Canada’s best no fee credit cards 2022

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If you’re looking for a card that delivers top rewards without an annual fee, look no further. In exchange for slightly lower earn rates, these no-annual-fee cards still get you perks on what you spend. So whether it’s cash back that you want, no foreign transaction fees or generous travel points, these no-fee credit cards offer gold-plated options.

The best no-fee credit cards in Canada 2022

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Best card for cash back

Tangerine Money-Back Credit Card*

With its competitive cash back and flexible spending categories, the Tangerine Money-Back Mastercard serves up a sweet deal. Cardholders automatically get 2% back on purchases in two spending categories, with a third category made available when they set up an automatic rewards deposit into a Tangerine Saving Account, which also doesn’t have any fees. All other spending earns 0.5%.

This means 2% cash back is available on purchases in up to three of the following categories: Groceries, restaurants, gas, drug stores, recurring bill payments, entertainment, public transit and parking, furniture, home improvement, and hotel and motel stays.

While this card offers only minimal perks like purchase assurance and extended warranty, it does allow you unlimited cash back, unlike many other cards that cap your rebates.

If you meet the $60,000 annual income requirement you’ll automatically be considered for the Tangerine World Mastercard, which comes with additional perks such as mobile device and rental car insurance.

• Welcome offer: Earn 15% cash back (up to $150) when you spend $1,000 on everyday purchases within the first 2 months of having the card. Must apply before January 31, 2022.
• Earn rate: 2% cash back in up to 3 spending categories of your choice from 10 different options; and 0.5% on all other purchases; cash back can be applied monthly, either to your credit card balance or deposited into your savings account
• Income requirement: $12,000
• Additional benefits: Purchase protection and extended warranties

Get more details about the Tangerine Money-Back Credit Card*

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Best no fee flat-rate cash back card

SimplyCash Card from American Express*

These days, many cash back cards offer attractive welcome bonuses, but once the promotion is over, the core card fails to impress. Its regular earn rate is 1.25% (impressive welcome offer is outlined below). While some cards complicate things by breaking down their rewards into spend categories, the SimplyCash lets you earn equally across categories—and, there is no limit to the cash you can earn back at the regular rate. Earn more by referring a friend—you can receive $100 in thanks each time, up to 15 friends.

The SimplyCash American Express includes shopping and travel protections, including $100,000 in travel accident protection, buyer’s assurance and purchase protection. And cardholders are automatically enrolled in American Express Invites, giving them access to premium entertainment options.

• Welcome offer: Get a welcome bonus of 4% cash back in the first 6 months (up to $200 cash back)
• Earn rate: Get 1.25% cash back on all purchases regardless of purchase category (after the welcome bonus ends). Plus, no limit on the amount of cash back you can earn; Get $100 cash back for each approved referral up to a maximum annual referral bonus of $1,500
• Additional benefits: Access to virtual events and special offers with American Express Experiences

Get more details about the SimplyCash Card*

 

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Best card for no foreign transaction fees

Brim Financial Mastercard*

You may already know this from your own credit card statements: Most credit cards charge a 2.5% foreign transaction fee (FX) when making purchases in a non-Canadian currency—and that’s on top of the exchange rate. Brim Financial Mastercard is one of the few credit cards that completely waives this fee. Plus, the Brim Mastercard earns 1 point per $1 on all everyday purchases. The Brim Rewards system effectively works like a cash back program. And the points are redeemable in increments of 100 for $1, or 1%. Cardholders can even earn a higher rate at more than 200 merchants and Brim partners, such as 4% at Microsoft and Nike. It also comes with up to $500 in mobile device insurance and a free Boingo wi-fi membership. 

This is an ideal card for anyone who regularly shops online at American or other foreign websites, is a fan of cross-border shopping or frequently travels internationally. 

• Annual fee: $0
• Earn rate: 1 point per $1 everywhere, and bonus points at Brim partner merchants, like up to 4% at Microsoft, 4% at Nike, 3% at Warby Parker, plus more than 200 other retailers
• Additional benefits: No FX fees, free Boingo wi-fi membership, and up to $500 in mobile device insurance
• Income requirement: None specified 

Get more details about the Brim Financial Mastercard*

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Best no-fee credit card for travel points

MBNA Rewards Platinum Plus Mastercard*

This card allows account holders to collect MBNA points, redeemable for a variety of rewards including travel, cash back, hotels and merchandise. Trip-happy cardholders will enjoy the ability to redeem 100 points for $1 worth of travel—an impressive redemption rate of 1% that will help you get to your dream vacation faster. If you choose to redeem your points for cash back, the rate is 200 points per $1. For groceries and restaurant purchases, the rate is 2 points per $1 on your initial $5,000 in purchases, and everything else comes in at 1 point per $1. And—great news for those saving against a large travel purchase—the Points never expire as long as your account with MBNA is open.

Additionally, this card offers seven types of insurance, including unexpected return home, rental car collision, and accidental death and dismemberment, balance protection and extended warranty. While you’d likely need additional travel emergency insurance to fill in the gaps, this card gets you started—a rarity on a no fee card.

• Welcome offer: For the first 90 days, you can get up to 10,000 points (approx. $50 in cash back): 5,000 for registering for paperless e-statements, 5,000 for spending $500 in purchases with the card. Plus, earn 4 points for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases. (Not available for residents of Quebec, instead click here.)
• Earn rate: Earn 2 points for every $1 spent on eligible groceries and restaurants ($5,000 max annual spend per category) and 1 point per $1 on everything else.
• Additional benefits: Unexpected return home coverage; rental collision and accidental death and dismemberment insurance; balance protection and extended warranty

Get more details about the MBNA Rewards Platinum Plus Mastercard*

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Best no fee card for low interest

MBNA True Line Mastercard*

If you’re carrying a balance, you’ll want to get that debt onto a lower-interest card as quickly as possible. With a rate of 12.99% on balance transfers and new purchases, the MBNA True Line is worthy of consideration. Add the fact that this card commands no annual fee, and this is a powerful card for someone trying to pay off their debt.

• Interest rate on balance transfers and purchases: 12.99%
• Additional benefits: Add up to 9 authorized users without an additional fee

• Welcome offer: Get a 0% promotional annual interest rate (“AIR”) for 12 months on balance transfers within first 90 days of opening the account.

• Note: this offer is not available for residents of Quebec

Get more details about the True Line Mastercard*

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Best no fee student card

BMO CashBack Mastercard*

Canadian students have their own needs, including a way to cover the financial burden of tuition and school expenses, the need to establish a healthy credit history and an unending quest for cash on hand. With no annual fee, a welcome bonus of 5% cash back for three months (up to $100) and a low $15,000 annual income requirement, the BMO CashBack card is designed with students in mind.

The 5% cash back welcome offer is top-notch (and applicants who plan ahead might do well by timing their first three months with the beginning of a semester—those books add up!), and the cash back post-welcome is nothing to sneeze at: 3% on groceries and 1% on recurring bill payments (up to $500 spent per month in each category), and an unlimited 0.5% on everything else. As a student card, there’s no specific income requirements and you can get approved even if you’ve never had a credit card before. It also comes with standard insurance coverage, like extended warranty and purchase protection. Overall, this is an attractive entry-level card.

• Welcome offer: New cardholders get 5% cash back for the first 3 months
• Earn rate: Get up to 5% cash back for the first 3 months; introductory 1.99% interest rate on balance transfers for 9 months with 1% transfer fee; plus apply now to get a $50 cash back bonus when you spend over $6,000 in the first year (up to $175 cash back).
• Additional benefits: Members receive 25% off at National and Alamo car rentals

Get more details about the BMO CashBack Mastercard*

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Best retail or store cards

For PC Optimum Points: PC Financial World Elite Mastercard*

For those who shop regularly at Loblaws banner stores and Shoppers Drug Mart (Pharmaprix in Quebec), the PC World Elite Mastercard offers a great way to take advantage of one of the most popular and useful loyalty programs in the country: PC Optimum. Here’s how it works: When you use your PC World Elite Mastercard, you earn a minimum of 10 points per $1 spent, with multipliers for purchases at Shoppers (45 points per $1), and Esso, PC Travel or any Loblaws-owned stores, like No-Frills, Fortinos or Real Canadian Superstore (30 points per $1). Points are redeemed anywhere PC products are sold, in 10,000-Point increments, which works out to $10. PC Optimum is a valuable, easy-to-use program—and the PC World Elite can help you make the most of it.

• Earn rate: 45 points per $1 at Shoppers Drug Mart; 30 points per $1 at Esso, PC Travel or any Loblaws-owned stores; 10 points per $1 everywhere else
• Income requirement: $80,000 personal or household income of $150,000, as well as a minimum annual spend of $15,000
• Additional benefits: Travel emergency medical insurance; car rental loss or collision coverage; concierge services

Get more details about the PC Financial World Elite*

Best card for Canadian Tire shoppers

Triangle Mastercard from Canadian Tire*

The Triangle Mastercard from Canadian Tire lets you earn your rewards in Canadian Tire Money (CTM). Get a generous 4% in CTM when you shop at Canadian Tire, Sport Chek and Mark’s and other affiliate stores, and 1.5% on  up to $12,000 of purchases at grocery stores (excluding Walmart and Costco). You also get $0.05 back per litre of gas from Gas+ and participating Husky stations.

You may fondly remember the brightly-coloured bills of Canadian Tire Money stashed in parents’ glove boxes when you were younger. While the program has evolved (it’s gone digital, for instance), it still has a strong Canadian flavour. Redeem your CTM at sporting goods stores (Sport Chek, Sports Rousseau, Sports Experts and Hockey Experts), clothing retailers (Mark’s/L’Equipeur and Atmosphere), and, of course, Canadian Tire. This card is a clear choice for those who regularly shop at Canadian Tire. And it might even win over some who don’t, with its no-fee financing option, which lets you make interest-free installments on qualifying purchases of at least $150 at Canadian Tire or affiliate stores.

• Welcome Offer: 15% back in Canadian Tire Money on your first purchase at a participating retailer up to $50
• Earn Rate: 4% back on purchases 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% on grocery stores (excluding Walmart and Costco), up to $12,000 per year; $0.05 per litre back at Gas+ and Husky stations
• Additional Benefits: No-fee, no-interest financing on eligible purchases of $150 or more; personalized offers

Get more details about the Triangle Mastercard from Canadian Tire*

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Best secured card for building credit

Home Trust Secured Visa*

One of the best ways to repair a not-so-favourable credit history is to use a credit card responsibly. But most typical credit cards are out of reach for those with a low credit score. That’s where secured credit cards come in handy. With a secured card, you put a deposit down (at least $500 for this card) so the bank doesn’t have to assume the risk of lending to someone with poor credit. Then, by using your card and paying it off—ideally in full and always on time—you can begin to rebuild your credit score. It’s unusual to find a secured card with no fee, making the Home Trust Secured Visa outstanding in this category and our top pick.

• Welcome bonus: None
• Earn rate: None
• Additional features: None

Get more details about the Home Trust Secured Visa*

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Honourable mention

Rogers World Elite Mastercard

With its regular 1.5% cash back and no annual fee, this card should make Canadian no-fee card users sit up and take notice—but for online shoppers and U.S.travellers, it could be a boon. That’s because purchases in U.S. currency earn 3% cash back, which covers the foreign transaction fee credit cards typically charge—between 2.5% and 3%. Cash rewards can then be redeemed towards any eligible purchases made on your card, for the ultimate in flexibility.

There is one drawback, which is that applicants must have an annual income of $80,000; that’ll exclude many Canadians. Under the card’s terms, you’ll also need to spend at least $15,000 on the card over an annual review period (August 1 to July 31) otherwise you could be downgraded to the entry-level Rogers Platinum Mastercard that earns a lower 1% cash back. For those who can meet its income and spending requirements though, the Rogers World Elite is a great option.

• Welcome offer: Get $25 in cash back rewards when you make your first card purchase within 3 months of receiving your card
• Earn rate: Get 3% cash back on purchases in U.S. currency, and 1.5% on all other purchases
• Income requirement: $80,000 individual, $150,000 household
• Additional benefits: Travel insurance including emergency air-transportation or evacuation; reimbursement of prepaid, non-refundable trip expenses up to $1,000 per person, or $5,000 per account; emergency dental care; and more

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Advantages of a no-fee credit card

The main advantage of a no-fee credit card is exactly what the name suggests: There’s no fee. This means that unless you’re carrying outstanding debt, using the card costs you nothing. The appeal of a free card is obvious, but there are some things to consider, not the least of which is that no-fee credit cards typically offer far fewer benefits and perks than cards that carry an annual fee. More on that below, but first let’s look at some of the top reasons why a no fee option might be best for you:

• You’re a student or just starting out
  Everyone needs to establish credit. Starting out with a no-fee card lets you build up credit and understand your spending habits before you consider moving on to a card with an annual fee.
• You’re a light credit user
  Cards that carry a fee often have other valuable benefits or rewards—perks that offset the upfront cost with enough use. If you don’t foresee yourself spending enough to make back the cost of the annual fee, a no-fee card may be the better choice.
• You already have a fee card
  There are lots of reasons to carry a second no-fee card as a back-up. You could use an American Express with a fee as your main card, but what about places that don’t accept Amex? Or maybe you carry a rewards card with a fee and chose a no fee cash back card. It’s not a bad (or costly) idea to have a no-fee card in your wallet.

No-fee cards come with fewer frills

One major drawback to no-fee cards is that, with few exceptions, they lack the perks and benefits—particularly insurance—that’s offered by many cards with an annual fee. Typically, no-fee cards do include very basic protections such as zero liability, purchase protection and extended warranty, but you’ll likely miss out on travel medical emergency insurance and rental car collision coverage and on perks such as airport lounge access. Ultimately, you’ll have to weigh these benefits against the fees and decide whether a no-fee credit card works best for you.

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More about credit cards

• Best credit cards in Canada
• Best rewards credit cards
• Best travel credit cards
• Best cash back credit cards
• Best low interest credit cards
• Best balance transfer credit Cards
• Best student credit cards

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Our methodology

For the best cash back credit cards 2022 ranking, MoneySense tapped into Ratehub.ca’s‡ credit card tool and calculated the numbers for both fee and no fee cash back rewards cards based on $2,000 in monthly spending. We used the following scenario: $500 on groceries, $200 on gas, $200 on restaurants, $125 on bill payments, $175 on travel, $225 on entertainment, $75 on pharmacy purchases and $500 on everything else.

The end game was a magic number—that is, the annual net reward in dollar terms to identify the top cash back cards for each type of spender. Our methodology also took into consideration other factors, including limited-time accelerated earn rates, the range of spending bonus categories, annual fee waivers, purchase protections and travel insurance perks.

‡MoneySense.ca and Ratehub.ca are both owned by parent company Ratehub Inc. We may be partnered with some financial institutions, but this does not influence the “Canada’s Best Credit Card” rankings. You can read more about this in our Editorial Code of Conduct.

The post Canada’s best no fee credit cards 2022 appeared first on MoneySense.

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