Best No-Fee Credit Cards in Canada for June 2024

This Page's Content Was Last Updated: June 3, 2024
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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

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.Disclaimer: We may receive compensation for some credit cards presented. The algorithm we use to sort credit cards is not influenced by the compensation.
Scotiabank American Express Img
Welcome Bonus
  • Receive 5000 Scene+ points when you spend $750.00 during the first 3 months.
  • Receive 2000 Scene+ points when you spend $5,000.00 during the first 12 months.

Key Features
Annual Fee IconAnnual Fee

$0.00

Interest Rate IconInterest Rates

Purchase: 19.99%

Cash: 22.99%

Min Income IconMin. Income

Individual: $12,000

Credit Score IconCredit Score

580

or More


Rewards: Scene+ Points

1 Scene+ Point ≈ ¢0.7

  • 3 Scene+ Points for each $1 spent on: grocery.3 Scene+ Points ≈ $0.021 in cash equivalent.
  • 2 Scene+ Points for each $1 spent on: gas, transit, streaming, restaurants and entertainment.2 Scene+ Points ≈ $0.014 in cash equivalent.
  • 1 Scene+ Point for each $1 spent on: everything else.1 Scene+ Point ≈ $0.007 in cash equivalent.

Insurance Included
  • Extended Warranty
  • Mobile Device
CIBC Classic Visa Img
Key Features
Annual Fee IconAnnual Fee

$0.00

Interest Rate IconInterest Rates

Purchase: 20.99%

Cash: 22.99%

Min Income IconMin. Income

Household: $15,000

Credit Score IconCredit Score

580

or More


Insurance Included
  • Common Carrier
  • Extended Warranty
  • Purchase Assurance
RBC ION Visa Img
Key Features
Annual Fee IconAnnual Fee

$0.00

Interest Rate IconInterest Rates

Purchase: 20.99%

Cash: 22.99%

Min Income IconMin. Income

Income Requirement Is Not Specified.

Credit Score IconCredit Score

580

or More


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
Capital One Aspire Travel Platinum Mastercard Img
Key Features
Annual Fee IconAnnual Fee

$0.00

Interest Rate IconInterest Rates

Purchase: 21.90%

Cash: 21.90%

Transfer: 21.90%

Min Income IconMin. Income

Income Requirement Is Not Specified.

Credit Score IconCredit Score

580

or More


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
Best 5-Year Fixed Mortgage Rates in Canada CanadaLeaf
Mortgage Term:
Fixed
Variable

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

CardWelcome Bonus
CIBC Aeroplan VisaCIBC Aeroplan Visa
Int. Rate: 20.99%
Annual Fee: $0.00
Up to 10000 Aeroplan points in Welcome Bonus Rewards:
  • Receive 10000 Aeroplan points when you make 1 purchase.
AMEX GreenAMEX Green
Int. Rate: 20.99%
Annual Fee: $0.00
Up to 10000 AMEX points in Welcome Bonus Rewards:
  • Receive 10000 AMEX points when you spend $1,000.00 during the first 3 months.
AMEX SimplyCashAMEX SimplyCash
Int. Rate: 20.99%
Annual Fee: $0.00
Up to $100.00 in Welcome Bonus Rewards:
  • Receive $10 in statement credit every month you spend at least $300.00 for the first 10 months.
MBNA Amazon.ca Rewards MastercardMBNA Amazon.ca Rewards Mastercard
Int. Rate: 19.99%
Annual Fee: $0.00
  • Get up to 5% in Cashback on eligible purchases in the first 6 months. (Max Cashback $NaN)
MBNA The Royal Canadian Legion Rewards MastercardMBNA The Royal Canadian Legion Rewards Mastercard
Int. Rate: 19.99%
Annual Fee: $0.00
Up to 5000 MBNA points in Welcome Bonus Rewards:
  • Receive 2500 MBNA points when you make 1 purchase in the first 3 months.
  • Enroll in online banking within the first 3 months and earn 2500 MBNA points.

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 CostStandard BenefitsOur Top Picks
$0
  • Low Rewards
  • No Insurance
PC Financial World Elite Mastercard Image
Rewards up to 45 PC Points for every $1 spentLearn More
Int. Rate: 21.99%
Annual Fee: $0.00
$39
  • Reasonable Rewards
  • Basic Insurance
MBNA Smart Cash World Mastercard Image
Cash Back rate up to 2%Learn More
Int. Rate: 19.99%
Annual Fee: $39.00
$99
  • Good Rewards
  • Moderate Insurance
Meridian Visa Infinite Cash Back Image
Cash Back rate up to 4%Learn More
Int. Rate: 19.5%
Annual Fee: $99.00
$120
  • Very Good Rewards
  • Broad Insurance
  • Roadside Assistance Membership
  • First-year Rebate
AMEX SimplyCash Preferred Image
Cash Back rate up to 4%Learn More
Int. Rate: 20.99%
Annual Fee: $119.88
Over
$120
  • Best Rewards
  • Broad Insurance With Highest Limits
  • Roadside Assistance Memberships
  • Exclusive Perks
  • First-year rebate
AMEX Cobalt Image
Rewards up to 5 AMEX Points for every $1 spentLearn More
Int. Rate: 20.99%
Annual Fee: $155.88

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 FeesTypical Charge
Over-Limit Fee$29
Dishonoured Payment Fee$48
Cash Advance Fee1% or $5
Foreign Transaction Fee2.50%
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.

The calculators and content on this page are provided for general information purposes only. WOWA does not guarantee the accuracy of information shown and is not responsible for any consequences of the use of the calculator.