If you would you like to enjoy the benefits of having a credit card minus the annual fees, there are many credit card providers in Canada offering no annual fee credit cards. In fact, you could redeem great benefits and even cash back bonuses from your card without paying any annual fees. Compare and find the best no annual fee credit card in Canada below.
Best No Annual Fee Credit Cards in Canada
As its name denotes, a no-fee credit card has not yearly use fees or any sort of charges associated with its use. Many credit card companies charge a fee for just the convenience of using them for transactions whereas no-fee credit cards won’t charge you any fees and their use comes with a few basic privileges. Some though, have generous rewards for their owners.
Many credit card providers charge the card owner annual fees which average to about $100/year. There are some no fee credit card options, but they usually don’t offer the cardholder any privileges or rewards. No Fee cards could be very useful for people who don’t have to use credit cards too frequently while having the option to pay for online transactions and developing a good credit status in Canada.
No Annual Fee cards vs. Rewards Credit Cards
No Annual fee cards are ideal for students and people who are on a budget and just want a basic credit card as a backup. Since the majority of students don’t have much money to pay or waste on fees, student credit cards with no-fee would be a great option for them. And if you are not a student and just want to stay on budget, this would also work for you as you don’t have to pay any fees.
Rewards Credit Cards generate cashback or travel rewards in points and are not always good options because some companies overstate the value of these points. But if you use a credit card regularly or purchases, or to pay bills you may as well collect rewards rather than pay an annual fee.
You could also consider keeping two credit cards at the same time. Your primary card could be a rewards credit card and an additional card with no annual fees. Since no-fee credit cards don’t cost anything, they make an ideal backup solution.
Compare Credit Cards with No Annual Fees
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
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.