What are Canada's Best No-Fee Credit Cards? Our Picks for 2024
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Discover the methodologyEver sign up for a credit card because it advertises amazing perks only to find out that they aren’t a match for you?
Nothing feels worse than paying a hefty annual fee for a credit card that you don’t use enough.
Fortunately, credit cards with no annual fee in Canada exist. With that in mind, we explore those best no-fee credit cards. There are a wide variety of options from travel cards to cash back to store cards and more that won't hit you up for a fee each year.
What is a no-fee credit card?
A no-annual fee credit card is just what it sounds like. Whereas many credit cards come with an annual membership fee, these cards skip them. This can be a big relief on your wallet. A card like the TD® Aeroplan® Visa Infinite Privilege Credit Card – Quebec has a whooping $599 annual fee with an addition $199 if you need a second card under a family member's name. While it offers great benefits, you’d have to charge tens of thousands of dollars per year to it before the benefits pay for themselves. That’s on the very high side for annual fees, but it's not alone at that price point either. Even cards with more reasonable annual fees often still charge more than $100 per year.
More and more we see great no-fee credit cards becoming available in Canada like the CIBC Aeroplan Visa Card and the MBNA Rewards Platinum Plus® Mastercard®. The former protects cardholders with travel insurance and the latter gives 2 points on grocery store and restaurant purchases and one point on everything else.
These two cards and others can be either nice primary credit cards or secondary or tertiary cards for someone who wants to tap into the travel perks or save on the weekly necessities.
Good to know
Do a lot of shopping at one store? A no-annual fee store credit card like the CIBC Costco Mastercard can help you save big.
What are the advantages and disadvantages of a no-fee credit card?
No-fee credit cards aren't for everyone, but their pros outweigh their cons for many cardholders. Let's take a look:
Pros
- Save money
- Build credit
- Earn points
- May include insurance
- Purchase protection
- Extended warranties
Cons
- Fewer perks
- Fewer credit card options
- Smaller sign-up bonuses
Compare dozens of Canada's top credit cards now
What kind of fees do credit card providers apply?
It’s worth noting that even a no-annual-fee credit card isn’t free of all fees. Providers will still, of course, charge interest on purchases if you don’t pay off your balance monthly. Request a cash advance? That will have a fee too. In both of these cases, an interest rate of 20% or more is common.
Other fees could include foreign transaction fees, over-limit fees and inactivity fees.
Remember that when used responsibly and paid off monthly, no annual fee credit cards offer valuable protection and interest perks for no or minimal fees.
Who are no-fee credit cards best for?
There are lots of situations where a no-fee credit card makes sense. They’re particularly valuable to people who don’t use the card frequently but like to have one available for occasional purchases, emergencies or specific kinds of purchases like gas or plane tickets.
Some cardholders like to have multiple cards for different purposes. They may for example can take advantage of bonuses at a store like Walmart, Costco or Amazon, get gas rewards at the pump and benefit from rental car insurance while on the road. Having three or four cards, each with an annual fee, just doesn't make sense for these kinds of users.
People building credit are also good match for no-annual-fee cards because they can be left open for years without incurring fees. They can help people living in Canada improve their credit scores without committing to the annual fee of some reward cards. Remember that closing a credit card reduces your available credit, which increases your debt utilization ratio and potentially lowers your credit score.
Are there no foreign transaction fee credit cards in Canada?
If you are looking for the best no-foreign transaction fee credit card in Canada you have a few options. Unfortunately, you’ll have to pick between no annual fee and no foreign transaction fee. We are not aware of a Canadian credit card that offers both.
Since most other credit cards have a 2.5% foreign transaction fee, it doesn’t take long for these to pay off if you are a frequent traveller.
| No Foreign Transaction Fee Credit Cards | Annual Fee |
|---|---|
| Brim World Elite Mastercard | $99 |
| Scotiabank® Gold American Express® Card | $120 |
| Scotiabank Passport™ Visa Infinite | $139 |
| HSBC World Elite® Mastercard® | $149 |
Compare dozens of Canada's top credit cards now
What is the best no-fee U.S. dollar credit card in Canada?
Another option for Canadians who spend time travelling in the United States is to get a Canadian credit card that’s based on U.S. dollars. There are a few of these including:
- RBC U.S. Dollar Visa Gold Card
- CIBC U.S. Dollar Aventura® Gold Visa* Card
- BMO U.S. Dollar Mastercard®*
Cards connected to United States Dollars save you on foreign transaction fees while in the United States or purchasing online from American stores. They also protect you from currency fluctuations when the Canadian Dollar loses ground.
The CIBC and RBC cards above even include limited travel insurance and rental car insurance, making them particularly good companions to your cross-border jaunts.
What is the best no-fee rewards credit card in Canada?
The best no-fee rewards credit cards are the ones that match your lifestyle and spending habits. What is right for one person isn't necessarily the best choice for another.
That said, one no-fee rewards card that we like is the Rogers™ World Elite® Mastercard®. It gives 1.5 points on everything you buy and 3 points on purchases in US Dollars, so you will enjoy high cash-back rewards with no annual fee. As a bonus, it even includes trip cancellation insurance, trip interruption insurance and auto rental loss/insurance. Complementary membership in the Mastercard Travel Pass means access to 1,300 airport lounges worldwide.
What is the best no-fee travel credit card in Canada?
The CIBC Aeroplan Visa Card is our pick for the best no-fee travel card in Canada. As an Aeroplan credit card, you can use your point to book flights, hotels, car rentals, vacation packages and more.
Earn an Aeroplane point for every $1 spent on gas or groceries and 0.67 points for every other dollar spent.
Cardholders get $100,000 common carrier travel accident insurance and $65 000 auto rental insurance.
What is the best no-fee cashback credit card in Canada?
Our pick for Canada's best cash-back credit card in Canada with no annual fee goes to SimplyCash™ from American Express.
New cardholders get 4% cash back on purchases during their first 6 months of membership. After that, they earn 1.25% cash back with no limit on how much they can earn. Also enjoy access to $100,000 in common carrier travel accident insurance, 1-year extended warranties and 90-day purchase protection.
As a bonus, they get even get access to American Express Experience virtual events and special offers.
Is it ever worth paying an annual fee?
Sure! Canadian consumers are lucky to have lots of great credit card options with and without annual fees. A credit card with an annual fee can be right for people and businesses. If you will be charging a lot, especially on a card with bonuses and perks that you’ll take advantage of, choose a card with a fee. Credit cards with annual fees can provide bonuses worth a couple of thousand dollars the first year.
Let’s take a look at the American Express®* Aeroplan® Reserve Card. At the time of writing, it offers up to 110,000 Aeroplan points if you hit certain spending amounts. That’s enough for a one-way premium economy ticket from Toronto to Europe. Besides that, you’ll earn on everything you spend including 3x the points with Air Canada. Factor in perks like access to Air Canada Maple Leaf Lounders and Air Canada Café and it’s worth it for many cardholders.
Here’s how much we estimate the perks are worth for a cardholder charging $2,000 per month.
| Year | Year 1 | Year 2 and beyond |
|---|---|---|
| Welcome Bonus | $2,200 | $0 |
| VIP Lounges | $400 | $400 |
| First-year offer value | $2,600 | - |
| Rewards Earned | $628 | $628 |
| Annual fee | -$599 | -$599 |
| Net value | $2,630 | $430 |
Compare dozens of Canada's top credit cards now
