Canada Credit Cards Guide
the credit cards in Canada. The credit card interest rate (the "APR") is typically 19.99% to 29.99% (the "purchase rate" — the "cash advance rate" — the "balance transfer rate"). The annual fee ranges from $0 (the "no-fee card") to $699 (the "premium travel card" — the "American Express Platinum" — the "RBC Avion VIP"). The cash-back rewards are the most popular in Canada — the "no-fee cash-back card" offers 1% to 2% on the purchases (the "Tangerine Money-Back Card" — the "Simplii Visa" — the "RBC Cash Back"). The travel rewards cards offer the "travel points" (the "Air Miles" — the "Aeroplan" — the "Avion" — the "American Express Membership Rewards"). The secured credit card is the "deposit-based card" (the "credit building card" — the "security deposit" of $200 to $5,000). The FCAC Credit Card Comparison Tool is the official tool for the credit card comparison in Canada (the "itools-ioutils.fcac-acfc.gc.ca").
Types of Credit Cards
- No-fee card: The "free credit card" — the "no annual fee card". The typical cash-back card with the no annual fee: the Tangerine Money-Back Card (2% on the 3 categories, 0.5% on the rest), the Simplii Visa (4% on the restaurants, 1.5% on the groceries), the RBC Cash Back (2% on the groceries).
- Low-interest card: The "low APR card" — the "low-interest credit card" — the "fixed low rate card". The interest rate is 8.99% to 13.99% (the "MBNA True Line Gold" — the "CIBC Select Visa"). The low-interest card is for the balance carriers (the "people who carry the balance month-to-month").
- Travel rewards card: The "travel credit card" — the "airline card" — the "hotel card". The premium travel card: the American Express Platinum ($699, the "unlimited lounge access" — the "travel credits"), the RBC Avion VIP ($399, the "priority boarding" — the "lounge passes"), the TD Aeroplan Visa Infinite ($139, the "Aeroplan points" — the "free checked bag").
- Cash-back card: The "cash-back rewards card" — the "percentage cash back on the purchases". The no-fee cash-back card: the Tangerine Money-Back (2% on the 3 categories), the Simplii Visa (4% on the restaurants, 1.5% on the groceries, 0.5% on the everything else). The premium cash-back card: the CIBC Dividend Infinite (4% on the groceries, 4% on the gas, 2% on the recurring payments).
- Secured card: The "secured credit card" — the "deposit-based card" — the "credit building card". The security deposit is $200 to $5,000 (the "credit limit equals the deposit"). The secured card is for the people with the "no credit history" or the "poor credit history" (the "credit building" — the "credit repair").
Credit Card Fees & Interest
- Annual fee: $0 (the "no-fee card") to $699 (the "American Express Platinum"). The premium cards have the $120 to $699 annual fee. The annual fee is charged on the anniversary date (the "card anniversary fee").
- Interest rate (APR): The purchase rate is 19.99% to 29.99% (the "standard purchase rate"). The cash advance rate is 21.99% to 29.99% (the "cash advance APR" — the "interest starts immediately — no grace period"). The balance transfer rate is 0% to 3.99% (the "introduction offer" — the "balance transfer APR").
- Late payment fee: $25 to $50 (the "late payment penalty" — the "missed payment fee"). The late payment can also trigger the "penalty APR" (the "default APR" — the "increased interest rate").
- Foreign transaction fee: 2.5% on the US dollar and the foreign currency transactions. The "no foreign transaction fee cards" are available (the "Brim Mastercard" — the "Home Trust Visa").
Rewards & Benefits
- Cash-back rewards: The "cash-back percentage" — the "cash-back categories". The cash-back is credited to the account (the "statement credit" — the "automatic cash back"). The typical cash-back rates: the "no-fee card" — 1% to 2%; the "premium card" — 2% to 4%.
- Travel rewards: The "Aeroplan" (the "Air Canada loyalty program"), the "Avion" (the "RBC rewards"), the "American Express Membership Rewards", the "HSBC Rewards", the "TD Rewards". The travel points can be redeemed for the "flights, the hotels, the car rentals, and the gift cards".
- Insurance benefits: The "travel medical insurance" (the "out-of-province medical coverage"), the "trip cancellation insurance", the "trip interruption insurance", the "lost baggage insurance", the "purchase protection" (the "new purchase insurance"), the "extended warranty" (the "manufacturer warranty extension"), and the "mobile device insurance".
For the bank accounts and the banking fees, see our Banking Guide →. For the credit reports and the credit scores, see our Credit Report & Score Guide →.