Best No-Fee Credit Cards in Canada for November 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.
Best No-Fee Credit Cards in Canada
$0.00
Purchase: 20.99%
Cash: 22.99%
Income Requirement Is Not Specified.
Fair
Rewards: Avion Points
1 Avion Point ≈ ¢0.58
- 1.5 Avion Points for each $1 spent on: gas, grocery, streaming, EV charging and entertainment.1.5 Avion Points ≈ $0.0087 in cash equivalent.
- 1 Avion Point for each $1 spent on: everything else.1 Avion Point ≈ $0.0058 in cash equivalent.
Insurance Included
- Extended Warranty
- Purchase Assurance
$0.00
Purchase: 21.90%
Cash: 21.90%
Transfer: 21.90%
Income Requirement Is Not Specified.
Fair
Rewards: Capital One Mile Points
1 Capital One Mile Point ≈ ¢0.5
- 1 Capital One Mile Point for each $1 spent on: all eligible purchases.1 Capital One Mile Point ≈ $0.005 in cash equivalent.
Insurance Included
- Baggage Loss/Delay
- Car Rental
- Common Carrier
- Extended Warranty
- Price Protection
- Purchase Assurance
- Receive 10000 Aeroplan points when you make 1 purchase.
$0.00
Purchase: 20.99%
Cash: 22.99%
Household: $15,000
Fair
Rewards: Aeroplan Points
1 Aeroplan Point ≈ ¢1
- 1 Aeroplan Point for each $1 spent on: gas, grocery and Air Canada.1 Aeroplan Point ≈ $0.01 in cash equivalent.
- 1 Aeroplan Point for each $1.5 spent on: everything else.1 Aeroplan Point ≈ $0.01 in cash equivalent.
Insurance Included
- Car Rental
- Common Carrier
- Extended Warranty
- Purchase Assurance
$0.00
Purchase: 19.99%
Cash: 24.99%
Transfer: 22.99%
Income Requirement Is Not Specified.
Fair
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
About No-Fee Credit Cards
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.
How to Get 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 to look for and how to maximize your rewards when choosing a no-fee credit card.
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 are valued at a few hundred dollars.
Best No-Fee Credit Card Welcome Offers
| Card | Welcome Bonus |
|---|---|
CIBC Aeroplan Visa Int. Rate: 20.99% Annual Fee: $0.00 | Up to 10000 Aeroplan points in Welcome Bonus Rewards:
|
AMEX SimplyCash Int. Rate: 20.99% Annual Fee: $0.00 | Up to $100.00 in Welcome Bonus Rewards:
|
AMEX Green Int. Rate: 20.99% Annual Fee: $0.00 | Up to 10000 AMEX points in Welcome Bonus Rewards:
|
MBNA Amazon.ca Rewards Mastercard Int. Rate: 19.99% Annual Fee: $0.00 |
|
MBNA The Royal Canadian Legion Rewards Mastercard Int. Rate: 19.99% Annual Fee: $0.00 | Up to 5000 MBNA points in Welcome Bonus Rewards:
|
Rewards
Most no-fee credit cards are differentiated with rewards or cashback. These rewards are usually not as high as the rewards for premium credit cards. It is possible to see rewards on no-fee credit cards reaching 3% cash back equivalent value. Many of these credit cards offer grocery rewards or gas rewards because they are popular among customers.
Other Perks
No-fee credit cards usually offer some basic perks, such as basic travel insurance, store discounts, or extra spending bonuses. If you want a credit card with high-value perks, you should consider a premium card instead. The higher the annual fee, the more perks the card usually offers.
Credit Card Perks Based on the Annual Fee
| Annual Cost | Standard Benefits | Our Top Picks |
|---|---|---|
| $0 |
| |
| $39 |
| |
| $99 |
| |
| $120 |
| |
| Over $120 |
|
Interest Rate
Interest rate is also an important consideration for a credit card if you plan to keep a balance. Most no-fee credit cards have an interest rate between 19.99% and 22.99%. If you plan to pay off your credit card in full every month, then a no-fee credit card may be a good option. If you want to keep a balance on your credit card, consider low-interest credit cards instead.
Other Fees
Credit cards that do not charge annual fees still have a list of other fees they can 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. The following table shows common fees that no-fee credit cards may still charge.
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 |
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
Eligibility Requirements for a No-Fee Credit Card
Eligibility criteria may differ, but the following requirements are the most common for no-fee credit cards.
Age of Majority: You must be at the age of majority to be eligible to apply for a credit card. In Canada, you can apply for most credit cards at 18.
Residency Status: You must be a Canadian resident to be eligible to apply for a credit card in Canada.
Credit Score: Credit score requirements can differ depending on the lender and the credit card. If your credit score is low or you do not have a credit history in Canada, credit cards for bad credit may suit you better.
Personal or Household Income: Most no-fee credit cards do not have income requirements, but some upper-tier no-fee cards are tailored specifically to high-income earners.
Most credit cards have instant approval, meaning 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 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 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. A physical card usually arrives in 7 business days. If your lender offers a virtual credit card, you may be able to start using your credit card as soon as you are approved.
- Activate your card by calling the number on your card or using the credit card issuer’s app.
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.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.