The best credit cards in Canada for November 2023

Ratehub.ca's take

If you’re looking for a well-rounded, lucrative rewards card that’s just as great for everyday spending as it is for travel, the American Express Cobalt has got you covered. Cardholders can take advantage of the strong travel insurance, impressive welcome bonus and flexible point redemption options. 

Offering an industry-leading five times the points (valued at $0.01 per dollar) on eligible restaurants, bars, groceries, and food delivery purchases, three times the points on eligible streaming services, and twice the points on rides shares, daily transit, and gas, the American Express Cobalt easily takes our prize for best overall travel credit card in Canada. Aside from that, the card’s welcome bonus gives new users the ability to earn 1,250 points for each month you spend $750, up to a maximum of 15,000 points.

Pros

• Great welcome bonus - earn 1,250 points for each month you spend $750, up to a maximum of 15,000 points.
• Flexible and easy point redemption, allowing cardholders to redeem their Membership Rewards for travel, gift cards, merchandise, or purchases. Frequent flyers can also transfer their points 1:1 to several loyalty programs. 
• Earning potential for restaurants and takeout is significantly higher than most other cards
• Access to Front of the Line Presale and Reserved tickets to concerts, theater performances, movie screenings, and culinary events, along with other special offers
• Strong travel insurance package including up to $5,000,000 in travel emergency medical 
• No fee for additional authorized users (an average fee of $30 - 50 on other comparable cards) 

Cons

• Monthly fee of $12.99 (coming to an annual fee of $156, which is higher than most other rewards cards) 
• American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
• Travel insurance package does not cover trip cancellation or medical coverage for cardholders over the age of 65
• Airport lounge access isn’t provided, which may be disappointing to frequent travels

Ratehub.ca's take

The Scotiabank Passport Visa Infinite card is the best credit card for traveling as it is one of few cards waiving foreign transaction fees (a saving of 2.5% on all foreign currency) in addition to valuable travel benefits like comprehensive travel insurance, airport lounge access worldwide (with 6 free visits per year), and the ability to redeem your Scene+ points for travel.

Pros

• One of the few Canadian credit cards to offer no foreign transaction fees (saving you 2.5% on all your purchases made in a non-Canadian currency)
• Earns three Scene+ points for every dollar spent at participating grocery stores like Sobey's, IGA, and FreshCo, among others; two Scene+ points for every dollar spent on eligible grocery, dining, entertainment and daily transit purchases
• Great welcome offer - earn up to $1,100+ in value in the first 12 months, including up to 35,000 bonus Scene+ points. Offer ends January 3, 2024.
• Flexible point redemption
• Priority Pass membership with six free visits per year to over 1,200 lounges worldwide
• Access to the Visa Infinite Luxury Hotel Collection and Visa Infinite Dining series
• Complimentary Avis Preferred Plus membership
• Comprehensive travel insurance including coverage for emergency medical, trip cancellation/interruption, and flight delay, among others

Cons

• Annual fee of $150 is higher than the average for cards of this calibre
• Much lower return than other cards with comparable annual fees

Ratehub.ca's take

The Scotiabank Gold American Express Card has a best in class return on spending due to the 5 times multiplier for every $1 spent on groceries, restaurants, food delivery and entertainment and 3 times multiplier on gas and transit. This adds up to a ton of points on your everyday purchases. On top of that, cardholders will not have to pay a foreign transaction fee on foreign currency purchases and have access to a cohesive travel insurance package. The Scotiabank Gold American Express card is a great travel companion offering significant savings. 

Pros 

• No foreign exchange fee on any foreign currency purchases while traveling abroad or shopping online (typically a 2.5% fee)
• Extensive insurance coverage - The $1 million travel medical insurance lasts for 25 days, which is one of the longer coverage periods you’ll get. 
• High average % return on spending (5 points per $1 on purchases) - best in class multipliers across groceries, restaurants, entertainment, gas and transit
• Great welcome bonus with the opportunity to earn up to $650 in value in the first 12 months, including up to 40,000 bonus Scene+ points. Must apply by July 1, 2024.
• Access to VIP airport lounges and around the clock concierge services 

Cons

• American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
• Annual Fee $120

Ratehub.ca's take

The biggest selling point of the CIBC Dividend Visa Infinite is its impressive rewards on everyday essentials. On top of the 1% earn rate for all purchases, this card earns an industry-leading 4% cash back on both groceries, and gas purchases – two of the most common spending categories for Canadian households. Thanks to CIBC’s new Cash Back on demand feature, cardholders can choose to redeem rewards at any time as a statement credit starting in increments of $25. 

Pros

• Significantly higher earn rates on groceries, EV charging, and gas than most other cards (4% cash back)
• Flexible cash back redemption option allowing users to redeem their cash back at any time in increments of $25
• Access to CIBC’s Pace It program, allowing you to pay off large purchases in monthly increments
• Features a digital-only welcome bonus, where new users who apply online can earn 10% cash back welcome bonus of up to $200 (first 4 statements). Offer not available to QC residents. Terms and conditions apply.
• Access to the Visa Infinite Program, entitling you to attend special dining events and hotel perks at participating hotels and restaurants

Cons

• Annual fee ($120) and personal income requirements ($60,0000) may be prohibitive
• Insurance coverage isn’t as comprehensive as other similar rewards cards (if insurance is a priority for you, consider the cards featured on our list of Best credit cards for travel insurance)

Ratehub.ca's take

While the fact that the Tangerine Money-Back Credit Card is a no annual fee card is a big reason behind its popularity, what really sets this card apart its customizability. With this card, you can choose your own bonus categories (which will earn you a strong cash back rate of 2% per dollar spent). This is rare in the credit card market and means you can avoid being locked into a bonus category that you can’t take full advantage of or that doesn’t align with your spending habits. On top of that, your cash back is refunded on a monthly basis (instead of the standard annual reimbursement). 

Pros

• Flexibility to pick up to three bonus categories to earn 2% cash back on (out of a total of 10 options), which is in sharp contrast to most other cards where you have fixed bonus categories that you have no control over
• 2% cash back per dollar on bonus categories is one of the richest earn rates for a nofee card
• Freedom to change up your bonus categories at any time (changes will take up to 90 days to come into effect)
• Widely accepted almost everywhere including No Frills and Costco as it is a Mastercard credit card
• Extended warranty and purchase protection
• Free supplementary cards for authorized users

Cons

• For all purchases that aren’t categorized under one of your chosen bonus categories, you’ll earn just 0.5% cash back
• No travel medical insurance or any substantial side perks

Ratehub.ca's take

In the Venn diagram of features most sought after by those looking to minimize their credit card debt, the MBNA True Line Mastercard has some considerable overlap. The card has no annual fee and a below-average purchase interest rate of 12.99% on purchases and balance transfers. 

Pros

• The low interest rate of 12.99% is fixed and won’t change regardless of your credit rating, income, or the bank’s prime lending rate
• No annual fee and no income requirements to qualify making it very accessible
• Promotional balance transfer of 0% is available for a full year helping pay down or eliminate credit card debt, with a 3% balance transfer fee

Cons

• Does not include insurance or other benefits
• Offer not available to residents of Quebec

Ratehub.ca's take

Having the distinction of being the only secured card on the market to offer cash back rewards, the Neo Card (Secured) offers 5% cash back on purchases made with participating Neo partners and 1% on everything else (up to a $5000 limit per month).  

There’s no annual fee to pay, and its minimum security deposit of only $50 makes it quite possibly the most accessible card on this list. Other great features include the ability to increase or decrease your credit limit on demand, an insights dashboard through their app which you can use to track spending, and an auto-pay feature to ensure you never miss a bill while you’re trying to get your credit on track. 

The only visible drawback here is their purchase interest rate. While its low end sits comfortably at a standard 19.99%, it can reach as high as 26.99% depending on your credit application and province, so read the fine print on your contract and make sure you’re getting a rate you can live with.

Pros

• No annual fee
• Only secured card on the market with cash back rewards - earn 5% on store purchases with Neo retail partners and 1% on everything else
• Increase or decrease your credit limit on demand
• Insights dashboard helps you keep track of your spending
• Auto-pay feature keeps you from missing bills
• Very low minimum security deposit of $50
• No hard credit check, excluding Quebec applicants (hard credit inquiries may have a negative impact on your credit score)

Cons

• Purchase interest rate can go as high as 26.99% depending on your application and home province

Ratehub.ca's take

When it comes to extra perks, the American Express Platinum Card is in a class all its own and is very easily classified as the best premium credit card in Canada. While its annual fee isn't cheap, the American Express Platinum Card offers all the bells and whistles and benefits that makes it worthwhile. Aside from its point value (three points per dollar on eligible dining/food delivery in Canada, two points per dollar on travel, and one point per dollar on everything else), this card comes packed with tons of extra benefits, including complimentary airport lounge access with unlimited passes to Priority Pass and Centurion lounges, a dedicated concierge line, an annual $200 travel credit, hotel upgrades and Platinum Concierge services, one of the best travel insurance packages on the market, and that your cash back is refunded on a monthly basis (instead of the standard annual reimbursement). 

Pros

• Very lucrative welcome bonus - earn up to 100,000 rewards points ($1,000 value). Conditions apply.
• 2x points on eligible dining and food delivery in Canada (which will come in handy when traveling domestically) and 2x points on travel purchases
• No minimum income requirement - a rarity for a card of this calibre
• Lounge access - unlimited free access for you and one guest to over 1,200 airport lounges as part of the American Express Global lounge collection 
• VIP benefits at Toronto Pearson Airport including access to Pearson Priority Security Lande, free valet parking (usually a $25 fee), and 15% discount on parking as a statement credit
• Upgraded gold hotel status with Marriott Bonvoy, Radisson Rewards, and Hilton Honors and car rental privileges with Hertz and Avis 
• Transfer point 1:1 to several frequent flyer programs
• One of the best travel insurance packages on the market, including everything from out-of-province emergency medical to $500,000 travel accident insurance and beyond

Cons

• A very high annual fee of $799, which can be seen as $599 after the annual $200 travel credit
• American Express isn’t as widely accepted in Canada compared to Visa and Mastercard

The Scotiabank Passport Visa Infinite was the first credit card from one of Canada’s major banks to eliminate foreign transaction fees. 

Pros

• No foreign transaction fees: Saving you money when you travel abroad or make any international online purchases
• Enticing welcome offer: earn up to $1,100+ in value in the first 12 months, including up to 35,000 bonus Scene+ points. Offer ends January 3, 2024. 
• Robust travel insurance: Benefit from a strong travel insurance package to enhance your travel experience 
• Competitive reward program: Earn 3 Scotia points per $1 at participating grocery stores like Sobey's, IGA, and Freshco (among others), 2 Scotia points per $1 spent on groceries, restaurants, entertainment, and daily transit (including taxis), and 1 point per $1 on everything else
• Flexible redemption: Enjoy flexible point redemption including flight purchases on any airline with no blackout dates
• Exclusive offers:  Enjoy 25% off car rentals at participating Avis locations – a perk that is offered to all Scotiabank credit card holders.

Ratehub.ca's take

The Scotiabank Gold American Express Card is ranked as the best credit card for travel insurance in addition to the best overall travel credit card. The Scotiabank Gold American Express card is a great travel companion offering significant savings.

Pros 

• No foreign exchange fee on any foreign currency purchases while traveling abroad or shopping online (typically a 2.5% fee)
• Extensive insurance coverage - The $1 million travel medical insurance lasts for 25 days, which is one of the longer coverage periods you’ll get. 
• High average % return on spending (5 points per $1 on purchases) - best in class multipliers across groceries, restaurants, entertainment, gas and transit
• Great welcome bonus with the opportunity to earn up to $650 in value in the first 12 months, including up to 40,000 bonus Scene+ points. Must apply by July 1, 2024.
• Access to VIP airport lounges and around the clock concierge services 

Travel insurance details

• Travel emergency medical: up to $1 million for up to 25 consecutive days (3 days for age 65+)
• Travel accident: $500,000 per person/ $1 million per occurrence
• Trip interruption: $1,500 per person, up to $10,000
• Trip cancellation: 1,500 per person, up to $10,000
• Flight delay: $500 per person
• Baggage delay: $1,000 if baggage is delayed by more than 4 hours 
• Lost or stolen baggage: $1,000 per trip
• Hotel burglary: $1,000
• Rental car theft or damage: up to $65,000 for rentals of 48 days or less

These travel insurance benefits are applicable when the partial or full cost of transportation is charged to your Scotiabank Gold American Express Card. 

The travel insurance included with the Scotiabank Gold American Express is above average. The $1 million travel medical insurance lasts for 25 days, which is one of the longer coverage periods you’ll get. Your insurance also includes hotel burglary insurance up to $1,000 per person for accommodations booked in Canada and the US.

See full insurance details for the Scotiabank Gold American Express here.

Ratehub.ca's take

The BMO CashBack Mastercard - Student is a no annual fee rewards credit card that offers particularly strong returns on everyday essentials from grocery stores and supermarkets. It earns 3% cash back on the first $500 you spend on groceries every month and 1% on recurring bills up to $500 every month (0.5% cash back after that). For all your other everyday purchases, you’ll net 0.5% cash back without limits. This credit card has the trio of features that most appeal to students: 1. no annual fees 2. the ability to earn straightforward rewards, and 3. no income requirement.

Pros

• No annual fee
• 3% cash back on groceries makes it one of the best no fee cards to own for that spending category
• Great welcome offer - Welcome offer: Get 5% cash back in your first 3 months
• No income requirement - perfect for students on a fixed income
• Cash back system is more straightforward than points
• Redeem cash back for as little as $1 at a time
• Purchase and extended warranty protection and discounts on rental cars from eligible National and Alamo agency locations

Cons

• 1% cash back rate on recurring bills and 0.5% on everything else isn’t particularly compelling
• Bonus categories each have a monthly cap of $500 (but reset monthly)

The Scotiabank Passport Visa Infinite card is the best credit card for traveling as it is one of few cards waiving foreign transaction fees (a saving of 2.5% on all foreign currency) in addition to valuable travel benefits like comprehensive travel insurance, airport lounge access worldwide (with 6 free visits per year), and the ability to redeem your Scene+ points for travel. 

Pros

• Lounge access: Priority Pass membership with six free visits per year to over 1,200 lounges worldwide

• No foreign transaction fees: Saving you money when you travel abroad or make any international online purchases
• Robust travel insurance: Benefit from a strong travel insurance package to enhance your travel experience 
• Competitive reward program: Earn 3 Scotia points per $1 at participating grocery stores like Sobey's, IGA, and Freshco (among others), 2 Scotia points per $1 spent on groceries, restaurants, entertainment, and daily transit (including taxis), and 1 point per $1 on everything else
• Flexible redemption: Enjoy flexible point redemption including flight purchases on any airline with no blackout dates
• Exclusive offers:  Enjoy 25% off car rentals at participating Avis locations – a perk that is offered to all Scotiabank credit card holders.

The American Express Business Edge Card should be any business owners go to credit card to earn great rewards on monthly office expenses. Cardholders can earn 3 points per dollar on restaurants, gas, transit, office supplies, and electronics and 1 point per dollar on all other purchases. 

Pros

• Generous welcome offer: earn up to 67,000 welcome bonus Membership Rewards points.
• Healthy earn rate on everyday business spending
• Includes insurance from travel insurance to purchase protection
• A maximum of 99 additional employee cards can be added to the primary cardholder account, which is considerably higher than other business credit cards

Ratehub.ca's take

The biggest selling point of the CIBC Dividend® Visa Infinite* is its impressive rewards on everyday essentials making it the best credit card in Canada for gas and groceries. On top of the 1% earn rate for all purchases, this card earns an industry-leading 4% cash back on both groceries and gas purchases – two of the most common spending categories for Canadian households. Thanks to CIBC’s new Cash Back on demand feature, cardholders can choose to redeem rewards at any time as a statement credit starting in increments of $25. 

Pros

• Significantly higher earn rates on groceries and gas than most other cards (4% cash back)
• Flexible cash back redemption option allowing users to redeem their cash back at any time in increments of $25
• Access to CIBC’s Pace It program, allowing you to pay off large purchases in monthly increments
• Features an excellent digital-only welcome bonus, where new users who apply online can earn 10% cash back welcome bonus of up to $200 (first 4 statements). Offer not available to QC residents. Terms and conditions apply.
• Access to the Visa Infinite Program, entitling you to attend special dining events and hotel perks at participating hotels and restaurants

Cons

• Annual fee ($120) and personal income requirements ($60,0000) may be prohibitive
• Insurance coverage isn’t as comprehensive as other similar rewards cards (if insurance is a priority for you, consider the cards featured on our list of Best credit cards for travel insurance)

Ratehub.ca's take

The Marriott Bonvoy American Express Card is specifically made for hotel rewards, making it an excellent card for frequent travellers and one of the best hotel rewards credit cards in Canada. With this card, you’ll earn five Bonvoy points for every $1 spent on eligible card purchases at hotels participating in the Marriott Bonvoy® program, and two Bonvoy points per dollar on all other card purchases. Points can be redeemed for free nights at more than two dozen hotel brands including Marriott, Starwood Hotels and Resorts, W Hotels, St. Regis, Ritz Carlton, Sheraton, and Delta.

Pros

• More than 7,000 hotels worldwide under this loyalty program
• Annual free night’s accommodation at any Marriott Bonvoy hotel 
• Complementary Marriott Bonvoy Silver Elite status

Cons

• Does not include travel emergency medical insurance within the insurance package

Ratehub.ca's take

Aeroplan clients and frequent Air Canada fliers searching for a card to help them earn more on travel should look no further than the TD Aeroplan Visa Infinite. Users can earn 1.5 points for every dollar spent on eligible gas, grocery, and direct through Air Canada purchases (including Air Canada Vacations) and 1 point per dollar on everything else. The card also includes both a welcome and anniversary bonus: 

Welcome bonus: earn up to 35,000 Aeroplan points. Conditions apply. Account must be approved by January 3, 2024.

Anniversary bonus: earn 15,000 Aeroplan points. Conditions apply. Account must be approved by January 3, 2024.

Pros

• Aeroplan points can be redeemed for flights on Air Canada or over 27 Star Alliance member airlines (including United Airlines and Lufthansa, to name a few)
• Access to Air Canada perks: first bag checked free on Air Canada flights for the primary cardholder and up to eight travel companions (up to $30 in savings per traveler on flights across Canada and the US) plus the ability to earn credits towards achieving elite airline status
• Up to $100 in Nexus Membership reimbursements available every 48 months; allowing for smoother cross-border travel within Canada or between the US
• Comprehensive travel insurance benefits with up to 21 days of out-of-province/country medical emergency coverage, flight delay insurance, lost/delayed baggage insurance, and even hotel/motel burglary insurance for stays within the US and Canada
• Can get double the Aeroplan points when using this card in conjunction with your Aeroplan card at participating retailers

Cons

• The card’s annual fee is $139 versus the $120 typically found on comparable rewards cards
• The Aeroplan points program isn’t the most straightforward, and navigating your way around the program’s quite elaborate rewards chart / understanding how to best maximize points can require considerable effort
• Aeroplan points can’t be redeemed on any airline but only on Air Canada and Star Alliance Members

Ratehub.ca's take

If you’re looking for a well-rounded, lucrative rewards card that’s just as great for everyday spending as it is for travel, the American Express Cobalt has got you covered. Cardholders can take advantage of the strong travel insurance, impressive welcome bonus, and flexible point redemption options. 

Offering an industry-leading five times the points (valued at $0.01 per dollar) on eligible restaurants and food delivery purchases, three times the points on eligible streaming services, and twice the points on travel and daily transit, the American Express Cobalt easily takes our prize for best overall travel credit card in Canada. Aside from that, the card’s welcome bonus gives new users the ability to earn 1,250 points for each month you spend $750, up to a maximum of 15,000 points.

Pros

• Great welcome bonus - earn 1,250 points for each month you spend $750, up to a maximum of 15,000 points.
• Flexible and easy point redemption, allowing cardholders to redeem their Membership Rewards for travel, gift cards, merchandise, or purchases. Frequent flyers can also transfer their points 1:1 to several loyalty programs. 
• Earning potential for restaurants and takeout is significantly higher than most other cards
• Access to Front of the Line Presale and Reserved tickets to concerts, theater performances, movie screenings, and culinary events, along with other special offers
• Strong travel insurance package including up to $5,000,000 in travel emergency medical 
• No fee for additional authorized users (an average fee of $30 - 50 on other comparable cards) 

Cons

• Monthly fee of $12.99 (coming to an annual fee of $156, which is higher than most other rewards cards) 
• American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
• Travel insurance package does not cover trip cancellation or medical coverage for cardholders over the age of 65
• Airport lounge access isn’t provided, which may be disappointing to frequent travels

Types of credit cards

1. Rewards cards

Rewards cards are the most popular type of credit card, and for good reason: these cards allow you to collect points or cash back with every dollar you spend. Depending on the card and provider, you can redeem these rewards for travel, statement balances, future purchases, and more. But let's take a deeper look into which cards fall under the "rewards" umbrella.

• Travel: Travel rewards cards are perfect for frequent flyers, as the points you earn by using the card can be redeemed for big discounts on flights and accommodations. These cards also frequently come equipped with thorough travel insurance coverage as well as fancy perks such as VIP airport lounge access, complimentary checked baggage, priority security lines, and hotel room upgrades. Some even feature no foreign transaction fees, allowing you to use the card abroad without having to pay an extra fee for purchases in foreign currency.
• Cash back: Another popular rewards card option is the cash back credit card. Unlike cards that offer points, cash back cards earn you different percentages back on specific spending categories such as gas and groceries (or, in the case of some cards, one flat rate across the board). Cash back rewards are also pretty straightforward: users can typically log into their account online and see their rewards total in dollars and cents. Cash back rewards are typically redeemed for statement balances, but some cards offer other options such as gift cards or savings account deposits.
• Retail: For loyal customers of certain retailers, getting a retail rewards card could be a smart choice. These cards often boast accelerated points or cash back when you use the card at their partnered stores, allowing you to get the most out of your regular shopping trips. While these cards aren't super useful in the outside world, those who regularly visit these retailers can net big rewards over time, leading to savings on future purchases.

2. Low-interest and balance transfers cards

While it's not recommended, those who tend to carry a balance on their account from month to month would benefit from a low-interest credit card. The interest rates on your card may not seem like much at first, but allowing them to creep in month after month will take a toll on your credit card balance and credit score. That's why owning a low-interest credit card would be beneficial - if you're taking the risk of accumulating interest, you'll suffer less potential damage with a lower rate. Low interest credit cards in Canada offer rates as low as 8.99% to 14.99%, but keep in mind that rewards and perks on these cards are minimal to non-existent.

For those attempting to overcome credit card debt, a balance transfer card could be the ticket back to healthy credit. Essentially, users with debt can offload a percentage (or the entirety) of what they owe onto the card, most of which offer introductory interest rates as low as 0% for a specific period of time (usually 6-12 months). If you've got a solid repayment plan and can eradicate your debt in that window, a balance transfer card can allow you to do so much quicker without the added stress of additional interest in your way. They will charge a balance transfer fee (usually around 3% of the total you're transferring), but the benefit of much lower (or zero) interest is generally worth it.

3. Secured credit cards

Secured credit cards are perfect for newcomers to Canada, students just starting their credit journey, or users trying to rebuild their credit after suffering a financial loss such as bankruptcy. These cards require an upfront security deposit to activate, and your credit limit on the card will be the same amount. While you can generally deposit as much as you'd like, there are usually minimums (anywhere from $50 to $500) and maximums (around $10,000) set in place by your provider. 

This security deposit acts as a kind of collateral for the issuer in case of missed or late payments, and it's why secured credit cards are incredibly easy to be approved for. The most important thing about secured credit cards, however, is that they report your payments to Canada's credit bureaus. This is imperative to building credit, as these organizations track your credit behaviour and assign you a score that will determine your ability to be approved for future credit cards, mortgages, lines of credit, and more. If you use a secured credit card consistently and responsibly, you'll eventually build your score and graduate to a non-secured credit card, closing down your secured account in good standing and receiving your deposit back in full.

What to look for in a credit card

Shopping around for the right credit card can be overwhelming. There's a lot of information to consider, and you don't want to get stuck with something less-than-ideal. Thankfully, there are a handful of major features you'll always want to look at when making a decision. Here are a few things to look out for when assessing credit cards in Canada:

1. Annual fee: Arguably, the first thing to look at when considering a credit card is the annual fee. This can vary card-by-card (some don't have one at all), but generally the more rewards and perks a card offers, the higher its fee will be. If you're in a higher income bracket, the bells and whistles of a top-tier rewards card may be worth the substantial yearly charge. For others, however, an annual fee can eat into your cash back or points, making your eventual savings much less than they should be. Plus, it's one more bill you'll have to pay. If you're on a fixed income or don't plan on using your card much, you may be better off with a no fee credit card.

2. Interest rate: If you're someone who tends to keep a balance from month to month, you'll want to look at the interest rate of a credit card before you apply. This is a percentage of your total statement that will be charged on top of your principal owed if you don't pay your bill in full and on time. Most cards carry an interest rate of around 19.99-22.99%, but if that's a concern for you, look into low interest credit cards instead. These cards have lower standard interest rates, and sometimes will offer promotional rates of zero to ultra-low interest for a specific window of time.

3. Rewards: One of the biggest reasons why people apply for credit cards is the ability to earn and collect rewards. Whether it's in the form of cash back, points, or miles, users can redeem them for travel, merchandise, statement credits, and more (depending on the card and provider). When considering what types of rewards are best for you, think about your lifestyle and spending habits. If you're a frequent traveller, a travel card that rewards you for purchasing flights and hotel rooms could make your life a lot easier. On the other hand, if you mostly intend to use your card for regular errands like groceries and gas, an everyday cash back card with high earning potential in those categories would probably suit you best.

4. Welcome offers and incentives: Most credit cards offer signup incentives designed to entice new customers. These can range from a waived annual fee for the first year, accelerated rewards for a limited time, and an ultra-low promotional interest rate, among other things. Shop around and compare welcome offers to see which one offers the best value. Taking advantage of the right promotion at the right time could net you some serious savings. One thing to keep in mind, however, is that signup offers and promotions don't last forever. Eventually, the card's typical annual fee, interest rate, and reward system will kick in, so make sure you are going to be alright with those before signing up. 

5. Eligibility: Getting rejected for a credit card can not only hurt your pride but your credit score, too. That's why it is important to have a good idea of your eligibility for a card before applying. Pay attention to the card's minimum income requirement and make sure you meet or exceed it. Also, make sure your credit is in good standing. To find out which cards you'll be most likely to get approved for before applying, use our handy credit card CardFinder and eligibility checker.

Everyone's needs are different, so view the elements above in terms of what most benefits you and what you can afford. 

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