The Canadian market offers many types of credit cards, making it sometimes challenging to narrow down which one is best for you. Plus, when card benefits, interest rates, fees, and eligibility criteria vary greatly from card to card, the choice can quickly become overwhelming, especially if you’re new and searching for your first credit card.
When exploring credit cards, it’s helpful to understand your options and consider a few questions, like:
What kinds of rewards do they offer, and do they fit my lifestyle?
Am I more interested in earning rewards or paying lower fees?
Am I using this card to help me pay down debt?
Many types of credit cards are designed for specific purposes, like cash-back rewards, travel rewards, or building credit, so it’s best to start by considering which type of card will suit you best.
1. Rewards credit cards
Rewards credit cards are among the most popular types of credit cards. In fact, according to Payments Canada, 85% of Canadians say their main credit card provides some kind of reward.
These reward cards fall into a broad category that includes any credit card that allows you to earn rewards for your purchases. With these cards, almost every purchase you make earns you points or miles. The specific credit card perks you get depend on the credit card you have, and how you can use them is determined by the issuer’s loyalty program. These cards then let you redeem your points for things like discounted experiences, shopping, free items, gift cards, and more.
There are different types of reward cards, such as cash-back credit cards, travel rewards cards, and points cards. Some cards offer flexible ways to redeem your rewards. Others are tied to specific stores, so you can only use your rewards there. In Canada, popular rewards programs include PC Optimum points, AIR MILES, and Scene+ points.
Benefits of rewards credit cards
Of course, the main advantage of using a rewards card is the rewards you earn. The best cash-back cards give you cash back on your everyday spending, while the best travel rewards cards let you earn points or miles just for travelling.
If you love going out or using your card for everyday expenses, cash-back rewards might be a great fit for you. Flat-rate cash-back cards give you the same percentage back on every purchase, while bonus category cash-back cards offer more points in specific categories.
On the other hand, if you travel frequently, a travel rewards card can be a great choice. It lets you use points or miles for flights and hotels and often comes with perks like elite status, travel insurance, and statement credits.
Best rewards credit cards in Canada
KOHO Essentials Prepaid Mastercard
Interest rate: N/A
Annual fee: $0
Rewards:
Up to 5% cash back at selected KOHO partners
1% unlimited instant cashback on food, groceries, and transportation
0.25% cash back on all other purchases
Benefits: No monthly fees (if you set up direct deposit), no credit checks, no interest charges, unlimited transactions, and free credit score checks.
For additional rewards, you can join the KOHO Extra plan for $9 a month. This plan offers:
Up to 5% extra cashback at selected merchants
1.5% cash back on groceries, transportation, and dining
0.25% cash back on all other purchases
The KOHO Everything plan, which costs $19 a month, provides even more rewards. It gives you:
Up to 5% extra cashback at selected merchants
2% cash back on groceries, transportation, and dining
0.5% cash back on all other purchases
Neo Credit
Interest rate: 19.99-24.99%
Annual fee: $0
Rewards:
Up to 5% cash back on restaurants and bars
Up to 3% cash back on your favourite apps, like Netflix, Uber, SkipTheDishes, and more
Up to 1% cash back on gas and groceries
0.5% cash back on all other purchases
Benefits: customize your rewards by adding flexible perks, including travel, mind and body, food and drink, and mobile and personal protection, through subscriptions at any time.
Simplii Financial™ Cash Back Visa Card
Interest Rate: 20.99%
Annual fee: $0
Rewards:
4% on eligible restaurant, bar and coffee shop purchases
1.5% on eligible gas, groceries, drugstore purchases and pre-authorized payments
0.5% on all other purchases
Benefits: Earn up to 10% cash back on eligible restaurant, bar and coffee shop purchases for the first four months, purchase assurance, and extended warranty
BMO® CashBack® World Elite® Mastercard®
Interest Rate: 20.99%
Annual fee:
Rewards:
5% on groceries
4% on transit
3% on gas and electric vehicle charging
2% on recurring bills
1% on all other purchases
Benefits: Comprehensive insurance coverage, free roadside assistance, travel and medical protection.
Best travel rewards credit cards in Canada
American Express Cobalt™ Card
Interest Rate: 20.99%
Annual fee: $155.88
Rewards:
5 points per $1 spent on dining and groceries
2 points per $1 on travel and transit
1 point per $1 on everything else
Benefits: Comprehensive travel insurance, flexible points redemption, monthly fee structure.
RBC Visa Infinite* Avion Card
Interest Rate: 19.99%
Annual fee:
Rewards:
1 RBC Rewards point for every $1 spent
Other Benefits: Flexible redemption options, comprehensive travel insurance, airport lounge access, Visa Infinite benefits, and purchase protection.
TD First Class Travel® Visa Infinite* Card
Interest Rate: 19.99%
Annual fee:
Rewards:
8 TD Rewards Points per $1 spent on travel booked online through Expedia® For TD†
6 TD Rewards Points per $1 spent on groceries and restaurants
4 TD Rewards Points per $1 spent on regularly recurring bill payments
2 TD Rewards Points per $1 spent on all other purchases.
Other Benefits: Comprehensive travel insurance, priority pass membership, travel medical insurance, annual travel credit, and TD Auto Club Membership.
CIBC Aeroplan® Visa Infinite Privilege Card
Interest Rate: 20.99%
Annual fee: $599
Rewards:
2x Aeroplan points on Air Canada purchases, including Air Canada Travel Vacations
1.5x Aeroplan points on gas, electric vehicle charging, groceries, travel and dining
2X the points at over 150 Aeroplan partner brands and over 170 online retailers through the Aeroplan eStore
Benefits: Annual Worldwide Companion Pass, 25% off car rentals, 13 types of insurance, access to CIBC Pace It, and exclusive access to the Visa Infinite Luxury Hotel Program, Visa Infinite Dining Series, and the Visa Infinite Wine Country Program.
2. Premium credit cards
Premium credit cards are for people who want luxury and exclusive benefits. These cards usually have high annual fees but offer many perks, such as luxury travel benefits, concierge services, access to exclusive events, and higher reward rates.
Cardholders often enjoy free airport lounge access, travel insurance, and special offers on dining and entertainment. These cards are great for those who often travel or spend a lot on dining and entertainment.
Benefits of premium credit cards
Premium credit cards offer exclusive perks to enhance your lifestyle, often providing benefits you can’t find elsewhere or would have to pay for separately. For example, elite travel cards give you benefits like access to airport lounges, travel credits, hotel upgrades, and concierge services. If you often travel, these perks can make your trips more enjoyable and convenient.
These cards also have stronger rewards programs that let you earn significantly more points or cash back on your spending. You can then use your rewards for things like travel or as statement credits, which can help cover the annual fee.
Besides luxury perks, premium credit cards often have higher credit limits and comprehensive insurance coverage, giving cardholders peace of mind and financial flexibility. The enhanced rewards programs can be very valuable, especially for frequent travellers who can earn points or miles quickly and use them for luxury travel experiences. Although the annual fee is high, the benefits and rewards can make it worth it for those who fully use the card’s features.
Best premium credit cards in Canada
Scotiabank Momentum® Visa Infinite Card*
Interest Rate: 20.99%
Annual fee: $120
Rewards:
4% cash back on dining and groceries
2% on gas and transit
1% on all other purchases
Benefits: Travel insurance, concierge service, purchase protection, and extended warranty.
BMO AIR MILES®† World Elite®* Mastercard®*
Interest Rate: 20.99%
Annual fee: $120
Rewards:
3x the Miles for every $12 spent at participating AIR MILES Partners
2x the Miles for every $12 spent at any eligible grocery store
1 reward mile for every $12 spent on all other purchases
Benefits: BMO concierge service, BMO AIR MILES World Elite travel and medical protection, 25% discount on one worldwide AIR MILES flight redemption, access over 1 million Wi-Fi hotspots worldwide, Mastercard Travel Rewards cashback offers when you travel and shop outside of Canada, and extended warranty.
American Express SimplyCash™ Preferred Card
Interest Rate: 21.99%
Annual fee: $119.88
Rewards:
4% cash back on groceries
4% cash back on gas
2% on all other purchases
Benefits: Comprehensive insurance coverage, access to American Express® Experiences, extended warranty, and purchase protection.
PC Insiders™ World Elite Mastercard®
Interest Rate: 21.99%
Annual fee: $120
Rewards:
50 PC Optimum points per $1 at Shoppers Drug Mart
45 PC Optimum points per $1 at Loblaw-banner and Joe Fresh stores
10 PC Optimum points per $1 everywhere else
$0.07 per litre on gas at Esso and Mobil stations
Benefits: Free grocery delivery and pickup (over $35), comprehensive travel insurance, car rental collision/loss damage waiver insurance, purchase assurance, and extended warranty.
Scotiabank Gold American Express® Card
Interest Rate: 20.99%
Annual fee: $120
Rewards:
6 Scene+ points per $1 spent on groceries
5 Scene+ points per $1 spent on dining and food delivery
5 Scene+ points per $1 spent on eligible movies, theatre, and ticket agencies
3 Scene+ points on gas, transit, and select streaming services
1 Scene+ point on all other eligible purchases
Benefits: No foreign transaction fees, extensive travel insurance, concierge service, mobile device insurance and purchase protection.
3. Low-interest credit cards
If you want to reduce your debt accumulation and rewards aren’t your main concern, a low-interest credit card can be a good option. While many Canadian credit cards have an interest rate of 19.99%, some low-interest cards offer rates of around 10%. These cards are ideal for those who struggle to pay off their full balance each month, as the balance won’t increase as quickly compared to higher interest rate cards.
A low-interest credit card works like a traditional credit card but with a lower interest rate. They also sometimes offer lower annual fees compared to cards with more benefits. If you often carry a balance, you may notice your interest charges adding up and your debt growing. Choosing a card with the lowest possible interest rate can help you manage your credit card debt more effectively.
Benefits of low-interest credit cards
Low-interest credit cards are designed to help people manage their debt better and save money on interest. The main benefit of low-interest credit cards is their much lower APR compared to standard cards. This helps reduce interest charges on any outstanding balances, making it easier to pay off debt.
Many low-interest credit cards feature an introductory 0% APR period on purchases, balance transfers, or both. This period can range from six months to over a year, providing a break from interest charges so you can pay off debt or make large purchases without additional costs.
Plus, a low-interest credit card usually provides flexible repayment options, letting cardholders pay off their balances over time without racking up high-interest charges. This flexibility can be essential for managing monthly budgets and financial planning.
Best low-interest credit cards in Canada
Scotiabank Platinum American Express®
Interest Rate: 9.99%
Annual Fee: $399
Rewards:
2 times the Scene+ points for every $1 spent on eligible purchases
Benefits: no foreign transaction fees, American Express® benefits, travel rewards, luxury travel privileges, and comprehensive travel insurance.
Desjardins Flexi Visa
Interest Rate: 10.90%-19.99%
Annual fee: $0
Rewards:
None
Benefits: No transaction fees on Canadian purchases, travel insurance, extended warranty, and purchase protection.
American Express Essential® Card
Interest Rate: 12.99%
Annual fee: $25
Rewards:
None
Benefits: Exclusive offers with American Express® Experiences, including presale and reserved tickets, as well as other dining, retail, and wellness experiences, and purchase assurance
BMO® Preferred Rate Mastercard®
Interest Rate: 13.99%
Annual fee: $29
Rewards:
None
Benefits: Extended warranty, purchase protection.
4. Balance transfer credit cards
Balance transfer cards are a type of low-interest credit card in which the low-interest card offers a balance transfer promotion. These promotions provide discounted rates on balances transferred from another credit card, sometimes as low as 0%. However, these low rates don’t last forever—the interest rate increases once the promotional period ends. Plus, there are often balance transfer fees.
That’s why it’s important to do thorough research and read the fine print if you’re thinking about getting a balance transfer credit card. You’ll want to make sure you understand the offer details, including the duration of the promotional rate and any fees associated with balance transfers. This way, you’ll know exactly how much the interest rate will increase once the promotional period ends.
Benefits of balance transfer credit cards
The primary benefit of balance transfer cards is that they’re especially helpful for consolidating debt. They let you transfer balances from higher-interest credit cards or loans to a card with a lower APR, making it easier and more affordable to pay off your existing debt. Plus, like with low-interest credit cards, many balance transfer cards offer more flexible repayment options.
Best balance transfer credit cards in Canada
HSBC +Rewards Mastercard
Interest rate: 11.90%
Balance transfers: 11.90%
Annual fee: $0
Rewards:
2 points per $1 spent on dining or entertainment
1 point per $1 spent on all other purchases
Benefits: No annual fee for the first year, travel insurance, and purchase protection.
Affinity Credit Union Low Fee Choice Rewards Mastercard
Interest rate: 12.99%
Balance transfers: 12.99%
Annual fee: $0
Rewards:
2 points per $1 (for the first $1-$749.99 in spending)
4 points per $1 (for the next $750 - $1,499.99)
6 points per $1 (for all spending $1,500 and up)
Benefits: Extended warranty and purchase protection.
Scotiabank Value® Visa* Card
Interest rate: 12.99%
Balance transfer: 0% introductory interest rate for the first 10 months
Annual fee: $29
Rewards:
None
Benefits: no annual fee for the first year, extended warranty, and purchase protection.
MBNA True Line® Mastercard®
Interest Rate: 12.99%
Balance transfer: 0% interest on balance transfers for the first 12 months (3% fee applies)
Annual Fee: $0
Rewards:
None
5. No-fee credit cards
No annual fee credit cards are a great option for those who want to avoid the extra costs of maintaining a credit card. These cards don’t charge an annual fee, making them a budget-friendly choice for those who prefer simplicity and low expenses. While they might not have as many perks or rewards as premium cards, they still offer essential benefits like fraud protection and purchase insurance.
These cards are especially good for people who don’t use credit cards often or are new to credit and want to build their credit history without additional costs. Many no-annual-fee cards also have rewards programs, though at a lower rate, so you can still earn points, miles, or cash back on your purchases. They offer a good balance of affordability and utility, making them a practical choice for budget-conscious consumers.
Benefits of no-fee credit cards
The main benefit of no-annual-fee credit cards is exactly that—they come with no annual fees. And while many still offer rewards, they’re not typically as big as those offered by other types of credit cards.
Best no-fee credit cards in Canada
Affinity Credit Union Low Fee Choice Rewards Mastercard
Interest rate: 12.99%
Annual fee: $0
Rewards:
2 points per $1 (for the first $1-$749.99 in spending)
4 points per $1 (for the next $750 - $1,499.99)
6 points per $1 (for all spending $1,500 and up)
Benefits: Extended warranty and purchase protection.
Amazon.ca Rewards Mastercard®
Interest Rate: 19.99%
Annual fee: $0
Rewards:
Prime members get 2.5% cash back on Amazon.ca and Whole Foods Market stores
Non-Prime members get 1.5% cash back on Amazon.ca and Whole Foods Market stores
1% cash back on eligible foreign currency transactions
Benefits: Travel insurance and extended warranty.
Home Trust Preferred Visa
Interest Rate: 19.99%
Annual fee: $0
Rewards:
None
Benefits: No foreign transaction fees, rental car collision insurance, and Roadside Assistance.
PC Mastercard®
Interest Rate: 21.99%
Annual fee: $0
Rewards:
45 PC Optimum points per $1 spent at Shoppers Drug Mart
30 PC Optimum points per litre at Esso and Mobil stations
30 PC Optimum points per $1 spent at Loblaw-banner grocery and Joe Fresh stores
10 PC Optimum points per $1 spent on purchases anywhere else
Benefits: Exclusive PC Optimum offers, a welcome bonus of 20,000 PC Optimum points, purchase assurance, and extended warranty.
6. Secured credit cards
A secured credit card is a type of credit card for people with bad or no credit. It’s offered by financial institutions and requires a cash deposit as collateral. This deposit guarantees the card issuer that you’ll pay your bill. With a secured credit card, your credit limit is usually the same as your deposit. So, if you put down $500, you can spend up to $500 with your card. However, some secured credit cards may offer higher credit limits than your initial deposit.
Even though you need a cash deposit, secured credit cards work just like unsecured credit cards. You can make purchases, pay bills, and build your credit history by using the card responsibly. Since your payments are reported to credit bureaus, managing your card well will even help improve your credit score.
These cards are great for people with limited or poor credit history or those looking to build or rebuild their credit. Because you provide a cash deposit, they’re easier to get than regular credit cards.
Benefits of secured credit cards
If your credit score is fair or poor, you might not get approved for an unsecured credit card. But a secured credit card is different. Since you need to put down a security deposit to open one, it’s less risky for the issuer. This means you’re much more likely to get approved for a secured card even with a low credit score. Plus, some secured credit cards even boast guaranteed approval.
Also, when you apply for a secured credit card, you can often choose your credit limit by depositing that amount. Because the card is secured by your cash deposit, which is often kept in a collateral savings account, you’ll usually get your deposit back when you close your card or switch to an unsecured card as long as you stay current on your payments.
And unlike debit or prepaid cards, a secured credit card can help you build or rebuild your credit. Most issuers report your monthly payments and card balances to credit bureaus, so by making regular, on-time payments, you can improve your credit score.
Best secured credit cards in Canada
Neo Secured Credit
Interest rate: 19.99-29.99%
Annual fee: $0
Minimum deposit: $50
Rewards:
Up to 5% cash back at restaurants and bars
Up to 3% cash back on your favourite apps like Netflix, Uber, and SkipTheDishes
Up to 1% cash back on gas and groceries
0.5% cash back on all other purchases up to $5,000
Benefits: Guaranteed approval, optional balance protection
Home Trust Secured Visa
Interest Rate: 14.90%
Annual fee: $59
Minimum deposit: $500
Rewards:
None
Benefits: Visa Zero Liability protection
Capital One® Guaranteed Secured Mastercard®
Interest Rate: 21.90%
Annual fee: $59
Minimum deposit: Varies
Rewards:
None
Benefits: Guaranteed approval, Mastercard benefits, travel benefits, car rental collision/loss damage waiver insurance, purchase protection, extended warranty.
7. Co-branded credit cards
Co-branded credit cards are store or brand-specific cards provided by regular card issuers. These issuers team up with retail stores, airlines, or hotels to offer credit cards that reward loyalty to that brand. Usually, the rewards you earn with these cards are tied to one brand and its afiliates. Co-branded credit cards can be used anywhere the card network is accepted, unlike store credit cards that only work at specific stores and their partners.
However, with co-branded cards, most benefits are limited to the brand they partner with. Points or rewards usually can’t be used with other retailers or services, making these cards less versatile than cash-back or flexible-rewards cards that let you redeem points for many different things. Co-branded cards might also have higher interest rates, so you’ll need to be careful to avoid high-interest fees.
Benefits of co-branded credit cards
With co-branded cards, you get exclusive rewards and offers from the retailer, airline, or hotel. If you keep your account in good standing, you can enjoy discounts or travel perks. Benefits may include earning upgraded membership status, especially for airlines and hotels with tiered membership systems.
Best co-branded credit cards in Canada
Tims Credit Card
Interest rate: 20.99-24.99%
Annual fee: $0
Rewards:
15 points per $1 at Tim Hortons restaurants
5 points per $1 on groceries, gas, EV charging, and transit
Benefits: Extended warranty, access to Crave™, HBO and HBO Max, with exclusive access to the entire HBO library.
PC Insiders™ World Elite Mastercard®
Interest Rate: 21.99%
Annual fee: $120
Rewards:
50 PC Optimum points per $1 at Shoppers Drug Mart
45 PC Optimum points per $1 at Loblaw-banner and Joe Fresh stores
10 PC Optimum points per $1 everywhere else
$0.07 per litre on gas at Esso and Mobil stations
Benefits: Free grocery delivery and pickup (over $35), comprehensive travel insurance, car rental collision/loss damage waiver insurance, purchase assurance, and extended warranty.
Walmart Rewards™ World Mastercard®
Interest Rate: 20.89%-26.99%
Annual fee: $0
Rewards:
5% in Walmart Reward Dollars per $1 spent on select Walmart Canada brands
3% in Walmart Reward Dollars per $1 spent on Walmart.ca
2% in Walmart Reward Dollars per $1 spent on transit
2% in Walmart Reward Dollars per $1 spent at any gas & electric vehicle charging station
1.25% in Walmart Reward Dollars per $1 spent at any Walmart location in Canada
1% in Walmart Reward Dollars per $1 spent on all other purchases
Benefits: Mastercard Global Services, extended warranty and purchase assurance.
Amazon.ca Rewards Mastercard®
Interest Rate: 19.99%
Annual fee: $0
Rewards:
Prime members get 2.5% back on Amazon.ca and Whole Foods Market stores and on eligible foreign currency transactions
Non-Prime members get 1.5% back on Amazon.ca and Whole Foods Market stores and 1% cash back on eligible foreign currency transactions
1% back on all other purchases
Benefits: Travel insurance and extended warranty.
8. Student credit cards
Student credit cards are specifically for college and university students, offering features that match their financial needs. These cards usually have lower credit limits to help students manage their spending and avoid big debt.
They often come with rewards for the things students spend the most on, like groceries, gas, and dining. Some also offer educational resources to teach good credit habits and financial skills.
Benefits of student credit cards
If you’re a typical student without much credit history, one big benefit of student credit cards is that they’re often easier to get than other types of credit cards. Some don’t need a credit score to apply, and most have easier income requirements. This means you can use student credit cards to start building your credit from scratch.
Starting to build credit early is really useful for students. A good credit score can help with renting an apartment, getting loans, or even landing a job later on.
Student credit cards also provide basics like fraud protection and purchase insurance, which give new cardholders peace of mind. By using these cards responsibly, students can build strong credit while enjoying perks that fit their lifestyle.
Best student credit cards in Canada
BMO CashBack® Mastercard®* for Students
Interest rate: 20.99%
Annual fee: $0
Rewards:
3% cash back on grocery purchases
1% cash back on recurring bill payments
0.5% unlimited cash back on all other purchases
Benefits: Extended warranty, purchase assurance, and discounts on car rentals.
CIBC Dividend Visa Card for Students
Interest Rate: 20.99%
Annual fee: $0
Rewards:
2% cash back on groceries
1% cash back on gas, electric vehicle charging, transportation, dining, and recurring payments
0.5% cash back on all other purchases
Benefits: No annual fee, purchase protection and extended warranty.
Desjardins Cash Back Visa Card for Students
Interest Rate: 19.90%
Annual fee: $0
Rewards:
Up to 2% cash back on restaurants, entertainment, alternative transportation, and pre-authorized payments
0.5% cash back on all other purchases
Benefits: Mobile device insurance, discounts on car rentals, travel insurance, and purchase protection.
CIBC Aeroplan® Visa Card for Students
Interest rate: 20.99%
Annual fee: $0
Rewards:
1x Aeroplan points per dollar on gas, electric vehicle charging, groceries, and Air Canada travel purchases
1x Aeroplan points per $1.50 spent on all other purchases
2X the points at over 150 Aeroplan partners and 170+ online retailers through the Aeroplan eStore
Benefits: preferred pricing when paying for flights with your Aeroplan points, up to 25% off car rentals at participating Budget and Avis locations worldwide, auto rental collision and loss damage insurance, purchase security, common carrier accident insurance, and extended protection insurance.
9. Business credit cards
Business credit cards in Canada are designed for business owners and entrepreneurs, offering tools and benefits to handle business expenses effectively. These cards often provide rewards on purchases like office supplies, travel, and advertising.
A business credit card is meant for business use, not personal use, which means it is essential for managing your company’s finances. These cards help businesses of all sizes build credit, separate personal and business expenses and get better borrowing terms in the future.
Benefits of business credit cards
They come with higher credit limits than personal credit cards, making it easier to cover larger business costs. They can also simplify tracking and managing expenses with detailed statements and spending reports, aiding in budgeting and accounting.
Many business credit cards offer extra perks like employee cards, expense management tools, and travel insurance. They may also have sign-up bonuses and promotional offers, which can be especially helpful for new businesses looking to boost their cash flow and savings.
Another benefit is that a business credit card is usually easier to apply for than non-revolving business loans because the process is often automated with instant decisions. However, they generally have slightly higher interest rates than traditional loans.
Using a business credit card’s rewards and benefits, business owners can optimize spending, manage expenses better, and potentially improve their business credit profile.
Best business credit cards in Canada
American Express® Business Edge™ Card
Interest rate: 21.99%
Annual fee: $99
Rewards:
3X the points on office supplies and electronics
3X the points on food and drinks
3X the points on gas and transportation
1X the points on all other purchases
Benefits: You can use your points to offset business expenses, Employee Card Misuse Protection, Access coverage, purchase assurance, and extended warranty.
CIBC Aeroplan® Visa* Business Plus Card
Interest rate: 19.99%
Annual fee: $120
Rewards:
2 Aeroplan points for every dollar spent directly with Air Canada
1.5 Aeroplan points for every dollar spent on shipping, internet, cable, phone services, travel and dining
1 Aeroplan point for every dollar spent on all other purchases
2X the points at over 150 Aeroplan partners and more than 170 online retailers through the Aeroplan store
Benefits: Free Uber Pass for six months, access to Visa Spend Clarity for Business, Maple Leaf Lounge access, Air Canada Buddy Pass, and comprehensive travel insurance.
Marriott Bonvoy® Business American Express®* Card
Interest rate: 21.99%
Annual fee: $125
Rewards:
6 points for every $1 spent at participating Marriott Bonvoy hotels
4 points for every $1 spent on eligible gas, dining (worldwide) and travel
2 points for every $1 spent on all other purchases
Benefits: 7% discount on eligible bookings when you book directly with Marriott, complimentary Gold Elite status, earn & redeem free nights, no foreign transaction fees, purchase protection, and extended warranty.
10. Prepaid credit cards
Prepaid cards look and function like debit and credit cards. You can use them in stores, at ATMs, or online, and you can even have your paycheck deposited onto one by your employer. They work like credit cards in that you can shop online or in stores, and they are often backed by major companies like Mastercard or Visa, so they are widely accepted. They also function like debit cards because you can receive money into them (like a paycheque).
Prepaid credit cards let you spend only the money you’ve loaded onto it in advance. Unlike traditional credit cards, which give you a line of credit to pay back later, prepaid cards are funded with your own money. This means you can’t spend more than what’s on the card, meaning there’s no risk of overdraft. When the money runs out, you simply reload the card and keep using it as needed.
Benefits of using prepaid credit cards
Prepaid cards are handy for several reasons, combining the best features of credit and debit cards. For some people and situations, they’re the perfect choice.
First, they’re great for saving money, sticking to a budget, and preventing overspending. If you have trouble managing credit card spending or often go into overdraft with your checking account, a prepaid card can help you control your spending better.
Also, since prepaid cards are often backed by major companies like Mastercard or Visa, they’re accepted at most retail locations, online stores, and ATMs. This flexibility in how and where you can use them makes them just as convenient as traditional credit or debit cards.
Plus, not everyone can get a credit card. For those who don’t qualify for a credit card, a prepaid card is a great alternative. You can use it online, in stores, at restaurants, and ATMs, just like a credit card, but you’re spending your own money instead of borrowing from the bank.
Best prepaid credit cards in Canada
KOHO Essentials Prepaid Mastercard
Interest rate: N/A
Annual fee: $0
Rewards:
Up to 5% cash back at selected KOHO partners
1% unlimited instant cashback on food, groceries, and transportation
0.25% cash back on all other purchases
Benefits: No monthly fees (if you set up direct deposit), no credit checks, no interest charges, unlimited transactions, free credit score checks, and you can add their credit building option for $10/month
KOHO Extra Prepaid Mastercard
Interest rate: N/A
Annual fee: $108 ($9/month)
Rewards:
Up to 5% extra cashback at selected merchants
1.5% cash back on groceries, transportation, and dining
0.25% cash back on all other purchases
Benefits: There are no credit checks, interest charges, or FX fees, unlimited transactions, free credit score checks, and a credit-building option for only $7/month.
KOHO Everything Prepaid Mastercard
Interest rate: N/A
Annual fee: $228 ($19/month)
Rewards:
Up to 5% extra cashback at selected merchants
2% cash back on groceries, transportation, and dining
0.5% cash back on all other purchases
Benefits: There are no credit checks, interest charges, or FX fees, unlimited transactions, free credit score checks, and a credit-building option for only $5/month.
About the author
Grace is a communications expert with a passion for storytelling. This hobby eventually turned into a career in various roles for banks, marketing agencies, and start-ups. With expertise in the finance industry, Grace has written extensively for many financial services and fintech companies.
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