5 Best Credit Cards in Canada
Credit cards have for years been an essential financial tool for Canadians, offering convenience, security, and numerous benefits. With a wide range of options available in the Canadian financial market, it can be challenging to choose the one that suits your needs and lifestyle. To help you make an informed decision, we’ve compiled a list of the 5 best credit cards that offer attractive benefits. These cards provide various features that cater to different preferences and financial goals.
These credit cards not only offer financial flexibility but also empower you to make the most of your everyday spending. Keep reading to discover which of these top five credit cards aligns perfectly with your financial aspirations.
1. Scotia Momentum Visa Infinite Card
The Scotia Momentum Visa Infinite Card is consistently ranked as one of the best cashback credit cards in Canada. It provides its users with an array of features and benefits that make it a top choice for those looking to earn rewards on their everyday spending.
Whether you hold an account with Scotiabank or not, you can apply for this card, and if you pass the underwriting process, you will enjoy the following benefits:
Key Features and Benefits
Cashback Rewards
This card lets you earn cashback on everyday purchases, including groceries, gas, dining, and recurring bills. Here is the breakdown:
Receive a generous 4% cash back on every dollar you invest in grocery store purchases, recurring bill payments, and subscription acquisitions.
2% reward for each dollar you spend on gas purchases and everyday transit expenses.
1% cash back on all other purchases with absolutely no cashback limit.
Welcome Bonus
New cardholders can enjoy a generous welcome bonus, which often includes a substantial cashback amount or an annual fee waiver for the first year. Welcome bonuses are subject to change, so we encourage you to visit the website for updated information.
Travel Insurance
The card offers comprehensive travel insurance coverage, including travel medical insurance, trip cancellation/interruption insurance, and rental car collision insurance.
Visa Infinite Privileges
Cardholders gain access to exclusive Visa Infinite benefits, such as concierge services, luxury hotel perks, and dining privileges at select restaurants.
No Foreign Transaction Fees
This card is an excellent choice for travelers, as it does not charge foreign transaction fees when purchases are made in foreign currencies.
2. American Express Cobalt Card
The American Express Cobalt Card is renowned for its flexible rewards program and generous point-earning potential. It’s a popular choice for Canadians who value travel and dining experiences.
Key Features and Benefits
Membership Rewards
With the Cobalt Card, you earn Membership Rewards points on purchases, which can be redeemed for transactions such as travel, merchandise, or statement credits.
Earn Rates
This card offers exceptional earn rates, with 5 points per dollar spent on eligible eats and drinks, 2 points on every dollar spent on travel, and 1 point on every dollar spent every other purchase.
Monthly Streaming Credits
Cardholders receive monthly statement credits for eligible streaming subscriptions, making it even more attractive for those who enjoy entertainment at home.
Travel Benefits
You can transfer your points to several airline and hotel loyalty programs, providing flexibility for your travel plans.
Front of The Line Access
Enjoy exclusive access to presale tickets and reserved seating at concerts, sporting events, and more.
3. Tangerine Money-Back Credit Card
The Tangerine Money-Back Credit Card is another top choice for Canadians seeking simplicity and cashback rewards without an annual fee.
Key Features and Benefits
Cashback Categories
This card allows you to choose two categories where you’ll earn 2% cashback on your purchases, such as groceries, gas, entertainment, and more. Plus, you’ll earn 0.5% cashback on all other purchases.
No Annual Fee
With no annual fee, this card is a cost-effective way to earn cashback on your spending.
Automatic Rewards
Your cashback is automatically deposited into your Tangerine savings account each month, providing a hassle-free rewards experience.
Balance Transfer Offer
New cardholders can take advantage of a promotional balance transfer offer with a low-interest rate for the first six months, making it easier to manage existing credit card debt.
4. BMO World Elite Mastercard
The BMO World Elite Mastercard is a premium travel credit card designed for globetrotters and those who enjoy luxury travel experiences.
Key Features and Benefits
Travel Rewards
This card allows you to earn BMO Rewards points on every purchase, which can be redeemed for travel, merchandise, or gift cards.
Sign-Up Bonus
New cardholders often receive a substantial sign-up bonus, typically in travel credits, annual fee waive and a interesting cashback in the first three months.
Travel Insurance
Benefit from extensive travel insurance coverage, including emergency medical, trip cancellation/interruption, and rental car collision insurance.
Concierge Service
Availability of a round-the-clock concierge service capable of aiding with travel arrangements, booking restaurant reservations, and various other tasks.
5. CIBC Dividend Visa Infinite Card
The CIBC Dividend Visa Infinite Card is a popular choice for Canadians looking to earn cashback rewards while also benefiting from comprehensive insurance coverage.
Key Features and Benefits
Cashback Rewards
Earn cashback on your everyday purchases, including 4% cashback on eligible gas, electric vehicle charging and groceries, 2% on dining, eligible transportation and recurring payments or bills, and 1% on all other purchases.
Insurance Coverage
This card offers extensive insurance coverage, including travel medical, trip cancellation/interruption, and rental car collision insurance.
Visa Infinite Privileges
Cardholders can enjoy exclusive Visa Infinite perks, such as access to the Visa Infinite Luxury Hotel Collection and 24/7 concierge service.
Mobile Device Insurance
Receive coverage for your mobile devices in case of theft, loss, or accidental damage when you pay your mobile phone bill with the card.
Annual Fee Rebate
The annual fee is often waived for the first year for new cardholders, making it even more appealing. For the first four statements on net purchases of up to $2,000 Plus, you get a first-year annual fee rebate.
Essential tips to choose your credit card
Now that we’ve delved into the specifics of these five outstanding credit cards, it’s essential to understand some broader concepts and tips related to responsible credit card usage in Canada. Here are some insights to help you make the most of your chosen credit card.
Understanding Credit Scores
A key aspect of responsible credit card use is maintaining a good credit score. Your score plays a major role in your financial life, impacting your ability to secure loans, mortgages, and even rent an apartment. Timely payments and responsible credit card utilization are essential for maintaining a healthy credit score.
Paying your Balance in Full
One of the most fundamental rules for credit card users is to pay your balance in full every month. By doing so, you avoid interest charges and can fully enjoy the rewards and benefits your card offers. If you find it challenging to pay your balance in full, consider using your credit card only for essential expenses and budgeting effectively.
Monitoring your Statements
Regularly reviewing your credit card statements is essential to catch any unauthorized or incorrect charges. Many credit card issuers offer online tools and mobile apps that make it easy to track your spending and identify any discrepancies.
Budgeting Wisely
While credit cards provide convenience, it’s crucial to budget wisely. Avoid impulse spending and create a monthly budget that includes your credit card expenses. This will aid you in efficiently handling your finances and guaranteeing your ability to settle your balance entirely each month.
Responsible Credit Card Benefits
Credit card benefits such as cashback, rewards points, and travel perks can be incredibly advantageous when used responsibly. Take full advantage of these benefits by understanding the terms and conditions of your card and maximizing your rewards through everyday spending.
Avoiding Cash Advances
Cash advances frequently entail elevated fees and interest rates. It’s advisable to refrain from using your credit card for cash advances unless it’s an absolute emergency. Always explore other options, such as a personal loan or line of credit, when you need access to cash.
Annual Fees
Some of the best credit cards come with annual fees, while others do not. Evaluate whether the rewards and benefits of a card with an annual fee exceed the cost for your particular spending habits. Keep in mind that many cards offer a first-year fee waiver as an introductory offer.
Credit Car Security
Protect your credit card information at all costs. Keep your card in a secure place, and never share your card information with anyone you don’t trust. If your card is lost or stolen, report it to your issuer immediately to prevent unauthorized use.
Building Credit History
Exercising responsible credit card usage is a commendable approach to constructing a favorable credit history. This can pave the way for improved financial prospects down the road, including the potential for reduced interest rates on loans and mortgages.
Review and Reevaluate
our financial needs and spending habits may change over time. Periodically review your credit card choices to ensure they align with your current goals and lifestyle. You might find that a different card suits you better as your circumstances evolve. The first step would be to contact the financial institution your current card is with and ask about different cards.
In conclusion, choosing the right credit card in Canada depends on your spending habits, lifestyle, and financial goals. The Scotia Momentum Visa Infinite Card, American Express Cobalt Card, Tangerine Money-Back Credit Card, BMO World Elite Mastercard, and CIBC Dividend Visa Infinite Card are among the top options available, each offering unique features and benefits.
Whether you prioritize cashback rewards, travel perks, or no annual fees, there’s a credit card in Canada to suit your needs. Be sure to compare these options and consider your personal preferences before making your final decision to ensure you get the most out of your credit card.