Best No Fee Credit Cards in Canada

No fee credit cards in Canada aim to give you rewards without charging an annual fee.

They’re popular starter cards because you can build credit and earn a bit back on everyday spending without paying just to keep the card open.

If you’re worried about debt, though, a prepaid card with rewards can be an even smarter first step.

KOHO Essential

KOHO Essential is a strong alternative to a no fee credit card:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

Popular No Fee Credit Cards in Canada

Here’s a quick look at some no annual fee cards many Canadians consider.

1. Scotiabank American Express® Card

A straightforward no-fee rewards card:

• Earns points on everyday spending through the Scene+ program

• Often gives higher earn rates on selected everyday categories like dining or transit (details depend on the current offer)

• Good fit if you want a simple starter rewards card and don’t mind using American Express where it’s accepted

2. Tangerine® Money-Back World Mastercard®*

A very popular customizable cash back card:

• No annual fee

• Lets you choose a few bonus categories (like groceries, restaurants, recurring bills, etc.) where you earn higher cash back

• Puts rewards back as money off your statement or into a Tangerine savings account

3. Simplii Financial™ Cash Back Visa Card

A no fee cash back Visa built around everyday spending:

• No annual fee

• Higher cash back on key categories like restaurants, bars, and certain everyday purchases (with a base rate on everything else)

• Works well if you’re already a Simplii client and want your card and account in one place

Should You Choose a No Fee Credit Card or KOHO Essential?

A no fee credit card may be better if you:

• Always (or almost always) pay your balance in full

• Want to actively build credit with a traditional credit product

• Are comfortable managing a limit and not overspending for rewards

KOHO Essential may be better if you:

• Want rewards but hate the idea of interest and debt

• Are still learning to budget or building your credit history

• Prefer a setup where you only spend what you’ve loaded