advances.
• Take advantage of a card that provides Cash Back on eligible purchases and has no annual fee. Apply now for the Smart Cash® credit card.
• ‡, ††, ✪, Terms and Conditions apply.
• This offer is not available for residents of Quebec.
• Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.

Best no-fee card with low interest rates + our pick for balance transfers

MBNA True Line® Mastercard® credit card

• Annual Fee
  $0
• Intro Interest Rates
  0% intro for 12 months on balance transfers

  0% introductory interest rate for 12 months on balance transfers completed within 90 days.
• Interest Rates
  12.99% / 24.99%

  12.99% on purchases, balance transfers and access cheques. 24.99% on cash advances.
• Balance Transfer Fee
  3%

  3% of the amount transferred, or a minimum of $7.50, applies to each transaction.

Apply Now

Our Take

Why we like it

With a strong intro offer, no annual fee and a low interest rate of 12.99%, the MBNA True Line Mastercard is an affordable, no-frills way to transfer balances, pay for purchases and build credit.

Pros

• Interest-free balance transfers for a full year.
• Save money while building credit with the no-fee credit card.

Cons

• Higher interest rate compared to the 8.99% offered on the MBNA True Line® Gold Mastercard®, which charges an annual fee.
• Few extra benefits and no rewards program.

Product Details

• No annual fee.
• Standard Annual Interest Rates of 12.99% on eligible purchases, 12.99% on balance transfers✪, and 24.99% on cash advances.
• You could get a 0% promotional annual interest rate (“AIR”)† for 12 months on balance transfers✪ completed within 90 days of account opening.
• Around-the-clock fraud protection.
• Use available credit on your credit card to transfer funds right to your chequing account.
• †, ✪, Terms and Conditions apply.
• This offer is not available for residents of Quebec.
• Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.

Best no-fee card for students

BMO CashBack® Mastercard®* for Students

• Annual Fee
  $0
• Interest Rates
  20.99% / 22.99%

  20.99% on purchases, 22.99% on cash advances.
• Rewards Rate
  0.5%–5%

  5% intro offer. Then earn 3% cash back on grocery purchases, 1% cash back on recurring bill payments and 0.5% unlimited cash back on all other purchases.*
• Intro Offer
  Up to $125

  Receive 5% cash back on all purchases made in the first three months. 5% rate applies to spending up to $2500 ($500 on grocery, $500 on recurring bill payments, and $1,500 on all other purchases). New cardmembers only. Must apply by July 31, 2023. Terms and conditions apply.

Apply Now

Our Take

Why we like it

The BMO CashBack® Mastercard®* for Students has impressive earn rates — including 3% on groceries — and valuable perks, all without an annual fee.

Pros

• Earn flexible and easy-to-redeem cash rewards on everyday purchases.
• There’s no minimum threshold for redeeming your cash-back rewards. Redeem as little as $1 if you want.

Cons

• Accelerated earn rates for groceries and recurring bills are capped at $500 per billing cycle.
• Insurance is limited to extended warranty and purchase protection.

Product Details

• Welcome offer: Get 5% cash back in your first 3 months.*
• Then get 3% cash back on grocery purchases, 1% cash back on recurring bill payments and 0.5% unlimited cash back on all other purchases!*
• Now earn the highest cash back on groceries in Canada without paying an annual fee!†
• Get cash back every time you spend, plus start building a healthy credit history.
• Want to get your cash back ASAP? Now you can redeem your cash back anytime through direct deposit, as a credit on your statement or into your BMO InvestorLine account.*
• No Annual fee.*
• Extended Warranty.*
• Purchase Protection.*
• Receive a discount on car rentals.*
• *Terms and conditions apply.
• †Statement based on a comparison of the non-promotional grocery rewards earn rate on Canadian cash back credit cards as of January 4, 2023.
• 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.

Best no-fee card for bad credit

Home Trust Secured Visa (No annual fee)

• Annual Fee
  $0

  Lower interest rate available for a $59 annual fee.
• Interest Rates
  19.99%

  19.99% on purchases and cash advances
• Min. Deposit
  $500
• Maximum Deposit
  $10,000

Apply Now

Our Take

Why we like it

The Home Trust Secured Visa offers a straightforward, no-frills experience for credit builders. Plus, there are two secured credit card options to fit a variety of needs: a no-fee card, and a low-interest card with a $59 annual fee.

Pros

• No annual fee.
• Payments are reported to both credit bureaus.

Cons

• You’ll need to budget for the $500 minimum deposit.
• No ability to earn rewards on purchases.

Product Details

• No annual fee.
• Lower interest rate available for a $59 annual fee.
• $500 minimum security fund deposit required.
• $10,000 maximum security fund deposit.
• Hard credit checks are made on Home Trust Secured Visa applications.
• Credit activity, including every payment, is reported to TransUnion and Equifax, the two major consumer credit bureaus in Canada.
• Ability to upgrade to an unsecured credit card.
• Manage your account and billing online.
• Cardholders can choose between a card with no annual fee and 19.99% interest or an annual fee of $59 and 14.90% interest.
• Protection against fraud through Visa’s Zero Liability Policy.
• Preferred rates: 19.99% for purchases and cash advances.
• To be eligible, you must have a source of income and cannot currently be in bankruptcy. You must also be a Canadian resident of the age of majority in the province or territory where you live. The Home Trust Secured Visa Card is not available to Québec residents.

Best no-fee cash back card + our pick for the best no-fee Visa

Simplii Financial™ Cash Back Visa Card

• Annual Fee
  $0
• Interest Rates
  19.99% / 22.99%

  19.99% on purchases, 22.99% on cash advances.
• Rewards Rate
  0.5%-20%

  20% intro offer. 4% at restaurants, bars and coffee shops, 1.5% on gas, groceries, drugstores and pre-authorized payments, and 0.5% on everything else.
• Intro Offer
  Up to $100

  Earn 20% cash back on eligible gas, groceries, drugstore purchases and pre-authorized payments made within your first 3 months (up to $500 spend).

Our Take

Why we like it

The $0-annual-fee Simplii Financial Cash Back Visa Card earns bonus cash-back on the purchases you make almost every day.

Pros

• New cardmembers can earn a 9.99% introductory annual interest on purchases for the first six months.

Cons

• The 0.5% base rate isn’t exactly impressive, but it only applies after you hit the annual spending limits of bonus categories.
• It only includes purchase security and extended protection insurance.

Product Details

• 4% on restaurant, bar and coffee shops, up to $5,000 per year.
• 1.5% on gas, groceries, drugstores and pre-authorized payments, up to $15,000 per year.
• 0.5% on everything else.
• Plus, for your first 3 months, enjoy 20% bonus cash back on eligible gas, groceries, drugstore purchases and pre-authorized payments (up to $500 spend).
• Redeem cash back as a statement credit in December.
• No annual fee.
• Cash back when you send money abroad with a Simplii Financial Global Money Transfer. No transaction fees and no interest charges.
• Purchase security and extended protection insurance provided.
• Preferred rates: 19.99% for purchases, 22.99% for cash advances.
• To be eligible, a $15,000 (individual) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident (excluding Quebec) that is the age of majority in the province or territory where you live.

Best no-fee travel card

CIBC Aventura® Visa* Card

• Annual Fee
  $0
• Interest Rates
  20.99% / 22.99%

  20.99% on purchases, 22.99% on cash transactions (21.99% in Quebec).
• Rewards Rate
  0.5x-1x Points

  Earn 1 point for every $1 spent at eligible gas stations, electric vehicle charging stations, grocery stores and drug stores, as well as on travel purchased through the CIBC Rewards Centre. Earn 1 point for every $2 spent on all other purchases.
• Intro Offer
  Up to 2,500 Points

  Get 500 Aventura Points within 60 days of your CIBC Aventura Visa card account approval by completing specific activities. Conditions apply. See more details on the issuer's website.

Our Take

Why we like it

Flexible travel rewards and easy-to-understand rewards categories makes this no-fee Aventura card is a great starter travel rewards credit card.\

Pros

• Flexible travel rewards that allow you to fly any airline with points that don’t expire.
• No annual fee.

Cons

• Limited insurance and extra perks.

Product Details

• $0 annual fee.
• Get 500 Aventura Points within 60 days of your CIBC Aventura Visa card account approval by completing specific activities. Conditions apply. See more details on the issuer’s website.
• Earn 1 point for every $1 spent at eligible gas stations, electric vehicle charging stations, grocery stores and drug stores, up to $6,000 annual spend.
• Earn 1 point for every $1 spent on travel purchased through the CIBC Rewards Centre.
• Earn 1 point for every $2 spent on all other purchases.
• Accelerate your savings with up to 10 cents off per litre on gas by linking your Journie Rewards account.
• Redeem Aventura Points to cover full airfare including taxes and fees.
• Visit the CIBC Rewards Centre to redeem your points for hotel stays, vacation packages, cruises, merchandise, gift cards and one-of-a-kind activities.
• Use your Aventura Points to help pay down your credit card balance or contribute them to select financial products.
• Earn 1 Aventura point for every $8.00 spent on a CIBC Global Money Transfer™.
• Card protections include fraud alerts, Visa’s Zero Liability Policy, and a Digital Disputes Platform.
• Insurance included: Auto Rental Collision and Loss Damage Insurance, $100,000 Common Carrier Accident Insurance, and Purchase Security and Extended Protection Insurance.
• Preferred rates: 20.99% on purchases, 22.99% on cash transactions (21.99% in Quebec).
• $15,000 minimum annual household income required.

Best no-fee Aeroplan card

CIBC Aeroplan® Visa Card

• Annual Fee
  $0
• Interest Rates
  20.99% / 22.99%

  20.99% on purchases, 22.99% on cash advances (21.99% for Quebec residents).
• Rewards Rate
  0.67x-1x Points

  1x per $1 spent on gas, electric vehicle charging, groceries and Air Canada travel purchases, and 1x per $1.50 spent on all other purchases.
• Intro Offer
  10,000 Points

  Earn 10,000 Aeroplan points when you make your first purchase. New cardmembers only.

Our Take

Why we like it

Most cards make you choose between low fees or valuable travel rewards, but the CIBC Aeroplan Visa offers both.

Pros

• An attractive intro offer that could be enough for a one-way economy class flight in North America.
• Your Aeroplan membership will help you earn points twice as fast at Aeroplan partners and retailers in the Aeroplan eStore when you pay with your Aeroplan credit card.

Cons

• To get the best value, you’ll have to be loyal to Air Canada and the Aeroplan rewards program.
• Earn rate on included categories is lower than some other no-fee cards.

Product Details

• 1x Aeroplan points per dollar on gas, electric vehicle charging, groceries and Air Canada travel purchases, up to $40,000 annual spend.
• 1x Aeroplan points per $1.50 spent on all other purchases, including gas, electric vehicle charging, groceries and Air Canada travel purchases that exceed the $40,000 threshold.
• Earn points twice at over 150 Aeroplan partners and 170+ online retailers through the Aeroplan eStore.
• Aeroplan Points never expire and can be redeemed for a variety of travel, merchandise, gift card, and other rewards offered by Aeroplan’s participating partners and suppliers.
• $0 annual fee.
• Primary Aeroplan credit cardholders may get access to preferred pricing, which means you can book flight rewards for even fewer points.
• Get three free months of Uber Pass for discounts on rides, meals and more.
• Earn 1 Aeroplan point for every $6 spent on CIBC Global Money Transfer, with no transaction fees or interest as long as you pay your balance on time.
• Use the CIBC Pace It feature to make installment payments on large purchases.
• Four types of insurance are provided: car rental collision and loss damage insurance, purchase security and extended protection insurance, and common carrier travel accident insurance.
• Preferred rates: 20.99% for purchases, 22.99% for cash advances.
• To be eligible, $15,000 (household) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.

Best no-fee card for in-store shopping

Triangle™ World Elite Mastercard®

• Annual Fee
  $0
• Interest Rates
  19.99% / 22.99%

  19.99% on purchases, 22.99% on cash transactions (21.99% in Quebec).
• Rewards Rate
  1%-4%

  4% at Canadian Tire or its affiliated stores, 3% at grocery stores (on the first $12,000 per year), and 1% on grocery stores after that. Plus, collect 5¢-7¢1 per litre at Gas+/Essence+ locations.
• Intro Offer
  N/A

Our Take

Why we like it

The Triangle™ World Elite Mastercard® is the ideal choice for shoppers hoping to collect and redeem as much Canadian Tire Money as possible. The roadside assistance package cardholders get access to is a nice perk, too.

Pros

• Solid Canadian Tire Money earn rates on groceries, sports equipment and other merchandise at participating stores.
• No annual fee.
• Access to various insurance plans.

Cons

• Not much added value if you don’t shop at Canadian Tire or its affiliated stores.
• Large families could burn through their accelerated earn rates on groceries sooner than they’d like.
• Earning Canadian Tire Money on gas purchases could be challenging if you don’t live near an eligible gas station.

Product Details

• Collect 3% in Canadian Tire Money on the first $12,000 spent at eligible grocery stores per year and 1% on eligible grocery purchases after that.
• Collect 4% in Canadian Tire Money on qualifying purchases at Canadian Tire, Sport Chek, Mark’s/L’Equipeur, Atmosphere, Party City, Sports Rousseau, Hockey Experts, L’Entrepot du Hockey and participating Sports Experts stores.
• Collect 7 cents in Canadian Tire money per litre of premium fuel, and 5 cents per litre on all other fuel types purchased at Gas+/Essence+ locations.
• Canadian Tire Money can be redeemed at Canadian Tire, Sport Chek, Atmosphere, Sports Rousseau, Hockey Experts, L’Entrepot du Hockey and participating Mark’s/L’Equipeur and Sports Experts stores.
• No fee, no interest financing on qualifying purchases of $150 or more at participating stores. Conditions apply.
• No-receipt returns at participating stores.
• Access to member-only events and personalized offers.
• Priority queuing when calling the Triangle call centre.
• Enrollment in the Triangle World Elite Mastercard Roadside Assistance Gold Plan, which includes 5 service calls per year and unlimited tows to any Canadian Tire Auto Service Centre within towing limits.
• Car rental collision/loss damage waiver insurance.
• Extended warranty insurance for eligible purchases.
• Eligibility: Must be a Canadian resident and the age of majority in the province/territory of residence.
• No annual fee.
• No fee for obtaining a supplementary card on the same account.
• Interest rates: 19.99% on purchases, 22.99% on cash transactions (21.99% in Quebec).

Best no-fee card for online shopping

Amazon.ca Rewards Mastercard®

• Annual Fee
  $0
• Interest Rates
  19.99% / 22.99%

  19.99% for purchases, 22.99% for cash advances.
• Rewards Rate
  1%-5%

  5% intro offer. 2.5% on Amazon.ca and Whole Foods Market store purchases for Prime members (1.5% for non-Prime members). 1% on eligible foreign currency transactions and everywhere else Mastercard is accepted.
• Intro Offer
  Up to $150

  Get 5% back at Amazon.ca, Whole Foods Market stores in Canada, grocery stores and restaurants! Valid for the first 6 months, on your first $3,000 in eligible purchases.

Our Take

Why we like it

Ideal for Amazon shoppers with 2.5% back on all eligible Amazon.ca and Whole Foods purchases. Plus, Amazon Prime members get 2.5% back on eligible foreign currency transactions.

Pros

• No annual fee.
• Apply rewards to eligible Amazon.ca purchases.

Cons

• Amazon Prime membership required for higher earn rate.

Product Details

• Welcome offer: Get 5% back at Amazon.ca, Whole Foods Market stores, grocery stores, and restaurants for 6 months after approval, on first $3,000 in eligible purchases.
• Earn rewards on eligible purchases at Amazon.ca — including Whole Foods Market stores in Canada.
• After the welcome offer ends, eligible Prime members get 2.5% back on eligible purchases at Amazon.ca and Whole Foods Market stores.
• Eligible Prime members always get 2.5% back on eligible foreign currency transactions to help cover foreign transaction fees.
• After the welcome offer ends, non-Prime members get 1.5% back on eligible purchases at Amazon.ca and Whole Foods Market stores. Always get 1% back on eligible foreign currency transactions to help cover foreign transaction fees.
• Receive 1% back on eligible purchases everywhere else Mastercard is accepted.
• Rewards can be redeemed at Amazon.ca and applied directly to eligible Amazon.ca items.
• No annual credit card fee.
• The MBNA Payment Plan can make it more convenient to pay for large purchases and manage a budget. Pay for eligible credit card purchases of $100 or over by making monthly payments. Choose from three Payment Plan terms: 6, 12 or 18 months. Conditions and fees apply.
• Preferred rates: 19.99% for purchases, 22.99% for cash advances.
• To be eligible, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.

Best no-fee card with no foreign transaction fees

Brim Mastercard

• Annual Fee
  $0
• Interest Rates
  Rates vary by card member
• Rewards Rate
  1x-30x Points

  1x points on everyday purchases. Up to 30x on retail partners in the eShop.
• Intro Offer
  Up to $200

  Earn up to $200 in first-time reward bonuses at participating retailers.

Our Take

Why we like it

The standard Brim Mastercard is a tech-savvy, no-fee rewards card. It offers an impressive mobile app with budget tracking, an eShop with hundreds of retailers, partnerships with five mobile wallets, free global Wi-Fi and no foreign transaction fees — even when shopping online.

Pros

• Rewards are easy to understand — each point is worth $0.01 — and you can earn up to 30x at select retail partners, including small local businesses and big brands.
• There’s no fee for additional cardholders or a family card.

Cons

• Included insurance types are more limited than the Brim World or World Elite Mastercards.
• Brim is a virtual bank with no physical bank branches, so you must be comfortable with a digital-first experience.

Product Details

• 1x points per dollar on everyday purchases, with no annual spend limit.
• Up to 30x points per dollar on retail partners in the eShop.
• Points have a straightforward value of $0.01 and can be redeemed on transactions or as cash back. $1 minimum redemption required. Points do not expire.
• No annual fee.
• Brim’s Family Card option lets you add additional card members, set and adjust their spending limits, block types of transactions and track spending — perfect for teaching teens smart budgeting.
• Enhanced security features allow you to lock your card and block online or foreign transactions instantly.
• Stay connected with access to over 1 million Boingo Global Wi-Fi hotspots around the world.
• Access to the Brim Installment plan.
• Five types of insurance provided: common carrier accident insurance, mobile device insurance, event ticket protection, extended warranty and purchase security insurance.
• Preferred rates vary by card member.
• No foreign exchange fees.
• To be eligible, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.

Best no-fee card for USD purchases

Rogers™ World Elite® Mastercard®

• Annual Fee
  $0
• Interest Rates
  19.99% / 22.99%

  19.99% for purchases, 22.99% for cash advances.
• Rewards Rate
  1.5%-3%

  % on purchases made in U.S. dollars. 1.5% on everything else.
• Intro Offer
  $25

  Get $25 in cash-back rewards when you make your first card purchase within 3 months of receiving your card.

Our Take

Why we like it

The Rogers World Elite Mastercard is a no-fee card with an easy-to-understand cash-back rewards program with an accelerated earn rate on U.S. dollar purchases. And unlike some no-fee cards, it still offers valuable perks for those who like to travel.

Pros

• Rewards are easy to understand, $1 in cash-back rewards = $1 toward an eligible purchase or bill credit, and you can redeem rewards instantly using the Rogers Bank app.
• Attractive travel benefits are included, like access to over 1,000 LoungeKey airport lounges, free Boingo Wi-Fi at over 1 million hotspots worldwide, and several types of travel insurance.

Cons

• A more modest intro offer than some cards, at just $25 in cash-back rewards when you make your first purchase.
• You must spend at least $15,000 each year to maintain the card.

Product Details

• 1.5% in unlimited cash-back rewards for eligible regular purchases.
• 3.5% in unlimited cash-back rewards for eligible U.S. dollar purchases.
• Cash-back rewards can be redeemed for purchases or applied directly to your Rogers, Fido, or chatr mobile phone bill. Cash-back rewards can be redeemed using the Rogers Bank app or Pay with Rewards app. You must accrue at least $10 in cash-back rewards before you can redeem them on a purchase, and redemptions do not count toward minimum payment amounts.
• $0 annual fee.
• Earn unlimited cash-back rewards anywhere Mastercard is accepted.
• Free Boingo Wi-Fi for Mastercard® Cardholders at over 1 million hotspots worldwide.
• Access to over 1,000 LoungeKey airport lounges in over 100 countries with Mastercard Airport Experiences.
• No charge to add additional cardholders.
• Security features like transaction monitoring and alerts, zero liability for unauthorized use and balance protection.
• Eight types of insurance provided, including 10-day travel medical benefits for those up to age 64 — up to $1 million in coverage. Three days of medical benefits are provided for those age 65 to 75.
• Preferred rates: 19.99% for purchases, 22.99% for cash advances.
• To be eligible, $80,000 (individual) or $150,000 (household) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.

Best no-fee business travel card

BMO® AIR MILES®† No-Fee Business® Mastercard®*

• Annual Fee
  $0
• Interest Rates
  19.99% / 22.99%

  19.99% on purchases, 22.99% on cash advances.
• Rewards Rate
  0.05x-0.06x Miles

  Earn 1 Mile for every $20 spent. Earn 1.25x Miles for every $20 spent at participating Shell stations.
• Intro Offer
  1,000 Miles

  Earn 1,000 Bonus Miles when you spend $3,000 in net card purchases in the first three months from account open date. Offer expires December 31, 2023.

Our Take

Why we like it

Not many no-fee cards allow users to earn AIR MILES, which makes the BMO AIR MILES No-Fee Business Mastercard a unique and rewarding option.

Pros

• Get up to 22 additional cards, and enjoy protection against misuse with the Liability Waiver Program.
• Enjoy automatic rebates of up to 25% when shopping at qualifying merchants with Mastercard Easy Savings.
• Flexibility in how AIR MILES can be redeemed, and the ability to earn extra Miles when shopping at Shell gas stations

Cons

• Few additional perks.
• No travel insurance offered.
• The earn rates may not impress experienced AIR MILES collectors.

Product Details

• Intro offer: earn 1,000 AIR MILES by spending $3,000 in net card purchases during the first three months.
• Earn 1 AIR MILE for every $20 spent.
• Earn 1.25x AIR MILES for every $20 spent at participating Shell stations.
• No annual fee.
• Get up to 22 additional cards to earn points faster.
• AIR MILES can be redeemed for travel, office supplies, events, attractions or cash rewards.
• Mastercard Easy Savings: Automatic rebates of up to 25% when shopping at qualifying merchants.
• 90-day purchase protection and extended warranty protection of up to one additional year on items charged to the card.
• Liability Waiver program: get protection against employee card abuse.
• Preferred rates: 19.99% on purchases, 22.99% on cash advances.

Best no-fee cash back business card

BMO CashBack Business Mastercard

• Annual Fee
  $0
• Interest Rates
  19.99% / 22.99%

  19.99% on purchases, and 22.99% on cash advances.
• Rewards Rate
  0.75%-10%

  10% intro offer. Earn 1.75% when you pay at the pump or shop in-store at Shell®. Earn 1.5% on gas, office supplies and cellphone and internet bill payments. Earn 0.75% on all other card purchases.
• Intro Offer
  Up to $150

  Earn 10% cash back for each dollar you spend at qualifying gas stations, office supply stores, and on your cell phone/internet (phone) bill payments in the first 3 months from the account open date up to a maximum of $150 cash back. Offer expires December 31, 2023.

Our Take

Why we like it

The BMO CashBack Business Mastercard offers strong earn rates on gas, office supplies and bill payments, making it a smart no-fee choice for businesses looking to be rewarded for buying daily essentials.

Pros

• No annual fee.
• Rewarding intro offer.
• Automatic rebates through the Mastercard Easy Savings program.

Cons

• If you don’t frequent Shell gas stations you’ll miss out on the most savings.

Product Details

• Get 10% cash back on gas, office supplies and cellphone and internet bill payments for 3 months!
• $0 annual fee.
• 19.99% interest on purchases, and 22.99% interest on cash advances.
• Earn more cash back on your most common expenses:
• Earn 1.75% when you pay at the pump or shop in-store at Shell®.
• Earn 1.5% on gas, office supplies and cellphone and internet bill payments.
• Earn 0.75% on all other card purchases.
• Enjoy 90-day purchase protection and extended warranty protection of up to one additional year on items you charge to the card.
• Get protection against employee card abuse with BMO’s Liability Waiver Program.

Back to Top

How no-fee credit cards work in Canada

By Barry Choi and Shannon Terrell

What is a no-fee credit card?

A no-fee credit card doesn’t have an annual fee: the lump sum amount charged by card issuers to help cover the cost of card rewards and programs. Most of the best Canadian credit cards carry annual fees over $100.

Now, this isn’t to say you won’t ever pay any fees while holding a no-free credit card — you’ll likely still need to deal with interest charges, inactivity fees and the like. But annual fees? No-fee cards don’t have any, which could help you trim down on unnecessary costs.

The only downside? No-fee cards may not offer the same premium perks that often accompany cards with steep annual fees. That said, no-fee cards still have some perks, including cash-back reward programs, travel points and more.

Common features of a no-fee credit card

Every no-fee credit card is unique, so the included features will differ. That said, here are some of the common features you may get:

• Interest-free grace period.
• Fraud protection.
• Increased earn rate on some merchant categories.
• Rewards (cash back, travel, store, etc).
• Purchase protection.
• Extended warranty.

Admittedly, no-fee credit cards often have fewer benefits than credit cards with an annual fee. But some no-fee credit cards may still include helpful perks, such as mobile device protection or travel insurance.

Is a no-fee credit card a free credit card?

A no-fee card isn’t exactly the same as a free credit card. While no-fee credit cards don’t charge you an annual fee, there will likely be other costs associated with using a no-fee card, including:

• Interest charges.
• Cash advance fees.
• Foreign transaction fees.
• Over limit fees.
• Inactivity fees.
• Balance protection insurance.

All of these additional fees should be clearly outlined in the terms and conditions that come with your card. As long as you use your no-fee credit card responsibly, it may be possible to avoid fees completely.

Do no-fee credit cards still earn rewards?

Yes, there are many no-fee credit cards that earn rewards. The type of rewards you’ll receive depends on what card you choose. The typical rewards categories are as follows:

• No-fee cash back cards earn a percentage back in cash on purchases.
• No-fee travel cards earn airline, hotel or even general travel rewards points.
• Co-branded no-fee store and retail cards earn store or retail rewards that can be redeemed at participating stores for groceries, merchandise and more.

Types of no-fee credit cards in Canada

Many types of no-fee credit cards are available, with the best offering the ability to earn valuable rewards, cash back and more, all without having to pay an annual fee.

No-fee cash back credit cards

Cash-back credit cards are fairly simple as far as perks are concerned: spend money; get a percentage of what you’ve spent back in cash. Now, as for the type of purchases that earn rewards and how much cash back you get for them, that’s what separates different types of cash-back cards.

Take the Simplii Financial Cash Back Visa Card: it’s a no-fee cash back card that offers 4% cash back each time you swipe your card at a restaurant, bar or coffee shop, up to $5,000 per year.

In comparison, the BMO CashBack Mastercard offers 3% in cash back on grocery purchases, up to $500 in spending per billing cycle.

No-fee travel credit cards

Travel cards offer travel-related rewards when you use your card. Some travel cards charge large annual fees in exchange for premium perks, like comprehensive travel insurance packages.

But the rewards offered by no-fee travel credit cards are nothing to sneeze at. The CIBC Aeroplan Visa doesn’t carry an annual fee and earns Aeroplan points every time you spend on gas, groceries and Air Canada travel purchases, for example.

And the Rogers World Elite Mastercard, another no-fee card, comes with travel insurance offerings and access to over 1,000 LoungeKey airport lounges.

No-fee rewards cards

Rewards cards allow you to earn points for making eligible purchases. And these points can be redeemed for all types of perks, from travel vouchers to electronic gift cards.

For example, the American Express Green Card lets you earn rewards points across a variety of spending categories and points can be put towards purchases, travel spending, gift cards; you name it. Plus, you can transfer points to other loyalty programs, like Aeroplan and Marriott Bonvoy.

No-fee Mastercards

Credit cards branded with the Mastercard name or logo belong to the Mastercard network. Mastercard is not a card issuer, it simply processes credit card payments. And because Mastercard is one of the most popular card processors in the world, there are plenty of cards to pick from — including cards without annual fees.

One example of a no-fee Mastercard with generous perks is the Brim Mastercard. It earns rewards points on everyday purchases, offers free global WiFi access and comes with travel, event ticket and mobile device insurance coverage.

Who should get a no-fee credit card?

A no-fee card may not be suitable for everyone, depending on their spending habits and financial goals, but there are some circumstances in which this type of card is a practical fit:

• You’re building your credit history. When you begin building your credit history, a card with a high annual fee may not be helpful. No-fee cards are free to carry, so they can help you focus on building your credit without having to worry about whether you’re using your card often enough to justify the annual cost.
• You don’t use your card that often. Getting a card with an annual fee makes sense if you’re able to earn more than you pay — but this tends to require more frequent use and thousands of dollars in spending. If you only anticipate using your credit card for the odd infrequent purchase, a no-fee card may be more practical.
• You’re seeking a secondary card. Maybe you’ve already got a credit card, but you want a secondary card to double down on the points-earning process. A no-fee card might be the way to go. Or, maybe you’d like a Visa to compliment your Mastercard — or vice versa. Not all merchants accept both.

Advantages of no-fee credit cards

• No annual fee. As long as you’re paying your balance in full and on time each month, it doesn’t cost you anything to have the card.
• You can keep your account open for a long time. Since it doesn’t cost anything to keep the card active, your total available credit will grow, which has a positive effect on your credit utilization — one of the biggest factors in your credit score.
• Good for emergencies. No-fee credit cards are low-cost and low-maintenance, so they make for an excellent backup credit card.
• Helps you build credit. Using your credit card responsibly will build your credit history and credit score.
• Earn rewards. You can earn points or miles that can later be redeemed for travel or merchandise.

Disadvantages of no-fee credit cards

• Limited benefits. Credit cards that charge an annual fee often have better benefits and higher reward earn rates.
• Smaller welcome bonus. No-fee cards usually have a less generous sign-up offer compared to cards with a fee.
• Can create high-interest debt. As with all credit cards, you could go into debt if you don’t manage your spending.

When is an annual fee worth paying?

Annual fees for Canadian credit cards can range from $6.95 to $699, and the cost may be worthwhile — it really all depends on your financial situation, lifestyle and spending habits.

For example: a travel credit card with an annual fee may be a practical fit if you’re often on the road and frequently purchase travel insurance — a perk offered by numerous travel rewards cards.

Or maybe it’s a cash-back credit card with an annual fee that offers bonus rewards for something you spend a lot of money on, like gas or groceries.

Essentially, a credit card’s annual fee is worth it if the amount of value (savings or rewards) you can squeeze from the card each year is higher than the amount of the fee.

How to choose a no-fee credit card

When comparing credit cards, assessing the annual fee they charge is typically important. Of course, with no-fee cards, this isn’t a concern. But that doesn’t necessarily mean they’re all the same. Here are some other things to consider when deciding between no-fee credit cards in Canada.

Interest rate

All credit cards — even no-fee cards — charge interest and those interest rates should factor into the card you choose. The no-fee cards on our list carry an average purchase interest rate of 20.2%, which is pretty standard. The average interest rate for a Canadian credit card in any category is 19.4%, but cards with lower rates exist, some under 10%. They’re rare, but they’re out there.

If you tend to carry a balance on your card, keep your eyes peeled for no-fee cards with lower interest rates — anything under 20% is a competitive rate in this category.

Welcome bonus or intro offer

Introductory offers often come in the form of special cash-back offers or extra rewards points. They’re designed to help incentivize new card applications and could be a factor worth considering as you narrow down your no-fee credit card options.

The caveat to welcome bonuses? You don’t always get the points or cash just for signing up. To nab the intro offer, you may have to spend a minimum amount within a certain time frame after opening the card, for example. The thing to note about welcome bonuses or intro offers is that they’re typically temporary, often ending after a few months.

Ongoing rewards rate

When comparing no-fee card options, take a look at what type of rewards the card will earn even after the intro offer expires — more specifically, how they’re earned and ways they can be redeemed.

Whether you earn points from affiliated travel programs or cold hard cash back on eligible purchases, you’ll want a rewards program that will encourage you to make the most of your spending.

Perhaps even more important, however, is how points are earned. One card may offer triple the points on your weekly grocery bill, while another may let you double down on your travel miles each time you book a flight with a qualifying carrier.

Credit card insurance

Some no-fee credit cards come with insurance coverage, but not all. Insurance coverage offerings may include travel insurance, event ticket protection, extended warranty and purchase security protection and more.

Insurance coverage through your no-fee credit card may not be a strict necessity if you have coverage through an independent insurer or through your employer. But it can offer added protection and peace of mind, depending on the coverage available.

How to apply for a no-fee credit card

To apply for a no-fee credit card in Canada, you’ll first need to ensure that you meet the issuer’s eligibility requirements, and then follow the typical steps to submit an application.

Eligibility requirements for a no-fee credit card

Eligibility criteria may vary, but the baseline requirements for a no-fee credit card tend to be fairly standard.

Age and residency status

You must be a Canadian resident, and you must be the age of majority in the province or territory you live in.

Credit score

All of the no-fee cards on our list require applicants to have a Canadian credit file, so if this is your first credit card, you may need to explore other options, like getting a secured credit card, instead.

Minimum credit score thresholds may also come into play, depending on the card you choose.

Personal or household income requirements

Income requirements tend to be more common among high-tier credit cards, like the HSBC World Elite Mastercard which requires a personal income of $80,000 or a household income of $150,000.

No-fee credit card income requirements tend to be much lower (if they’re required at all), like the Simplii Financial Cash Back Visa Card that requires a personal income of $15,000.

Steps to apply for a no-fee credit card

When you apply for a no-fee credit card, there’s no guarantee you’ll be approved. The credit card provider needs to assess your financial profile to determine if you’re creditworthy. The application process will typically look something like this:

1. Fill out an application. This can be done online or at your financial institution. The application will ask for some basic information, such as your name, date of birth, address, social insurance number, employer and income.
2. Your information is checked. The credit card issuer will make an inquiry on your credit report and verify the information that you provided.
3. A decision is made. If you apply online, instant approval (or disapproval) is possible, but there’s also a chance the credit card issuer will ask you to contact them to provide additional information.
4. Your card is mailed out. Your credit card will immediately be mailed out and will typically arrive within 14 business days.
5. Activate your card. Once your card arrives, you’ll need to activate it by logging into your account or calling the number on your card. Once activated, you can use your card to make purchases.

Can you get a no annual fee credit card with bad credit?

It depends on your situation.

For example, if you’re a student, some financial institutions will approve you for a no-fee student credit card even if you don’t have much credit history.

On the other hand, if you have a bad credit score due to previous financial difficulties, you may not be approved for a traditional no-fee credit card. However, you may still get another type of credit card.

You would likely still qualify for a no-fee secured credit card. These types of credit cards are similar to regular credit cards, but you need to deposit security funds. These funds act as your credit limit, but you can’t use them to pay your card balance.

About the Authors

Barry Choi

Barry Choi is a personal finance and travel expert. His website moneywehave.com is one of Canada's most trusted sites when it comes to all things related to money and travel.

Read More

Shannon Terrell

Shannon Terrell is a lead writer and spokesperson for NerdWallet, where she writes about a variety of personal finance topics. Previously, she was a writer, editor and video host for…

Read More

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