Best No Fee Credit Cards in Canada for April 2024
What You Should Know
- A no fee credit card does not have an annual fee, but it may still have other charges, such as over-limit or cash advance fees.
- Even though no fee credit cards have no annual fees usually have low rewards and basic perks.
- Credit cards with no annual fees are useful for people who use credit cards rarely, build credit, or need a backup credit card.
What Is a No Fee Credit Card?
A no fee credit card refers to a credit card that has no annual or monthly fee. Many of the best credit cards in Canada have a fee that is charged on the credit card either monthly or annually. This fee is charged as long as the card is activated. No fee credit cards do not have that fee.
Credit cards with no annual fee may be useful if you do not use your credit card enough to get an advantage from high rewards or cash back. No fee credit cards usually have very few perks and low rewards. If you are looking for a credit card with high cash back or good rewards, no fee credit cards may not be the best product.
It is important to note that no-fee credit cards refer to credit cards that have a $0 annual fee. There are still a lot of different fees, including interest charges, that may be charged.
Best No Fee Credit Cards in Canada
How we Sort Credit Cards: We sort credit cards based onand the card's annual fee. We estimate the dollar value of the rewards you would get based on your spending categories, and we subtract the annual fee the card charges to get the best credit cards for your spending habits. We also use the salary to filter out cards based on the minimum income requirement.
$0.00
Purchase: 19.99%
Cash: 24.99%
Transfer: 22.99%
No Income Required
580
or More
Cash Back
- 2% Cashback for each $1 spent on: gas and grocery.
- 0.5% Cashback for each $1 spent on: everything else.
Insurance Included
- Car Rental
- Common Carrier
- Trip Interruption
- Extended Warranty
- Purchase Assurance
- Receive 800 Air Miles points when you spend $1,000.00 during the first 3 months.
- 0.99% Balance Transfer Rate for 9 Months with a 2% transfer fee.
$0.00
Purchase: 20.99%
Cash: 22.99%
Transfer: 22.99%
No Income Required
580
or More
Rewards: Air Miles Points
1 Air Miles Point ≈ ¢10
- 3 Air Miles Points for each $25 spent on: gas.
- 2 Air Miles Points for each $25 spent on: grocery.
- 1 Air Miles Point for each $25 spent on: everything else.
- Get up to 5% in Cashback on eligible purchases in the first 3 months. (Max Cashback $97.50)
- 0.99% Balance Transfer Rate for 9 Months with a 2% transfer fee.
$0.00
Purchase: 20.99%
Cash: 22.99%
Transfer: 22.99%
No Income Required
580
or More
Cash Back
- 3% Cashback for each $1 spent on: grocery.
- 1% Cashback for each $1 spent on: recurring bills.
- 0.5% Cashback for each $1 spent on: everything else.
- Receive 10000 AMEX points when you spend $1,000.00 during the first 3 months.
$0.00
Purchase: 20.99%
Cash: 21.99%
No Income Required
580
or More
Rewards: AMEX Points
1 AMEX Point ≈ ¢1
- 2 AMEX Points for each $1 spent on: AMEX travel.
- 1 AMEX Point for each $1 spent on: everything else.
Insurance Included
- Extended Warranty
- Purchase Assurance
What to Consider When Choosing a No Fee Credit Card
Even though you are technically not losing any money by getting a no-fee credit card, it is important to consider the benefits of each credit card with no annual fee before choosing one. The following sections will help you understand what you should look for and how to maximize your rewards when choosing a no fee credit card.
Credit Card Interest Rate
If you are planning to keep a balance on your credit card, then you should consider what interest rate you have on your credit card. Most no fee credit cards have an interest rate between 19.99% and 20.99%. There may be some credit cards with no annual fee that have lower interest rates, but they are still similar to typical rates.
If you are planning to pay off your credit card in full every month, then a no fee credit card may be a good option. On the other hand, if you want to keep a balance on your credit card, you should consider low-interest credit cards instead.
Other Credit Card Fees
No fee credit cards do not charge annual fees, but they still have a list of other fees they charge. Credit cards with no annual fee still charge interest on the unpaid balance. There are other fees that credit card companies can charge, even if it is a no-fee card. No fee credit cards may still charge fees such as:
Common Charges for Credit Cards With No Annual Fee
| Common Fees | Typical Charge |
|---|---|
| Over-Limit Fee | $29 |
| Dishonoured Payment Fee | $48 |
| Cash Advance Fee | 1% or $5 |
| Foreign Transaction Fee | 2.50% |
| Inactive Account Fee | $10 |
Welcome Bonus
Some no fee credit cards have welcome offers and bonuses. These welcome offers usually include promotional interest rates and additional rewards during the first months of opening the credit card. Welcome bonuses on credit cards with no annual fees are small and usually have a value of a few hundred dollars. If you are looking for a large welcome bonus that may have a value of over $1000, you should consider credit cards with an annual fee.
Best No Fee Credit Card Welcome Offers
| Card | Welcome Bonus |
|---|---|
AMEX Green Int. Rate: 20.99% Annual Fee: $0.00 | Up to 10000 AMEX points in Welcome Bonus Rewards:
|
AMEX SimplyCash Int. Rate: 20.99% Annual Fee: $0.00 | Up to $100.00 in Welcome Bonus Rewards:
|
CIBC Aeroplan Visa Int. Rate: 20.99% Annual Fee: $0.00 | Up to 10000 Aeroplan points in Welcome Bonus Rewards:
|
BMO CashBack Mastercard Int. Rate: 20.99% Annual Fee: $0.00 | Up to $97.50 in Welcome Bonus Rewards:
|
BMO AIR MILES Mastercard Int. Rate: 20.99% Annual Fee: $0.00 | Up to 800 Air Miles points in Welcome Bonus Rewards:
|
Credit Card Rewards
Even no fee credit cards have some rewards or cash back. Even though it is small, it is worth looking into what your credit card can offer. Some of the best credit cards for groceries have no fee. A lot of credit cards for gas also have no fees but they are usually specific to a gas station. Most credit cards with no annual fee offer cash back of at most 3%. The following table can help you identify the best no fee credit cards for rewards based on the spending categories you pick.
| Cash Equivalent Rewards Rate | ||||
|---|---|---|---|---|
| Card | Rewards Type | |||
| Canadian Tire Triangle World Elite Mastercard | CT Money | 3.00% | 1.00% | |
| PC Financial World Elite Mastercard | PC | 3.00% | 1.00% | |
| BMO CashBack Mastercard | Cashback | 3.00% | 0.50% | |
| AMEX SimplyCash | Cashback | 2.00% | 1.25% | |
| MBNA The Royal Canadian Legion Rewards Mastercard | MBNA | 2.00% | 1.00% | |
| RBC Cash Back Mastercard | Cashback | 2.00% | 1.00% | |
| PC Financial World Mastercard | PC | 2.00% | 1.00% | |
| Scotiabank American Express | Scene+ | 2.10% | 0.70% | |
| MBNA Smart Cash Platinum Plus Mastercard | Cashback | 2.00% | 0.50% | |
| Manulife ManulifeMONEY+ Visa Platinum | Cashback | 2.00% | 0.50% | |
Other Credit Card Perks
Credit cards usually offer other perks such as travel insurance policies, access to airport lounges, etc. No fee credit cards usually have the most basic perks. If you are looking for a credit card that has various perks, you should consider a premium credit card instead. The higher the annual fee of the credit card, the more perks it usually offers.
Credit Card Perks Based on the Annual Fee
| Annual Cost | Standard Benefits | Our Top Picks |
|---|---|---|
| $0 |
| |
| $39 |
| |
| $99 |
| |
| $120 |
| |
| Over $120 |
|
Should You Get a No Fee Credit Card?
You should get a no fee credit card if you are planning to use your credit card rarely. A clear advantage of credit cards with no annual fee over other credit cards is the lack of periodic fees. On the other hand, a no fee credit card usually has low rewards and no additional perks such as included insurance and welcome bonuses.
Most people may be better off getting a credit card with an annual fee because of the various perks that come with these credit cards. You can get back your annual fee in credit card rewards. You may also be able to have access to free insurance and special discounts and perks. Some low interest rate credit cards have annual fees, but it may be worth it for people who carry a balance on their cards. You can calculate interest charges on your balance to see whether it makes sense to get a low-interest credit card.
Even though credit cards with no annual fee do not have a lot of benefits, there are still reasons why you should consider getting one:
- Having A Backup Credit Card: Many people who already have a premium credit card also get a no fee credit card as a backup. Some stores may not accept certain credit cards, and some transactions may be declined. Having an extra credit card at no extra cost may be helpful in situations where the main credit card fails to work.
- Building Credit History: Having a good credit score is important if you want to get the best mortgage rate and other rates on your loans down the road. Many luxury credit cards require a good credit score. A no fee credit card may be a great starting point to build your credit history if you have no credit history. You may also consider credit cards for bad credit that approve you and help you improve your credit history regardless of your credit score.
- Using Your Credit Card Rarely: If you prefer not to use your credit card to pay for day-to-day items, then a credit card with an annual fee is an unnecessary expense. A no fee credit card will let you do the shopping when you need it without charging your card annual fees.
Applying for a No Fee Credit Card
Nowadays, it is very easy to apply for a no fee credit card. Most credit cards have instant approval, which means that you can get approved for a credit card within a few minutes. Some credit card companies allow you to use your virtual credit card as soon as you are approved. To get instant approval on your no fee credit card, you should follow the following steps:
- Go to your credit card page, where you can apply for it.
- Input all necessary information in your application. If you are new to the bank or you input the wrong information, you may have to get a manual approval, which may take a few business days.
- Wait for the card to arrive. It usually takes 7 business days for a physical card to arrive. You may be able to start using your credit card earlier if your card provider offers a virtual credit card.
- Activate your card by calling the number on your card.
No Fee Credit Card FAQ
Is There a Prepaid Credit Card With No Fees?
Yes, there are many prepaid credit cards with no annual fees available. The most popular prepaid credit cards with no fees are KOHO and Neo Financial. Even though they are no-fee credit cards, they may still charge your card for dishonored payments and over-limit purchases.
What Are Best No Annual Fee Credit Cards?
Credit cards have no annual fee, and the best rewards include BMO CashBack Mastercard and AMEX SimplyCash. Depending on what you are planning to purchase with your credit card, you may prefer one card over the other because of different rewards. If you have a favorite brand, store credit cards may also be a great no fee credit card option.