Best Credit Cards in Canada for February 2024

If you’re looking for the best credit card in Canada, know that credit cards are not one size fits all. There’s no single credit card that can truly be the best option for everyone simply because we all have different needs.

If you’re a family looking to earn cash back on your high grocery bills or a globetrotter looking to earn rewards and get comprehensive travel insurance, your best cards will differ.

Instead of ranking the top ten credit cards overall, we will provide a list of the best credit cards for different spending scenarios.

The following credit cards were evaluated as the best in their credit card category, and each score reflects a result that was weighted to that category’s criteria and, within that, achieved the highest standing.

Best Credit Cards in Canada

Best Travel Credit Cards

American Express Cobalt® Card

American Express Cobalt® Card

  • Welcome Bonus: Up to 15,000 Membership Rewards points
  • Annual Fee: $155.88 ($12.99 per month) 
  • Regular APR: 20.99%

The American Express Cobalt comes with a range of valuable travel insurance and a $100 USD credit for hotels. The Membership Rewards points can be redeemed in four ways, including transferring them to other travel partners at 1:1.

Pros:

  • Amex Travel Portal offers 2 points for every dollar spent on travel, gas and transit purchases.
  • You can redeem the Amex Membership Reward in multiple ways.
  • Book select hotels and receive a $100 USD credit.
  • There are 10 different types of travel insurance, including emergency medical coverage up to $5 million.

Cons:

  • Relatively high annual fee.
  • Amex is still not accepted everywhere, including Loblaws stores and Costco.

Card Details: 

As a new Cobalt Cardmember, you can earn 1,250 Membership Rewards® points for each monthly billing period when you spend $750 or more on your Card. You can earn up to 15,000 points in a year, which can be redeemed for up to $150 towards a weekend getaway or concert tickets.

You can earn 5x the points on eligible eats and drinks in Canada, including groceries and food delivery. However, a spending cap applies. Additionally, you can earn 3X the points on eligible streaming subscriptions in Canada, 2X the points on eligible ride shares, transit & gas in Canada, and 1 additional energy on eligible hotel and car rental bookings via American Express Travel Online. For all other purchases, you’ll earn 1X point for every $1 in Card purchases.

You can transfer your points 1:1 to several frequent flyers and other loyalty programs. As a Cobalt Cardmember, you will also receive regular Perks such as bonus reward offers, access to fabulous events, special offers, and events curated for Cardmembers with American Express® Experiences.

Please note that American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the “Apply Now” link. If you apply and get approved for an American Express Card, we may receive compensation from American Express, which can be monetary. APPLY NOW.

CIBC Aventura® Gold Visa Card

CIBC Aventura® Gold Visa Card

  • Welcome Bonus: Up to 35,000 Aventura Points
  • Annual Fee: $139 (waived in the first year)
  • Regular APR: 20.99%

After accounting for the annual fee, we estimate that CIBC Aventura Gold Visa could earn more than $400 in yearly rewards. This card offers several travel benefits, including free access to airport lounges every year, a rebate of the NEXUS application fees every four years, and five different types of travel insurance.

Pros:

  • Decent earn rate on everyday spending
  • 4 complimentary airport lounge visits per year
  • A NEXUS application fee rebate every four years
  • Aventura points cover full airfare, including taxes and fees
  • Includes five types of travel insurance

Cons:

  • $139 annual fee
  • No trip cancellation or interruption coverage

Card Details: 

Enjoy a welcome bonus of up to 35,000 Aventura Points! You can earn 15,000 points when you make your first purchase and 20,000 points when you spend $3,000 or more in the first 4 monthly statement periods.

Plus, earn 2 Aventura Points per dollar when you book travel through the CIBC Travel Rewards Centre. You can also earn 1.5 Aventura Points per dollar spent at eligible gas stations, electric vehicle charging stations, grocery and drug stores, and 1 point per dollar spent on all other purchases.

Forbes Advisor estimates that you can earn $444 worth of rewards value based on average Canadian spending, factoring in the annual fee.

As a cardholder, you can enjoy four complimentary airport lounge visits annually on the Dragonpass network of over 1,200 airport lounges worldwide through the Visa Airport Companion Program. You can also get a rebate on your NEXUS application every four years.

Link your CIBC Aventura Gold Visa to a Journie Rewards card for $0.10 per litre off at participating Ultramar, Pioneer, Fas Gas and Chevron gas stations.

Other benefits include out-of-province emergency travel medical insurance, flight delay and baggage insurance, auto rental collision and loss damage insurance, $500,000 common carrier accident insurance, hotel burglary insurance, mobile device insurance, purchase security and extended protection insurance.

You can also access CIBC Pace It to pay off individual purchases in instalments and make personalized travel booking arrangements at no additional fee with the Aventura Travel Assistant. Optional credit card balance protection insurance is also available.  APPLY NOW.

Best Cash Back Credit Card

CIBC Dividend Visa Infinite Card

CIBC Dividend Visa Infinite Card

  • Welcome Bonus: Up to $200
  • Annual Fee: $120 (rebated in the first year)
  • Regular APR: 20.99%

This card is the best in Canada for cash back despite the annual fee of $120. This fee is waived for the first year, and you receive a generous welcome offer of up to 10% in cash back on your four first statements (up to $200). This card offers many other benefits, such as travel insurance and consumer protection.

Pros:

  • Competitive welcome offer of 10% cash back.
  • 4% cash back on gas and groceries.
  • Travel insurance.
  • Cell phone insurance.
  • Visa Infinite benefits.

Cons:

  • $120 annual fee.
  • High income requirements ($60,000 individual, $100,000 household).

Card Details: 

Earn 10% cash back on $2,000 in net purchases over the first 4 statements. The annual fee of $120 is waived for the first year. You can earn 4% cash back on grocery and gas purchases, up to $20,000 in annual gas and grocery purchases or up to $80,000 in net yearly credit card purchases, whichever comes first. Also, you can earn 2% cash back on dining, transportation and recurring bills or payments, up to $20,000 in those purchases or $80,000 in net credit card purchases, whichever comes first.

Additionally, earn 1% cash back on all other purchases with no limit. You can redeem cash back any time, as long as you have made a minimum of $25. You can redeem through CIBC mobile and online banking or on your January statement. Link your card to Journey Rewards to save up to $0.10 per litre at Pioneer, Fas Gas, Ultramar and Chevron gas stations.

Moreover, you can get up to $5 million in out-of-province emergency travel medical insurance for trips up to 10 days when you’re under age 64. You can also get standard carrier accident insurance up to $500,000. The card comes with primary car rental collision/loss damage insurance for a rental car valued at up to $65,000 MSRP (excluding taxes) for 48 days. Additionally, you can get mobile device insurance up to $1,000 (when the device is charged to the card). Purchase security is available up to 90 days from the date of purchase, and extended protection is available up to one year after the product’s original warranty expires.

Finally, you can take advantage of the Visa Infinite program’s perks, including insurance, concierge service, exclusive culinary experiences, and hotel perks such as free Wi-Fi, complimentary breakfast, and late checkout at hotels belonging to the Visa Luxury Hotel Collection. APPLY NOW.

Best Business Credit Card

CIBC Aeroplan Business Visa Card Plus

CIBC Aeroplan Business Visa Card Plus

  • Welcome Bonus: 60,000 Aeroplan Points
  • Annual Fee: $120 (rebated in the first year)
  • Regular APR: 19.99%

The CIBC Business Aeroplan Card Plus comes with a $1,200 welcome bonus. This card offers a net annual earning of $456.68 for booking Air Canada and a respectable $430.63 when booking other travel. The card provides various travel benefits, including airport lounge access and free checked luggage.

Pros:

  • Welcome Bonus of $1,200 plus 60,000 Aeroplan points
  • Air Canada Maple Leaf Lounge: 4 complimentary passes per year
  • Employers, employees and up to 8 guests can enjoy a free first-checked bag. Earn Aeroplan Elite Status faster.
  • Air Canada Buddy Pass – A companion can get a free base fare ticket wherever Air Canada flies.

Cons:

  • $120 annual fee and $50 for each additional cardholder.

Card Details: 

Earn up to 60,000 Aeroplan Points in the first year with this credit card. You can earn 10,000 points when you make your first purchase, 20,000 points when you spend at least $3,000 during your first 4 monthly statements, and 30,000 points when you spend at least $35,000 in the first year.

You can earn 2 points per dollar spent on Air Canada directly and at the Air Canada eStore. Additionally, you can earn 1.5 points per dollar spent on travel purchases such as non-Air Canada flights, cruise lines, rental car companies, and tour companies. You can also earn 1.5 points per dollar spent on transportation purchases such as limos, cabs, and buses and any dining, shipping, internet, and phone purchases. For all other purchases, you can earn 1 point per dollar spent.

You can enjoy a one-time annual fee rebate of $120 in the first year and $50 for each additional cardholder. You can also get a Buddy Pass anywhere Air Canada flies in North America (including Hawaii and Mexico), so a travelling companion can get a free base fare ticket. Additionally, you and up to 8 travelling companions can get a free first-checked bag whenever you fly with Air Canada, and you can receive 4 complimentary guest passes per year for Air Canada’s Maple Leaf Lounge.

Track your spending with Visa Spend Clarity for Business. Moreover, you can earn 1,000 status-qualifying miles and one status-qualifying segment for Aeroplan Elite Status for every $5,000 you spend on eligible purchases.

With this credit card, you can also enjoy 6 types of travel insurance, including trip cancellation and interruption insurance, flight delay and baggage insurance, rental car auto collision loss/damage insurance, and common carrier accident insurance. Additionally, you can benefit from 90-day purchase protection and a two-year extended warranty on eligible purchases. APPLY NOW.

Best Student Credit Card

BMO Cash Back Mastercard for Students

BMO Cash Back Mastercard for Students

  • Welcome Bonus: 5% cash back on your first $2,500 in purchases
  • Annual Fee: $0
  • Regular APR: 20.99%

The card has no annual fee and is the best credit card for students in Canada. Its competitive welcome offer, which includes 5% cashback on all purchases during the first three-month period, makes it stand out. It’s perfect for purchasing essentials like textbooks and technology at the beginning of a semester.

This card offers you the best cashback (3% for groceries and 2% for bills) and sends insights to help you stick to your budget. This card can give you $312 cash back annually based on Forbes Advisor’s calculations of average Canadian spending. Maximizing your welcome offer of $125 will earn $437 in the first year. You can redeem this amount at any time.

Pros:

  • Competitive welcome offer of 5% cash back.
  • 3% cash back on groceries (up to $500 per month).
  • No annual fee.
  • Flexible cash back redemption (you can redeem for any amount at any time).
  • Extended warranty and purchase protection.

Cons:

  • $500 per month limit on the 3% grocery category and the 1% recurring bill categories (you’ll then earn the base 0.5% cash back rate if you exceed the limit).

Card Details: 

Earn up to $125 in cash back by receiving 5% cash back on purchases worth up to $2,500 made in the first three months. You can earn 3% cash back on groceries, up to a maximum of $500 monthly. You can earn 1% cash back on recurring bill payments, up to $500 monthly.

All other spending will earn you 0.5% cash back with no limit. There is no annual fee, and cashback can be redeemed for any amount. You can deposit cash back into your BMO chequing, savings or Investor Line account or use it as a statement credit. Additionally, you can access financial insights to track spending. The card also includes extended warranty insurance and purchase protection. APPLY NOW.

Best No Annual Fee Credit Card

American Express Green Card

American Express Green Card

  • Welcome Bonus: 10,000 Membership Rewards
  • Annual Fee: $0
  • Regular APR: 20.99%

At first glance, the earning rate and annual earnings for the Amex Green Card don’t look that impressive, but when you transfer the Membership Rewards you earn on every purchase to its large number of airline and other loyalty partners, this card starts to prove its worth. When you consider it’s a card with no annual fee, it’s clear that it’s all profit.

Pros:

  • Earn 1 point per dollar on all purchases and an additional point on eligible hotel stays and car rentals booked through the Amex Travel portal.
  • No annual fee.
  • Extends manufacturer’s warranty by one year on all purchases
  • Transfer Membership Rewards 1:1 to several airline and other loyalty programs.

Cons:

  • Only includes two types of insurance.
  • American Express isn’t widely accepted in Canada.
  • The earn rate in popular spending categories is higher on other cards.

Card Details: 

Earn a bonus of 10,000 American Express Membership Rewards points when you spend $1,000 on eligible purchases in the first three months of your card membership. You’ll also earn one Membership Rewards point for every dollar spent on eligible purchases and an additional point when you book hotel stays and car rentals through the Amex Travel online portal.

This card has no annual fee, and you’ll get Front Of The Line access to exclusive events across Canada. Additionally, your purchases will be protected for 90 days in the event of theft or damage up to $1,000. You may also take advantage of the Amex Plan It instalment program. All Amex Membership Rewards points can be redeemed at $10 per 1,000 points for statement credit. APPLY NOW.

Best Balance Transfer and Low/No Interest Credit Card

MBNA True Line Mastercard

MBNA True Line Mastercard

  • Welcome Bonus: NA
  • Annual Fee: $0
  • Regular APR: 12.99%-19.99%

The MBNA True Line MasterCard offers offers Canada’s most extended and best balance transfer offer. It also provides a low-interest rate on purchases. You cannot earn rewards or receive any of the traditional credit card benefits. However, if you are paying high-interest rates on your credit card, simply getting rid of it is a reward.

Pros:

  • 0% interest on balance transfers completed within 90 days of account opening for 12 months, with a 3% transfer fee.
  • A low 12.99% standard interest rate on purchases and balance transfers.
  • No annual fee

Cons:

  • No rewards or insurance coverages.
  • A 3% transfer fee on balance transfers.

Card Details: 

0% interest is applicable on balance transfers completed within 90 days of account opening for a period of 12 months, with a 3% transfer fee.

A low standard interest rate of 12.99% is applicable on purchases and balance transfers. The card is compatible with Apple Pay.

You can add up to 9 authorized users without any additional annual fee for each of them. The MBNA Payment Plan is available for making installment payments of 6, 12, and 18 months on purchases of $100 or more.

You can save a minimum of 10% on car rental base rates at participating Avis or Budget locations. APPLY NOW.

Best Rewards Credit Card

MBNA Rewards Platinum Plus Mastercard

MBNA Rewards Platinum Plus Mastercard

  • Welcome Bonus: 10,000 MBNA Rewards Points
  • Annual Fee: $0
  • Regular APR: 19.99%

No annual fee. Earn up to $400 per year ($415.23 if you pay recurring charges at 1 point for every dollar and $439.59 if you pay regular payments at 2 points per $1) without paying any annual fees. You can also choose how to redeem your points and receive the highly sought-after mobile device insurance.

Pros:

  • A welcome bonus of 10,000 MBNA Rewards Points (a $50 value).
  • A birthday bonus each year equal to 10% of the amount of points you accumulated in the 12 months prior to your birthday up to a limit of 10,000 points.
  • Mobile device insurance.

Cons:

  • No travel or rental car insurance.
  • Spending caps on purchase categories of $10,000.
  • Poor redemption value on cash back.

Card Details: 

You can get a welcome bonus of 10,000 MBNA Rewards.  You’ll get 5,000 points once you spend $500 on purchases, and another 5,000 points when you switch to e-statements.

For the first 90 days, you can earn 4 points per dollar on restaurant, grocery, digital media, and membership and utility purchases. After that, you can earn 2 points per dollar in these categories.

You’ll earn 1 point per dollar on all other purchases. There is no annual fee. On your birthday, you’ll receive a bonus of 10% of the number of points you earned in the previous 12 months.

The card includes mobile device insurance, 90-day purchase protection, and an extended warranty (one additional year).

You can redeem your MBNA Rewards points for cash back, travel, charitable donations, gift cards, and merchandise. APPLY NOW.

Best Credit Card For Bad Credit

KOHO Prepaid Mastercard

KOHO Prepaid Mastercard

  • Welcome Bonus: 30-day free trial to any KOHO subscription plans
  • Annual Fee: $0
  • Regular APR: None

Pros:

  • No annual fee. No purchase interest. No credit check.
  • No purchase interest.
  • No credit check required.
  • Earn 1% cash back on groceries and transportation with the free KOHO account or 2% cash back on groceries, transportation and restaurants with 0.5% cash back on everything else when you upgrade to Extra or Everything plan.
  • Get an extra 6% cash back when you shop at KOHO partners.

Cons:

  • Low reward earn rate.
  • Must pay to earn more cash back.
  • Credit building feature requires a $10 monthly fee.

Card Details: 

You can get 0.5% cash back on every purchase with KOHO. If you sign up for a premium account, you can get 2% cash back on three purchase categories and 5% when you shop at KOHO partners.

KOHO also comes with a savings account feature that allows you to earn up to 4.5% savings interest on the entire account balance.

You can get up to 6% extra cash back when you shop at KOHO partners. KOHO’s prepaid card is digital-first and comes with an accompanying app. However, it is on the Mastercard network, so it’s accepted anywhere Mastercard is taken. The premium account with the extra 2% cash back costs $9 per month or $84 per year.

For an extra $10 a month, you can open a line of credit for the sole purpose of building credit. It will be reported to credit bureaus each time you pay it down.

Optional plan upgrades are also available with a 30-day free trial. After that, the Extra plan is $9 monthly, while the Everything plan is $19 monthly. Both plans have extra cash back and up to 4.5% savings interest. APPLY NOW.

How Credit Cards Work

A credit card is a payment method that allows you to use the credit provided by your issuing financial institution. You are borrowing money when you swipe your card at a store that accepts Mastercard, Visa, or American Express to make a purchase.

Your credit limit will decrease by the amount you spend on your credit card. Your credit card statement will show you the total amount of all purchases made with your card. You can pay your bill until your following statement is released. You will be charged interest if you do not pay your credit card bill before the deadline and don’t make the payment within the grace period (typically 21 days).

Unpaid balances carry over to the following month. You’ll also be charged a fee if your purchase exceeds your credit limit. If you do not pay off your credit card, your credit score will drop, and your ability to obtain more credit may be reduced. A collection agency is ultimately responsible for collecting the debt. If you do not pay the debt, a collection agency may take legal action, and you could find yourself in court.

Most people never have to deal with that. Cardholders may pay their bill before the deadline (the ideal scenario) or pay their balance as interest accumulates. The cardholder will take even longer to reach zero if they continue to make purchases and earn interest. Carrying a balance forward into the following month while making only incremental payments is expected.

The cardholders who get the best rewards and benefits from their credit cards will pay their bills within the grace period before interest accrues. They receive the total amount of bonuses or cashback offered by their credit card because their debt does not exceed their payments. Their credit is in good shape, and they can build or maintain a high credit score. This makes it easier for them to qualify for bank loans, auto loans, or mortgages.

How to Apply for a Credit Card

Most often, credit cards are applied for via the websites of financial institutions. The institution can accept applications over the phone, or you can visit their branch in person. You will be asked to meet specific eligibility requirements once you click “apply now”.

  • You are a Canadian citizen.
  • It would help if you were at least the age of majority where you reside.
  • The card you use has a minimum annual income requirement for your household or yourself (some cards don’t have a minimum income requirement).

You will then see important card information, such as the annual interest rate and fees associated with your card. The next step is to fill out a form with your personal information, including your name, address, telephone number, employment location, annual income, and more.

The credit card company will then perform a credit report to determine your credit score. This credit check is the primary factor determining whether your credit card application will be approved.

The credit card companies have a range of credit scores they prefer their cardholders to be within. Credit card issuers will reject your application if you have delinquent credit accounts, are chronically late with payments, or miss payments altogether.

If you pay your credit card on time and have no credit accounts that are in arrears, collections, or in default, and you have a credit rating in the range of good to excellent (670 and higher), you will be able to qualify for the majority of credit cards available in Canada.

What Credit Score Is Needed For A Credit Card?

Credit scores are three-digit numbers between 300 and 909. Lenders use this number to determine whether you are creditworthy or, in other terms, if you can pay back your loan on time. Your creditworthiness will be higher if your number is high. This means lenders will approve your credit card application more readily if they consider you a low-risk applicant.

Credit card applications will determine the score required. You must have a good or excellent credit score if you apply for a premium reward credit card. This means anywhere from 725 to 9000. This does not mean that you will be denied a credit card. Credit card applications are assessed individually, and your credit score is not guaranteed approval.

Even if your score is below 650, applying for a secure credit card is still possible. You need $500 for the deposit, which will serve as your credit limit and be used in case you fail to pay. There are also prepaid and neo-credit cards, which work as credit cards and can be used anywhere they are accepted. They are preloaded or function as a debit card. Most of these cards don’t ask for credit histories; some even allow you to build credit at a cost.

Types of Credit Cards

In Canada, there are different types of credit cards. Different credit cards are available to suit the other spending habits of cardholders. You will see the following types of credit card:

Rewards Credit Cards

These cards reward spending. They do this in the form of cashback or reward points. How many points or cash back percentages you get for a purchase depends on your spending, the retail partner you use and the category of purchases you make. For example, grocery, gas, transportation, travel, dining, and online streaming are some of the most common types that offer a higher rate of cashback and reward points. Most of these cards offer a flat cashback rate or rewards for all purchases, regardless of the category.

Reward points are usually redeemable for travel, merchandise, gift certificates, event discounts and charitable donations. Cashback can be redeemed by transferring it to your credit card statement as a credit.

No-fee Credit Cards: Rewards With Little Cost

Few credit cards have no fees because they charge late payments, NSF, and other charges. In addition, all credit card holders pay interest if they do not pay their monthly balance in full. When people refer to credit cards with no fees, they usually refer to them with no annual fees. Cards with no annual fees are helpful because they save money, and some offer rewards. This means you can earn cash or points without a high price.

Black Credit Cards: Good Luck Trying to Get One

In Canada, there aren’t that many black credit card options. The American Express Centurion Card is a card that is known colloquially as “The Black Card”. This card and others at the same level are marked by exclusivity. These cards are only available to those with perfect credit and high incomes. You will receive several expensive and exclusive perks if you are chosen to be one of them. This includes a concierge who can get you anything you need anytime. Even if you are eligible for the black card and invited to its luxurious benefits, you will still have to pay an initiation fee of $10,000 and an annual fee of $5,000.

Aeroplan Credit Cards: For Frequent Air Canada Flyers

You can apply for a free membership through the Air Canada website. If you make frequent flights with Air Canada or its sister airlines, then consider joining their Aeroplan reward program. By applying for membership on the Air Canada site, making purchases with Aeroplan’s retail partner partners in Canada, and presenting your Aeroplan card, you can earn Aeroplan points toward free Air Canada flights and other perks such as companion fare and checked baggage. Aeroplan credit cards can accelerate making Aeroplan points, allowing you a free flight. Sometimes, the welcome bonus is enough to cover a single-way flight.

Air Miles Credit Cards: Best for Airline Flexibility

Air Miles will allow you to earn miles towards free flights with virtually any airline. You can collect miles with Air Miles for free flights with almost any airline. Air Miles can help you earn Air Miles more quickly. However, the program is currently limited to Canadian Tire and The Bank of Montreal, meaning you cannot collect Air Miles anywhere else but with your Air Miles card. Air Miles redemption is less straightforward than Aeroplan, with each mile worth a fraction of a cent, depending on the destination, airline, distance, and time of year.

Balance Transfer Credit Cards

Credit cards with balance transfers are designed for cardholders who carry a credit balance. Balance transfer credit cards offer a low interest rate or no interest on transfers for a certain number of months (known as the “promotional period”) or for as long as they hold the card.

If you have a balance from another credit card, you can transfer it to the balance-transfer credit card. You will pay less interest or none at all for a certain period. You have a greater chance of paying a large portion or the entire balance of your credit card.

You should be aware of a few things before transferring your balance to a credit card that allows balance transfers. There is usually a fee for transferring balances, typically 3% of your total balance. While the transferred balance qualifies for a no-interest or lower-interest rate, new purchases on the card are charged at a different and likely higher purchase interest rate.

Low-Interest Credit Cards

Low-interest credit Cards offer a combination of low-interest rates for purchases, balance transfers and cash advances for the duration of your credit card’s validity or a promotional period. Once the promotional period has expired, the low rate will return to its usual pace, such as 19.99% for purchases and 24.99% for cash advances or balance transfers.

Credit Cards with 0% APR

No-interest credit cards are a close cousin of low-interest credit cards. Cards with 0% interest rates offer 0% annual charges on purchases, either for a short time or until the card expires. No credit card offers 0% APR forever in Canada. It’s usually a promotional rate offered to cardholders for the first 3, 6 or 12 months they have their account. After the promotional period, the annual interest rate on purchases usually reverts to the more standard rate, like 19,99% or 20,99%.

Student Credit Cards

Students studying in a postsecondary institution can apply for Student Credit Cards. These cards are available to Canadian students who have no credit history. These are usually copies of the regular credit cards the issuer offers, with the same benefits and rewards.

A student credit card does not require a history of credit. However, this doesn’t mean that there are no requirements. The prospective cardholder will usually need regular income to pay the upcoming credit card bills. Student credit cards typically carry higher interest rates than non-student credit cards because students are often first-time borrowers and may be viewed as a greater credit risk.

Credit Cards to Build Credit

All conventional credit cards can build or diminish credit because they report the spending and repayment habits of the cardholders to credit bureaus. If you have been deemed a credit risk, and your credit score has dropped to the point that you cannot get credit the traditional way, you can rebuild your credit with several credit cards. These are some of the cards that will help you build your credit.

Secured Credit Card

Secured credit cards must have a deposit, which doubles as a credit limit. The warranty can cover purchases made on the card if a secured cardholder cannot pay. A fast card user will pay their assets as usual with a credit card. However, every payment they make is guaranteed to be reported by the credit bureaus. This will increase the user’s score faster than a standard credit card. After a few months of responsible use, you might be offered another secured credit card.

Prepaid credit cards

Prepaid Credit Cards may also be able to help you establish credit. You load money onto these cards and use them until they run out. Cards such as the KOHO Prepaid Mastercard report your monthly payments to credit bureaus for an additional $10. This helps you build credit.

Unsecured credit cards

There are also regular, unsecured cards, which don’t require applicants to have a high credit score. They will also report the payments to credit bureaus, helping those with poor credit improve their scores.

Business Credit Cards

Business Credit Cards support business owners by tailoring their cards to the costs associated with running a business. Usually, they have a longer application process, which includes the applicant’s individual income and the business’s income.

Many business credit cards offer rewards and perks geared toward business expenses. They include higher rates of cashback and rewards points for purchases considered typical business expenses. Examples include travel, office supplies, internet, phone, or other bills.

Businesses can also take advantage of the free inclusion of multiple employees in a credit card account. They will receive insurance coverage for their business, such as extended warranty, purchase protection, rental car damage/loss insurance, and emergency travel medical insurance. Business credit cards have expense-tracking features and zero-liability plans in the event that an employee makes an unauthorized transaction.

Credit Card Companies in Canada

Credit Card IssuerNetwork
BMOMastercard
ScotiabankVisa & American Express
RBCVisa & Mastercard
TDVisa
National BankMastercard
CIBCVisa
American ExpressAmerican Express
Brim FinancialMastercard
Canadian Tire BankMastercard
Rogers BankMastercard
ATB FinancialMastercard
Simplii FinancialVisa
Refresh FinancialVisa
TangerineMastercard
VancityVisa
WalmartMastercard
WiseVisa
CostcoMastercard
WealthsimpleMastercard
ManulifeVisa
MeridianVisa
Neo FinancialMastercard
MogoVisa
KOHOMastercard
Laurentian BankVisa
PC FinancialMastercard
Home TrustVisa
DesjardinsVisa & Mastercard
Coast Capital SavingsVisa
MBNAMastercard
Capital OneMastercard
Canadian Western BankVisa & Mastercard
 

Frequently Asked Questions (FAQs)

What is the easiest credit card to get with average credit?

The best credit cards to obtain with average credit are probably store credit cards, such as the Triangle Mastercard and The Costco Mastercard. These cards are usually available to anyone with average credit. Costco’s card requires a Costco membership. You can get this by applying for the Costco card and paying the fee. Store cards often have higher-than-average interest rates if they carry a balance, and fees that are higher than the average if payments are late.

How many credit cards should you have?

The Canadian Bankers Association says that on average, Canadians have 2.4 credit cards. You should only use as many credit cards that you can pay back each month.

What is the best credit card for the average person?

We recommend the MBNA True Line Mastercard to Canadians who carry a balance. This card offers 12 months of 0% interest for balance transfers when completed within 90 days after account opening. Cardholders also get a 12.99% APR standard on balance transfers and purchases outside the 12-month promotional period.

What is the best Mastercard to have in Canada?

Forbes Advisor Canada has done extensive research and found that the BMO Cash Back World Elite Mastercard is actually at the top of our list of Best Master cards. It has a $120 fee, which is waived the first year, but it offers high earning rates for groceries, gas, transit and recurring bills. You can also get 10% cash back within the first three month period. It offers roadside assistance, insurance coverage and rental car discounts. However, there are certain income requirements. There are income requirements.

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