Find the Best Credit Cards in Canada
Managing your finances can be difficult, but it’s not something you have to go through alone.
When considering how you can maximize what your budget can allow for, it can be challenging to sift through all the options available to you as a Canadian.
Applying for a credit card and managing your credit score may be daunting. Fortunately, there is a wealth of available resources that will help you discover the potential rewards you can earn.
We want to empower you with a thorough comparison of the best options on the market for a range of different credit scores and rewards packages from the best travel cards and the best rewards cards to apply for secured credit cards to build your credit score.
Compare the Best Credit Cards in Canada
Comparing the best credit cards in Canada is a relatively simple affair, once you know what kind of benefits you find most appealing. Do you want low-interest rates? Do you want to avoid annual fees, or are you interested in some of the more high-end rewards that will benefit you for being financially responsible? Are you looking to build credit, or do you want to capitalize on the credit history you already have?
Types of Credit Cards in Canada
The best credit cards in Canada available to you are going to vary depending upon what you want. Many people love sign-on bonuses and cashback options, or flexible reward benefits that let you set your spending categories. There are credit cards for frequent fliers, drivers, students, and even foodies.
Best Cash Back Credit Cards
When applying for credit cards, it’s essential to ask how it would augment your budget now. The easiest to find this out is through considering the cashback options different cards can offer you! It’s simple: if you’re a student, you’ll be spending your money on tuition, book supplies, and groceries, of course! In this case, the BMO Cashback Mastercard would be a fantastic choice. The introductory annual percentage rate (or APR) is a low 1.99% and has no yearly fees. More importantly, it grants you cashback on all the things you’ll fit into your budget anyway. There is a 5% welcome bonus for cashback for your first three statements, but it offers 3% cashback on groceries, 2% on recurring bill payments, and .5% on everything else.
If you’re interested in a cashback card with no fees, it’s challenging to beat the Tangerine Money-Back credit card. It’s flexible with no fee, allowing you to get 2% cashback on the three categories of your choice, so if you spend most of your money on travelling, groceries, and music, you can get 2% back while still getting .5% back on everything else! If your annual income is over $60,000, there are even more rewards available for you as well.
Best Rewards Credit Cards
Cashback is essential, but there are also rewards programs that might tickle your fancy. Choosing the best rewards credit card needs to take your budgeting goals under consideration. The American Express Cobalt Card has a robust and enticing list of rewards that not only include cashback benefits. Simply making your payments on a $500 balance on time could afford you a short-haul flight, $300 redeemed towards travel purchases made with your card, or even $300 worth of events from Ticketmaster.ca.
You can even get 5,000 additional points by referring your friends. If Amex is out of your price range, there are still fantastic options like the Scotia Momentum Visa Infinite card. With the annual fee waived for the first year and substantial cashback benefits, you also have access to concierge services and immediate room upgrades when you stay at participating hotels. You’ll even get to spend time enjoying private dining experience in some of the most sophisticated restaurants.
Best Travel Credit Cards
One of the ways a credit card can significantly empower your budget is to spend time travelling-for business or pleasure! The TD First Class Travel Visa Infinite card rewards you for your purchases and your travelling by scoring nine points per dollar whenever you book with Expedia.com. It also offers up to $1 million in Travel Medical Insurance for the first 21 days, insurance for lost luggage, trip cancellation/interruption insurance, and emergency travel assistance.
Best Low-Interest Credit Cards
Just as if you were budgeting otherwise, low-interest cards are a consideration for more responsibly-minded consumers. Luckily, your options are still great! The Scotia Momentum Mastercard is hard to beat, with no annual fees and an extraordinarily low-interest rate of only 7.99% for the first six months and 19.99% afterward, it’s an attractive offer which still provides generous cashback of 1% at all suitable locations and .5% on everything else.
Best No-Fee Credit Cards
If you don’t like annual fees attached to a lot of credit cards, you shouldn’t worry. The TD Cash Back Visa Infinite card has a yearly fee of 0$ and 1% cashback for eligible grocery and gas purchases and .5% on other purchases made on your card. The TD Rewards Visa card has no annual fee but an extensive list of rewards, earning 2 points per dollar spent on groceries, 3 points per dollar spent on booking travel through Expedia.com, and 1 point per dollar other purchases. These rewards never expire as long as you’re in good standing, and can be redeemed on a flexible number of things from gift cards and merchandise to travel.
Credit Card FAQs
You might have some questions when looking for the best credit card for you, many people do. Your credit is technically money that you are borrowing. Using a credit card instead of a debit card for purchases will contribute to attractive credit history for creditors. Frequent purchases and frequent payments will increase your utilization rate, which allows you better bargaining power with your creditors and buying power for new creditors. Don’t let higher interest rates scare you off from applying for a credit card. If you know you can make your payments on time, you might even be able to lower it if you’ve faithfully paid your balances each month.
How To Apply for a Credit Card
Applying for a card is also very easy. If you already have some credit history established, you can be pre-approved for all sorts of cards. The bank you’re using might even offer secured credit cards. For more specialized credit cards, many creditors allow you to sign up online. You’ll need to provide certain information, like your name, address, and SIN. If you’re a student, you’ll probably have to provide documentation for your school.
How to Get a Credit Card with Bad Credit
Don’t worry if you have bad credit. If you have existing balances, you can transfer balances on your high-interest cards to a low-interest card for a fee. The difference between 30% and 13% is substantial and will make your balances more manageable. If you want a more straightforward way to build credit, the answer is to apply for a secured credit card. You can apply for a secured credit card with your bank, but there are other options like the Secured Card from Refresh. Virtually everyone is approved for secured credit cards because they usually come with a deposit. Making frequent purchases in payments is a fantastic way to build a credit rapport and start getting approved for better options very soon.
How Does Credit Card Interest Work?
Interest rates, or APR, is a deep concern for some while a dense concept for others. Your annual percentage rate is a set percentage from your bank of how much interest per year can be applied to balances carried on your credit card. If your credit card has an APR of 12%, this means that the total interest throughout the year will be 12% and that each month you’re charged interest at 1%. If you carry a balance of $100 with 1% interest, you will owe $101. Your interest will compound, the second month with a balance of $101 at 1% interest will not be $102, it will be $102.10, as interest rates only apply to outstanding balances. It’s essential to keep this in mind when looking for credit cards, and don’t be afraid to use several of the credit card interest calculators available online.
How Many Credit Cards Should I Have?
When figuring out how many credit cards you should have, there is no best answer here. Some people might dislike managing multiple accounts and benefit from having one or a few high-interest cards that feature extensive cashback options and rewards. However, having a good credit history is a great way to open up your options, and part of that is your utilization rate. Interacting responsibly with the companies that offer credit cards means that you’ll be able to earn even greater rewards, and in a short while, you’ll be able to become a financial wizard in no time.
