The best credit cards in Canada for 2023

Q: Why should I get a credit card?

Owning even one credit card responsibly helps build credit and increase your credit score over time, signalling to potential lenders that you are reliable and trustworthy. Credit is important for major purchases such as cars and homes. Credit cards can also earn you money on purchases and offer added bonuses such as travel points and insurance.

The best credit cards in Canada for 2023

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How to choose the best credit card - frequently asked questions

Why should I get a credit card?

How do I apply for a credit card?

New to credit cards and wondering how to begin your application process? Here's a few things to know:

Know your eligibility

Knowing whether you're eligible (or how likely you are to be approved) for certain cards is essential before beginning to apply. Getting rejected for a credit card can do harm to your credit score, and repeated rejections can inflict some serious damage, so it's best to have a good idea going in of whether or not your application will be accepted.

Pay special attention to a card's minimum income requirement (if there is one) and make sure your current income meets or exceeds it before choosing to apply. It's also a good idea to be aware of your credit history and score, as these factors will also affect how likely you will be to get approved for certain cards.

In the event that you don't meet the income or credit requirements for your chosen card, don't despair just yet: there are plenty of options available if you're on a fixed income or looking to rebuild your credit. If you're someone trying to build or fix your credit, look into applying for a balance transfer credit card or secured credit card. Both have an easy approval process and are great ways to get your credit on the right track.

Use our new eligibility checker tool to quickly discover in minutes whether you're eligible for a card or not, or contact a Canadian credit bureau (such as TransUnion) and request a copy of your credit report. This report outlines your bill payment history (as well as other information) and will tell you your credit score, a number which lenders use to decide whether you are a reliable user of credit. Knowing where your credit stands will help you narrow down your card choices to ones you're likely to be approved for

Know what you're looking for

Everyone has different needs when it comes to credit cards. For frequent travellers, a credit card with a travel points system can help them save money on flights and accommodations. For those who use their card for everyday items like gas and groceries, a category-specific cash back card with a great earn rate can make their lives much easier.

Think about your spending habits and what you ultimately want this card to do for you. It may even help to make a short list of your must-haves all the way down to the "would be nice, but not essential" type of features. This will help you choose a card that's the right fit.

Apply for your new credit card

When you've found the perfect card for you, it's time to apply! You can easily do this online by following the instructions provided on your financial institution's website. Typically, you should find out if you’ve been approved in 5-7 days, although in some cases it may take up to 30. If you’ve applied online, instant-approval cards (such as the PC Mastercard or Amex Cobalt) will tell you immediately if you’ve been approved, but you’ll still have to wait 5-7 days for your card to arrive.

How do I choose the best credit card?

What you'll be looking for in a credit card really depends on your individual needs as a user, but in general, make sure you pay attention to these elements:

Interest rate

Owning a credit card with a high interest rate can severely damage your credit and put you into debt if you're not careful, so it's best to look for one with a low to average percentage of interest, especially when it comes to purchases. Most non-secured cards have a purchase interest rate of around 19.99%, but each varies by provider and card type.

Annual fees

For some, owning a high-powered credit card with lots of rewards and perks is worth the high monthly fees attached, but others much prefer paying less (or nothing) every month in exchange for more moderate rewards. Which type of user you are is up to you, but it's important to remember that the more bells and whistles a card offers, the higher it's fees are going to be.

Rewards or points offered

Everyone likes earning rewards on their purchases, but make sure that those offered by your chosen card are both competitive and in-line with your buying habits. Many cards offer "accelerated" rewards categories (such as gas, groceries, or travel), meaning you'll earn more cash back or points than usual when you spend in those areas. Pay close attention to which accelerated categories each card offers and make sure they match the types of purchases you plan on making, then compare them to the rewards offered by other cards in the same categories.

Signup bonuses or 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, or an ultra-low promotional interest rate, among others 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 bonuses 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're going to be alright with those before signing up.

Eligibility

Getting rejected for a credit card can not only hurt your pride, but your credit score, too. That's why it's 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 eligibility checker.

Everyone’s needs are different, so view the elements above in terms of what would most benefit you/what you can afford.

What is the best credit card to rebuild credit?

If you’re looking to rebuild credit, the best card to get is a secured credit card. Your approval is guaranteed, but a security deposit is required to ensure bill payment. These cards are an excellent way to strengthen your credit, and if you continue to use it responsibly, your issuer will typically return your deposit and offer you an unsecured card within 12-18 months.

What is the best credit card for foreign transactions?

If you're planning on using your card for foreign transactions, whether travelling abroad or simply online shopping in a foreign currency, a credit card with no foreign transaction fees is a necessity.

Our top pick is the Scotiabank Passport Visa Infinite. Aside from the main draw (the aforementioned zero foreign transaction fees), you'll earn two points per dollar across most major spending categories and be eligible for a generous welcome offer. The card also comes with a comprehensive insurance package to make sure you're protected while travelling.

What is the best credit card for students?

When it comes to student credit cards, our top pick is the BMO CashBack Mastercard.

For students new to credit, this card ticks all the boxes: it has no annual fee or income requirement, a 3% cashback return on grocery purchases (up to $500 per month), plus an additional 4.5% cashback (up to $1,500) over the first three billing cycles. The cash back reward system is straight forward and redemption is flexible and easy, offering students the ability to cash in their rewards in increments as small as one dollar whenever they'd like.

What is the best cash back credit card?

Our top picks for cash back credit cards are the CIBC Dividend Visa Infinite and the Scotiabank Momentum Visa Infinite.

The CIBC Dividend Visa Infinite's biggest asset is its industry-leading quadruple cash back on grocery and gas, two of the most common credit card spending categories. On top of that, however, you'll also get an impressive 2% cash back on dining/food delivery, public transit, and recurring bills. The only downside? It carries an annual fee of $120 and a minimum income requirement of $60,000.

Similar to the CIBC Dividend Visa Infinite credit card, the Scotiabank Momentum Visa Infinite card offers impressive rewards on everyday purchases. This card earns 4% back on groceries, recurring bill payments, and subscriptions like Netflix, 2% on gas, local transit and transportation costs and 1% on everything else.

What is the best credit card for travel?

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 and is considered to be the best overall travel credit card in Canada. Cardholders can take advantage of the strong travel insurance, impressive welcome bonus and flexible point redemption options.

The Scotiabank Passport Visa Infinite card is one of the best credit card in Canada 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.

For hotel stays, the Marriott Bonvoy American Express Card offers excellent rewards and benefits to help you save on accommodations at over two dozen hotel brands including Marriott, Starwood Hotels and Resorts, W Hotels, St. Regis, Ritz Carlton, Sheraton and Delta.

How many credit cards should I have?

There's generally no "right" answer to this question, as it largely depends on your income level, credit card usage/behaviour, and credit experience.

For instance, someone who has a long history of responsible credit card ownership can probably handle three or four different cards (as well as their associated bills) as they've most likely developed good credit habits and a strategy for maximizing each card's value. Alternately, someone new to credit card ownership (or with a history of acquiring interest and debt) would be wise to not extend themselves beyond one card, as they could quickly find themselves in over their head.

If you're wondering whether you can handle multiple credit cards, a general rule of thumb is to stick with one for the first six months. If you're still paying all your bills on time and managing it well, you're probably ready for a second card.

Because it's incredibly rare (if impossible) to find one credit card with accelerated cash back or point values across every spending category, owning multiple cards for different purposes can be a great strategy to earn and save. For instance, your high-tier travel rewards card may yield big points on flights and hotels, but fall short on everyday purchases like gas and groceries. If that's the case, find a credit card that offers high cash back rates in those specific areas to use for your regular shopping trips. Used in tandem, you'll get the best of both.

Another benefit? It's great for your credit score and history, as it shows lenders you're an avid user of credit who doesn't abuse the privilege. This makes them more inclined to approve you for mortgages, personal loans, and other credit cards in the future.

How does credit card interest work?

Credit card providers charge interest in the event of late or unpaid statements (usually around 19-20% of the outstanding balance). This extra amount is tacked on to the principal total you owe, and it will continue to compound and grow the longer your debt goes unpaid. In extreme cases, this can make it nearly impossible for users to pay off their original balance, as it's buried underneath layers of interest upon interest. This is why it's imperative to pay off your monthly statements on time and in full.

What credit score do I need to get a credit card?

While you'd need a good-to-excellent credit score to be approved for most credit cards, there are plenty of options out there for credit scores of all types (or those with no credit at all). Low-interest/balance transfer cards don't typically require a high credit score as they're designed for those looking to rebuild their credit. In addition, prepaid or secured credit cards don't require credit checks at all and will approve users instantly.

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Best credit card per category

Natasha Macmillan, Business Unit Director - Everyday Banking

March 29, 2023

Every year, Ratehub.ca rounds up the best credit cards in the country to help Canadians wade through the financial weeds to find the card most suited to their spending habits and lifestyle.

Like clothing, credit cards aren’t one-size-fits-all. We’ve said this before — the best one for you depends on your financial situation and may be one earns you rewards for travel or merchandise, saves you money via a low interest rate or puts cash right back into your wallet.

Best overall travel credit card

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 2,500 points for each month you spend $500, up to a maximum of 30,000 points.

Pros

Great welcome bonus - earn 2,500 points for each month you spend $500, up to a maximum of 30,000 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

Honourable mention for best overall travel credit card

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 $850 in value in the first 12 months, including up to 45,000 bonus Scene+ points. Must apply by April 30, 2023.
Access to VIP airport lounges and around the clock concierge services

Cons

Points will expire if they are not used with 12 months of the purchase date
American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
Annual Fee $120

Best overall cash back credit card

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 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 15% cash back welcome bonus of up to $300 (first 4 statements).
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)

Honourable mention for best overall cash back credit card

Ratehub.ca's take

Pros

Significantly higher earn rates on groceries and gas than most other cards (4% cash back)
Strong insurance coverage which typically is reserved for travel credit cards
Annual fee is waived for the first year

Cons

Limit of an annual total spend of $25,000 on the 4% and 2% spending categories; where after the earn rate drops to 1%
Cash back reward is only offered as a statement credit once per year in November and cannot be redeemed in smaller amounts or any other time of year

Best low interest credit card

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

Cons

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

Best balance transfer credit card

Ratehub.ca's take

The CIBC Select Visa shoots right to the top of our list for best balance transfer credit card in Canada for its undeniably great balance transfer promotion: Transfer your credit card balance. Get 0% interest for up to 10 months with a 1% transfer fee and a first year annual fee rebate.. With interest completely out of the equation for a limited time, you can move the balance owed on your current credit card over to the CIBC Select Visa and chip away at your debt faster and more efficiently. The good news is the CIBC Select Visa also offers a below-average interest rate of 13.99% as standard. So, even if you can’t completely tackle the debt you transferred before the allotted ten-month promotional period ends, you can continue to leverage a low interest rate that’s between eight and six percentage points below what most other credit cards charge.

Pros

Offers an unbeatable 0% interest rate on balance for a limited-time of ten months and carries a below-average interest rate of 13.99% as standard
Ability to add up to three authorized users at no additional cost

Cons

As a low interest credit card, the CIBC Select Visa doesn’t offer much in the form of perks
Balance transfer offer is available exclusively to new cardholders when applying online, and you can only transfer up to 50% of your assigned credit limit

Best credit card for bad / rebuilding credit

Ratehub.ca's take

For those looking to rebuild their credit, the Plastk Secured Visa Rewards Card offers cardholders a great welcome offer, the ability to earn rewards, a below-average interest rate and monthly credit score tracking updates through Equifax. While the annual fee of $120 is not prohibitive, cardholders will also have to pay a $6 monthly maintenance fee raising the total annual fee cost to $120.

Pros

Sign up bonus - Zero interest rate for the first 3 months. Upon sign up, new Customers get 5000 Rewards Points ≈ $20.00 redeemable after 3 months*.
Ability to earn rewards on purchases
The purchase interest rate of 17.99% is one of the lowest available compared to most cards
25 day interest-free grace period
Monthly credit score updates through Equifax helping cardholders monitor their credit score and any changes

Cons

If cardholders fail to make the minimum payment for two consecutive month the purchase interest rate increases from 17.99% to 29.99%
The $6 monthly maintenance fee in addition to the $120 annual fee could be intimidating to users who don’t want to spend too much on a card (total annual cost of $120)
There are a few hidden charges to watch out, such as $35 charge for dishonoured payments and a 4.5% foreign conversion fee (compared to 2.5 - 3% for most other cards)

Best no fee credit card for cash back

Ratehub.ca's take

The SimplyCash from American Express credit card lets you earn cash back equally across all categories - removing the complexity of some cash back reward credit cards and making it one of the best no fee credit cards in Canada. With SimplyCash, cardholders can earn 2% cash back on gas and grocery purchases (up to $300 annually) and 1.25% cash back on all other purchases. Overall, the SimplyCash credit card is a great option for those who aren’t looking for premium perks or won’t earn enough rewards to offset an annual fee.

Pros

Simple and easy rewards structure
Can earn accelerated earn rates on eligible gas and grocery purchases
Insurance coverage and 24/7 concierge services
Access to Front of the Line Presale and Reserved tickets to concerts, theater performances, movie screenings, and culinary events, along with other special offers

Cons

American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
Cash-back rewards are only redeemable once per year in September

Honourable mention for best no fee credit card for cash back

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 is the 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 no-fee 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

Best premium credit card

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, 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, and one of the best travel insurance packages on the market.hat, your cash back is refunded on a monthly basis (instead of the standard annual reimbursement).

Pros

Very lucrative welcome bonus - earn up to 80,000 rewards points ($800 value).
3x 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 $699, which can be seen as $499 after the annual $200 travel credit
American Express isn’t as widely accepted in Canada compared to Visa and Mastercard

Best credit card for travel perks

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
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

Honourable mention for best credit card for travel perks:

Ratehub.ca's take

Pros

Very lucrative welcome bonus - earn up to 80,000 rewards points ($800 value).
3x 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 $699, which can be seen as $499 after the annual $200 travel credit
American Express isn’t as widely accepted in Canada compared to Visa and Mastercard

Best no foreign transaction fee credit card

Ratehub.ca's take

The Scotiabank Passport Visa Infinite card is the best credit card for traveling in Canada 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
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

Honourable mention for best no foreign transaction fee credit card:

Ratehub.ca's take

All three of Brim’s Mastercards charge no foreign transaction fees and offer a flat earn rate across all purchases, simplifying the rewards program. Depending on which Brim Mastercard you choose, you can earn either 1%, 1.5%, or 2% cash back on all purchases (with the Brim Mastercard, Brim World, and Brim World Elite respectively). Not only can you earn cash back, but you can easily rack up bonus rewards when shopping from over 200 eligible partner merchants. Some of our favourites include up to 4% on Apple and Microsoft, and 3% on Nike, Lufthansa, Etihad, and Emirates Airlines.

All Brim Mastercards also offer complimentary mobile device insurance and free Boing Wi-Fi Membership. Plus, the World and World Elite versions provide rental car insurance and out-of-province/country emergency medical insurance.

Pros

Welcome bonus waives the annual fee for the first year, enhancing the first year benefits
No foreign exchange transaction fees saving you 2.5% per purchase in a non-Canadian currency (online or abroad)
Solid across-the-board cash back earn rate of 2% with the opportunity to earn more at select partners
Flexible rewards system letting you easily redeem Brim Rewards in increments of 100 points for $1 in statement credits (or 1% per point, effectively like a cash back card)
Strong insurance coverage which includes the travel insurance package (out-of-province medical, flight delay, baggage delay, and more) and the mobile device and event ticket insurance - two areas of coverage which are a bit more rare to find

Cons

The card’s flat 2% earn rate only covers $25,000 in purchases annually, then dips to 1% which may be limiting for high spenders
Personal income requirement of $80,000 could pose a barrier for some (For those looking for a version of this card with a lower income requirement, Brim’s World Mastercard and basic Mastercard offer many of the same benefits with a less-prohibitive hurdle)

Best credit card for students

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 appeals 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 - Get up to 5% cash back in your first 3 months and a 1.99% introductory interest rate on Balance Transfers for 9 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)

Best business credit card

Ratehub.ca's take

The BMO CashBack Business Mastercard is our top no fee business credit card in Canada as it provides high cash back earn rates on business essentials. Earn rates include 1.75% on Shell gas stations and 1.5% on office supply purchases as well as cell phone and internet bills.

Pros

No annual fee or income requirement
Welcome offer: earn 10% cash back on gas, office supplies and cell phone/internet bills for 3 months*. Must apply by December 31st, 2023.
A maximum of 22 additional employee cards can be added to the primary cardholder account (annual fee of $40 for every additional cardholder)
Automatic rebates of 1-25% when you shop at qualifying merchants with Mastercard Easy Savings
90 day purchase protection and extended warranty coverage for up to one additional year on any purchases made with the card
BMO’s Liability Waiver program can safeguard against any employee card abuse

Best credit card for gas and groceries

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 15% cash back welcome bonus of up to $300 (first 4 statements).
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)

Best credit card for hotel stays

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

Best credit card for Aeroplan

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. The card’s limited-time welcome offer is impressive: Not available to display at the moment.. 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.

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

Honourable mention for best credit card for Aeroplan

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.

Pros

Great welcome bonus - earn 2,500 points for each month you spend $500, up to a maximum of 30,000 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

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Types of credit cards

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. Plus, if you're a member of a loyalty program such as Aeroplan or Air Miles, you can use a co-branded travel rewards card (such as the BMO Air Miles World Elite Mastercard) to double your points when you use them both at partnered retailers.

Cash back

Another popular rewards card option is the cash back card. Unlike cards which 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. Redemption options can vary, depending on your provider. Some are quite restrictive, only allowing you to redeem after a certain amount of points have been collected, while others will let you redeem in any increment at any time. 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.

Low-interest and balance transfers cards

While it's not recommended, those who tend to take out cash advances or 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 in general. 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.

Secured 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 of 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 which will determine your ability to be approved for future credit cards, mortgages, lines or 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. Let's get into them now:

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 it's 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.

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.

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 type 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.

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