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 instrument under to check bank card choices, or maintain scrolling for our editors’ high picks.
Bank card comparability instrument
Why belief us
MoneySense is an award-winning journal, serving to Canadians navigate cash issues since 1999. Our editorial staff of skilled journalists works carefully with main private finance specialists in Canada. That can assist you discover the perfect monetary merchandise, we evaluate the choices from over 12 main establishments, together with banks, credit score unions and card issuers. Be taught extra about our promoting and trusted companions.
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 rate of interest (in comparison with different playing cards), to switch a present steadiness to a different card, to entry perks and advantages, or to set up or enhance their credit score rating. 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 objectives.
| Greatest card by class | Highlights | Particulars | Eligibility necessities |
|---|---|---|---|
| FEATURED American Categorical 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 number of the most dear and versatile journey factors out there |
Annual charge: $156
Rewards: 1 to five Membership Rewards factors per greenback Rates of interest: 21.99% on purchases, 21.99% on money advances |
Earnings: None specified
Credit score rating: 725 or larger |
Flexi Visa |
Award: Greatest low-interest bank card
Who ought to get it: Canadians who count on to hold a steadiness on their card and need to decrease the curiosity costs |
Annual charge: $0
Rewards: No rewards Rates of interest: 10.90% on purchases and 12.90% on money advances |
Earnings: None specified
Credit score rating: None specified |
| FEATURED MBNA True Line Mastercard  GO TO SITE |
Award: Greatest steadiness switch bank card
Who ought to get it: Canadians who at the moment carry a bank card steadiness and need to switch it to a card charging 0% curiosity for one 12 months |
Annual charge: $0
Rewards: No rewards Rates of interest: 24.99% on money advances, 17.99% on steadiness transfers |
Earnings: None specified
Credit score rating: 660 or larger |
American Categorical 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 providers |
Annual charge:Â $799
Rewards: 1 to 2 Membership Rewards factors per greenback Rates of interest: N/A (you will need to pay your steadiness off in full each month) |
Earnings: None specified
Credit score rating: 760 or larger |
| FEATURED Residence Belief Secured Visa (low-rate possibility)  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, resembling college students and newcomers, who need to present they’ll handle credit score nicely |
Annual charge:Â $0
Rewards: No rewards Rates of interest: 19.99% on purchases and 19.99% on money advances |
Earnings: None specified
Credit score rating: 300 or larger |
Possibility 1: Getting a rewards bank card
Rewards bank cards, like those who earn money again and journey factors, are most fitted for Canadians who use bank cards for a lot of sorts of transactions and who usually keep away from carrying a steadiness. Rewards bank cards present a return in your spending, both in money or in factors that may be redeemed for issues like flights and resort stays. Nonetheless, many rewards playing cards additionally cost an annual charge. In case you don’t count on to make use of the cardboard fairly often, or should you sometimes carry a steadiness in your card, the annual charge and/or curiosity costs might price you greater than the rewards are price. For these conditions, there are numerous good no-fee or low-interest bank card choices.
Greatest rewards bank card in Canada
At a look: The American Categorical Cobalt card impresses with a number 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 straightforward 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 charge: $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 |
| Earnings required | None specified |
| Credit score rating | 725 or larger |
| Level worth | 1 Amex Membership Rewards level = $0.01 when redeemed with the Versatile Factors Journey Program, $0.015 on common with the Fastened Factors Journey Program, and as much as $0.02 with airline factors transfers. |
Incessantly requested questions
Your choice for which bank card is finest for you and your loved ones will come down as to whether a money again or journey rewards bank card most closely 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 can earn you essentially the most rewards. For instance, should you spend loads on gasoline, then decide a card that earns you extra money again at gasoline stations. Excessive earn charges are nice, however remember that most of the high playing cards have a excessive revenue requirement.
Additionally word that some money again bank cards will solely provide you with what you’ve earned after you attain a minimal quantity or as soon as per calendar 12 months. Learn how you’ll receives a commission, and be sure to’re okay with it earlier than you apply. In case you’re contemplating a card with an annual charge, ensure that the money again you earn is price greater than the charge. If it’s not, keep on with a no-fee card.
Possibility 2: Getting a low-interest bank card
Bank cards in Canada sometimes cost about 20% curiosity on purchases and about 22% on money advances and steadiness transfers. Nonetheless, low-interest playing cards are designed to avoid wasting you cash on curiosity (and assist you repay your steadiness sooner). In case you sometimes carry a steadiness, a low-interest price card could also be a greater possibility than a perk-filled, rewards-earning possibility that costs a extra normal rate of interest.
Greatest low-interest bank card in Canada
At a look: In case you’re in search of a low-interest bank card, you received’t discover a extra aggressive buy annual proportion price (APR) than this card’s 10.90%. The cardboard’s 12.90% on money advances can be very low in comparison with the trade normal. Plus, with the Flexi Visa, you get entry to a couple perks that you just’ll usually solely discover with annual-fee bank cards.
Flexi Visa
Annual charge: $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 |
| Earnings required | Not specified |
| Credit score rating | Not specified |
Incessantly requested questions
Bank card curiosity is expressed as an annual proportion price, or APR. It’s a charge charged for borrowing cash from the bank card issuer. In case you’ve paid your bank card steadiness in full by the top of the billing cycle, you received’t be charged any curiosity. However should you carry a bank card steadiness, curiosity costs start to build up, and also you’ll proceed to pay curiosity till you pay your steadiness 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 entire price 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 price is 0.0548%.
This implies a $1,000 steadiness will incur $0.54 in curiosity costs in a single day. And the curiosity compounds each day, which signifies that the following day, assuming you don’t make any further 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 based mostly on the typical each day steadiness 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 steadiness 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 steadiness by the each day rate of interest, and multiply this complete by the variety of days within the assertion interval.
That’s why it’s finest to pay down your debt as shortly as potential. In case you don’t repay your steadiness 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 (suppose main banks) are required to supply an interest-free grace interval of at the least 21 days, which begins on the final day of your billing interval. Some issuers supply as much as 30 days. (Notice: This rule doesn’t apply to money advances or steadiness transfers.)
Possibility 3: Getting a steadiness switch bank card
Whereas some playing cards stand out for the common low buy rate of interest, there are additionally steadiness switch bank cards, which supply an extra-low rate of interest (typically 0%) for a restricted time. Stability switch playing cards are most fitted for Canadians who at the moment have a bank card steadiness and need to pay it off quicker (or just lower your expenses on curiosity costs).
Greatest steadiness switch bank card in Canada
At a look: In the case of making steadiness transfers, our decide is the MBNA True Line Mastercard, which has a 12.99% rate of interest and no annual charge. That mentioned, this bank card’s 3% steadiness switch charge is bigger than some competing playing cards, so that you would possibly need to contemplate the latter should you’re transferring a serious steadiness.Â
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MBNA True Line Mastercard
Annual charge: $0
Low rate of interest: 12.99%
Stability switch supply: earn a 0% promotional annual rate of interest (“AIR”) for 12 months on steadiness transfers accomplished inside 90 days of account opening, with a 3% switch charge. This supply isn’t out there for residents of Quebec.
Card particulars
| Rates of interest | 24.99% on money advances, 17.99% on steadiness transfers |
| Earnings required | None specified |
| Credit score rating | 660 or larger |
Possibility 4: Getting a premium bank card
A premium bank card is good for Canadians who can totally make use its perks and advantages, resembling frequent travellers and excessive spenders. These playing cards typically include many travel-related perks, resembling airport lounge entry, complete journey insurance coverage, eating and journey credit, concierge providers, and extra. Additionally they sometimes supply accelerated earn charges and beneficiant welcome presents—all of which assist offset the hefty annual charge. Total, premium playing cards are finest suited 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 offers new which means to the previous saying, “You get what you pay for.” On this case, the $799 annual charge pays for itself by means of a smorgasbord of unbelievable perks. Your journey expertise shall be remodeled with limitless airport lounge entry, partnerships at Advantageous Resort + Resorts properties and precedence therapy at Toronto Pearson Airport. The various perks—like a number of hundred {dollars} price of annual journey and eating credit, and a Nexus charge rebate—go a great distance towards offsetting the value tag.
American Categorical Platinum
Annual charge: $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 steadiness in full each month) |
| Earnings required | None |
| Credit score rating | 760 or larger |
| Anniversary bonus | $200 annual eating credit score to make use of at a curated record of Canada’s high eating places. Plus, $200 annual journey credit score when reserving by means 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 Fastened Factors Journey Program, and as much as $0.02 with airline factors transfers. |
Execs
- Credit offset the annual charge: You’ll get a $200 journey credit score every year that may be redeemed in the direction of a journey buy made by means of American Categorical Journey On-line. Spend your further annual $200 eating credit score at choose eating places all over the world, together with 100 in Canada. Â
- 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 nations, together with American Categorical Centurion Lounges, Plaza Premium and Delta Sky lounges. Cardholders might have limitless free visits and companion passes at no further price, relying on the lounge.
- Platinum Concierge service: Acquire customized help from a concierge, who could make restaurant reservations, acquire tickets to particular occasions, e-book providers for you, and extra—at no further price to you.Â
- No credit score restrict: As a result of it’s a cost card, high-volume spenders will not be restricted by a traditional credit score restrict.
Cons
- Excessive charge for approved customers: Further playing cards price $250 every yearly.Â
- 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 steadiness: Cost no matter you need to the cardboard, however as a result of it’s a cost card, you’re required to repay the steadiness in full each month
Possibility 5: Getting a secured bank card
Secured bank cards are a very good possibility for Canadians who need to set up or rebuild their credit score rating. These playing cards require a money deposit as collateral, which usually 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 usually 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, resembling newcomers and college students.
Greatest bank card for constructing credit score in Canada
At a look: What’s nice about this Residence Belief card is that you just’re given a selection: In case you’re prepared to pay a modest annual charge of $59, you’ll save on curiosity with a 14.90% buy APR. Or, should you want no charge, you’ll be charged a better rate of interest of 19.99%. We like that this card offers you the choice to decide on what works finest for you.
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Residence Belief Secured Visa
Annual charge: $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 |
| Earnings required | None specified |
| Credit score rating | 300 or larger |
How we decide the perfect playing cards
Many web sites that evaluate monetary merchandise let laptop methods make their bank card suggestions. Utilizing formulation and an inventory of information factors, they crunch the numbers and spit out an “neutral” or “unbiased” record 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 overseas transaction charges on worldwide purchases? Reply: Relies upon who you ask.
As a substitute of counting on algorithms, MoneySense editors contemplate and debate how Canadians really use bank cards. Our editors apply their bank card experience, intensive analysis within the nice print (we’ll even cellphone up the banks!) and information of Canadians’ monetary objectives to provide you with choice standards that finest mirror 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. Normally, there are solely a handful of sturdy playing cards in any given class which can be worthy of a detailed point-by-point comparability.
As soon as now we have our shortlist of playing cards, we dig into the nice print to see how they stack up on the factors 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 supplied (for steadiness switch and low-interest playing cards), or the eligibility standards (for pupil playing cards). Oftentimes, it’s a mixture of some components.Â
This focus helps us discover the merchandise which can be principally doubtless that will help you obtain your objectives. In the long run, further options and advantages are sometimes higher handled as an added bonus—not the primary purpose to get a card, however good to have anyway.
How bank cards work
Whenever you use a bank card, you’re taking out a short-term mortgage with a steadiness that comes due each month. As you pay down your steadiness, 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 numerous methods you need to use a bank card. For instance, many playing cards can be utilized for purchases, for steadiness transfers and/or money advances. As helpful as they’re, it’s essential to grasp the right way to use bank cards responsibly to keep away from falling into monetary bother.
What are the benefits of utilizing a bank card?
One of many main advantages of a bank card is comfort. You may merely pay on your buy figuring out you can be billed for the excellent steadiness the next month—no want to hold money in your pockets, plus you may store on-line.
Different advantages embody the power to accrue rewards and factors—resembling money again or journey factors—based mostly 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 supplied by means of the bank card firm’s on-line rewards catalogue.
Bank cards may also assist you 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 inexpensive rate of interest from a monetary establishment.
