Canada’s Best Credit Cards for November 2024
Nov 1, 2024NerdWallet Canada’s picks for the best credit cards include top contenders across numerous card categories. Compare these options to find the ideal card for you.
Choosing the best credit card is part art, part science. From student-friendly starter cards to options boasting premium travel rewards, no single credit card is better than all others in all categories — or for everyone. We’ll help you narrow down the search.
Introducing the new Neo World Elite® Mastercard, the card that rewards you with real money instead of points. This cashback card is market leading with 5% cash back on groceries, 4% on recurring bills, 3% on gas and 1% on everything else from day one. Plus earn an average of 5% back on their network of over 10,000 partners across Canada. Click 'Apply Now' for complete details.
Best overall credit cards in Canada
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Card detailsBest credit cards for everyday spending
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BACK TO TOPIntroducing the new Neo World Elite® Mastercard, the card that rewards you with real money instead of points. This cashback card is market leading with 5% cash back on groceries, 4% on recurring bills, 3% on gas and 1% on everything else from day one. Plus earn an average of 5% back on their network of over 10,000 partners across Canada. Click 'Apply Now' for complete details.
Different types of best credit cards
Looking for certain types of credit cards? Check out more of our picks for different categories of best credit cards:
Beginner’s guide to credit cards in Canada
A credit card is part of daily life for many Canadians. Using your card to pay for purchases can be more convenient than using cash. Plus, with the best credit cards, you can manage your expenses and earn rewards at the same time.
How credit cards work
Think of credit cards as a short-term loan from your credit card provider. You make purchases with your card and pay for them later.
One thing that makes credit cards appealing is that there’s an interest-free period. As long as you pay for all charged purchases in full by your statement due date, you won’t have to pay interest in exchange for borrowing the issuer’s money for a few weeks.
A typical credit card transaction would look something like this:
You charge a purchase to your cardWhen making purchases, choose credit as your form of payment. You’ll then tap, insert or swipe your card to initiate the payment. You may also be required to enter your pin number. If you’re making payments online, you’ll need to enter all your card information manually.
Wait for your purchase to be authorizedThe payment terminal will contact your credit card company to confirm the purchase amount.
The merchant gets paidOnce approved, your credit card provider sends the merchant the funds. The merchant does pay a small fee to your credit card provider for this service.
You get your bill and pay Once your bill arrives, it’ll list your transactions, minimum payment requirement and due date. If you only make the minimum payment, you may see some interest charges on your next bill. To avoid this extra cost, pay your bill in full by that date so no interest is charged.
Ideally, you’d be able to pay your bill in full each month, so these interest charges would not apply. If you’re worried about your ability to do so, seek out a low-interest card to reduce your financial risk.
How credit card interest works
Credit card companies charge interest on unpaid balances. You don’t owe any interest when you pay your card’s balance in full. But what happens if you don’t pay off your credit card balance? Let’s take a look.
Say your card has a 19% interest rate — which is pretty standard. You pay $100 to buy a pair of concert tickets for yourself and a friend. But how much interest will those tickets accrue if you don’t pay your credit card balance and your card’s grace period has passed?
Here’s how to calculate credit card interest:
Find your daily rate. Your card’s 19% interest rate is an annual rate. To find your daily rate, divide your annual interest rate by the number of days in one year.
19% / 365 = 0.00052
Find your daily interest accrual. Next, determine how much daily interest you’ll accrue on your unpaid balance by multiplying your daily rate by your average daily balance — which in this case, is the $100 you spent on concert tickets.
0.00052 x $100 = $0.05
Multiply by the number of days in your billing cycle. To determine how much interest your unpaid balance accrues over one month, multiply daily interest by the number of days in your billing cycle.
$0.05 x 30 = $1.50
» MORE: Don’t want to crunch the numbers by hand? Figure out how much interest you’d owe with our credit card interest calculator.
How credit card rewards work
With certain credit cards, you can earn rewards when you make a purchase. The type of rewards you earn and your earn rate differ by card, however.
Types of rewards you can earn
The types of rewards you can earn can generally be broken down into four categories:
Cash back. For every purchase you make, get a set percentage back in cash. The pay-out date for your cash back earned differs depending on the card. It can be monthly, annually or when you reach a minimum threshold.
Travel benefits. Credit card travel rewards programs let you earn points or miles when you make purchases. You can use your rewards to offset the cost of flights, hotels, car rentals, vacation packages and more.
General rewards. Most rewards programs offer the option to redeem the points you’ve earned for general merchandise, gift cards, experiences, entertainment, financial rewards, and more.
Store perks. Many merchants have a co-branded credit card. The points you earn can be used in-store or online at any participating stores. Groceries and merchandise are typical redemption options for store rewards cards.
Earn rates
The earn rate is a critical factor when it comes to getting rewards. Every rewards card has a base earn rate, but some cards also have higher earn rates on certain highly lucrative purchases. Knowing the difference between the two can help you maximize your rewards.
Base earn rate. You’ll get this for any purchase that doesn’t fall into an increased earn rate category, or after you’ve hit any applicable limits in those categories. For example, you might get 1% cash back or 1 point per dollar spent.
Accelerated earn rate. Getting extra points on bonus categories that line up with your regular spending is a great way to rack up rewards even faster. For example, some of Canada’s best cash-back credit cards may give you 4% back on groceries or 2% on gas.
The rewards process
Earning rewards can look different depending on the card and issuer, but generally speaking, the process works like this:
Make a purchase with your credit card. The purchase must be considered eligible by the issuer to earn rewards.
Your rewards are calculated. Depending on the merchant category and your earn rate, your credit card provider calculates how many rewards you’ve earned. They’ll also factor in any promotions where you’ll earn additional rewards.
Rewards are deposited into your account. Cash-back rewards may be immediately visible in your account, but you may not be able to cash them out until a certain date or when you hit a certain threshold. If you’re earning travel or store rewards, you’ll either see your points immediately or at the end of the month when your statement posts.
Redeem your rewards. In most cases, redeeming your rewards requires you to log in to your account. Redeeming cash back may only take a few clicks, but if you’re looking to redeem travel rewards, you may need to go through a travel portal or book the travel first.
Tracking your rewards
In most cases, logging in to your account will allow you to see how many rewards you’ve earned. Most credit card providers show how many points you’ve earned for each transaction as well as a running total, so you’ll know exactly where you stand. Additionally, credit card statements often have a more detailed breakdown of any extra rewards that you may have earned.
Your rewards typically show up when the transaction posts. Bonus rewards earned from special promotions should show up on your monthly statement. It’s also worth mentioning that any special rewards you get, such as a companion voucher, may take longer to appear in your account.
As for your welcome bonus, you usually need to track that on your own. For example, let’s say you need to spend $3,000 in the first three months of card membership to get your intro offer. Although you’ll usually get your bonus immediately after passing the minimum spend requirement, it’s up to you to check if points land after you’ve spent enough.
How to choose the right credit card
With so many credit cards available, narrowing down your choices can be a challenge. When choosing a credit card, there are numerous factors to consider — chief among them: card requirements.
Different cards carry different credit score and income requirements. To ensure you meet the eligibility criteria, learn how to check your credit score. And be mindful of personal or household income requirements, too — you’ll often encounter these criteria with high-tier luxury cards.
Credit card features to compare
Consider the following when deciding which credit card is right for you:
Annual fee. Decide if you want to pay an annual fee or not. Cards that have an annual fee typically come with better benefits.
Rewards. The type of rewards you want to earn will quickly help you narrow down your choices.
Earn rate. Try to choose a card with increased earn rates in the categories where you naturally spend more.
Welcome bonus. If you’re comparing similar cards, choose the one with a better sign-up offer.
Additional perks. See if there are any additional benefits you want, such as no foreign transaction fees, travel insurance, extended warranty, etc.
What credit score is needed for a credit card?
Canadian credit card issuers rarely disclose required credit scores, which makes it hard to know your chances of approval when comparing credit cards. However, higher scores generally mean better chances of approval, and that’s true regardless of the type of credit you’re applying for.
Want to learn more? Visit our “What Credit Score is Needed for a Credit Card?” page.
What is the best credit score in Canada?
Credit scores in Canada range from 300 to 900. Generally, Canadian credit scores can be organized into the following categories:
Poor: 300 – 579.
Fair: 580 – 659.
Good: 660 – 739.
Very Good: 740 – 799.
Excellent: 800+.
How to apply for a credit card
When you apply for a credit card, there’s no guarantee you’ll be approved. The credit card provider needs to assess your financial profile to determine if you’re creditworthy. The application process will typically look something like this:
Fill out an application. This can be done online or at your financial institution. The application will ask for some basic information, such as your name, date of birth, address, social insurance number, employer and income.
Your information is checked. The credit card issuer will check your credit history and verify the information that you provided.
A decision is made. If you apply online, instant approval (or disapproval) is possible, but there’s also a chance the credit card issuer will ask you to contact them to provide additional information.
Your card is mailed out. Your credit card will immediately be mailed out and will typically arrive within 14 business days.
Activate your card. Once your card arrives, you’ll need to activate it by logging into your account or calling the number on your card. Once activated, you can use your card to make purchases.
How many credit cards should I have?
The number of credit cards that’s right for you will depend on your spending habits, credit score and personal preferences.
There are benefits and drawbacks to carrying two or more credit cards. A few things to keep in mind:
Applying for a new Canadian credit card requires a hard credit check, which will likely drop your credit score by a few points.
Holding more than one credit card may improve your credit score if you use your cards responsibly.
Carrying more than one card means you’ll have access to multiple credit sources, which could lead to an increased risk of debt.
Types of credit cards in Canada
A wide variety of credit cards are available in Canada, and each can be used as a tool to achieve various financial goals. People who always pay their bills on time may want a rewards credit card, whereas someone looking to rebuild their credit may prefer a secured credit card. Since your personal situation could change at any time, it’s a good idea to understand how the different types of credit cards work.
Rewards credit cards: Best for earning points and cash-back rewards
Rewards credit cards can be broken down into the following categories:
Cash back. You’ll get cash back on every purchase you make. See our picks for the best cash back credit cards in Canada.
General rewards. The points you earn can be used for gift cards, merchandise, experiences and sometimes travel. See our picks for the best general rewards credit cards in Canada.
General travel. The points you earn can be used for any type of travel redemption. See our picks for the best travel credit cards in Canada.
Airline rewards. Co-branded airline rewards can be used on a specific airline and its partners.
Hotel rewards. Points earned through hotel credit cards can be used at any participating property.
Store rewards. Use the points you’ve earned for groceries, merchandise and more.
No-fee credit cards: Best for rewards on a budget
No-fee credit cards come with no annual fee. They can be any type of credit card, but often feature rewards or a low interest rate. Some no-fee cards are geared towards students and have easier requirements.
Balance transfer credit cards: Best for paying down credit card debt
Balance transfer credit cards typically come with a low introductory interest rate. Because of this, you can use them to move your balance from a credit card with a high rate to one with a lower rate, allowing you to pay down debt faster.
Low-interest credit cards: Best for cardholders who typically carry a balance
Low-interest credit cards often have an interest rate of between 9% – 13%. This is significantly lower than standard interest rates, so low-interest credit cards can be helpful for people who may carry a balance.
Student credit cards: Best for anyone seeking accessible credit
Student credit cards typically have more relaxed qualification requirements and often charge no annual fee. They’re a good choice for students who may be looking to build their credit or establish good spending habits.
Secured credit cards: Best for building credit
If you’re unable to qualify for an unsecured credit card, you might be able to get one of the best secured credit cards. These cards require you to deposit security funds that act as your credit card limit. As you make your payments regularly, using a secured credit card can build your credit score.
Black credit cards: Best for luxurious perks
Despite the name, what unites black credit cards isn’t colour; it’s exclusivity. Black cards are deluxe credit cards — the crème de la crème — typically available by invitation only to high earners and splashy spenders. The eligibility criteria for a black credit card differs by card provider, but typically, applicants need an excellent credit score and a personal income of at least six figures annually.
Aeroplan credit cards: Best for Air Canada patrons
Millions of Canadians are members of Aeroplan, the loyalty program associated with Air Canada. There are several ways to become an Aeroplan member, but the easiest is carrying an Aeroplan personal or business credit card. The best Aeroplan credit cards make it easy to earn points that can be used for special perks and benefits. Armed with one of these travel cards, your trip may be more enjoyable and affordable than ever.
Air Miles credit cards: Best for travellers seeking flexible redemption options
The Air Miles program launched in 1992 and remains one of Canada’s most popular rewards programs. Air Miles collectors can redeem Dream and Cash Miles for various items, including airfare, cash rewards, merchandise and more. The best Air Miles credit cards earn rewards on every eligible dollar spent and come with attractive perks, like airport lounge access and robust travel insurance.
Business credit cards: Best for business owners
Business credit cards typically offer accelerated rewards rates on business spending. Merchants may also appreciate common business credit card perks, like higher credit limits and supplementary cards for employee use.
Prepaid credit cards: Best for anyone with a low credit score or no credit history
Prepaid credit cards are like debit cards: cardholders can only spend up to the amount they’ve deposited to the card. Prepaid cards don’t charge interest because cardholders don’t borrow money — they spend their own funds. Prepaid credit card activity isn’t reported to Canadian credit bureaus, so using one won’t impact your credit score.
Types of credit card interest rates
Credit cards typically have more than one interest rate. Take a closer look at your card’s terms and conditions, and you may notice as many as four different credit card interest rates:
Purchase interest rate. The purchase interest rate is the rate you pay on overdue balances from everyday spending. In Canada, most cards have a purchase interest rate of about 20%.
Cash-advance interest rate. You’ll pay your credit card’s cash advance interest rate on any money you withdraw from an ATM — also called a cash advance. Cash advance interest rates also apply to lottery ticket purchases, gambling site transactions and wire transfers.
Balance-transfer interest rate. Balances transferred from one credit card to another are subject to balance transfer interest rates.
Penalty interest rate. Missing multiple credit card payments may result in a penalty interest rate that’s much higher than the purchase rate. For a set period, you’ll pay a penalty interest rate instead of your card’s purchase interest rate on everyday transactions.
Pros and cons of credit cards
Credit cards are a convenient payment option, but there are some drawbacks to consider.
Pros
Convenient and secure payment method.
May earn rewards.
May offer insurance coverage.
Builds credit when used responsibly.
Cons
A more expensive form of borrowing than a personal loan or line of credit.
May lead to debt.
Harms credit when used irresponsibly.
Tips for maximizing your credit card rewards
Get the most out of your credit card rewards with the following tips:
Know how to earn points. Not all purchases may be treated equally — at least not in the eyes of your card issuer. Some purchases may earn you more points than others, so familiarize yourself with your card’s rewards program.
Explore redemption options. Card rewards range from travel perks to cold hard cash. If you’re card shopping, take a look at the reward options before signing up.
Capitalize on limited-time promotions. Keep an ear out for time-sensitive promotional periods when your points may be worth more.
Watch out for expiration dates. Some points expire after a prolonged period of card inactivity, so keep your card in good standing to maintain your point balance.
What credit cards are the most accepted in Canada?
Mastercard and Visa credit cards are the most accepted cards in Canada, although one major retailer doesn’t take Visa: Costco.
If you carry an American Express card, you may want a backup form of payment — it may be less frequently accepted in Canada.
What’s better, a Mastercard or Visa?
It’s hard to declare a winner between Mastercard and Visa because these payment giants are credit card networks — not credit card issuers. Mastercard and Visa are among the most popular and well-established credit card processing networks in the world and share a lot in common. They’re both widely accepted and process billions of transaction dollars annually.
Mastercard and Visa predominantly work behind the scenes. They partner with card issuers, like banks and credit unions, to offer cards to the public. Eligibility requirements, rewards, and signup bonuses are all determined by card issuers.
Credit card companies in Canada
Here are some widely known credit card issuers in Canada, along with their networks and notable cards. Credit card issuers are companies that lend money and provide credit cards. These issuers belong to credit card networks, which maintain the infrastructure that makes credit card transactions possible.
Can Americans get a Canadian credit card?
Yes. Several Canadian banks offer non-resident and newcomer credit cards, including RBC, Scotiabank, TD, and more. These card programs are designed for newcomers and temporary residents and typically don’t require a credit check.
US citizens can also explore secured or prepaid credit card options. These Canadian credit cards require cash deposits before they can be used and can be a practical option for those paying a visit to the Great White North.
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