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This puts you in the driver’s seat when it comes to choosing a credit card that best suits your needs. But how to choose? The vast majority of credit cards offer either cash back rewards or travel benefits because that’s what most people want. Whether you want either of those or some combination of both, will help inform your decision. Other major factors will be the annual fees and interest rates.
We know searching for that perfect card can be daunting, so we’re here to help with a list of our best rewards cards for different needs. We’ve compared cards against a range of criteria – annual fees, benefits, interest rates, etc. – to create the Top 5 Rewards Cards in Canada.
Best Travel Rewards Credit Card:
BMO AIR MILES Mastercard
Required credit score: 660+ (fair to good)
Interest rate: 19.99%
Annual fee: $0
Highlights:
- No annual fee
- Get 800 Air Miles just for signing up
- Get 1 Reward Mile for every $25 in card purchases
- 3x Air Miles for every $25 spent with participating partners
- Add additional cardholders for free and earn extra miles
- Car Rental Discounts at National and Alamo
- Extended Warranty, Purchase Protection & Zero Liability on purchased items.
- 0.99% interest rate on balance transfers for the first 9 months (2% transfer fee).
Overview:
With the BMO AIR MILES MasterCard, the more you use it, the quicker you accrue Air Miles. Travel aficionados will use this credit card for everything and pay off the balance each month. That way they are constantly building a balance (and not a debt) to get them to their next voyage. The card’s no annual fee is quite attractive too, especially for a travel rewards card.
Even if travel isn’t currently on your radar (hello pandemic), you can use Air Miles for purchases with Air Miles Cash Rewards. This is one of the most popular travel cards in Canada for a reason.
Best Cash Back Credit Card:
Tangerine Money-Back Credit Card
Required credit score: 660+ (fair to good)
Interest rate: 19.95%
Annual fee: $0
Highlights:
- No annual fee
- 2% cash back, no limits or caps, on two specific purchase categories of your choice
- Money-back rewards on everyday purchases are earned automatically and paid monthly
- 1.95% interest rate on balance transfers for the first 6 months
- Spending tracker and organizational tools to monitor your spending habits
- Purchase Assurance & Extended Warranty means robust insurance coverage
Overview:
The Tangerine Money-Back credit card is one of the most generous cash back rewards cards on the market. Unlike most other cash back credit cards, the Tangerine card does not limit your rewards or place a cap. Choose two merchant categories, like groceries or bill payments, to earn your rewards, and you can change these categories every 90 days.
Outside of those selected categories, you can get half a percent cash back on any eligible spending, which is pretty good considering you’re not paying any annual fees. The small catch on this card is if you want the cash directed to your bank account – you’ll need to start an account with Tangerine (a subsidiary owned by Scotiabank).
Best Credit Builder Credit Card:
Capital One Low Rate Gold Mastercard
Required credit score: - 560 (bad to none)
Interest rate: 14.9%
Annual fee: $79
Highlights:
- Low annual fee of just $79
- Low interest of 14.9% on purchases and balance transfers; 21.9% on cash advances
- Guaranteed approval (conditions apply)
- Buyer's Protection with Purchase Assurance, Extended Warranty, etc.
- Multiple travel benefits including Common Carrier Travel Accident Insurance
Overview:
Not everyone is coming to the credit card market with a sterling credit score and that’s okay. In terms of credit cards designed specifically for those with low credit scores, the Capital One Low Rate Gold Mastercard leads the pack. This guaranteed approval card not only helps you build up your credit score, but it gives you a nice break on interest rates. At 14.9%, you’re 5% lower than the industry standard of 19.99%.
There’s a lot to like about this card, which is also available as a secured version, meaning you pay a deposit but don’t get some of the benefits. The Price Protection feature, for example, gives cardholders the ability to claim a lower price on a purchase if the item gets marked down after purchase (within 60 days). Also, the travel benefits (basic car rental insurance) are a rarity for a credit card in this low credit score category.
Best Student Credit Card:
CIBC Dividend Visa Card for Students
Required credit score: 660+ (fair to good)
Interest rate: 19.99%
Annual fee: $0
Highlights:
- No annual fee
- 2% cash back on grocery purchases & up to 1% on other purchases
- $30 cash back after your first purchase on the card
- Free SPC (Student Price Card) membership and access to SPC+
- Extended manufacturer’s warranty up to one year on most purchases
- Free additional cards (up to 3)
Overview:
When you’re a student getting your feet wet in the credit card pool, you don’t have a lot of extra money to throw around, so you’re looking for a budget-conscious credit card. The CIBC Dividend Card for Students will be attractive for low-income students hoping to avoid a costly annual fee and get some cash back on purchases like books and groceries.
With membership to the SPC, there could be solid savings there with over 450 partner stores. This card also comes with robust insurance benefits including $100,000 Common Carrier Accident Insurance and Purchase Security & Extended Protection Insurance.
Best Overall Rewards Credit Card:
American Express Cobalt Card
Required credit score: 660+ (fair-good)
Interest rate: 20.99%
Annual fee: monthly fee of $12.99
Highlights:
- Accelerated points with 5 x on eligible restaurants and food delivery in Canada; 3 x points on streaming subscriptions; 2 x points on travel and transit; and 1 point per $1 for everything else
- Welcome bonus of up to 30,000 points in one year if you spend a minimum of $500 per month, plus 20,000 more points in the first year if you spend $3,000 in the first three months.
- Travel coverage and hotel credits at participating hotels and resorts.
- Insurance coverage for mobile phones.
- American Express Experience offers Front of the Line presale tickets, retails and dining perks, plus more.
Overview:
We like the American Express Cobalt the most for its impressive mix of a points reward system, great travel coverage, insurance, and the kind of perks only American Express can deliver. Ever have a friend get those hot concert tickets before everyone else? They likely used the American Express Front of the Line benefit. There are also those swanky airport lounges and velvet rope access to theatre productions.
The biggest benefit to the Cobalt is the generous points system, especially in the first year of membership. You could be sitting on 50,000 membership reward points in the first year if you spend the minimum requirements. Beyond that, you are earning points on food, travel, gas stations, and transit. What we also like about American Express is you get charged a fee monthly ($12.99), which is much easier to absorb than the annual wallop most cards hit you with.
