There’s never been a better time to get a no annual fee credit card in Canada. Credit card issuers are packing loads of value onto the best no annual fee credit cards whether you’re looking for cash back, rewards, miles, a free flight, or low interest rates.
There are usually four very good reasons to get a no annual fee credit card. First, you don’t spend enough to make an annual fee worth the cost. Second, you want a back-up credit card in your wallet in case your primary card gets lost, stolen or frozen. Third, you have no need for some of the perks annual fee credit cards offer. Fourth, you’re reluctant to commit to a card before you try it.
Regardless of your reason, there have never been more no annual fee credit cards offering as much value as we have today.
Best No Annual Fee Credit Card: Cash Back
Tangerine Money-Back Credit Card
It comes with no annual fee, a 2% cash back rate in up to 3 categories of your choice (like gas, groceries, pharmacy, recurring billing, etc…), and 0.5% on all other spend. There are no limits to how much cash back you can earn. You can change your bonus categories and your cash back gets applied automatically every month!
This is by far the best no fee cash back card on the Canadian market. Most others, such as Capital One, or BMO offer 1% cash back. Some such as the Amex Simply Cash card goes as high as a 1.25% flat cash back rate. None give the value of the Tangerine Money-Back credit card. None, offer its convenience.
Best No Annual Fee Credit Card: No Foreign Transaction Fees
Rogers Platinum MasterCard
The Rogers MasterCard comes with an incredible 1.75% flat cash back rate and subsidizes foreign transaction fees. It offer 4% cashback on foreign purchases – phenomenal value for travel & U.S. dollar purchases online.
What makes the Rogers MasterCard so special is the value you get on foreign purchases, when compared to the competition. For example, a 2% cashback card which charges a 2.5% foreign transaction fee, costs you .5% for every dollar you spend. Rogers you net out 1.5% cashback after FX fees!
Not just for Rogers customers, the Rogers MasterCard has the strongest flat cash back rate for a no fee credit card in Canada. Combined with it’s no foreign transaction fees it makes for a great card to carry with you on vacation, make U.S. dollar purchases online, or to combine with a card like Tangerine, to earn 1.75% cash back in non-bonus categories!
Best No Annual Fee Credit Card: Low Interest Rate
Canadian Western Bank Plus MasterCard® Credit Card From MBNA
If you carry a balance from time to time, this no annual fee credit card offers a superlative 9.99% fixed interest rate. It’s clean, simple and transparent. Your interest rate will always stay at 9.99%. What you see is what you get.
This card stands out from every other low interest credit card because of three things: 1. You know the interest rate your going to get before you apply – and it will always staye the same. It has a lower fixed rate than almost every other card which typically charge 11.99% or higher. It has no annual fee – compared to an annual fee of $29 or higher charged by the big banks.
With no annual fee, it’s a great card to keep in your wallet as a back-up in the event your about to make a purchase you may not pay off right away.
Best No Annual Fee Credit Card: Free Flight Bonus
The Scotiabank Gold American Express Card
Frequent travelers can reduce their biggest expenses and earn on their everyday purchases with the Scotiabank Gold AmEx card. During the first year, cardholders will not have to pay the $99 annual fee, and are eligible to receive a competitive introductory bonus for spending just $750 in the first three months. After reaching this milestone, Scotiabank awards members with 30,000 rewards points, which have an equivalent value of $300. This represents a significant discount on one’s upcoming travel plans, as the points can be redeemed on flights, hotels, cruises, rental cars and more. However, those interested should act quickly, as the bonus is only available before July 31st, 2017.
Members will collect rewards points at an excellent 4% rate by using their card on gas, groceries, dining and entertainment. This broad scope of eligible expenses makes it easy to accumulate points fast, potentially saving hundreds of dollars each year. Alongside a comprehensive array of protective benefits, like insurance for trip interruption, cancellation, travel accidents, rental car damage, hotel burglary, flight delay and even travel medical, the card presents a strong value proposition. Although the annual fee reappears in the second year, overall the consistent advantages and impressive introductory bonus make the Scotiabank Gold American Express card a worthwhile option for a multitude of potential customers.
Best No Annual Fee Credit Card: Free Hotel Night Bonus
Best Western MasterCard®
This is an overlooked no annual fee credit card. While Best Western isn’t the Ritz, enough Canadians travel from city to city, whether by plane, train or automobile that a free hotel night at the Best Western might prove pretty convenient. With absolutely no annual fee, it’s a steal of a deal.
You will get 20,000 Best Western Rewards points on first purchase which is enough for a free nights stay. First purchase means you can buy a pack of gum and you meet the eligibility requirement. There’s no minimum spend requirement. With no annual fee, and no minimum spend requirement, that truly is a free nights stay.
The other nice thing about the Best Western Rewards card is that you can also transfer balances from your other credit cards to the Best Western MasterCard at 1.99% for 10 months, with a 1% transfer fee.
The best no annual fee credit card is not the first one your bank offers you. As you can see, there are several options. You have to decide the best credit card for you, given your goals and situation.
There are a few rules of thumb however to help guide you. First, if you don’t spend a lot on your credit card, a no annual fee credit card is the way to go. Second, if you only have one credit card, get a second no fee card as a back-up. In the event your primary card gets lost, stolen, maxed, or frozen, you’ll have an alternative – it costs nothing. Third, if you keep a balance from time to time, get a no annual fee low interest card – it’s free, so keep it in your wallet until you’re about to make that purchase you know you won’t pay off right away. You’ll cut your interest rate by half.
Finally, remember, if you love rewards, there’s no better offer than a no annual fee first year, with a free flight welcome bonus. With no annual fee, you can get as many cards with robust welcome bonuses as you’d like. All you have to do is watch out that you space out your applications a little, and take note of any minimum spend requirements. Other than that, it’s a great opportunity to get a free flight and to try new credit cards to see which rewards program you like best!