Imagine enjoying all the best credit card perks, without paying an annual fee. Well, Canadians can choose from an impressive selection of cards with no yearly fees that make this dream a reality. These cards not only save you money, but also offer enticing rewards like cash back and travel points. Here are our picks for the best no-fee credit cards in Canada.
Featured credit cards
SimplyCash Card from American Express
Home Trust Preferred Visa
American Express Green Card
MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.
Best no-fee credit cards by category
Need a credit card with no yearly fee? Scroll through the table below to compare card details of our top picks in this category.
| Awarded by our editors | Annual fee | Rewards | Recommended income | Recommended credit score | Apply now (featured cards only) | |
|---|---|---|---|---|---|---|
| SimplyCash Card from American Express | Gold: Best no-fee cash back credit card | $0 | At least 1.25% cash back on all purchases | None specified | 725 or higher | Apply now |
| Tangerine Money-Back Credit Card | Silver: Best no-fee cash back credit card | $0 | 2% cash back in up to 3 categories of your choice | $12,000 (household or personal) | 660 or higher | |
| American Express Green Card | Gold: Best no-fee travel credit card | $0 | 1 Amex Membership Rewards point per $1 spent | None specified | 725 or higher | Apply now |
| Home Trust Preferred Visa | Gold: Best no foreign transaction fee card with no annual fee | $0 | 1% cash back on all Canadian purchases | None specified | 660 or higher | Apply now |
| Desjardins Flexi Visa | Gold: Best low-interest rate card with no fee | $0 | None | None specified | 660 or higher | |
| Home Trust Secured Visa | Gold: Best no-credit credit card with no fee | $0 | None | None specified | 300 or higher | Apply now |
Our editors apply their credit card expertise and knowledge of Canadians’ financial goals to come up with selection criteria that matches the needs of the intended cardholder. For every type of credit card in Canada, there is a no-fee option. So, we applied different selection criteria to nearly every award category on this list. In addition to standing out in its category, each card has no annual fee. The addition of links from affiliate partners has no bearing on the results. Read more about our selection process and about how MoneySense makes money.
Gold: Best no-fee cash back credit card in Canada
At a glance: The SimplyCash Card from American Express keeps things simple—and rewarding. The 1.25% base earn rate is among the most generous available in Canada, and it only gets sweeter from there on gas and grocery purchases, making this the best no-fee cash back card in the country.
SimplyCash from American Express
Annual fee: $0
- 2% cash back on gas and groceries
- 1.25% cash back on all other purchases
Welcome offer: Earn a bonus 5% cash back on your first $2,000 in purchases during your first three months (up to $100 in bonus cash back).
Card details
| Interest rates | 21.99% on purchases, 21.99% on cash advances |
| Income required | None specified |
| Credit score | 725 or higher |
Pros
- Generous base earn rate: Most no-fee cash back credit cards in Canada have a base earn rate of 0.5%. With this card, you get at least a full percentage more on all your purchases.
- Travel insurance benefits: Many no-fee cards in Canada only give you extended warranty and purchase protection, but this one comes with $100,000 in travel accident insurance.
- Amex privileges: Get access to Front of the Line Presale and Reserved tickets for concerts, theatre performances, movie screenings and other events.
Cons
- Redemption options: Your cash back rewards are applied once per year to your account as a statement credit every September. Some cards offer frequent or on-demand redemption options.
- Bonus cap on groceries: You’ll only earn 2% on the first $15,000 spent annually on groceries (equal to $300 in cash back). After that, you’ll earn at the base rate of 1.25%
- Amex acceptance: American Express is less widely accepted in Canada than Visa or Mastercard, so you might want to also carry a secondary card for purchases at certain stores, including Costco and Loblaw grocery stores.
Silver: Best no-fee cash back credit card in Canada
At a glance: As the only card in Canada that lets you pick your bonus rate categories, the Tangerine Money-Back card is a perennial favourite among Canadians looking for a flexible no-fee card that fits their spending habits. Cardholders select two cash back categories from an impressive list of 10 options. Those with a Tangerine Savings Account are treated to earning 2% on an extra category of their choice.
Tangerine Money-Back Credit Card
Annual fee: $0
- 2% in up to 3 categories of your choice (including groceries, gas and dining)
- 0.5% cash back on everything else
Welcome offer: Earn an extra 10% cash back during the first two months (up to $100 in cash back).
Card details
| Interest rates | 20.95% on purchases, 22.95% on cash advances and 22.95% on balance transfers |
| Income required | Personal or household income of $12,000 |
| Credit score | 660 or higher |
Pros
- Unmatched cash back flexibility: This is the only card in Canada that allows you to pick your own bonus categories and change them over time to reflect your evolving spending habits.
- 10 categories to choose from: Pick your two (or three) categories from a list that includes grocery, gas, restaurants, entertainment, public transit and recurring bills. You can also switch bonus categories, subject to certain time limitations.
- Easy redemption: Rewards are automatically deposited into your account monthly.
- Free additional users: Add up to 5 free authorized users and earn faster as a group.
- Low balance transfer interest rate: Transfer balances during the first 30 days and pay only 1.95% interest on the balance for the first 6 months (plus a 1% fee).
Cons
- Limited insurance and perks: Only the most basic two coverages are included (purchase assurance and extended warranty) and extra perks are limited.
- Low base rate: Purchases that don’t fall into one of your chosen 2% categories will only earn 0.5% cash back.
- No physical branches: Tangerine does not have any physical locations.
Gold: Best no-fee travel credit card in Canada
At a glance: Earn points on everyday purchases and enjoy the flexibility of redeeming them for a variety of rewards with this no-fee rewards credit card. Plus, Amex Membership Rewards are transferable at a 1:1 value to other frequent flyer and rewards programs, creating an opportunity to boost the value of your rewards.
American Express Green Card
Annual fee: $0
- 1 point for every $1 spent on all purchases
- 1 additional point for every $1 spent on hotel or car bookings made on americanexpress.ca.
Welcome offer: earn 10,000 Membership Rewards points when you charge $1,000 in purchases to your card in the first three months of cardmembership.
Card details
| Interest rates | 21.99% on purchases, 21.99% on cash advances |
| Income required | None specified |
| Credit score | 725 or higher |
| Point value | 1 Amex Membership Rewards point = $0.01 when redeemed with the Flexible Points Travel Program, $0.015 on average with the Fixed Points Travel Program, and up to $0.02 with airline points transfers. |
Pros
- High earning: Earn a flat rate of 1 point per $1 on all purchases with no spending limits, and double for hotel or car rental bookings made through Amex Travel Online.
- Transfer points to increase value: When you transfer points to another program, like Aeroplan, you can double their value to $0.02 cents per point.
- Amex Membership perks: Take advantage of curated dining, shopping, and entertainment events with rewards like Experiences, and get advance access to tickets with Front of the Line.
Cons
- No travel insurance or perks: You don’t get insurance or perks like free lounge access, but that’s not unusual for a no-fee card.
- Limited acceptance: American Express cards are accepted at many places at home and abroad, but there are limitations—you can’t use Amex at Costco or Loblaw banner stores, for example.
Gold: Best no foreign transaction fee card with no annual fee
At a glance: Did you know that every time you use your credit card outside of Canada, most card issuers charge a 2.5% foreign transaction fee for processing purchases made in a non-Canadian currency? The Home Trust Preferred Visa is the only no-fee card in Canada that doesn’t charge a forex fee.
Home Trust Preferred Visa
Annual fee: $0
- 1% on all purchases in Canada
- Pay no FX fees on foreign currency purchases
Welcome offer: This card does not have a welcome bonus at this time.
Card details
| Interest rates | 21.99% on purchases, 21.99% on cash advances |
| Income required | None specified |
| Credit score | 660 or higher |
Pros
- No annual fee card: This is the only no foreign transaction fee credit card in Canada that doesn’t charge an annual fee.
- Flat earn rate: Earn 1% cash back on everything you buy in Canadian dollars with no limits on how much you can earn.
Cons
- No cash back on foreign purchases: You won’t earn rewards on purchases made in a foreign currency. However, the 2.5% saved on forex fees might be worth more than the rewards offered by another card.
- Redemption schedule: Cash back is only redeemed in January (as opposed to on-demand).
Gold: Best low-interest rate credit card with no annual fee
At a glance: If you tend to carry a credit card balance from month to month, the smart financial move may be to prioritize low interest over chasing rewards. That’s where the Desjardins Flexi Visa comes in. It offers a rock-bottom APR, making it the best credit card in Canada with no annual fee and low interest.
Desjardins Flexi Visa
Annual fee: $0
Rewards: Does not offer rewards.
Welcome offer: None at this time.
Card details
| Interest rates | 10.90% on purchases and 12.90% on cash advances |
| Income required | Not specified |
| Credit score | Not specified |
Pros
- Lowest interest rate available: Lowest purchase APR of any no-fee card in Canada.
- Some travel insurance: Includes emergency medical, trip cancellation and baggage coverage for up to three days—suitable for a weekend trip. Plus, the emergency medical coverage applies to travellers age 75 and under, whereas coverage stops at 65 with some cards.
Cons
- No balance transfer promotion: If your goal is to pay off a current credit card balance fast, consider a card with a balance transfer promotion instead. The Flexi Visa doesn’t charge a balance transfer fee, however, which is a plus for those who decide to transfer anyway.
- Limited in-person support: Desjardins only offers brick and mortar branches in Ontario and Quebec.
Gold: Best no-credit credit card with no annual fee
At a glance: Canadians with low or no credit may want to consider a secured credit card, like the Home Trust Secured Visa. This card offers more flexibility than most secured credit cards by offering you two options: an interest rate of 19.99% with no annual fee, or a lower interest rate of 14.90% with a $59 annual fee. Home Trust reports payments to the credit bureaus, so using the card responsibly can help build or improve your credit score.
Home Trust Secured Visa
Annual fee: $0
Rewards: Does not offer rewards.
Welcome offer: None at this time.
Card details
| Interest rates | 19.99% on purchases and 19.99% on cash advances |
| Income required | None specified |
| Credit score | 300 or higher |
Pros
- Choice of two options: Pay an annual fee of $59 annual fee to save on interest with a 14.90% interest rate. Or, get the same card for no annual fee, but with a higher interest rate.
- Reports to both credit bureaus: Home Trust reports your activity to both TransUnion and Equifax, which helps you build your credit rating if you pay your bills on time.
Cons
- High minimum deposit: You’ll need to deposit $500 upfront. Some issuers only require a $50 deposit.
- Not available in Quebec: Residents of the province aren’t eligible for this secured Visa.
Frequently asked questions
No-fee credit cards do not charge an annual fee, which is typically used by card issuers to cover the cost of the benefits they offer. Though many no-fee cards still offer some form of perks and rewards, such as cash back, travel points and some insurance coverage, the benefits are typically less impressive compared to annual-fee cards. When used responsibly, no-fee cards can still help you build a credit history and improve your credit score.
It’s usually all about the perks. For example, some Aeroplan point collectors do pay an annual fee of $599 for the TD Aeroplan Visa Infinite Privilege—which is way above the typical $100 rate. That card comes with travel benefits like unlimited free access for the cardholder and a guest to Maple Leaf Lounges throughout North America, and membership in the Visa Airport Companion Program hosted by DragonPass and includes six lounge visits worldwide, as well as priority check-in, boarding and baggage handling, and an extensive suite of travel insurance.
No-fee credit cards are suitable for a wide range of Canadians with different goals and spending habits. They are particularly useful if you don’t use credit often—if you spend thousands of dollars per year on your card, you may be able to earn more with an annual-fee card that offers many perks and rewards. No-fee cards are a good option if you’re new to Canada or have a shaky credit history and want to improve your credit rating over time. If you already have an annual-fee card, a no-fee card may also give you access to features your current card lacks, such as no foreign transaction fees when you travel abroad.
Not all credit cards have an annual fee, as you can see based on our list of Canada’s best no-fee credit cards. Why would someone have a card with this fee? Well, it’s about perks and promotions. Generally speaking, cards with an annual fee have higher earn rates for rewards, including points and cash back programs. There are also other perks that may lack with a no-fee card, like travel insurance, airport lounge access and more. So, if those things matter to you, then an annual fee might be worth it. But look at welcome offers, as many promotions waive the annual fee for the first year of having the card.
Advantages of a no-fee credit card
- Skip the yearly charge: A no-fee credit card is free to have at your disposal. Better yet, if you never carry a balance and you use a no-fee card that offers cash back or rewards, you’ll actually be in a better financial position than you would without the card. In many cases, the earn rate might be lower than with an annual-fee card; however, with a no-fee card, any rewards you earn can be a net positive—you don’t have to spend a certain amount every year to make up for the upfront charge.
- Save on certain expenses: A card that complements your spending habits and hobbies (like travel) can also save you a nice chunk of change on things like foreign transaction fees, insurance and rental cars.
Drawbacks of a no-fee credit card
- Ho-hum rewards and cash back: Your reward earning power can be somewhat lacklustre when compared to the revved-up rewards you’ll usually reap with premium cards that have an annual fee. For example, with the American Express Cobalt card, you’ll earn 5 points per $1 spent on groceries and restaurants, 3 points per $1 spent on streaming services, and 2 points per $1 spent on travel, transit and gas (with everything else getting you 1 point per $1). You can see that at those earn rates, points can pile up pretty quickly.
- Not-so-welcoming welcome offers: Because one of the major selling points of a no-fee card is that there is no fee, the welcome bonuses offered to attract new applicants are not as generous as cards with annual fees.
- Fewer perks: With few exceptions, no-fee cards lack the perks and benefits—particularly insurance—that tend to come with annual-fee cards. Typically (though not always), no-fee cards do include very basic protections, such as zero liability, purchase protection and extended warranty, but you’ll usually miss out on travel insurance, concierge service and 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.
What should you do with the money you saved with an annual fee?
With a no-fee card, you could save yourself $59 to $250 dollars a year. But make a conscious decision to do something with that money, like putting it into a high-interest savings account or into your registered retirement savings plan (RRSP) or tax-free savings account. It’s not a lot, but the compound interest you could earn makes it worthwhile. Use our compound interest calculator to find out how much you could grow your money.
More of Canada’s best 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
