Best No Fee Credit Cards in Canada for 2018

Jordann Brown
by Jordann Brown January 17, 2018 / 2 Comments

It used to be that if you wanted to earn rewards with your credit card, you had to pay an annual fee. This unlocked a variety of benefits including the ability to reap the rewards — either cash back or points — on every dollar spent. The downside to having to pay an annual fee was is that if you don’t spend enough to offset the fee, a rewards credit card doesn’t make financial sense.

Many Canadians can’t justify spending up to $100 per year for the privilege of earning rewards. Whether you’re a careful budgeter, a newcomer to Canada, or on a reduced income, there are many reasons why a fee-based rewards credit card doesn’t make financial sense.

Fortunately, there are several credit cards that have no fee but still allow you to earn rewards and access a variety of additional benefits such as exclusive events and insurance. Here are Ratebub.ca’s picks for the best no fee credit cards in Canada for 2018. No matter whether you prefer cash back, rewards, spend a lot on groceries, or you’re looking to pay off debt, we’ve got a credit card in the mix that’s right for you.

Ratehub.ca’s best no fee credit cards in Canada


Best no fee cash-back cards

SimplyCash Card from American Express


  • No annual fee
  • Earn 5% cash back on eligible purchases at gas stations, grocery stores, and restaurants for the first 6 months (up to $250 cash back)
  • Earn 1.25% cash back on all other purchases once welcome rate ends

If you’re looking for a cash back credit card lets you earn money back on every dollar you spend, the SimplyCash Card from American Express is an excellent choice. During the first six months you’ll earn a special welcome rate of 5% cash back for every dollar you spend on gas, groceries, and restaurants, up to a limit of $250 cash back. After that you’ll get 1.25% cash back on all purchases, with no limit on how much cash back you can earn, which makes the SimplyCash Card from American Express an excellent all-around credit card.

There’s no minimum annual income required to apply for this credit card, and when you apply, you can take advantage of a special 1.99% introductory interest rate on balance transfers. This introductory rate lasts for six months and is only available at the time of online application.

Even though it’s a cash-back card, the SimplyCash Card from American Express offers a variety of insurance benefits including travel accident insurance, car rental collision insurance, and special coverage for any purchases made with this credit card including zero liability coverage, extended warranty, and purchase assurance.


Tangerine Money-Back Credit Card


  • No annual fee
  • Earn 2% cash back on purchases in up to three categories of your choice, and 0.5% cash back on everything else
  • No limit on how much cash back you can earn

The Tangerine Money-Back Credit Card has proven to be the stand-out all round no fee cash back credit card of 2017, and will most likely maintain its popularity in 2018. When you charge purchases on this credit card, you’ll earn 2% cash back in two spending categories of your choice, and 0.5% cash back on all other purchases.

Cash back is refunded monthly as a credit to your statement. If you choose to have your cash back earnings deposited into a Tangerine savings account, you’ll get a third spending category earning 2% cash back. The available categories are groceries, restaurants, gas, drugstore, entertainment, furniture, hotel-motel, recurring bills, home improvement, public transportation, and parking. The category selection options make this credit card highly customizable for your unique spending patterns, which is why this credit card has proven to be so popular.

There’s no minimum annual income requirement for the Tangerine Money-Back Credit Card, no limit on the rewards you can earn, and free supplementary cards are available to additional users on the same account.


Best no fee travel card

Blue Sky Credit Card


  • No Annual Fee
  • Earn 1.25 Blue Sky points per dollar on all purchases
  • Earn 10,000 points when you make $500 in purchases in your first 3 months
  • Redeem for travel, merchandise, gift cards, or statement credit

If you’re looking for a travel rewards credit card, the Blue Sky Credit Card is a good option in 2018. This American Express credit card allows you to earn 1.25 points per dollar spent on all purchases. When you charge your first $500 on this credit card (within three months) you’ll earn a bonus 10,000 points (worth $100 in travel rewards). Every 100 points is worth $1 in rewards, and can be redeemed in increments of 5,000 starting with little as 10,000 points. The Blue Sky Credit Card has no blackout dates, no seat restrictions and no travel restrictions.

If your income is variable or restricted, the Blue Sky Credit Card is a good option because there is no income requirement. On top of that, you’ll enjoy $100,000 in travel accident coverage.


Best no fee card for consolidating and paying off debt

MBNA Platinum Plus MasterCard


  • No Annual Fee
  • 0% promotional annual interest rate on balance transfers for the first 12 full months
  • Travel accident and trip interruption insurance

One of your goals in 2018 might be to finally pay off that credit card debt that has been lingering too long on your current credit card. If this is the case, consider a balance transfer credit card as a way to access ultra-low interest rates and speed up your debt repayment process.

The MBNA Platinum Plus Mastercard is a good option as it offers 0% interest for the first 12 months, with a 1% balance transfer fee. Once the promotional period expires the interest rate jumps to 21.99%, so make sure to pay off the entire balance within the first 12 months. To apply for this credit card you’ll need a personal or household income of at least $35,000 per year.


Best no fee low interest card

American Express Essential Credit Card


  • No annual fee
  • Low interest rate of 8.99% on purchases and cash advances
  • For new cardholders: special 1.99% introductory rate on balance transfers for the first 6 months (available only at time of online application)
  • Access to American Express Invites

If you’re looking for a low-interest credit card to round out your financial products, the American Express Essential Credit Card is a great option. This no fee credit card has a low minimum annual income requirement of $15,000 per year and currently offers the lowest fixed interest rate on the market for purchases, cash advances, and balance transfers at 8.99% across the board. If you want to pay off existing credit card debt, you can take advantage of the card’s balance transfer offer: a 1.99% interest rate in transferred balances for the first six months.

While this card may be no-frills, it still offers some insurance coverage in the form of travel accident insurance, purchase assurance, and extended warranty. You’ll also get access to American Express Invites, which includes special offers such as ticket pre-sales and reserved seats for concerts, movie screenings, and culinary events.

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  • Satty

    Surprised you do not recommend the Home Trust Preferred Visa, which also has no fee, offers 1% cashback on all spending, rental car collision/loss insurance and best of all no foreign exchange fees thus saving you 2.5% on all out of country spending.