Comparison of Top Credit Cards in Canada
Looking for the best credit card? Want to see which providers have the offers that suit your budget? Need some tips on what to watch out for? Check out our guide to the top credit card providers on the market and see which credit card fits your needs.
The number of credit cards available in Canada seems limitless, with options ranging from instant cashback to low-interest rates. However, although this provides us with more options in how we make purchases and save money, deciding on the one to choose can get us worked up. This is because you need to figure out which credit card is the most suitable for your requirements.
1. Interest Rate
If you carry a balance often on your credit card, you need to consider the interest rate on the credit card you go for. The amount you owe on your credit card is a balance. Hence, it would be best to go for credit cards with lower interest rates. A card with a reduced interest rate may save you money in the long run.
Nonetheless, the interest rate on a credit card may not be a significant consideration if you:
a. You do not carry over any balance into the next month b. You do not take cash advances
2. Credit Card Benefits and Rewards
With a rewards card, you can receive discounts or cashback. Travel and automobile rental insurance may be included as benefits with credit cards. Before choosing a credit card that offers benefits and rewards, take note of the following:
a. With balances, the interest you pay might lower the value of the benefits and rewards. b. How often you intend to make use of the card’s benefits.
Credit card providers charge fees for things. The amount you get charged varies with different cards. Ensure that you go through and understand the terms and conditions involved.
Some of these fees include:
a. Annual fees b. Cash advance fees c. Foreign currency fees d. Inactive account fees, etc.
Application Process for Obtaining a Credit Card
Below are the processes involved in obtaining a credit card:
- Research various credit cards and providers. Doing this enables you to know which one best your needs and requirements.
- File in an application and submit. You can do this online on the provider’s website. Another option is to go to your bank. You will be required to provide Fill your personal information, such as your name, address, Social Security number, etc.
- If you are accepted, your credit card should be in the mail within a few weeks, and you will need to activate it before you can begin spending.
When you want to apply for a credit card, you will have to present the following information:
1) Full name and Canadian home address 2) Date of Birth 3) Social insurance number 4) Email address 5) Canadian home address 6) Income information 7) Your residency status
5 Best Credit Cards
1. American Express Platinum Card
The American Express Platinum Card is the finest credit card for regular travelers. It is regarded as one of Canada’s top travel credit cards. Many individuals would never consider this card because of the $699 annual fee. Yet, it’s one of the most popular rewards credit cards because of the high yearly value.
You receive a $200 yearly travel credit, so the total cost is just $499 each year. You can invite a visitor to the lounge since you have limitless access. A complete travel insurance plan is included in the package. If you often travel, the lounge access alone will easily be worth more than that, without considering the extra travel advantages like hotel status upgrades and travel insurance. This card generates Membership Rewards points, which can be transferred to Aeroplan and Marriott Bonvoy. For specific redemptions, the points may be quite significant. This card is worth considering even if you don’t travel much.
2. MBNA True Line Gold Mastercard credit card
If you want to save money by reducing interest, whether on a balance that’s already collecting at a high rate or on their future balances, the MBNA True Line Gold Mastercard credit card is your absolute “go-to.”
This card has a high welcome bonus, a high base earn rate, and high bonus earn rates on spending in popular categories. For a free credit card, you can’t ask for much more.
It’s important to consider the card’s $39 annual fee, which, while competitive, may interfere with your total savings. Do the math and determine that the interest saved (depending on your current balance and interest rate) is greater than $39. The card will be an overall benefit.
3. The CIBC Dividend Visa Infinite Card
CIBC Dividend Visa Infinite Card new customers get a 10% cashback incentive (up to $250) for the first four statements on net purchases of up to $2,500 and a first-year annual fee refund for the main cardholder of up to three Authorized Users.
Its frequent cashback rewards earn rates make the CIBC Dividend Visa Infinite Card long-term valuable. It delivers the greatest cashback rates on the market for qualified petrol and grocery purchases, which are often the two most popular spending categories for most Canadians. The $120 yearly tax is easily recouped by someone who spends at least $250 each month on petrol and food.
4. The HSBC World Elite Mastercard
With this card, you incur no international transaction fees. Whether traveling abroad or purchasing online, it’s a terrific way to pay “face value.” The card offers 1.5 percent back on all purchases, a fantastic starting rate for any card. It also gets 3% on travel purchases, which is a fantastic return for that sector. Suppose you book local hotels in a foreign currency. In that case, you’ll earn many points and won’t have to worry about foreign exchange fees inflating your expenditures.
HSBC Rewards points are also extremely adaptable. They may be used as a statement credit for travel expenses. You can also convert HSBC Rewards to British Airways Avios, Cathay Pacific Asia Miles, or Singapore KrisFlyer if you choose to utilize frequent flyer programs to prolong the value of your points with premium class tickets on long-haul flights.
5. The MBNA Rewards Platinum Plus Mastercard
You get a generous welcome bonus, a high base earn rate, and high bonus earn rates on regular purchases on this card. You couldn’t ask for much more than a free credit card.
Furthermore, this is one of the few cards that gives mobile phone insurance without a cost or an income restriction. You’ll be insured for up to $1,000 in damage if you pay for your phone using the card, whether in whole or monthly. Although your rewards aren’t very valuable, they are quite flexible. You can also use it for any trip booking accessible on the MBNA Rewards platform. You may use them for travel at a fixed cost of 1 cent per point or statement credit at 0.83 cents per point.
Knowing the best credit card to go for depends on your goal. For instance, if you are a regular traveler, choosing American Express Platinum Card is your best bet. If you are someone that makes online transactions, then you should go for HSBC World Elite Mastercard. From the credit cards discussed above, you should choose the one that best suits your need.