“A credit card is a convenient device that saves you the trouble of counting your change” — Evan Esar

We all have that friend who always says they got cash back, free flights, and lounge access, all from their credit cards. But you are wondering taking credit cards will put you in debt or will broke you?

If you think so you are wrong. A credit card isn’t just a way to spend, it’s a powerful financial tool that can build your credit, earn rewards, and make your daily expenses earn for you.

Yes, credit cards usually have a bad reputation. But when you understand how they work and use them wisely, they can be your best financial assistant.

How to Pick the Right Credit Card?

Before looking at any card, you should know what is best for you or what suits you. The best credit card is different for everyone because we all spend money in different ways. Some people just want simple cash back, some want travel points, some wants credits towards their statement and others just want a no fee credit card just to start building their credit history.

Here are few things you should look at before choosing your credit card:

• Annual/Monthly Fee : Are you okay paying for benefits or do you prefer free card?
• Rewards : Cash back, travel points or everyday points
• Bonus Categories : Groceries, Restaurants, Gas, Transits, Subscriptions
• Foreign Transaction Fees : Important if you shop online or travel
• Eligibility : Some cards need a minimum income or credit age to qualify.
• Extra perks : Insurance, lounge access, purchase protection, extended warranty.

Once you understand these things, you can choose your credit card which can be best for you.

1. Cash Back and Everyday Use Credit Cards (Comparison Table)

Now, let’s take a look at some of the strongest cash back and everyday cards you can pick today.

Top 3 Cash Back Cards (Detailed Breakdown)

A. Wealthsimple Credit Card

• Annual Fee : $0 for Premium/Generation clients or if you meet the $4,000 monthly direct deposit requirement. Otherwise the fee is $20/month ($240/year).
• Cash back: 2% on everything
• Welcome Bonus or Offer: No publicly listed welcome bonus at the time of writing
• Top Categories / Ideal Spending Areas: Flat 2% back on everything, ideal for groceries, bills, online shopping, travel bookings, dining, and international purchases (because of no FX fees)
• Foreign Transaction Fee: 0%
• Eligibility Requirement: usually minimum $60,000 personal or $100,000 household income required.
• Insurance and Travel Perks: Includes purchase protection, mobile device insurance, extended warranty. However, strong travel insurance seems limited. For the Visa Infinite version: up to $1,000,000 emergency medical, up to $1,000 for delayed baggage, etc. All insurance coverage is subject to the card issuer’s terms and conditions, eligibility rules, and policy limits.
• Issuer / Network: Issued by Wealthsimple Financial Inc. & Network: Visa.
• Pros & Cons
  • Pros : Flat 2% back on all purchases, no FX fee, simple rewards structure.
  • Cons: No large welcome bonus, travel insurance/perks are weaker compared to premium cards, might have eligibility barriers (waitlist).
• Ideal For: People who want a simple “use it everywhere” card with strong cash back and no foreign fees.

Check the official Wealthsimple Credit Card details here.

B. Tangerine Money Back Credit Card

• Annual Fee : $0
• Cash back: Up to 2% cash back in 2 (or 3) selected categories of your choice + 0.5% on everything else.
• Welcome Bonus or Offer: Earn 10% cash back (up to $100) for the first 2 months on eligible purchases (for a limited time).
• Top Categories / Ideal Spending Areas: You will pick your 2% categories: e.g., groceries, restaurants, gas, home improvement, public transit, e-games, etc. A 3rd category unlocks if you deposit rewards into Tangerine Savings account.
• Foreign Transaction Fee: 2.5% (standard rate)
• Eligibility Requirement: Gross annual income of $12,000 or more; Canadian resident; age of majority
• Insurance and Travel Perks: Includes mobile device insurance, purchase assurance, extended warranty, rental car insurance. All insurance coverage is subject to the card issuer’s terms and conditions, eligibility rules, and policy limits.
• Issuer / Network: Issued by Tangerine Bank (division of Scotiabank) & Network: Mastercard
• Pros & Cons
  • Pros : No annual fee, customizable reward categories, strong bonus for first 2 months.
  • Cons: Standard FX fee, bonus categories need to be selected, lower reward on “everything else” (0.5%).
• Ideal For: Beginners or everyday spenders who want a no fee card and the flexibility to choose where they earn higher cash back

Check the official Tangerine Money-Back Credit Card details here.

C. Simplii Financial Cash Back Visa

• Annual Fee : $0
• Cash back: Up to 4% cash back in bonus categories and lower rate on other purchases.
• Welcome Bonus or Offer: Simplii sometimes offers limited-time bonuses for new clients (varies by promotion).
• Top Categories / Ideal Spending Areas: Strong rewards on groceries, dining, gas, and other everyday spending categories.
• Foreign Transaction Fee: 2.5% (standard rate)
• Income Requirement: usually minimum $15,000 annual personal income required.
• Insurance and Travel Perks: Includes Purchase Security and Extended Protection Insurance. All insurance coverage is subject to the card issuer’s terms and conditions, eligibility rules, and policy limits.
• Issuer / Network: Issued by CIBC (Simplii Financial is a division of CIBC) & Network: Visa
• Pros & Cons
  • Pros : No annual fee, strong reward on everyday purchases.
  • Cons: Standard FX fee, rewards vary by category, smaller welcome bonuses compared to competitors.
• Ideal For: Everyday shoppers who want strong cash back on essentials without paying an annual fee.

Check the official Simplii Financial Cash Back Visa details here.

Other Cash Back Cards Worth Considering (Short Explanations)

• Rogers World Elite Mastercard – Great for people who want strong flat cash back, especially Rogers, Fido, and Shaw customers. Offers extra rewards on purchases in U.S. dollars.
• PC Financial World Elite Mastercard – Best for grocery and drugstore shoppers. You earn high PC Optimum points at Loblaws, No Frills, Shoppers Drug Mart, and PC affiliated stores.
• Neo Financial Credit Cards – Good for newcomers and app focused users. Rewards vary by partner and can go from 1% to 5% depending on where you shop.
• Walmart Rewards World Mastercard – Ideal if you shop often at Walmart. Earns higher points in-store and online for groceries, essentials, and household items.
• Canadian Tire Triangle World Elite Mastercard – Perfect for gas, automotive, and Canadian Tire family stores. Earns CT Money, offers roadside assistance, and strong rewards at Sport Chek and Mark’s.
• KOHO Prepaid Visa (Credit Builder) – Good if you want cashback with the option to build credit. Offers 1 to 2% cashback and no FX fees depending on the plan.

2. Travel, Rewards & Premium Credit Cards (Comparison Table)

If you love traveling or want free flights in the future, these cards give you points, perks, lounge access, and insurance that make your trips easier and cheaper.

Top 3 Travel Cards (Detailed Breakdown)

A. American Express Cobalt Card

• Annual Fee: $192 ($15.99/month)
• Rewards: 5x points on food & dining, 3x on streaming, 2x on travel & transit, 1x on everything else
• Welcome Bonus: Often includes bonus MR points in the first year (varies by promo).
• Top Spending Areas: Restaurants, groceries, food delivery, streaming services (Netflix/Spotify), transit, taxis, rideshare, and travel bookings.
• FX Fee: 2.5%
• Insurance & Perks: Includes travel emergency medical (for short trips), flight delay insurance, baggage insurance, hotel burglary coverage, front of the line access, mobile device insurance, Car Rental Theft and Damage Insurance and Travel Accident Insurance (typically $250,000) and purchase protection. All insurance coverage is subject to the card issuer’s terms and conditions, eligibility rules, and policy limits.
• Issuer / Network: American Express
• Eligibility: No strict income requirement; good credit recommended.
• Redemption Options: Transfer points to airlines/hotels (Aeroplan, Marriott), pay with points, gift cards.
• Pros and Cons
  • Pros: Canada’s highest earn rate for dining and food purchases, Flexible travel points, Monthly fee instead of yearly
  • Cons: Not accepted everywhere, smaller travel insurance than Platinum, FX Fees applies
• Ideal For: People who spend a lot on food, delivery, streaming, and travel and want one of the best everyday rewards cards in Canada.

Check the official American Express Cobalt Credit Card details here.

B. CIBC Aeroplan Visa Infinite

• Annual Fee: $139
• Rewards: 1.5x Aeroplan points on gas, groceries, Air Canada Purchases, electrical vehicle charging and 1x point on all other purchases
• Welcome Bonus: Typically 10,000–20,000+ Aeroplan points, depending on the current promotion.
• Top Spending Areas: Gas, groceries, Air Canada purchases, Air Canada vacations, and everyday travel spending.
• FX Fee: 2.5%
• Insurance & Perks: Includes strong travel insurance (flight delay, lost/delayed baggage, travel medical), car rental insurance, purchase security, extended warranty, and mobile device insurance. Also includes Air Canada travel benefits. All insurance coverage is subject to the card issuer’s terms and conditions, eligibility rules, and policy limits.
• Issuer / Network: Issued by CIBC & Network: Visa Infinite.
• Eligibility: Minimum $60,000 personal income or $100,000 household income; Canadian resident and age of majority.
• Redemption Options: Flights (Air Canada + Star Alliance), upgrades
• Pros and Cons
  • Pros: Great for Aeroplan and Air Canada flyers, Great welcome bonus, Strong travel insurance package
  • Cons: FX Fees applies, Lower earn rate on non-category purchases, Requires higher minimum income
• Ideal For: Anyone who flies in Air Canada or wants to quickly earn Aeroplan Points for flights, upgrades, and travel rewards.

Check the official CIBC Aeroplane Visa Infinite Credit Card details here.

C. Scotiabank Passport Visa Infinite

• Annual Fee: $150 (Often waived in the first year with promotions.)
• Rewards: 3x Scene+ points on purchases at participating Sobeys, Safeway, IGA, Foodland, and participating Co-ops. 2x points on purchases at other eligible grocery stores, dining, entertainment, and transit (including rideshares/taxis). 1x point on everything else.
• Welcome Bonus: Usually 20,000–35,000 Scene+ points, depending on the promotion.
• Top Spending Areas: Dining, groceries, travel, transit, entertainment, and purchases abroad (because no FX fee).
• FX Fee: 0% (one of the few Canadian cards with no FX fees)
• Insurance & Perks: Includes strong travel insurance, 6 complimentary lounge visits with Priority Pass, rental car insurance, hotel/motel burglary coverage, and extended warranty. All insurance coverage is subject to the card issuer’s terms and conditions, eligibility rules, and policy limits.
• Issuer / Network: Issued by Scotiabank & Network: Visa Infinite.
• Eligibility: Minimum $60,000 personal income or $100,000 household income; Canadian resident and age of majority.
• Redemption Options: Flights (Air Canada + Star Alliance), upgrades
• Pros and Cons
  • Pros: No FX Fees, Lounge Access with 6 annual visits, strong insurance and Scene+ flexibility
  • Cons: Higher annual fee, rewards lower than Amex Cobalt for dining, income requirement applies
• Ideal For: Travelers who want 0% FX fees, lounge access, and strong travel insurance, perfect for frequent international spending.

Check the official Scotiabank Passport Visa Infinite Credit Card details here.

Other Travel, Rewards & Premium Cards Worth Considering (Short Explanations)

• American Express Gold Rewards Card – Great for flexible travel points and strong rewards across travel, transit, gas, groceries and ideal if you want a travel ready card beyond dining.
• American Express Platinum Card – Premium travel card with elite perks like lounge access, hotel statuses, concierge services. Best for frequent flyers who upgrade their lifestyle.
• TD First Class Travel Visa Infinite – Great travel rewards card tied to the Expedia platform, earn high travel points and redeem easily on flights, hotels, and packages.
• WestJet RBC World Elite Mastercard – Excellent choice for WestJet travellers, earns WestJet Dollars, includes companion voucher annually, and comes with travel insurance.
• Marriott Bonvoy American Express Card – Ideal for loyal Marriott hotel guests, strong hotel point earn rate, free night certificate yearly, and high value on stays.
• HSBC World Elite Mastercard – Great for global travellers, no foreign transaction fees, strong travel insurance, and high points on travel/dining. Note: HSBC Canada is now part of RBC. Future availability or changes to this card may occur.

If you are planning a trip soon, you might like my piece on the benefits of taking a digital detox, especially while traveling.

3. Secured & Credit Builder Cards

If you’re new to Canada or building your credit from scratch, secured cards are the easiest way to start. These cards require a small deposit and report to credit bureaus which help your score to grow steadily.

Top 3 Secured Cards (Detailed Breakdown)

A. KOHO Credit Builder (Prepaid Visa)

• Annual Fee: $0 – $9 (depends on plan)
• Deposit Requirement: No traditional security deposit (KOHO uses monthly program instead)
• How It Builds Credit: KOHO reports your monthly payments to Equifax to help improve your credit score.
• FX Fee: 2.5%
• Insurance/Perks: Varies by plan, including price protection, cash back at partner merchants, No FX (on some plan)
• Issuer / Network: Issued by KOHO (fintech partner) & Network: Mastercard.
• Eligibility: Easiest approval, no hard credit check.
• Pros and Cons
  • Pros: No FX Fees, No security deposit, easy approval, can improve credit fast, prepaid safety
  • Cons: some features locked behind paid plans
• Ideal For: Beginners who want the easiest, and stress free way to build credit with no deposit.

Check the official KOHO Credit Builder Credit Card details here.

B. Neo Secured Mastercard

• Annual Fee: $0
• Deposit Requirement: Very flexible from $50 to $10,000 (you can choose)
• Rewards: 1% average cash back on Gas and Groceries, plus up to 15% instant cash back at over 10,000+ Neo partner stores across Canada (average is 1–5% at partners).
• How It Builds Credit: Reports your credit activity to both TransUnion and Equifax so you can build or rebuild your credit history.
• FX Fee: 2.5%
• Insurance/Perks: Cash back at partners, basic purchase protection
• Issuer / Network: Issued by Neo Financial and Network: Mastercard.
• Eligibility: Approved for almost everyone, no credit score required.
• Pros and Cons
  • Pros: very minimum deposit required, rewards even though secured
  • Cons: cashback varies by location, FX Fee applies
• Ideal For: Newcomers or students who want cash back and a fully secured card with low deposit.

Check the official Neo Secured Credit Card details here.

C. Capital One Guaranteed Mastercard

• Annual Fee: $59
• Deposit Requirement: $75–$300 (depending on credit review)
• Rewards: No cash back, this is purely for credit building.
• How It Builds Credit: Reports your credit activity to both TransUnion and Equifax so you can build or rebuild your credit history.
• FX Fee: 2.5%
• Insurance/Perks: Travel accident insurance, Basic extended warranty, Purchase protection
• Issuer / Network: Issued by Capital One Canada and Network: Mastercard.
• Eligibility: One of the only cards in Canada guaranteed to approve people with poor credit, as long as income and residency criteria are met.
• Pros and Cons
  • Pros: Approved even with low credit score, small deposit, reputable bank
  • Cons: $59 annual fee, no rewards, deposit varies
• Ideal For: People with damaged credit or newcomers who want a guaranteed approval card from a major bank.

Check the official Capital One Guaranteed Mastercard Credit Card details here.

Other Secured Cards Worth Considering (Short Explanations)

• Home Trust Secured Visa – Traditional secured card with flexible deposit ($500–$10,000), perfect for newcomers wanting a simple, bank style secured card.

Conclusion

Canada offers hundreds of credit cards, but the best one for you depends on your financial goals. Focus on fees, rewards, insurance, and how often you travel or shop abroad. If you choose a card that aligns with your everyday spending, you will maximize rewards without extra effort.

No matter which card you choose, remember paying on time, keeping your balance low, and using your card responsibly will help you to build strong credit and get even better cards in the future.

If you want to sharpen your money mindset even more, check out my article on Why Focus Matters Today it pairs perfectly with making smarter credit decisions.

Disclaimer

Card details like fees, rewards, and insurance may change at any time. This article is for informational purposes only and not financial advice. Always check the official card issuer’s website for the most up-to-date information.

Frequently Asked Questions (FAQ)

1. Which credit card is the easiest to get approved for in Canada?

Secured cards like KOHO Credit Builder, Neo Secured Mastercard, and Capital One Guaranteed Mastercard are the easiest to get approved because they accept people with little or no credit history.

2. Which credit card is best for beginners in Canada?

For most beginners:

• Tangerine Money-Back : flexible categories
• Simplii Cash Back : strong everyday rewards
• Neo Financial : good for app users and newcomers

3. Which credit card gives the highest rewards in Canada?

The American Express Cobalt Card is widely considered the best overall rewards card in Canada.
It offers:

• 5x points on dining, groceries, food delivery, cafés
• 3x points on streaming
• 2x points on travel & transit
• 1x point on everything else

Its 5x category is the highest everyday earn rate available on a mainstream Canadian credit card.

4. Which credit card has no foreign transaction fees?

Some cards with 0% FX include:

• Wealthsimple Visa Infinite
• Scotiabank Passport Visa Infinite
• HSBC World Elite Mastercard
• KOHO Extra Plan (on some plans)

5. How do I pick a credit card that fits my lifestyle?

Think about:

• Where you spend the most (food, gas, travel)
• Whether you want cash back or travel points
• If you shop online in USD
• If you want perks like insurance or lounge access
• Whether you’re okay with annual fees

6. Do credit cards affect my credit score?

Yes, positively if used wisely. Pay your bill on time and keep your balance below 30% of your limit.

7. Can newcomers or international students get a credit card in Canada?

Yes, many cards don’t require Canadian credit history. Examples:

• Neo Financial
• Simplii Cash Back
• Scotiabank Scene+ Visa for newcomers
• KOHO Credit Builder (prepaid-type)

8. Is it okay to have more than one credit card?

Yes. Many Canadians use 2–3 cards for better rewards. Just ensure you can manage payments responsibly.

9. What’s the difference between cash back and travel points?

• Cash back : money returned to your account/statement
• Travel points : flights, hotels, upgrades, lounge access, gift cards, statement credits

Cash back is simpler and points can give higher value for travel.

10. How do secured credit cards help build credit?

Secured cards report your monthly payments to credit bureaus. As long as you pay on time, your score increases gradually.

11. Are annual fee cards worth it?

Yes, only if you use the perks. Examples:

• Amex Cobalt = high rewards
• Scotiabank Passport = lounge access and no FX
• Amex Platinum = luxury travel benefit

If you don’t use perks, choose no fee cards.

12. What is a foreign transaction fee?

It’s a 2.5% extra charge on purchases made in other currencies (USD, EUR, etc.). Some cards reduce this fee to 0%.

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