Canada’s best no annual fee credit cards for 2023

• Best no fee cash back credit card: SimplyCash Card from American Express and Tangerine Money Back Credit Card
• Best no fee travel rewards credit card: American Express Green Card and MBNA Rewards Platinum Plus Mastercard
• Best no fee low interest credit card: MBNA Rewards Platinum Plus Mastercards
• Best no fee credit card for students:BMO CashBack Mastercard - Student
• Best no fee credit card for store credit: PC Financial World Elite 

Best no annual 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 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 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 no fee credit card for travel rewards

Ratehub.ca's take

The American Express Green Card takes our prize for best no fee credit card for travel rewards due to its healthy welcome bonus, point accelerator for travel purchases, and redemption flexibility.

Cardholders earn a standard earn rate of one point per dollar, which can be doubled when booking travel expenses through American Express Travel. AMEX Membership Rewards can be redeemed for a variety of rewards such as cash back, travel, gift cards, and merchandise. Not only that, but you can also transfer your points to travel loyalty programs such as Aeroplan and Marriott Bonvoy.

And, of course, American Express Green Card users will also enjoy the same benefits as all AMEX cardholders: Front of the Line presales and reserved tickets as well as American Express Experiences ranging from entertainment, dining, and retail.

Pros

• Welcome bonus - Welcome Bonus of 10,000 Membership Rewards® points when you charge $1,000 in purchases to your Card in the first 3 months of Cardmembership.
• Opportunity to effectively double your points when booking travel through American Express Travel
• Flexible redemption options: travel, gift cards/merchandise, everyday purchases, Amazon.ca 
• Transfer your points to loyalty programs like Aeroplan and Marriott Bonvoy

Cons

• Standard earn rate of one point per dollar isn’t particularly competitive with other no fee rewards cards
• Fairly lean insurance package extended warranty and purchase protection only. If you’re interested in more comprehensive coverage, other no fee cards offer more in this area.

Honourable mention for best no fee credit card for travel rewards and best no fee credit card with low interest 

Ratehub.ca's take

The MBNA Rewards Platinum Plus Mastercard is a perfect travel companion for frequent travellers seeking a no fee credit card. This card has a flexible rewards program that offers great value for travel redemption. It also allows points to be redeemed for virtually any airline (including taxes and fees), brand-name merchandise, gift cards from participating retailers, cash back, and charitable donations. The MBNA Rewards Platinum Plus Mastercard offers bonus rewards on key spending categories, including restaurants, groceries, digital media, memberships and household utility purchases.

Pros

• Welcome bonus - Earn 10,000 bonus points ($50 in cash back value)
• Very flexible rewards programs in comparison to other no fee credit cards, allowing cardholders to redeem points for cash back, merchandise, gift cards, charitable donations, and travel
• Includes additional benefits such as mobile device insurance, purchase assurance, and extended warranty benefits
• Receive up to 10,000 Birthday Bonus Points every year

Cons

• Earn rate of 2 points per dollar on eligible restaurants, groceries, digital media, memberships, and household utility purchases is capped at $10,000 annually (per category)
• No credit card travel insurance
• This offer is not available for residents of Quebec

Best no fee 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 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)

Best no fee credit card for store credit

Ratehub.ca's take

If you’re a loyal shopper with a particular retailer, it’s usually wise to take advantage of their store rewards card if offered (especially if it comes with no annual fee). Using a retail rewards card is a great way to save big on regular, everyday purchases, and the best example of this is the PC Financial World Elite Mastercard. You could easily rack up big savings with no annual fee taking away from your rewards at Loblaws banner grocery stores (Loblaws, No Frills, Valu-Mart, and more), Shoppers Drug Mart, and Esso Mobil stations.

Pros

• High earn rate potential at all Loblaws-owned grocery stores and PC Travel, Shoppers Drug Mart locations, and Esson Mobil stations
• Access to Mastercard World Elite benefits (Boingo WiFi, Dragonpass airport lounge access, plus more)
• Point redemption is easy and straightforward - as soon as you have 10,000 points, you can redeem them for $10 off at any Loblaws-owned retailers
• No annual fee
• Extra travel insurance perks
• Easy-to-understand point redemption

Cons

• Can only redeem points in increments of 10,000
• High $80,000 personal income requirement could be prohibitive to many
• Points cannot be transferred to other loyalty programs 
• Very strict redemption rules - points cannot be used to pay for purchases at non-Loblaws retailers or redeemed against a statement balance. Plenty of other rewards cards on the market offer more flexibility

When should you get a no fee credit card?

1. You’re getting your first credit card

If you’re applying for your first-ever credit card, chances are you’re a student or just starting out in your career. In this case, your priority should be to find a credit card that’s easy to get, doesn't have an annual fee, and helps build your credit history. A "free" credit card would be your best option.

Opting for a no fee card with a low APR (interest rate) might be a wise choice, especially if you're concerned with accruing debt. With a lower interest rate, you not only avoid an annual fee, but also increase your chances of paying off your bill in full every month and staying out of debt.

Starting out with a no fee credit card allows you to keep the card active without any cost, even if you don't use it frequently or plan to upgrade to a more premium credit card later on. 

It’s worth noting that several credit cards with annual fees require qualifications like an established credit history, a great credit score, and a minimum income of $60,000 to $80,000, which may be difficult to meet for students or those new to the job market.

2. You won’t be using your credit card often

A credit card with an annual fee can pay for itself if you use it frequently enough. Since they almost always offer more rewards on your spending compared to their no fee alternatives, it can often be worth it to pay a yearly charge in return for all the savings and benefits you'll receive. However, if you rarely use credit and don’t spend a lot in specific bonus categories, you likely won’t earn enough rewards to offset the fee, leaving you to pay extra to use a card that isn't giving you much in return. You typically need to spend at least $500 a month in order for a card with an annual fee to make sense. If you don’t, a no fee card could be a better fit for you.

3. Elite perks and insurance aren’t a priority 

Many credit cards with annual fees come with attractive perks, including travel medical insurance, lost-baggage coverage, free hotel upgrades, and complimentary airport lounge access. These perks, which are typically included in the card’s annual fee, can provide significant value if you use them regularly. However, if you're not a frequent traveller or these perks don't interest you, a card with no annual fee would be a better fit. After all, why pay for perks you won’t use?

Some no fee cards even come with rental car insurance, mobile device insurance, and roadside assistance. Depending on your priorities, those perks may be all you need. Plus, if you’re not an avid traveller, you probably don’t need the additional perks that come with an annual fee rewards card in the first place.

4. You want to adopt a two-card strategy

In some cases, it makes sense to pair a card with an annual fee with another no fee card to earn additional rewards.

For example, if you have the TD Cash Back Visa Infinite ($139 annual fee) you can earn a generous 3% cash back on groceries and recurring bill payments but just 1% on restaurants and other purchases. By adding the no annual fee Tangerine Money-Back Credit Card, you can earn 2% cash back at restaurants while continuing to use the TD Card for groceries to earn 3%. This way, you earn double the rewards when dining out without paying any additional annual fees.

Another reason to get a second no fee credit card is if you have an American Express Card and need a backup Visa or Mastercard for merchants that don't accept Amex. The same applies if your main credit card is issued by Visa but you regularly shop from Costco; in that case, having an additional no fee Mastercard credit card for use at the warehouse retailer is beneficial

5. You’re looking for a store card

Many retailers offer store or co-branded credit cards, which are ideal for frequent shoppers at those specific stores. These cards come with unique perks, such as earning more points or receiving discounts for using the card. For example, individuals with a PC Financial Mastercard can earn more points at Shoppers Drug Mart, Loblaws, No Frills, Real Canadian Superstore, and Esso than regular PC Optimum members. The best part is that most store credit cards, including the ones mentioned above, do not charge an annual fee.

No fee credit cards: pros and cons

Pros:

• No annual fees affecting your rewards: While it's true that no fee cards can't offer the same level of lucrative rewards as cards with annual fees of $120 or more, many still allow you to earn points or cash back. This can result in significant benefits if you use the card frequently and responsibly. With a no fee card, you won't have an annual charge diminishing your rewards and lowering their value. You get to keep 100% of what you earn.
• They're great for your credit history: Since annual no fee cards are virtually free to own, you won't have to worry whether or not you can afford to keep them. This is advantageous for your credit history because the longer you can maintain a credit card account that is open and in good standing, the better your profile looks to credit bureaus and potential lenders. Just remember to use the card at least once a year to keep it active.
• They'll save you money: This point may seem obvious, but opting for a no fee rewards card instead of one with an annual fee means one less bill to pay. This can make a significant difference for families or individuals with a fixed income. Access to credit and the ability to build credit should be available to people of all income levels, and annual no fee credit cards help make that possible.

Cons:

• Not as many benefits: If you're seeking a credit card with tons of extra bells and whistles, a no fee card may not fulfill your expectations. Annual fees are how credit card providers justify offering those attractive perks, so a no fee card will naturally have fewer of them. However, if you're simply looking for an everyday card to help you build credit or earn a little bit of cash back on groceries and gas, this may be less of a concern.
• No travel perks: Those in search of a no fee travel card will find limited options, as additional benefits like travel insurance and airline/hotel rewards typically come with higher annual fees.

Also read:

• The best credit cards in Canada
• The best low interest cards in Canada 
• The best cash back credit cards in Canada
• The best balance transfer credit cards in Canada