Whether you’re looking to get your first credit card or switch to a low-cost card in Canada, a no-fee credit card is one of the best options to Canada in Canada.
No-fee credit cards work like regular credit cards with the major difference of having no annual fees. This way, you can enjoy the benefits of a credit card for free.
Fortunately, Canadians have many options to choose from when it comes to no-fee credit cards for groceries, credit building, travel, cashback and so many other categories.
With multiple options to choose from, you may find it difficult in determining the best no-fee credit cards in Canada. But that shouldn’t be your case!
Here I present the best no-fee credit cards in Canada with their pros and to help you choose the one that suits your needs.
Overview of the Best No-Fee Credit Cards in Canada
Below is a highlight of the current best no-fee credit cards in Canada and what they’re best for:
| No-fee Credit Card | Best for |
|---|---|
| Neo Card | Cashback |
| Tangerine Money-Back Credit Card | Introductory balance transfers |
| Simplii Financial Cashback Visa Card | Introductory APR on purchases |
| Scotia Momentum No-Fee Visa Card | Introductory balance transfers |
| BMO CashBack Mastercard | Grocery purchases and balance transfers |
| Home Trust Secured Visa | Building credit scores |
| Rogers World Elite Mastercard | US dollar purchases |
| MBNA Rewards Platinum Plus Mastercard | Reward points |
| PC Financial World Elite Mastercard | Reward points |
| SimplyCash Card from American Express | Travel |
| TD Business Select Rate Visa Card | Businesses |
Next, we’ll take a detailed view of each of the above best no-fee credit cards in Canada.
11 Best No-Fee Credit Cards in Canada
As our needs vary, so do the best no-fee credit cards in Canada. The fortunate thing is that there are dedicated no-fee credit cards for different needs out there.
Whether you’re looking for a cashback, travel, business, low-interest, credit building or other card categories, there’s a no-fee card for you in Canada.
Below are some of the best Canadian credit cards with no annual fees.
1. Neo Card
Best for cashback
The Neo Card is one of the best no-fee credit cards in Canada that’s popular for its competitive cashback.
Currently, new users of Neo Mastercard are eligible for up to 15% promotional cashback on their initial purchases at partner stores. This is one of the highest promotional cashback you will find in Canada.
Besides high promotional cashback, the card also gives you access to 5% average cashback at partner stores and 0.5% guaranteed cashback when you spend $50 per month.
With Mastercard Zero Liability and no income requirement, the Neo Mastercard could be your best no-fee credit card in Canada.
Pros
- Competitive cashback
- Flexible cashback withdrawals
- Mastercard Zero Liability
- No income requirement
Cons
- Above-average interest rates: (19.99%-26.99% purchases and 22.99%-28.99% on cash advances)
- Not available for Québec residents
Learn more: Neo Financial Credit Card Review
2. Tangerine Money-Back Credit Card
Best for introductory balance transfers
If you have at least an annual income of $12,000 income with no bankruptcy history in the last seven years, the Tangerine Money-Back Credit Card could be your best no-fee credit card in Canada.
Currently, the Tangerine Money-Back Credit Card offers a 10% promotional cashback as an additional reward to the standard 2% cashback on everyday purchases in 3 spending categories.
All you need is to make a minimum everyday purchase of $1,000 within your first 2 months of membership and the 10% extra cashback will be awarded to you.
Besides the promotional cashback, you will also enjoy a low introductory balance transfer interest of 1.95% with the Tangerine Money-Back Card.
This competitive interest rate is extremely low compared to even the Tangerine Money-Back standard balance transfer interest of 19.95%. The introductory rate lasts for your first 6 months of cardholding.
Pros
- Unlimited cash back on purchases
- Competitive promotional cashback
- Extremely low balance transfer introductory interest rate
- Comprehensive insurance
- Spending tracker
Cons
- Income requirement
Learn more:
3. Simplii Financial Cashback Visa Card
Best for introductory APR on purchases
Do you have more than $15,000 in gross household income? You can use the Simplii Financial Cashback Visa Card without an annual fee.
When you sign up for this card, you will earn a promotional cashback of 10% on up to $500 purchases at restaurants and bars. This lasts throughout your first four months of membership.
After the promo, you will still earn a competitive cashback of 4% up to $500 purchases at restaurants and bars.
In addition, the Simplii Financial Cashback Visa Card also offers the following cashback:
- 1.5% cashback for your first annual purchases up to $15,000 on drugstore, grocery and pre-authorized payments.
- 0.5% on every other purchase.
Besides that, you will also enjoy a 9.99% introductory APR on purchases for your initial three months of holding the card. This is considerably low compared to the 19.99% standard APR of the card.
You can also earn up to a $400 cash bonus when you open the Simplii No-fee Chequing account and meet the eligibility conditions. Learn about all the Simplii Promotions here.
Pros
- High promotional cash back
- Competitive introductory interest on purchases
- Comprehensive insurance
Cons
- Income requirement
Learn more: Simplii Financial Cashback Visa Card Review
4. Scotia Momentum No-fee Visa Card
Best for balance transfers
Like the Tangerine Money-back credit card, the Scotia Momentum No-fee Visa Card is one of the best credit cards in Canada for balance transfers.
New cardholders get an introductory rate of 0.99% for the first 6 months – a big discount on the regular balance transfer interest rate of 22.99%.
In addition, you’ll earn a 5% cash back on all your purchases up to $2,000 in the first 3 months. That’s a $100 value. After the promotional period, you’ll earn 1% cash back on eligible purchases at gas stations, grocery stores, drug stores purchases and recurring payments.
A 0.5% cash back applies to every other spending category.
Pros
- High promotional cash back
- Competitive introductory interest on balance transfers
- Optional comprehensive insurance
Cons
- Low cash-back rate after the promotional period
Learn more about the card in this detailed Scotia Momentum No-fee Visa Card review.
Related: 15 Best Scotiabank Credit Cards
5. BMO CashBack Mastercard
Best for grocery purchases and balance transfer
The BMO CashBack Mastercard is a popular contender in the world of no-fee credit cards in Canada.
This card distinguished itself from the competition with competitive cashback on purchases and extremely low introductory interest on balance transfers.
Currently, new BMO CashBack Mastercard users are offered a promotional cashback of 5% throughout their first three months of cardholding.
And when the promo expires, you will still earn a competitive interest of 3% on groceries, 1% on recurring bills and 0.5% on every other purchase.
Within your first 9 months of using the BMO CashBack Mastercard, you will enjoy an extremely low introductory balance transfer interest of 0.99% (a 2% transfer fee applies).
Pros
- Competitive cashback
- Competitive introductory interest on purchases
- Purchase protection and extended warranty
Cons
- Above-average interest rates: (20.99% on purchases and 22.99% on cash advances)
Learn more: Best Balance Transfer Credit Cards in Canada
6. Home Trust Secured Visa
Best for building credit scores
If you’re looking for a no-fee credit card to build or rebuild your credit score in Canada, you can’t make the wrong choice with Home Trust Secured Visa.
As a secured credit card, Home Trust Secured Visa helps you build/rebuild your credit score without annual fees based on your security deposit.
With a low minimum security requirement of $500 to a maximum of $10,000, Home Trust Secured Visa is more accessible than other secured cards out there.
The card has an average purchase APR of 19.99%. But there’s the option of lowering the APR to 14.90% by paying a $59 annual fee.
Pros
- Low minimum deposit
- Accessible regardless of credit scores
- Comprehensive insurance
Cons
- No rewards
- Not available to Québec residents
Learn more: Best Secured Credit Cards in Canada
7. Rogers World Elite Mastercard
Best for US dollar purchases
If you make frequent purchases using US dollars, the Rogers World Elite Mastercard could be your best no-fee credit card in Canada.
The card offers you 3% cash back on every eligible purchase you make with U.S. dollars. This is in addition to the 1.5% cash back rewards on every other purchase.
When you make your first purchase with the Rogers World Elite Mastercard within three months of membership, you will get a $25 welcome bonus in cashback.
You may also find this card suitable because of its comprehensive suite of insurance ranging from:
- Rental Car Collision/Damage
- Extended Warranty and Purchase Protection
- Emergency medical services within and outside Canada.
That said, you must have $80,000 personal income or $150,000 household annual income to qualify for this card.
Pros
- Competitive cashback
- Comprehensive insurance
- Real cash welcome offer
Cons
- Income requirements
8. MBNA Rewards Platinum Plus Mastercard
Best for reward points
Are you looking for a no-fee card with competitive rewards points and multiple redemption options? The MBNA Rewards Platinum Plus Mastercard could be your best option here.
With this card, you have multiple points-earning opportunities that are redeemable for cash back, gift cards, travel, merchandise and charitable donations.
Below are some of the reward points accessible on the MBNA Rewards Platinum Plus Mastercard as of the time of writing:
- 5,000 bonus points for your first $500 eligible purchases during your initial 90 days of membership. That’s worth $25 in cash back value.
- 5,000 bonus points for setting up paperless e-statements during your initial 90 days of cardholding.
- 4 points on every eligible purchase up to $10,000 on household utility, grocery, restaurant, membership and digital media.
- 1 point for every other eligible purchase.
With Mobile Device Insurance, Mastercard Zero Liability, Purchase Assurance and Extended Warranty, you can’t make the wrong choice with the MBNA Rewards Platinum Plus Mastercard.
Pros
- Multiple reward points
- Competitive bonus
- Multiple points redemption options
Cons
- Above-average interest on cash advance (24.99%) and balance transfers (22.99%)
9. PC Financial World Elite Mastercard
Best for reward points
Like the MBNA Rewards Platinum Plus Mastercard, the PC Financial World Elite Mastercard is also ideal for earning reward points.
With the PC Financial World Mastercard, you will earn up to 45 points at partner stores and 30 points for every eligible purchase. Other purchases with the card will earn you 10 points.
When you accumulate 10,000 points, that’s $10 in value which you can redeem at your favourite stores for groceries.
With Car Rental Collision/Loss Damage Waiver Insurance, Travel Emergency Medical Insurance, and Identity Theft Assistant Service, the PC Financial World Mastercard got you covered against unforeseen circumstances.
However, you need $80,000 personal or $150,000 household annual income to qualify for this credit card.
Note: If you’re looking for a no-fee prepaid card, PC Financial also offers a competitive solution known as PC Money Account. Learn more about the digital account in this detailed review.
Pros
- Comprehensive insurance
- Competitive reward points
Cons
- No welcome offer
- Above-average interest rate on purchases (20.97%) and cash advances (22.97%)
- Income eligibility
10. SimplyCash Card from American Express
Best for travel
Do you travel frequently and want a no-fee credit card? The SimplyCash Card from American Express gives you free access to exclusive tickets and $100,000 Travel Accident Insurance.
That’s in addition to exclusive access to virtual events, Fraud Protection Guarantee, American Express SafeKey and Buyer’s Assurance Protection Plan, etc.
The interesting part is that the SimplyCash Card from American Express rewards you with up to $100 in Statement Credits in your first 10 months of membership.
To earn this credit, you need to spend a minimum of $300 on monthly billing and earn $10 statement credits per month.
That being said, the SimplyCash Card from American Express offers a 2% cash back on gas and grocery purchases and 1.25% cash back on every other purchase.
Pros
- Exclusive benefits
- Competitive cashback
- Competitive promotions
- Comprehensive insurance
Cons
- Above-average interest on purchases (20.99%) cash advances (21.99%)
11. TD Business Select Rate Visa Card
Best for businesses
Finally, if you’re looking for a low-cost business credit card in Canada, consider the TD Business Select Rate Visa Card.
Besides having no annual fee, the TD Business Select Rate Visa Card also offers a competitive interest of 11.99%. This low-interest rate not only applies to purchases but also to cash advances.
You can lower the interest rates to 8.99% by paying a $49 monthly fee.
In addition, the card features a Visa SavingsEdge Program which offers you access to up to a 25% discount on business purchases.
You will also access 50% more stars with the card when you make purchases at the partner stores of Starbucks.
With business management tools and comprehensive insurance, the TD Business Select Rate Visa Card could be a one-stop shop for your business.
Pros
- Exclusive discounts
- Low APRs
- business management tools
- Comprehensive insurance
- No income eligibility
- No fees on supplementary cards
Cons
- No rewards
- No welcome bonus
Learn more: Best Business Credit Cards in Canada
Which No-Fee Credit Card is Best For You in Canada?
From the above review, it’s obvious that Canadians have many credit card options with no annual fees.
Since there are no fees involved, you can use as many of the above cards as you need. But if you want to narrow your selection, it’s essential to make the best choice.
Below are four major factors to consider when choosing the best no-fee credit card in Canada
- Card processor: You should choose a card that works on the processor that your favourite stores accept. This could be Visa, Mastercard or American Express.
- Eligibility: Go for a card with accessible credit score eligibility, income eligibility and any other eligibility.
- Rewards and bonuses: The higher the rewards and bonuses of a no-fee card, the more money you will save from your card usage.
- Interest: From purchases and cash advances to balance transfers, choose a no-fee card with low annual interest rates.
What is a No-Fee Credit Card?
Simply put, a no-fee credit card refers to a credit card with no annual fee. It functions like every other regular credit card but without the fees. This means you can use a no-fee credit card to:
- Make online and in-store purchases
- Earn rewards on your purchases
- Build or rebuild your credit score
- Access exclusive benefits and discounts on domestic and international stores
- Get cash advance
- Make balance transfers
- And so on.
In general, they won’t have the extra premium cards that you find on credit cards with annual fees. That said, many of the no-fee credit cards covered in this post compare favourably with other credit cards in the same category.
So unless you’re looking for some advanced benefits, you can be comfortable using a no-fee credit card for your everyday activities.
What are the Benefits of a No-Fee Credit Card?
The benefits of a no-fee credit card are many. Below is a highlight of the major ones.
- Saves you from annual fees
- Gives you access to the same features of credit cards with annual fees (such as cashback, discounts and low-interest rates)
- Helps you build/rebuild your credit score at low costs
- Allows you to easily have a mix of different cards
The list goes on and on. The bottom line is that a no-fee credit card is a cost-effective way to maximize savings on all your savings because you can have different cards that cater to different spending categories without worrying about the fees.
What are the Drawbacks of a No-Fee Credit Card?
Like every other card, a no-fee credit card has its downsides. However, the major drawback of a no-fee credit card is that it has limited benefits compared to credit cards that charge annual fees.
This makes a no-fee card less accessible to individuals with unique situations or those looking for luxurious features.
However, the limited benefits of a no-fee credit card may not be a problem if you’re just looking for a standard credit card to make transactions and earn rewards.
Final Thoughts
There’s no need to pay an annual fee on a credit card if you can access the services you need for free.
With the above collections of the best no-fee credit cards in Canada, all you need is to choose the one that suits your need and start making your purchases.
And if it takes going with a combo, you can safely do so as there’s no penalty involved. In fact, having a mix of credit cards will help you maximize the benefits and may earn you more cash back/points.
Which no-fee card(s) are you going with? Let me know in the comment section.
