Best No Fee Credit Cards in Canada

Best No Fee Credit Cards in Canada

By |2018-10-29T18:56:03+00:00October 29th, 2018|Categories: Credit Cards|Tags: , , |

In the past, you had to pay annual fees if you sought to get rewards from any credit card. These charges unlocked various bonuses, which included the potential to get rewards — either points or cash back— on each dollar spent. Luckily, there are more options now. In this post, we look at the best no annual fee credit card – 2018 options.

Quick Read:

  1. What are No Fees Credit Cards
  2. Top 3 No Fees Credit Cards
  3. Why Use a No Annual Fee Credit Card
  4. Conclusion

What are No Fees Credit Cards and How They Compare to Others

A rewards credit card does not make financial sense if you do not use it enough to compensate for the fees. A lot of Canadians can’t justify an outlay of as much as $100 annually for the benefit of receiving rewards. There are numerous reasons why fee-based cards with bonuses don’t make sense financially, whether you’re a newcomer to Canada, a meticulous budgeter, or you’re on a reduced income.

There are, luckily, numerous credit cards with no fees that still permit you to access various other benefits, for example, insurance, and to earn rewards.

Best No Annual Fees Credit Cards for 2018 – Editors Pick

Here are the choices from CompareMyRates.ca for the best no annual fee credit cards for the year 2018 in Canada. We have a credit card that’s suitable for you, regardless if you desire rewards or cash back because you pay a lot for groceries, or you’re seeking to pay down your debt.

Tangerine Money-Back Credit Card

The card most likely to be the best no annual fee credit card for this year is the Tangerine Money-Back Credit Card, which was also popular in 2017. You receive 2 percent cash back in any two spending categories when you use this credit card for purchases. You also earn 0.5 percent cash back on anything else that you buy.

Tangerine credits cash back once a month to your statement. You’ll get benefits in a third spending category receiving 2 percent cash back if you opt to let the bank place your earnings on a Tangerine savings account. The groupings available are restaurants, groceries, drugstore, gas, furniture, entertainment, recurring bills, hotel-motel, public transportation, home improvement, and parking. This credit card is well liked in Canada because the category choices make it very customizable to your distinctive spending patterns.

Interest Rate

19.95%

Annual Fee

No Annual Fee

Balance Transfer: 1.95% of amount transferred**

Cash Advance: 19.95%

Welcome Bonus

1.95% Balance Transfer & Earn 2% Money-Back Rewards on purchases

Why Use a No Annual Fee Credit Card in 2018

There has never been a better time to look for the best no annual fee credit card in Canada than 2018. Whether you’re looking for rewards, cash back, a free flight, miles, or low-interest rates, issuers are stuffing tons of value onto their no annual fee card offerings.

There are usually four excellent reasons to look for the best no annual credit card for you:

  1. Firstly, you don’t spend enough to justify a yearly fee.
  2. Secondly, if your primary credit card is frozen or it gets lost or stolen, you’ll have a back-up in your wallet.
  3. Thirdly, you don’t need some of the extras offered by annual fee credit cards.
  4. Finally, you’re unwilling to commit to the account type without trying it first.

Regardless of your reason, it’s important to note that there have never been more credit cards without annual fees providing as much value as we have today.

No Annual Fees Credit Cards – Conclusion

If you like rewards, keep in mind that the best offer is no annual fee for the first year, coupled with a welcome bonus of a free flight. If there are no yearly fees, you can take out as many cards with strong welcome incentives as you’d like. Just make sure you pay attention to any minimum spend requirements and be careful to spread out your applications a bit. Besides that, it’s an excellent opportunity to obtain a free flight and to test different cards to figure out which rewards program is the best!

Compare Credit Cards with No Annual Fee

In some cases, no-fee cards can bear many great privileges and benefits with their use such as cash-back bonuses, travel benefits, medical benefits and other privileges.

Here is an example: By owning an American Express AIR MILES Credit Card you will reap 1 bonus mile for every $15 you spend in card transactions with approved and associated AIR MILES Sponsors as well as 1 bonus mile collected for every $20 you spend in other transactions. Additionally, you will also get a reward of 500 bonus miles the first time of using your card and the best part is, there is no annual fee charged.

In case you want some cash back benefits, getting the SimplyCash Card from American Express is a great option. This card offers up to 5%  cashback that applies to all gas, supermarket, and restaurant transactions for an initial 6-month period and up to 1.25% cash back for all transactions that apply on the program after that.

A lot of no-fee credit cards come with some pretty good benefits like rental vehicle discounts and deals, theft protection, 24-hour service in case of an issue, and others. As long as you pay the balance on time and you don’t use the card recklessly, you will reap these rewards with no extra fees.

Best No Fee Credit Cards

Interest Rate

19.95%

Annual Fee

No Annual Fee

Balance Transfer: 1.95% of amount transferred**

Cash Advance: 19.95%

Welcome Bonus

1.95% Balance Transfer & Earn 2% Money-Back Rewards on purchases

Interest Rate

16.99%

Annual Fee

No Annual Fee

Balance Transfer: 16.99%

Cash Advance: 16.99%

Welcome Bonus

Balance Transfer: 3.99% for the first 6 months*

Interest Rate

19.99%

Annual Fee

No Annual Fee

Balance Transfer: 1.99% Balance Transfer for first 6 months and 22.99% after

Cash Advance: 22.99%

Welcome Bonus

Intro Balance Transfer APR 1.99% for 6 months + 0% Balance Transfer Fee.

There are many ways banks waive fees or give away no-fee credit cards to their members.

Some credit card providers may waive their annual fees usually on the first year for new customers and then charge low subsequent annual fees.  Other banks may still charge annual fees but offer discounted fees or low-interest rates to their customers.

Some credit card providers go far and beyond to lure potential members to sign up by offering zero fees or no fees on certain transactions such as foreign transaction fees.  Some banks may waive fees for foreign transactions which are truly beneficial especially to those who travel for pleasure, purchasing items along the way, and those conducting their businesses abroad who earn huge savings by not being imposed the extra fees for multiple international transactions.

As usual, additional bonuses are offered to new customers including cash back rewards and mileage points that can be converted to free airline tickets when the customers have accumulated enough points from their credit card transactions.

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