top 10 credit cards in canada

1. American Express Cobalt

Earn 5 points per dollar on groceries, restaurants, food delivery, and entertainment; 3 points per dollar on gas, daily transit, and select streaming services; and 1 point per dollar on all other purchases.

No annual fee.

Welcome bonus: Earn up to 6,000 points after spending $3,000 in the first 3 months.

2. Scotiabank Gold American Express

Earn 5 points per dollar on groceries, restaurants, food delivery, and entertainment; 3 points per dollar on gas, daily transit, and select streaming services; and 1 point per dollar on all other purchases.

Annual fee: $120 (waived first year).

Welcome bonus: Earn up to 40,000 points after spending $3,000 in the first 3 months.

3. CIBC Dividend Visa Infinite

Earn 4% cash back on gas and groceries; 2% cash back on recurring bill payments and drugstores; and 1% cash back on all other purchases.

Annual fee: $99.

Welcome bonus: Earn up to $200 cash back after spending $1,000 in the first 3 months.

4. TD Aeroplan Visa Infinite

Earn 1.5 Aeroplan points per dollar on all purchases.

Annual fee: $120.

Welcome bonus: Earn up to 60,000 Aeroplan points after spending $3,000 in the first 3 months.

5. BMO Air Miles World Elite Mastercard

Earn 1 Air Mile per dollar on all purchases.

Annual fee: $120.

Welcome bonus: Earn up to 50,000 Air Miles after spending $3,000 in the first 3 months.

6. Scotiabank Momentum Visa Infinite

Earn 4% cash back on grocery store purchases, recurring bill payments, and subscription purchases.

Earn 2% cash back on gas purchases and daily transit purchases.

Earn 1% cash back on all other purchases.

Annual fee: $120.

Welcome bonus: Earn up to $200 cash back after spending $1,000 in the first 3 months.

7. Tangerine Money-Back Credit Card

Earn 2% cash back on all purchases.

No annual fee.

Welcome bonus: Earn up to $100 cash back after spending $500 in the first 2 months.

8. MBNA Rewards Platinum Plus Mastercard

Earn 2 points per dollar on gas, groceries, and recurring bill payments; and 1 point per dollar on all other purchases.

No annual fee.

Welcome bonus: Earn up to 30,000 points after spending $1,000 in the first 3 months.

9. BMO CashBack Mastercard for Students

Earn 1% cash back on all purchases.

No annual fee.

Welcome bonus: Earn up to $100 cash back after spending $500 in the first 3 months.

10. RBC Cash Back Visa Signature Card

Earn 1.25% cash back on all purchases.

Annual fee: $99 (waived first year).

Welcome bonus: Earn up to $100 cash back after spending $500 in the first 2 months.

FAQ

What is a credit card?

A credit card is a payment card that allows you to borrow money from a bank or other lender to make purchases. You are billed for the amount you spend each month, plus interest.

How do credit cards work?

When you use a credit card to make a purchase, the merchant sends the information about the purchase to the credit card company. The credit card company then authorizes the purchase and sends the money to the merchant. You will then be billed for the amount of the purchase plus interest, which is typically charged at a monthly rate.

What advantages do credit cards offer?

Using a credit card has a lot of advantages, including:

Convenience: Credit cards make it easy to make purchases without having to carry cash or checks.

Rewards: Many credit cards offer rewards programs, such as cash back or points that can be redeemed for travel or other items.

Building credit: Using a credit card responsibly can help you build your credit score, which can make it easier to get loans and other forms of credit in the future.

What are the risks of using a credit card?

There are also some risks associated with using a credit card, including:

Debt: If you do not pay your credit card bill in full each month, you will be charged interest on the outstanding balance. This can lead to debt that is difficult to repay.

Late fees: If you do not make your credit card payments on time, you may be charged late fees. These fees can add up quickly.

Fraud: Credit cards can be used by fraudsters to make unauthorized purchases. It is important to monitor your credit card statements carefully and report any unauthorized activity to your credit card company immediately.

What is the typical interest rate on credit cards in Canada?

In Canada, the typical credit card interest rate is roughly 19%. However, interest rates can vary depending on the credit card issuer and the type of card.

What credit score is needed to get approved for a credit card?

The minimum credit score required for a credit card can vary depending on the credit card issuer and the type of card. However, most credit card issuers require a credit score of at least 600.

How can I improve my credit score?

You may take the following actions to raise your credit score:

Pay your bills on time: This is the most important factor in determining your credit score.

Keep your credit usage low: The amount of credit you are currently utilizing represents your credit utilization.Aim to keep your credit utilization below 30%.

Don't apply for too many credit cards too quickly: Applying for too many credit cards in a short period of time can hurt your credit score.

In the event that you discover any inaccuracies on your credit report, you should promptly dispute them.

What are the different types of credit cards?

Credit cards come in a wide variety, each with a unique set of features and advantages. The following are some of the popular credit card types:

Cash back cards: Cash back cards offer you a percentage of your spending back in cash rewards.

Travel rewards cards: Travel rewards cards offer you points or miles that can be redeemed for travel expenses.

Balance transfer cards: Balance transfer cards offer a low introductory interest rate for balance transfers.

Rewards cards: Rewards cards offer you points or miles that can be redeemed for a variety of rewards, such as merchandise, gift cards, or travel.

Student credit cards: Student credit cards are designed for students who are just starting to build their credit history.

How can I pick a credit card that's best for me?

There are a few things to consider when choosing the right credit card for you, including:

Your spending habits: What types of purchases do you typically make?

Your budget: How much can you afford to spend each month on credit card payments?

Your goals: What are you hoping to achieve with your credit card?

Your credit score: What is your credit score?

The features and benefits of the card: What features and benefits are important to you?

How do I activate my credit card?

You must activate your credit card when it has been accepted. Your credit card can be activated online, over the phone, or through the mail.

How can I use my credit card to make a payment?

You can make a payment on your credit card online, by phone, by mail, or in person at a bank or credit union.

What is a credit limit?

The largest sum of money you are permitted to borrow with your credit card is your credit limit.

What is a grace period?

The grace period is the amount of time you have to pay your credit card bill in full without being charged interest.

What is a balance transfer?

One way to transfer debt from one credit card to another is through a balance transfer. You may be able to save money on interest by transferring a balance because they often have a low introductory interest rate.

What is a cash advance?

A cash advance is a credit card loan that you take out. Cash advances should only be utilized seldom since they frequently contain hefty interest rates and expenses.

What is fraud?

Fraud is the use of someone else's credit card without their permission. It is important to monitor your credit card statements carefully and report any unauthorized activity to your credit card company immediately.

How can I protect myself from credit card fraud?

There are a few things you can do to protect yourself from credit card fraud, including:

Keep your credit card information safe: Do not share your credit card number or PIN with anyone.

Be careful when using your credit card online: Only use your credit card on secure websites.

Regularly review your credit card statements: Search for any unapproved charges.

Report any unauthorized activity to your credit card company immediately: Do not wait.

What are the penalties for credit card fraud?

The penalties for credit card fraud can vary depending on the severity of the offense. However, they can include fines, jail time, and restitution.

What are the resources available to help me manage my credit card debt?

There are a number of resources available to help you manage your credit card debt, including:

Credit counseling agencies: Credit counseling agencies can help you develop a debt repayment plan.

Debt consolidation loans: Debt consolidation loans can help you combine your debts into one loan with a lower interest rate.

Bankruptcy: Filing for bankruptcy might help you have your debts forgiven.

top 10 credit cards in canada

The average credit card interest rate in Canada is around 19%.