Best Credit Cards in Canada in 2024

Credit cards are powerful tools for managing your finances, building credit, and earning rewards. However, choosing the right one can be challenging, given the vast number of options available in Canada. Whether you’re looking for the best travel rewards card, a low-interest option, or something that caters to everyday purchases, it’s important to understand how credit cards work and what they can offer.

Top 10 Recommended Credit Cards in Canada (2024)

Here’s a quick list of the top 10 credit cards available in Canada for 2024, with key reasons they stand out:

1. American Express Cobalt Card – Best for everyday rewards (up to 5x points on dining and groceries).
2. Scotiabank Gold American Express Card – Best for travel rewards with no foreign transaction fees.
3. TD Aeroplan Visa Infinite – Best for Aeroplan members, offering great Air Canada perks.
4. WestJet RBC World Elite Mastercard – Best for WestJet travellers with strong WestJet Dollar returns.
5. RBC Cash Back Mastercard – Best no-annual-fee card with solid cashback on all purchases.
6. BMO CashBack Mastercard – Best no-annual-fee cashback card, great for groceries.
7. SimplyCash Preferred Card from American Express – Best for high cashback rates on all purchases.
8. MBNA True Line Mastercard – Best balance transfer card with 0% interest for 12 months.
9. Scotiabank Momentum Visa Infinite – Best for cash back with 4% on groceries and recurring bills.
10. Tangerine Money-Back Credit Card – Best for custom cashback categories and no annual fee.

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How Credit Cards Work

Credit cards allow you to borrow funds from a bank or financial institution to make purchases. Each card comes with a credit limit, and as long as you pay off your balance each month, you won’t incur interest. If you carry a balance, you’ll be charged interest based on your card’s APR (annual percentage rate). The more you spend responsibly, the more you build your credit score—an essential metric for qualifying for future loans or better credit cards.

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Types of Credit Cards in Canada

Different types of credit cards are tailored to fit unique needs:

1. Rewards Credit Cards
   These cards let you earn points, cash back, or miles on purchases. For example, the American Express Cobalt Card offers 5x points on dining and groceries, which is ideal for foodies or families.
2. Travel Credit Cards
   Travel cards like the Scotiabank Gold American Express let you earn points for travel-related expenses and often include perks like no foreign transaction fees and travel insurance. These cards are best for those who frequently travel and want to save on flights, hotels, and car rentals.
3. Cashback Credit Cards
   Cashback cards reward you with a percentage of your spending. For example, the RBC Cash Back Mastercard provides a solid return on all purchases with no annual fee. Similarly, the BMO CashBack Mastercard offers great cash back on groceries, making it a top pick for everyday shoppers.
4. Low-Interest Credit Cards
   If you tend to carry a balance, low-interest cards like the MBNA True Line Mastercard offer relief by keeping interest rates lower than traditional cards. This card features 0% on balance transfers for 12 months.
5. Balance Transfer Credit Cards
   These cards help consolidate debt by offering low or 0% interest rates on transferred balances. The MBNA True Line Mastercard is ideal for this, allowing you to focus on repaying your debt without accruing more interest.
6. No Annual Fee Credit Cards
   If you don’t want to pay an annual fee but still want rewards, no-fee cards like the Tangerine Money-Back Credit Card or RBC Cash Back Mastercard are good options, providing cashback or rewards with no yearly cost.

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How to Choose the Right Credit Card

To select the best credit card for your needs, consider the following factors:

1. Spending Habits
   Look at where you spend the most money—dining, groceries, travel, or gas—and choose a card that rewards you for those purchases. For instance, the American Express Cobalt Card gives great rewards on dining, while the Scotiabank Momentum Visa Infinite provides high cashback on groceries.
2. Interest Rates
   If you don’t plan to pay off your balance every month, opt for a card with a lower interest rate to minimize the cost of borrowing. Low-interest options like the MBNA True Line Mastercard are ideal if you carry a balance.
3. Fees
   Some cards charge annual fees, but they may offer better rewards or perks that offset the cost. Cards like the Scotiabank Gold American Express and TD Aeroplan Visa Infinite come with annual fees but provide travel perks that could outweigh the cost.
4. Perks and Rewards
   Consider cards that offer additional perks such as travel insurance, airport lounge access, or purchase protection. For example, the WestJet RBC World Elite Mastercard offers a free checked bag, companion flights, and great rewards for frequent flyers.
5. Eligibility
   Each card has its own eligibility criteria, such as minimum income requirements and credit score thresholds. For instance, the TD Aeroplan Visa Infinite requires a personal income of $60,000 or more, whereas the BMO CashBack Mastercard is accessible to those with lower credit scores and no income requirement.

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Top 10 Recommended Credit Cards in Canada: Detailed Overview

1. American Express Cobalt Card

• Annual Fee: $155.88
• Rewards: 5x points on dining and groceries, 3x on streaming services, 2x on travel.
• Why It’s Best: Generous rewards for daily spending, ideal for foodies and travelers.
• Perks: Travel insurance, purchase protection, early access to events.

1. Scotiabank Gold American Express Card

• Annual Fee: $120 (waived first year)
• Rewards: 6x Scene+ points on groceries and dining.
• Why It’s Best: Great travel perks with no foreign transaction fees.
• Perks: Comprehensive travel insurance, flexible reward redemption.

1. TD Aeroplan Visa Infinite

• Annual Fee: $139 (waived first year)
• Rewards: 1.5x points on gas, groceries, and Air Canada purchases.
• Why It’s Best: Best for Aeroplan users, includes travel perks like a free checked bag and Nexus fee rebate.

1. WestJet RBC World Elite Mastercard

• Annual Fee: $119
• Rewards: 2% in WestJet dollars on WestJet flights and vacation packages.
• Why It’s Best: Strong for WestJet travelers with perks like an annual companion voucher and free checked bags.

1. RBC Cash Back Mastercard

• Annual Fee: $0
• Rewards: 1-2% cash back on all purchases.
• Why It’s Best: Best no-fee card with solid cashback rewards for everyday spending.

1. BMO CashBack Mastercard

• Annual Fee: $0
• Rewards: 3% cash back on groceries, 1% on other purchases.
• Why It’s Best: Strong grocery rewards with no annual fee.

1. SimplyCash Preferred Card from American Express

• Annual Fee: $119
• Rewards: 2% cash back on all purchases.
• Why It’s Best: High cashback rate on all spending categories.

1. MBNA True Line Mastercard

• Annual Fee: $0
• Rewards: N/A
• Why It’s Best: Best for balance transfers with 0% interest for 12 months and low ongoing rates.

1. Scotiabank Momentum Visa Infinite

• Annual Fee: $120 (waived first year)
• Rewards: 4% cash back on groceries and recurring bills, 2% on gas and transit.
• Why It’s Best: High cashback rewards on household essentials.

1. Tangerine Money-Back Credit Card

• Annual Fee: $0
• Rewards: 2% cash back in up to 3 selected categories.
• Why It’s Best: Customizable cashback categories and no annual fee.

FAQs

1. What is the difference between a rewards card and a cashback card?

• Rewards cards allow you to earn points or miles that can be redeemed for travel, merchandise, or services. Cashback cards, on the other hand, offer a direct percentage of your purchases back in cash, which can be applied as a statement credit or redeemed in other ways.

1. How do I qualify for a credit card in Canada?

• Eligibility for a credit card is based on your credit score, income, and sometimes specific financial habits. Typically, a higher credit score and steady income increase your chances of approval. Secured cards are a good option for those with poor or no credit history.

1. What should I look for in a travel rewards card?

• Look for a card that offers a high rate of points or miles on travel-related purchases, no foreign transaction fees, and perks like travel insurance, airport lounge access, and airline-specific benefits (such as free checked bags or priority boarding).

1. Can I get a credit card with bad credit?

• Yes, many lenders offer secured credit cards, which require a deposit as collateral but can help you rebuild your credit. Some no-fee options like secured or low-limit cards are available for those with lower credit scores.

1. How do credit card points work?

• Points earned through credit card purchases can be redeemed for various rewards like travel, merchandise, or gift cards. Each program has its own rules and values, so it’s important to choose a card that aligns with how you plan to use the points.

This guide should help you confidently navigate the world of credit cards in Canada and make an informed decision that suits your lifestyle and financial goals. Remember to use credit responsibly to maximize benefits and avoid debt accumulation.