Best Credit Cards in Canada as of September 2023
Credit cards are a useful tool to build credit and take advantage of your spending. They have different rewards, cashback options, flexible spending, and many benefits. There is no single best credit card because it depends on what you value. That is why we have compiled a list of the best credit cards in a wide variety of categories.
What Is the Best Credit Card in Canada?
There is no single best credit card because credit cards may have different bonuses. Different credit cards may be best suited for different lifestyles. This means that there are different credit cards for different needs. It is important to identify what different credit cards are best for before choosing one for yourself.
We classify our credit cards into 8 categories and identify the best credit cards for specific needs in each category. Even though we are looking at unique properties, we are also comparing cards based on common characteristics. The first thing we consider is rewards and signup bonuses. We also compare their annual fees, income requirements, and interest rates.
Cash Back and Point Rewards
Most credit card companies usually offer incentives for customers to sign up for their credit cards and make purchases with the card they are getting. Most common credit card incentives include redeemable reward points and cash back. The cashback rate can be easily compared directly between credit cards. However, rewards vary and do not have an exact cash equivalent, but we have provided an approximate $ worth for each credit card's rewards points and information on earning them.
Signup Bonuses
Credit card providers will often provide signup bonuses to new customers to make their credit cards more attractive. Generally, this entails financial incentives or extra reward points. Signup bonuses can make your credit card much better for the first few months.
Other Considerations
- Annual Fee: Premium credit cards with the best benefits will usually have an annual or monthly fee. We report these fees on an annualized basis.
- Income Requirements: Most credit cards will have a minimum income requirement. This is usually personal income, but most will have the option of using household income as well. We prefer credit cards with lower income requirements because they are easier to qualify for.
- Interest Rate: Credit cards can have up to 3 different interest rates: a purchase interest rate, a cash advance interest rate, and a balance transfer interest rate. The purchase interest rate is charged on any credit balance you do not pay on time, the cash interest rate begins accruing immediately upon getting a cash advance or conducting any cash-like transaction using your credit card, and the balance transfer interest rate is the interest charge on any credit balance you transfer from another credit card.
Best Travel Credit Card Canada
Of all the benefits that credit cards offer, travel rewards are the most common. You can earn travel points and air miles, which can be redeemed for flights or vacation getaways. You can also get other benefits like VIP lounges, welcome bonuses, and travel insurance. Each card has several unique benefits that can add to your travel experience. Visit each credit card’s official website for a complete list of rewards and perks.
Best Rewards Credit Card Canada
Credit cards are a great way to get rewards on your purchases. These credit cards are the overall best for getting the most out of your spending. Since these credit cards are gathered from all that is available, you need to pick what types of rewards you value most.
Best Cash Back Credit Card Canada
Sometimes, rewards are too complex and hard to claim. Cashback credit cards are easy to compare and make it easy to track your savings. Instead of having rewards points that can expire or never be used, cashback rewards can be used to buy anything.
Best Student Credit Card Canada
Students arguably have the toughest time finding a good credit card. With no credit history and a low income, it may seem like you have few options. However, there are student credit cards specifically designed to help build credit and save money. Naturally, you will have a lower credit limit to start with, but you can increase quickly with timely payments.
Best No Fee Credit Card Canada
For people who do not like spending, you could actually lose money from the high fees that credit cards charge. Luckily, at the cost of slightly lower earnings, some credit cards can save you money no matter how much you spend. Credit cards in any category can have no fee, so we have put together the best credit cards from every category.
Best Low-Interest Rate Credit Card Canada
If you have trouble keeping up on credit card payments and you are thinking about transferring your credit card balance, lower interest rates can help you save hundreds or even thousands of dollars a year. Instead of paying a hefty 19.99% interest rate on your credit card debt, you can pay as low as 8.99%. One disadvantage to low-interest rate credit cards is that you will not receive many of the usual benefits you may have come to enjoy. These cards are mainly used to help pay off credit card debt, so the bonuses are not a priority.
Best Prepaid Credit Card Canada
Prepaid cards are different from regular credit cards. They have no eligibility requirements, but still offer some of the same benefits as a regular credit card. There is no interest rate or annual fee, so it is better to think of them as modified debit cards.
Best Credit Cards for Bad Credit
If you have bad credit or want to build credit, these cards are a great option. They are specifically designed for people with poor credit and they have low interest rates. You can also get a prepaid credit card with no eligibility requirements. Since most poor credit cards do not have rewards, you should only use these to help build your credit score until you can get a better credit card. Building up your credit score is especially important for those looking to get a mortgage. Having a good credit score can help you qualify for a lower mortgage rate.
Secured credit cards: Unlike regular (unsecured) credit cards, you must pay an initial security deposit, but this deposit cannot be used to pay your credit card balance. It is just collateral for the lender in case you cannot pay off your balance.
Pick the “Best” One
Everyone has their own preferences and the credit card you pick has to depend on your spending habits, what rewards you like, your financial circumstances, and more. Even within the 8 categories we have put together, the best credit card really depends on you. Our top picks are a great starting point for selecting a credit card. You should use these as a reference point for other credit cards to make sure that you are getting the best deal possible. Once you pick the credit card is right for you, you may be able to apply for it online, over the phone or in-person depending on the card. Most cards these days offer instant approval so that you can start enjoying the benefits of the card at the earliest.