5 Best Credit Cards in Canada
Choosing the right credit card in Canada can significantly impact your financial health and lifestyle.
With a plethora of options available, finding the best card that fits your needs requires careful consideration of various factors such as rewards, fees, interest rates, and benefits.
In this comprehensive guide, we will explore the five best credit cards in Canada, each excelling in different categories to help you make an informed decision.
1. Best Overall: American Express Cobalt Card
The American Express Cobalt Card is often touted as the best overall credit card in Canada, thanks to its impressive rewards structure and extensive benefits.
Rewards Program:
- Earn 5 points per dollar spent on eligible eats and drinks, including groceries and restaurants.
- Earn 2 points per dollar spent on travel and transit, including flights, hotels, and public transportation.
- Earn 1 point per dollar spent on all other purchases.
Benefits:
- A generous welcome bonus of up to 30,000 points in the first year.
- Flexible redemption options for travel, merchandise, and statement credits.
- Comprehensive travel insurance, including emergency medical, trip interruption, and car rental insurance.
- Exclusive access to American Express Invites, offering special experiences and ticket pre-sales.
Fees and Rates:
- Annual fee: $12.99 per month ($155.88 annually).
- Interest rate: 20.99% on purchases, 21.99% on cash advances.
→ SEE ALSO: What Is a Good Credit Score in Canada?
2. Best for Cash Back: TD Cash Back Visa Infinite Card
For those who prefer cash back rewards, the TD Cash Back Visa Infinite Card is an excellent choice, providing high cash back rates and valuable perks.
Rewards Program:
- Earn 3% cash back on eligible grocery and gas purchases.
- Earn 3% cash back on recurring bill payments.
- Earn 1% cash back on all other purchases.
Benefits:
- A robust welcome offer that includes 10% cash back on all purchases for the first three months (up to a total spend of $2,000).
- Travel and medical insurance, including trip cancellation and baggage insurance.
- Complimentary Roadside Assistance.
- Access to Visa Infinite benefits, such as dining and wine country experiences.
Fees and Rates:
- Annual fee: $120 (waived for the first year).
- Interest rate: 20.99% on purchases, 22.99% on cash advances.
3. Best for Travel: Scotiabank Passport Visa Infinite Card
Travel enthusiasts will find the Scotiabank Passport Visa Infinite Card to be a perfect fit, with its robust travel rewards and no foreign transaction fees.
Rewards Program:
- Earn 2 Scotia Rewards points per dollar spent on eligible grocery, dining, entertainment, and daily transit purchases.
- Earn 1 point per dollar spent on all other purchases.
Benefits:
- No foreign transaction fees on international purchases.
- Comprehensive travel insurance, including travel emergency medical, trip interruption, and flight delay insurance.
- Six complimentary visits per year to Priority Pass lounges worldwide.
- Access to Visa Infinite benefits, including hotel and dining experiences.
Fees and Rates:
- Annual fee: $139.
- Interest rate: 20.99% on purchases, 22.99% on cash advances.
4. Best for Students: BMO CashBack Mastercard for Students
Students looking to build credit while earning rewards will find the BMO CashBack Mastercard for Students to be a highly beneficial option.
Rewards Program:
- Earn 5% cash back on groceries for the first three months (up to $2,000 in purchases).
- Earn 3% cash back on gas and recurring bill payments.
- Earn 0.5% cash back on all other purchases.
Benefits:
- No annual fee, making it an affordable choice for students.
- Extended warranty and purchase protection on eligible purchases.
- Access to BMO’s student financial tools and resources.
- Option to redeem cash back anytime with no minimum threshold.
Fees and Rates:
- Annual fee: $0.
- Interest rate: 19.99% on purchases, 22.99% on cash advances.
5. Best for Low Interest: MBNA True Line Gold Mastercard
For those who frequently carry a balance, the MBNA True Line Gold Mastercard offers one of the lowest interest rates in Canada, helping to minimize interest charges.
Rewards Program:
- While this card does not offer a rewards program, its primary benefit is the low interest rate.
Benefits:
- Low standard interest rate of 8.99% on purchases and balance transfers.
- No annual fee, making it a cost-effective option for budget-conscious consumers.
- Purchase assurance and extended warranty on eligible purchases.
Fees and Rates:
- Annual fee: $0.
- Interest rate: 8.99% on purchases, 24.99% on cash advances.
Conclusion
Choosing the right credit card depends on your spending habits, financial goals, and personal preferences.
The American Express Cobalt Card stands out for its overall rewards and benefits, making it a top choice for many Canadians.
However, if cash back is your priority, the TD Cash Back Visa Infinite Card offers excellent returns.
Travel enthusiasts will appreciate the Scotiabank Passport Visa Infinite Card for its travel perks and no foreign transaction fees.
Students can benefit from the BMO CashBack Mastercard for Students, while those seeking low interest rates will find the MBNA True Line Gold Mastercard to be an excellent option.
Evaluate your needs carefully and select the card that best aligns with your financial objectives.
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