Imagine enjoying the perks of a credit card without the expense of an annual fee. Well, Canadians can choose from an impressive selection of no-fee credit cards that make this dream a reality. These cards not only save you money on an annual fee but also offer enticing rewards like cash back and travel points. Here are our picks for the best no-fee credit cards in Canada.
Best no-fee card by category
Best no-fee cash back credit card
At a glance: The SimplyCash Card from American Express keeps things simple. All purchases earn 1.25% cash back aside from gas and groceries, which earn at a higher 2% rate. The 1.25% base rate is among the most generous available, which is just one of the reasons this card is the best no-fee cash back card in the country.
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SimplyCash from American Express
Annual fee: $0
Welcome offer: Earn a bonus 5% cash back on your first $2,000 in purchases during your first three months (up to $100 in bonus cash back).
Card details
| Interest rates | 21.99% on purchases, 21.99% on cash advances |
| Income required | None specified |
| Credit score | 725 or higher |
Best for flexibility
At a glance: The only card in Canada that lets you pick your accelerated earn categories, the Tangerine Money-Back card is a perennial favourite of Canadians looking for a flexible no-fee card that fits their spending habits. Those with a Tangerine savings account can choose up to three 2% money-back categories (otherwise you get to select two categories) from an impressive list of 10 categories.
Tangerine Money-Back Card
Annual fee: $0
Welcome offer: Earn an extra 10% cash back during the first two months (up to $100 in cash back). Must apply by October 31, 2024.
Card details
| Interest rates | 19.95% on purchases, 19.95% on cash advances and 19.95% on balance transfers |
| Income required | Personal or household income of $12,000 |
| Credit score | 660 or higher |
Best for premium perks
At a glance: If you’re a frequent flier looking for a no-fee pro-travel credit card, the Rogers World Elite Mastercard is a great option. Earn a high and consistent earn rate on all your Canadian purchases, plus enough on U.S. purchases to offset all foreign transaction fees—all with no annual fee.
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Rogers Red World Elite Mastercard
Annual fee: $0
Welcome offer: This card does not have a welcome bonus at this time.
Card details
| Interest rates | 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers |
| Income required | $80,000 per year |
| Credit score | 725 or higher |
Best no-fee travel credit card
At a glance: Earn points on everyday purchases and enjoy the flexibility of redeeming them for a variety of rewards with this no-fee rewards credit card. Plus, Amex Membership Rewards are transferable at a 1:1 value to other frequent flyer and rewards programs, creating an opportunity to boost the value of your rewards.
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American Express Green Card
Annual fee: $0
Welcome offer: earn 10,000 Membership Rewards points when you charge $1,000 in purchases to your card in the first three months of cardmembership.
Card details
| Interest rates | 21.99% on purchases, 21.99% on cash advances |
| Income required | None specified |
| Credit score | 725 or higher |
| Point value | 1 Amex Membership Rewards point = $0.01 when redeemed with the Flexible Points Travel Program, $0.015 on average with the Fixed Points Travel Program, and up to $0.02 with airline points transfers. . |
Best no forex card
At a glance: Did you know that every time you use your credit card outside of Canada, most card issuers charge a 2.5% foreign transaction fee for processing purchases made in a non-Canadian currency? The Home Trust Preferred Visa is one of the only no-fee cards in Canada that doesn’t charge a forex fee.
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Home Trust Preferred Visa
Annual fee: $0
Welcome offer: This card does not have a welcome bonus at this time.
Card details
| Interest rates | 21.99% on purchases, 21.99% on cash advances |
| Income required | None specified |
| Credit score | 660 or higher |
Best student credit cards
For cash back
At a glance: With competitive cash back rates, including 3% on groceries, 1% on recurring bills, and 0.5% on other purchases, this card caters to students’ spending patterns and rewards users generously for common everyday purchases.
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BMO CashBack Mastercard
Annual fee: $0
Welcome offer: earn 5% cash back in your first 3 months Conditions apply.
Card details
| Interest rates | 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers |
| Income required | None specified |
| Credit score | None specified |
For travel
At a glance: The CIBC Aeroplan Visa for Students is ideal for budding globetrotters. With no annual fee, you’ll earn 1 point per $1 spent on eligible gas, electric vehicle charging, groceries and on purchases made with Air Canada, including through Air Canada Vacations. For all other purchases earn you 1 point per every $1.50 you spend. Aeroplan is a dynamic rewards system which can turn your points into excellent value for flights and hotels—if you’re strategic with your bookings.
CIBC Aeroplan Visa Card for Students
Annual fee: $0
Welcome offer: earn 10,000 Aeroplan points when you make your first purchase ($200 value)
Card details
| Interest rates | 20.99% on purchases and 22.99% on cash advances (21.99% in Quebec) |
| Income required | None specified |
| Credit score | None specified |
| Point value | Aeroplan points are worth $0.02 on average. |
Best low-interest credit card
At a glance: If you tend to carry a credit card balance from month to month, the smart financial move may be to prioritize low interest over chasing rewards. That’s where the Flexi Card from Desjardins comes in: It offers a rock-bottom APR with no annual fee.
Flexi Visa
Annual fee: $0
Low interest rates: 10.90% on purchases and 12.90% on cash advances
Card details
| Interest rates | 10.90% on purchases and 12.90% on cash advances |
| Income required | Not specified |
| Credit score | Not specified |
How we determine the best no-fee credit cards
Our editors apply their credit card expertise and knowledge of Canadians’ financial goals to come up with selection criteria that matches the needs of the intended cardholder. For every type of credit card in Canada, there is a no-fee option. So, we applied different selection criteria to nearly every award category on this list. In addition to standing out in its category, each card has no annual fee. The addition of links from affiliate partners has no bearing on the results. Read more about our selection process and about how MoneySense makes money.
Frequently asked questions
Advantages of a no-fee credit card
- Skip the yearly charge: A no-fee credit card is free to have at your disposal. Better yet, if you never carry a balance and you use a no-fee card that offers cash back or rewards, you’ll actually be in a better financial position than you would without the card. In many cases, the earn rate might be lower than with an annual-fee card; however, with a no-fee card, any rewards you earn can be a net positive—you don’t have to spend a certain amount every year to make up for the upfront charge.
- Save on certain expenses: A card that complements your spending habits and hobbies (like travel) can also save you a nice chunk of change on things like foreign transaction fees, insurance and rental cars.Â
Drawbacks of a no-fee credit card
- Ho-hum rewards and cash back: Your reward earning power can be somewhat lacklustre when compared to the revved-up rewards you’ll usually reap with premium cards that have an annual fee. For example, with the American Express Cobalt card, you’ll earn 5 points per $1 spent on groceries and restaurants, 3 points per $1 spent on streaming services, and 2 points per $1 spent on travel, transit and gas (with everything else getting you 1 point per $1). You can see that at those earn rates, points can pile up pretty quickly.Â
- Not-so-welcoming welcome offers: Because one of the major selling points of a no-fee card is that there is no fee, the welcome bonuses offered to attract new applicants are not as generous as cards with annual fees.
- Fewer perks: With few exceptions, no-fee cards lack the perks and benefits—particularly insurance—that tend to come with annual-fee cards. Typically (though not always), no-fee cards do include very basic protections, such as zero liability, purchase protection and extended warranty, but you’ll usually miss out on travel insurance, concierge service and perks, such as airport lounge access. Ultimately, you’ll have to weigh these benefits against the fees and decide whether a no-fee credit card works best for you.
What should you do with the money you saved with an annual fee?
With a no-fee card, you could save yourself $59 to $250 dollars a year. But make a conscious decision to do something with that money, like putting it into a high-interest savings account or into your registered retirement savings plan (RRSP) or tax-free savings account. It’s not a lot, but the compound interest you could earn makes it worthwhile. Use our compound interest calculator to find out how much you could grow your money.
