Best No Annual Fee Credit Cards In Canada For May 2024

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With no annual fee cards, the scoring model used takes into account factors such as, but not limited to, rewards, annual earnings value, earn rates on purchases and other benefits and features. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.

SimplyCash® Card from American Express

This card earns 2% cash back on groceries and gas, and 1.25% everywhere else.

Rewards: Earns 2% cash back on groceries (up to a limit of $15,000 per year) and 2% back on gas. You’ll earn 1.25% cash back on all other spending.

Welcome Offer: Earn up to $100 in statement credit in your first 10 months. You’ll get a $10 statement each month in which you spend $300 on the  card.

Annual Fee: $0

Other Benefits and Drawbacks: This card racks up cash back thanks to its accelerated earnings in groceries and gas and its solid base rate of 1.25%. However, Amex still isn’t accepted as broadly as Visa and Mastercard, so you could miss out on potential earnings depending on where you shop.

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American Express Green Card

This quintessential Amex card earns Membership Rewards points and offers fun perks.

Rewards: Earns 1 Membership Rewards point per dollar spent on the card.

Welcome Offer: Earn 10,000 bonus points ($100 value) when you spend at least $1,000 in your first 3 months of getting your card.

Annual Fee: $0

Other Benefits and Drawbacks: This card racks up flexible points, but still isn’t as flexible as cash back. Plus, Amex isn’t as widely accepted as Visa and Mastercard, so that fact could diminish your earning potential.

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Scotiabank American Express

This card earns Scene+ points, most notably on groceries, gas and other essentials.

Rewards: Earns 2 Scene points for every dollar  you spend on groceries, dining, entertainment, gas, daily transit and select streaming services. Earns 1 Scene+ point for every dollar  spent on everything else.

Welcome Offer: 12,000 bonus Scene+ points in your first year ($120 value) when you spent $750 in your first three months and $5000 in your first year.

Annual Fee: $0

Other Benefits and Drawbacks: This card earns you Scene+ points on basically all your essential spending. However, these points, while flexible, aren’t as flexible as cash and there’s still the issue of Amex’s sometimes spotty acceptance at retailers.

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CIBC Aeroplan Visa

This card earns PC Optimum points at Loblaws-owned grocery stores, Shoppers Drug Mart and Esso and at Mobil gas stations.

Rewards: Earns 1 point for every dollar  you spend on gas, groceries and with Air Canada directly, including through Air Canada Vacations. Earns 1 point for every $1.50 you spend on all other purchases

Welcome Offer: Welcome bonus of 10,000 Aeroplan points in your first year ($200 value)

Annual Fee: $0

Other Benefits and Drawbacks: This is one the few no fee cards that actually includes some valuable insurances for travellers, even if it’s limited to common carrier insurance and rental car collision and loss/damage. That said, Aeroplan points aren’t as flexible as cash back.

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Tangerine Money-Back Mastercard

This card earns 2% cash back in two spending categories of your choosing.

Rewards: Earns 2% cash back in two spending categories of your choosing (10 choices) and earns 0.5% on everything else.

Welcome Offer: Welcome bonus of 10% cash back on up to $1,000 in purchases in your first two months ($100 value) when you apply by January 31, 2024.

Annual Fee: $0

Other Benefits and Drawbacks: This card allows you to choose your categories, including everything from groceries and gas to home renovations and furniture. That said, this card offers little in the way of perks, aside from a few consumer protections.

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Simplii Financial Cash Back Visa

This card earns a whopping 4% cash back on restaurant, bar and coffee shop purchases.

Rewards: Earns 4% cash back at restaurants, bars and coffee shops (up to $5,000 per year). Earns 1.5% cash back at gas, groceries, drug store purchases and pre-authorized payments (up to $15,000 per year). Earns 0.5% cash back on everything else with no limit.

Welcome Offer: Get $150 statement credit when you spend $150 in your first 30 days (The offer ends December 18, 2022).

Annual Fee: $0

Other Benefits and Drawbacks: This card earns a competitive amount of cash back on dining, bars and coffee, even compared to annual fee cards. However, it offers little else in the way of insurance and perks.

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PC World Mastercard

This card earns PC Optimum points at Loblaws-owned  stores, Shoppers Drug Mart and both Esso and Mobil gas stations.

Rewards: Earns 20 PC Optimum points per dollar at Loblaws banner stores, 35 PC Optimum points per dollar at Shoppers Drug Mart, 30 PC Optimum points (minimum) per litre on gas at Esso and Mobil gas stations, 20 PC Optimum points at PC Travel, 10 PC Optimum points per dollar on everything else.

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: This card doesn’t earn as many PC Optimum points as the PC World Elite Mastercard or have any other perks, but is more accessible in terms of its income requirement.

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RBC Cash Back Mastercard

This card earns cash back on groceries.

Rewards: Earns 2% cash back on grocery purchases and 1% cash back on all other purchases.

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: This card wins points for simplicity and it offers some useful benefits like savings at the pump and Be Well points. However, there are cards that earn more cash back across multiple categories on this list.

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Triangle Mastercard

This card earns cash back in the form of Canadian Tire money at select stores.

Rewards: 4% cash back in CT Money at 4% CT Money at Canadian Tire, Sport Chek, Mark’s/L’Équipeur, Atmosphere, Party City, Sports Rousseau, Hockey Experts, L’Entrepôt du Hockey, and participating Sports Experts stores, 1.5% CT Money back on groceries up to $12,000 per year (excludes Walmart and Costco), 0.5% after that and everywhere else. Earn $0.05 per litre in CT Money at Gas+.

Welcome Offer: None

Annual Fee: $0

Other Benefits and Drawbacks: This card can earn quite a lot, but keep in mind,  you can only redeem at Canadian Tire and the other stores owned by Canadian Tire listed above.

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TD Rewards Visa* Card

This card earns a significant number of TD Rewards Points, especially on travel, groceries and at restaurants.

Rewards: Earn 4 TD Rewards Points for every dollar you spend when you book travel through Expedia^® For TD, 3 TD Rewards Points for every dollar you spend on groceries and restaurants, 2 TD Rewards Points for every dollar you spend on regularly recurring bill payments set up on your account and 1 TD Rewards Points for every dollar you spend on other purchases made using your card.

Welcome Offer: Earn a value of $50 in TD Rewards Points to use on eligible Amazon.ca purchases. The credit card account must be approved by June 3, 2024. This offer is not available to residents of Quebec.† Terms and conditions apply.

Annual Fee: $0

Other Benefits and Drawbacks: This card earns impressive rewards, but is only a standout card if you like Aeroplan and book your travel through Expedia For TD. Booking this way gives you the most out of it, otherwise, don’t bother.

Data research and analysis by Debra Toews and Tia Duncombe.

A credit card known in the common parlance as a “no fee” credit card refers to a credit card that carries no annual fee, which means there’s no extra cost charge annually for the privilege of owning the credit card. However, other fees can still be charged when it comes to a credit card of this type.

To call a credit card with no annual fee a no fee card is quite the misnomer. This is because although a no fee credit card carries no annual fee, this doesn’t mean that it’s a free credit card. While it may not have an annual fee, there are still plenty of fees that you will have to pay that come with using a credit card. You will certainly encounter the following fees even if there is no annual fee:

• Interest Charges – Every credit card carries interest charges if you carry a balance beyond the interest-free grace period and your statement due date. Interest is calculated daily and added to your remaining balance at the end of each statement period.
• Cash Advance Fees – Cash advances are a convenient way to get cash by borrowing against your remaining credit limit. However, for every day you don’t pay the money back, interest is charged. In addition, you will likely pay an ATM fee for inserting your credit card and withdrawing the cash. This can be as much as $3. Plus, there’s a cash advance fee, which is typically the greater of $10 or as much as 5% of the total amount withdrawn.
• Foreign Transaction Fees – If you make a purchase that originates in a foreign country, you will be charged a foreign transaction fee on most credit cards that is usually 2.5% of the cost of the item purchased in addition to the exchange rate to convert the purchase into your local currency.
• Over-limit Fees – An over-limit fee is a fee charged by the credit card issuer when you exceed your credit limit with a purchase. They typically range from $25 to $30 and once charged, they will raise the interest on your remaining balance.
• Inactivity Fees – An inactivity fee is a fee charged by a credit card issuer when there’s no activity on your credit card for about a year. It usually comes out to $10 depending on the issuer.
• Balance Protection Insurance – Balance protection is an optional insurance policy you opt into. It’s meant to be used to pay off your remaining balance in the event of your death. There’s a monthly premium that is charged to your credit card to pay for this insurance that’s very expensive at a rate of $0.99 to $1 for every $100 that you owe.

Related: The Best Credit Cards in Canada

If you’ve never used a no-annual-fee credit card before, you might be curious what differentiates them from cards that do have annual fees? Here’s a hint: there’s a lot more to it than not having to pay a price for having a certain credit card in your pocket.

The common features you will find on a credit card with no annual fee are no different than the features you will find on any other credit card, except the fact that there’s no annual fee. In no particular order, they are the following:

• Interest-free grace period – This is the period of time you have to pay your credit card balance without incurring interest. It’s the space between when your statement closes for the month and your payment due date. The amount of time you have is covered in the credit card agreement. It varies according to the credit card issuer and is usually between 21 and 25 days on average.
• Fraud Protection – Fraud protection is a stipulation from your credit card issuer that protects you from fraudulent charges so that you’re not on the hook for them.
• Rewards – Like other credit cards, some no annual fee credit cards do give you rewards in the form of cash back that can be redeemed for statement credit or points that can be redeemed for flights, hotel stays, merchandise, gift cards, charitable donations, event discounts and more.
• Increased Earn Rates in Select Purchase Categories – If your no annual fee credit card does come with rewards, you will usually find increased earn rates on select purchase categories determined by the credit card issuer.You will find however, that the earn rates, the welcome bonuses and the overall earning potential typically aren’t as lucrative as they would be on a credit card that does carry an annual fee.
• Purchase Protection – Purchase protection protects your purchase against theft or damage for typically up to 90 days after purchase.
• Extended Warranty – An extended warranty on a credit card, either with an annual fee or without one, usually extends the manufacturer’s warranty on purchases made with the card by one additional year.

Some credit cards with no annual fee do earn rewards, even if the earning potential is usually less lucrative than it is with credit cards that do have annual fees. Below are the reward types you will likely see on a no annual fee card.

• Cash Back – Cash back comes as a percentage of the cost of individual purchases in a particular purchase category stated by the issuer. It’s usually redeemed as statement credit on your bill.
• Travel – travel rewards such as flights, hotel stays, vacation packages and cruises can usually be had by redeeming points earned through spending. The value of the points and what so many points by you are determined by the credit card issuer, but are usually influenced by a variety of factors such a distance travelled, season travel is booked (high season or low season), class of seat and the destination itself.
• Retail Rewards – Some credit cards with no annual fee do give you discounts or free merchandise when you shop at particular stores or buy certain brands. The Triangle Mastercard is a great example of this. It gives you 4% in CT Money for every dollar you spend at Canadian Tire stores and other stores owned by the Canadian Tire Corporation. In addition, it gives you 1.5% in CT Money for every dollar spent at grocery stores (excluding Costco and Walmart). CT Money is the digital version of Canadian Tire Money, which was essentially money you could use at Canadian Tire to take whatever amount you happened to have off your purchases there.

Based on the rewards you can get as part of a credit card with no annual fee, it stands to reason that no annual fee credit cards can come in the following varieties:

• No Annual Fee Cash Back Credit Cards – These are credit cards with no annual fee that also give you cash back on your purchases – usually in select categories like gas, groceries, subscription services, recurring bills, dining and more.
• No Annual Fee Travel Credit Cards – These are credit cards with no annual fee that give you points in exchange for your spending that can be redeemed for travel rewards, such as flights, hotel stays, cruises and vacation packages.
• No Annual Fee Rewards Credit Cards – These are cards that reward you with points that can be redeemed for rewards like flights, cruises, event discounts, hotel stays, merchandise, gift cards, investment dollars and in some cases, charitable donations. Oh, and you can redeem your points for all or some of those rewards for no annual fee.
• No Annual Fee Mastercards – Exactly what they sound like, Mastercards with no annual fee. There are also no fee Visas and no fee American Express cards.

There are several reasons someone would look for and apply for a credit card with no annual fee and they are laid out below:

• You’re getting your first credit card: When you’re just starting out with a credit card, it can be prudent to get a no fee credit card so you can focus on paying off your debt each month and building your credit history without having to worry about fees just to hold the card. While no fee credit cards have fewer perks and benefits, this might not be that important to you when you’re just starting out.
• To avoid paying annual fees: This is the most obvious reason to get a no annual fee credit card. You want to save money on fees and the best way to do that is to knock out the annual fee by looking for a credit card that doesn’t have one.
• To build your credit history: Credit cards of all kinds report your payments to the credit bureaus and therefore, help you build a credit history that can make it easier to borrow other kinds of credit in the future. However, you might want to build that history for a cheaper price tag, especially because you’ll already be paying interest, which means the cost of having a credit card can add up fast.
• You want a two-card strategy: While having too many credit cards isn’t good for your credit score, employing a two-card strategy can optimize the amount of rewards you receive if you select cards that benefit different categories. For example, if you have a credit card with an annual fee that gives you generous cash back on groceries, you could add a second no fee credit card that provides cash back on eating out, thereby maximizing your rewards without paying another fee.

Advantages of No Fee Credit Cards

There are several advantages to having a credit card with no annual fee, including:

• You don’t pay for simply having the card.
• If you pay your balance off each month, you won’t be charged interest fees, saving you even more money.
• If your card comes with rewards, you can get those essentially “for free” if you pay off your balance each month.
• Some no annual fee credit cards can be easier to get approval.
• You don’t use the card more just to justify the annual fee.
• It doesn’t cost you to hold the card, so you can keep it for a long time rather than cancel it, which can damage your credit score.

Disadvantages of No Fee Credit Cards

While not paying an annual fee is a pretty clear advantage to a no fee credit card, there are some disadvantages to be aware of, including:

• No fee credit cards come with thinner perks than premium credit cards.
• The welcome offer may be smaller or non-existent.
• A no fee credit card may be less flexible than other credit cards.

When choosing a credit card with no annual fee, there are several things you need to consider beyond the card’s main selling feature.

Interest rate – Find out how much you’ll be paying in interest on purchases, cash advances and balance transfers and compare those interest rates to the interest rates of other no annual fee cards. Are they higher or lower?

Welcome Bonus or Introductory Offer – Ask yourself if the credit card has a welcome bonus or introductory offer, like a promotional interest rate or balance transfer rate. Once that’s established, take a look at what that is and whether it’s better or worse than the other no annual fee cards on the market.

Ongoing Rewards Rate – What rewards rate are you getting on purchases, either as points or cash back? This is a great point of comparison when looking for no annual fee cards because other rewards rates on other types of cards might be better or worse and look better with no annual fee than they would otherwise.

Credit Card Insurance – Most credit cards have some kind of insurance, such as travel insurance like emergency travel medical or trip delay/interruption. They might also include purchase protection for 90 days after the purchase of any item with the card or warranty protection, which usually extends the manufacturer’s warranty on an item by an additional year. If your no annual fee credit card has insurance, see how many types you get and find out if other no annual fee cards have more or fewer kinds.

Here are the stipulations you need to watch out for when you apply for a credit card with no annual fee.

Eligibility Requirements for a No Fee Credit Card

Here’s what’s required if you’re looking to apply for a no annual fee credit card:

• Age and Residency Status – To apply for all credit cards, you have to be a Canadian resident and the age of majority in your province of residence.
• Credit Score – Every credit card you apply for requires a particular credit score range. The credit cards that come with more rewards and perks usually require a credit score designated Good/Excellent.
• Personal or Household Income Requirements – Some credit cards, particularly those with credit card network benefits, like the Mastercard World or World Elite and the Visa Infinite or Privilege, have annual personal and/or household income requirements you need in order to qualify for the credit card.

Steps to Apply for a No Fee Credit Card

Once you’ve determined that you are eligible, the steps to apply for a no free credit card are fairly straightforward, though the particulars may differ depending on the card issuer and whether you’re applying online, over the phone or in person. These are the steps for most online applications:

• Read the card’s product information: It’s important to understand the fine print of the card, including the missed payment terms, APRs, foreign currency conversion rates, fees and so forth.
• Complete the required personal information: This includes basics such as your address, email address and date or birth. Each card has its own eligibility requirements for credit score and income but for all cards you need to be the age of majority in your province (either 18 or 19) and be a resident of Canada.
• Complete the income and employment information: You’ll need to provide your personal and/or household income as well as your employment status.
• Consent (or not) to any other requests: This can include marketing preferences, whether you prefer digital or paper statements, optional insurance and/or supplementary cards.
• Review and submit: Before submitting your application, you’ll have the opportunity to review your personal details, as well as the terms and conditions of the card. You’ll also need to consent to a credit check.
• Wait for your approval: This may be instant, or the card issuer may request additional information.

Can You Apply for a No Annual Fee Credit Card with Bad Credit?

Yes. Most credit builder cards, including secured cards and prepaid cards carry no annual fee to reduce the barrier for entry in recognition that those with bad credit likely wouldn’t be able to afford the fee in the first place.

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