Having a reliable credit card to help you out in emergencies or for bigger purchases is always a good idea. However, you need to be able to pay back your credit card debt to maintain a good credit record or you might have trouble securing loans or even renting an apartment. In this economy, every dollar counts and with the right credit card, you can save money so that you can keep your finances in tip-top shape.
But with so many to choose from, which is the best one? No Canada credit card comparison would give you accurate results if you didn’t take into account your lifestyle and what you want to use the card for. To help you narrow down your ideal choice, here are the best credit cards for Canadians in 2023.
See also: 20 Canadian jobs that pay more than $300K.
The best credit card for groceries
As the price of groceries is expected to surge even further this year, being able to redeem your rewards for groceries can help keep your pantry stocked. And if you can earn those rewards through buying groceries rather than plane tickets, it’s even better.
Scotiabank Gold American Express
Annual interest rate: 20.99% on purchases; 22.99% on cash advances
Annual fee: $120
With the Scotiabank Gold American Express card, you don’t earn cash back; you earn Scene+ points. You earn six Scene+ points for every dollar you spend at certain grocery stores; five for every dollar spent on dining out, food delivery, certain food subscriptions, some grocery stores, movie and theatre tickets and at ticket agencies; three for every dollar spent on eligible gas and transit and on streaming services; and one for every dollar spent on all other eligible purchases.
You can then redeem these points at participating merchants, many of which are grocery stores. You also get to enjoy all kinds of Amex perks like special offers and discounts, early booking for concert tickets and access to airport lounges around the world. And when you travel or shop online, you don’t pay foreign transaction fees.
Related: Nearly 1 in 4 Canadians say they’re ‘completely out of money’ amidst inflation.
The best credit cards for cash back
It’s all good and well to have a credit card that can earn you rewards such as discounts at the grocery store or the airline counter but sometimes you want a little extra cash for something different: that antique you spotted at the flea market, for instance. This is where a cash-back credit card is the better option. Our top choices are:
CIBC Dividend Visa Infinite
Annual interest rate: 20.99% on purchases; 22.99% (21.99% for Quebec residents) on cash advances and balance transfers
Annual fee: $120
The CIBC Dividend Visa Infinite card just may be the best rewards card Canada offers everyday people making everyday purchases. You earn 4 percent cash back on groceries as well as on gas, and if you link your card with Journie Awards, you can save up to 10 cents per litre when you fill up at the gas station. You also earn 2 percent cash back on other forms of transportation, dining out and recurring payments, and 1 percent cash back on everything else. You can redeem your cash back at any time, as long as you have a cash back balance of at least $25.
Scotia Momentum Visa Infinite
Annual interest rate: 20.99% on purchases; 22.99% on cash advances
Annual fee: $120
This was one of our choices for Canada’s best credit cards in 2022 too. With the Scotia Momentum Visa Infinite card, you earn 4 percent cash back for every dollar you spend on groceries, recurring bills and subscriptions like streaming services. Your gas and daily transit purchases will earn you 2 percent cash back for every dollar spent and for everything else, you earn 1 percent cash back. It comes with great insurance coverage and travel perks, making it a good option for travel too.
However, the card comes with some drawbacks. In the categories where you can earn 2 or 4 percent cash back, there’s a $25,000 limit, after which you earn only 1 percent on every dollar spent, and you can only redeem your cash back once a year. You also need to have an annual income of at least $60,000, a household income of at least $100,000 or assets under management of at least $250,000 to qualify for this card.
SimplyCash Preferred Card from American Express
Annual interest rate: 20.99% on purchases; 21.99% on cash advances
Monthly fee: $9.99
With the SimplyCash Preferred Card from American Express, you can earn 4 percent cash back for every dollar spent on eligible gas and grocery purchases, with a limit of $1,200 per year, and 2 percent cash back for everything else, with no cash-back limit. You can also earn a referral bonus of up to $1,500 cash back if you refer a friend and they’re approved for their credit card. You get access to the usual perks that come with American Express, including good insurance coverage and special offers and discounts.
Tangerine Money-Back Credit Card
Annual interest rate: 19.95% on purchases; 3% of the amount transferred or a minimum of $5 for balanced transfers; 3.5 percent for cash advances within Canada
Annual fee: None
The cash-back credit cards that earn the biggest cash-back rewards also tend to come with a rather hefty annual fee. The Tangerine Money-Back Credit Card, however, has no annual fee and to boot, you get charged less interest. With this card, you can choose two categories in which you want to earn 2 percent cash back: groceries, furniture, restaurants, hotels and motels, gas, recurring bill payments, drug stores, home improvement, entertainment and public transport and parking. This means you can customize it to suit your lifestyle and spending habits. For everything else, you earn 0.5 percent cash back. There’s no limit to the cash back you can earn and you get paid your reward every month. However, this card doesn’t come with built-in insurance coverage.
Related: Where do Canadians spend the most money each year?
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The best low-interest credit card
One of the ways to pay off your high-interest credit card debt is to consolidate your debt and use a low-interest credit card to pay off the higher-interest cards. Here’s our top choice for a low-interest credit card:
MBNA True Line Gold Mastercard
Annual interest rate: 8.99% on purchases; 8.99% on balance transfers; 24.99% on cash advances
Annual fee: $39
It may not offer you all kinds of fun rewards or cash back but the low interest you pay on your balance with the MBNA True Line Gold Mastercard will save you so much money that you’ll be able to budget a bit more for fun money. You can also get discounts on some car rentals in Canada and the United States. While you can add as many as nine authorized users, the card doesn’t come with much else in terms of perks, so it’s not the best choice for travel or everyday spending.
Related: 18 ways to reduce credit card debt, from Canadian finance experts.
The best travel credit cards
One of the most popular types of credit card is the kind that offers extra perks for travellers, such as travel-related discounts. They’re also a godsend when you find yourself without local currency after the banks have closed. Here are our top picks for travel credit cards:
American Express Cobalt Card
Annual interest rate: 20.99% on purchases; 21.99% on funds advances
Monthly fee: $12.99
While it comes with monthly fee that adds up to a hefty $155.88 per year, the American Express Cobalt Card is the best all-rounder if you’re looking for a card you can use for travel and everyday spending. You earn five times the points for every dollar spent on eligible restaurants and food delivery in Canada; three times for every dollar spent on eligible streaming services; double the points for eligible travel and transit and one point for every dollar spent on other purchases. A thousand points are equal to $10 that you can spend on just about anything. Your card can get you hotel room upgrades and exclusive deals, for instance on car rentals. It also comes with comprehensive travel insurance.
American Express Green Card
Annual interest rate: 20.99% on purchases; 21.99% on funds advances
Annual fee: None
If you’re the type of traveller who looks for tips to save money on travel, you probably want to cry when you see how much most travel credit cards charge in monthly or annual fees. The American Express Green Card is just the card for you, then, since it’s a no-fee card. It doesn’t earn you much in terms of rewards – one point for every dollar spent on eligible everyday purchases – but you can earn double points on eligible hotel and car bookings. You can then transfer your points 1:1 to several frequent flyer and other loyalty programs. You can also enjoy all kinds of exclusive offers and discounts. Unfortunately the card doesn’t offer much in terms of travel insurance.
Scotiabank Passport Visa Infinite
Annual interest rate: 20.99% on purchases; 22.99% on cash advances
Annual fee: $150
With the Scotiabank Passport Visa Infinite card, you earn three Scene+ points on every dollar spent at eligible grocery stores; double the Scene+ points on every dollar spent on dining, eligible entertainment and eligible daily transit; and one Scene+ point on every dollar spent on other eligible purchases. You can then redeem these points, mainly at grocery stores. So what makes this a great credit card for travel, then? It’s the fact that you don’t pay any foreign transaction fees: something that can add up when you pay by card while travelling outside of Canada. You also get complimentary airport lounge access up to six times a year, enjoy special offers on car rental and hotel stays and have comprehensive travel insurance. However, you need to earn at least $60,000 per year, have a household income of at least $100,000 per year or have assets under management of at least $250,000 to qualify for this card.
BMO Air Miles World Elite Mastercard
Annual interest rate: 20.99% on purchases; 23.99% (21.99% for Quebec residents) on cash advances
Annual fee: $120
If you’re a frequent flyer, you want a card that will help you earn and take advantage of those Air Miles. With the BMO Air Miles World Elite Mastercard, you can do just that. You get three Air Miles for every $12 you spend at participating partners; two Air Miles for every $12 spent at participating grocery stores; and one Air Mile for every $12 spent on everything else. If you redeem an Air Miles flight during the year, you get 25 percent off, allowing you to save your Miles. You can also redeem your Air Miles for other travel expenses or for cash rewards. Travel perks include travel insurance, access to free Wi-Fi around the world and discounted access to airport lounges. However, to qualify for this card you need to earn at least $80,000 per year or have an annual household income of at least $150,000.
Related: 15 easy ways to gain airport lounge access.
Marriott Bonvoy American Express
Annual interest rate: 19.99% on purchases; 21.99% on funds advances
Annual fee: $120
If you have one of those cool jobs for people who love to travel, you probably spend a fair deal of your time in hotels. With the Marriott Bonvoy American Express card, you can really make this work for you: You earn five points for every dollar spent on eligible purchases at the more than 7,000 hotels participating in the Marriott Bonvoy program, and double points on every dollar spent on other eligible purchases. You can then redeem your points for hotel stays or transfer them to your frequent flyer program. You also get a free night at a Marriott Bonvoy hotel every year. But wait, there’s more! Your card gives you basic travel insurance and access to exclusive offers and discounts too.
The best credit cards for students
If you’re a student, you’ve probably never had a credit card before and don’t even know where to start when doing a Canadian credit card comparison. You need to look for a card that can help you learn financial literacy and build up your credit score. These are our top picks for student credit cards:
Student BMO CashBack Mastercard
Annual interest rate: 20.99% on purchases; 22.99% (21.99 for Quebec residents) on cash advances
Annual fee: None
When you’re a student, having some extra cash is always welcome. With the Student BMO CashBack Mastercard, you can earn as you spend. You get 3 percent cash back on every dollar spent on groceries; 1 percent on every dollar spent on subscriptions, your mobile phone and streaming services; and 0.5 percent on all other purchases. You can then redeem your cash back whenever you want. Alternatively, you can set it up to reward automatically by paying the money into your BMO savings or checking account or your InvestorLine account or you can use it as a credit on your monthly statement. The card also comes with access to discounts on, for instance, car rentals or Cirque du Soleil shows, as well as tools to help you keep track of your finances, including your credit score. To qualify for this card, you need to be between 18 and 24 and a student at a recognized post-secondary school.
Scotia Scene+ Visa Card for Students
Annual interest rate: 19.99% on purchases; 22.99% on cash advances
Annual fee: None
If you’ve decided to embrace all aspects of student life and not just the studying part, you may spend plenty of your free time at the movies. With the Scotia Scene+ Visa Card for Students, you earn two Scene+ points on every dollar you spend at Cineplex theatres and at eligible grocery stores, and one Scene+ point for every dollar you spend on all other eligible purchases. You can then redeem your points for groceries, leaving you with more to budget for fun money. And for those times you need a reliable car for a road trip, the card can get you 25 percent off on eligible car rentals.
Related: 10 finance apps for young people to help get us started.
The best secured credit cards
If you don’t have a good credit score, it may be difficult to get approved for a credit card. For example, maybe you’ve ruined your credit by not paying your debts and need to rebuild your credit. Or maybe you’re self-employed with an irregular income, or you’re a student or newcomer who doesn’t yet have a credit history in Canada. The solution is to get a secured credit card, where you pay a deposit upfront. You then use the card just like a normal credit card, making monthly payments, with your deposit acting as collateral in case you default on your payments. If you regularly pay back what you owe, you can then build credit. These are our top choices for secured credit cards in Canada:
Plastk Secured Credit Card
Annual interest rate: 17.99%
Annual fee: $48 plus $6 monthly maintenance fee
The Plastk Secured Credit Card is especially good if you need to rebuild your credit score, since it motivates you to be disciplined about your payments: If you miss two payments, your interest rate goes up to a whopping 29.99 percent. However, you get rewarded if you’re good about paying what and when you’re supposed to. You can earn cash-back points that you can then use to help pay your balance. And to help you stay on track, you get monthly credit score updates.
Home Trust Secured Visa
Annual interest rate and fee: 19.99% and no annual fee or 14.90% for $59 annual fee
Even if you have one of the highest paying jobs for newcomers in Canada, you need to build a credit history to qualify for better interest rates when you apply for a loan. With the Home Trust Secured Visa card, the amount you pay as a deposit upfront is the amount that your credit limit will be. This amount can be between $500 and $10,000. The card doesn’t come with the perks of a regular credit card but it will make it possible for you to shop online or to pay using your digital wallet.
Related: How to live life without a credit card in Canada.
