A no annual fee credit card is a type of credit card that doesn’t charge an annual fee for the privilege of using it. Some credit cards charge an annual fee, which is a recurring fee that you have to pay each year, regardless of whether or not you use the card. No annual fee credit cards, on the other hand, don’t charge this fee, making them a more affordable option for those who don’t want to pay extra just for the privilege of having a credit card.

No annual fee credit cards can offer a range of benefits, such as cash back, rewards points, or low interest rates. These benefits can vary depending on the card issuer and the specific card, so it’s important to research and compare different options to find the best fit for your needs.

List of the Best No Annual Fee Credit Cards Canada

There are several great no annual fee credit cards in Canada that offer a variety of benefits. Here are a few options to consider:

1. Tangerine Money-Back Credit Card: This card offers 2% cash back in up to three categories of your choice, and 0.5% cash back on all other purchases. There is no limit on the amount of cash back you can earn, and the card also offers a balance transfer promotion.
2. BMO CashBack Mastercard: This card offers 5% cash back on all purchases for the first three months (up to a maximum of $100 cash back), and 3% cash back on grocery purchases, 1% cash back on recurring bill payments, and 0.5% cash back on all other purchases.
3. MBNA True Line Mastercard: This card offers a low interest rate on purchases and balance transfers (12.99% for the first 10 months, and 14.99% after that), making it a good option for those looking to pay off debt or make a large purchase over time.
4. SimplyCash Card from American Express: This card offers 1.25% cash back on all purchases, with no limit on the amount of cash back you can earn. The card also offers a welcome bonus of up to $100 cash back.
5. Rogers Platinum Mastercard: This card offers 3% cash back on purchases made in a foreign currency, 2% cash back on Rogers products and services, and 1.25% cash back on all other purchases. The card also offers a welcome bonus of up to $25 cash back.
6. Triangle Mastercard: This card is offered by Canadian Tire and provides 4% cash back on qualifying purchases made at Canadian Tire, Sport Chek, and Mark’s/L’Équipeur stores, and 1% cash back on all other purchases. The card also provides exclusive access to promotional financing options at Canadian Tire.
7. PC Financial Mastercard: This card is offered by President’s Choice Financial and provides up to 30 PC Optimum points per dollar spent at Loblaw banner stores, including No Frills, Real Canadian Superstore, and Shoppers Drug Mart. It also provides 10 points per dollar spent on all other purchases made at PC stores.
8. Home Trust Preferred Visa Card: This card offers no foreign transaction fees, making it an ideal choice for frequent travelers. It also provides 1% cash back on all purchases, and a welcome bonus of up to $50 cash back.
9. Meridian Visa Cash Back Card: This card provides 1% cash back on all purchases, with no limit on the amount of cash back you can earn. It also provides a balance transfer promotion and access to exclusive Visa perks and benefits.
10. HSBC +Rewards Mastercard: This card provides 2 points per dollar spent on eligible dining or entertainment purchases, and 1 point per dollar spent on all other purchases. It also provides a welcome bonus of up to 20,000 points and access to exclusive travel benefits.
11. Simplii Financial Cash Back Visa Card: This card offers 4% cash back on eligible restaurant and bar purchases, 1.5% cash back on eligible gas, groceries, and drugstore purchases, and 0.5% cash back on all other purchases. There’s no limit to how much cash back you can earn.
12. RBC Cash Back Mastercard: This card offers 2% cash back on groceries (up to $6,000 annually), 1% cash back on recurring bill payments, and 0.5% cash back on all other purchases. There’s no limit to how much cash back you can earn.
13. Scotiabank Scene Visa Card: This card offers 5 Scene points for every $1 spent at Cineplex theatres and 1 Scene point for every $1 spent on all other purchases. Scene points can be redeemed for free movies or other entertainment rewards.
14. American Express SimplyCash Preferred Card: This card offers 2% cash back on all purchases, with no limit to how much cash back you can earn. The card also offers travel insurance, purchase protection, and a welcome bonus of up to $300 cash back.
15. National Bank Echo Cashback Mastercard: This card offers 1.5% cash back on eligible gas, groceries, and online purchases, and 1% cash back on all other purchases. There’s no limit to how much cash back you can earn, and the card also offers a welcome bonus of up to $20 cash back.
16. BMO AIR MILES Mastercard: This card offers 1 AIR MILES reward mile for every $25 spent on all purchases, with no limit on the amount of reward miles you can earn. The card also provides a welcome bonus of up to 800 AIR MILES reward miles.
17. CIBC Dividend Visa Card: This card offers 2% cash back on eligible gas and grocery purchases, and 1% cash back on all other purchases. There’s no limit on the amount of cash back you can earn, and the card also provides a welcome bonus of up to $100 cash back.
18. TD Cash Back Visa Infinite Card: This card offers 3% cash back on eligible gas, groceries, and recurring bill payments, and 1% cash back on all other purchases. There’s no limit on the amount of cash back you can earn, and the card also provides a welcome bonus of up to $100 cash back.
19. Rogers World Elite Mastercard: This card offers 4% cash back on purchases made in a foreign currency, 2% cash back on Rogers products and services, and 1.75% cash back on all other purchases. The card also provides a welcome bonus of up to $25 cash back.
20. Desjardins Cash Back Mastercard: This card offers 1% cash back on all purchases, with no limit on the amount of cash back you can earn. The card also provides exclusive Desjardins offers and discounts, and a welcome bonus of up to $50 cash back.

Here’s a table comparing the key features of the no annual fee credit cards mentioned above:

Before applying for any credit card, be sure to carefully review the issuer’s website or contact their customer service for more information.

Pros of No Annual Fee Credit Cards

There are several advantages to having a no annual fee credit card:

1. Cost-effective: As the name suggests, no annual fee credit cards do not charge an annual fee for the privilege of having the card. This can save you money over time, especially if you use your credit card frequently.
2. Access to credit: A no annual fee credit card can give you access to credit that you may not otherwise have, making it easier to make purchases and build your credit score.
3. Rewards programs: Many no annual fee credit cards offer cash back or rewards points for purchases, which can help you save money or earn rewards on the things you buy regularly.
4. Convenience: Credit cards can be a convenient payment method, especially for online purchases or when traveling.
5. Balance transfers: Some no annual fee credit cards offer balance transfer promotions, which can help you consolidate debt from other credit cards onto one card with a lower interest rate.
6. Fraud protection: Credit cards generally offer better fraud protection than other payment methods, such as debit cards or cash, which can provide peace of mind when making purchases.

Cons of No Annual Fee Credit Cards

While there are many benefits to having a no annual fee credit card, there are also some potential drawbacks to keep in mind:

1. Fewer perks and benefits: No annual fee credit cards may offer fewer perks and benefits compared to cards with annual fees. For example, they may not offer as high cash back rates or rewards points, or they may not come with additional perks like airport lounge access or travel insurance.
2. Higher interest rates: No annual fee credit cards may have higher interest rates compared to cards with annual fees, especially if you have a lower credit score. This means that if you carry a balance on the card, you could end up paying more in interest charges over time.
3. Limited credit limits: No annual fee credit cards may have lower credit limits compared to cards with annual fees, which could limit your purchasing power.
4. Fees for other services: While there may be no annual fee for the card itself, some issuers may charge fees for other services, such as late payment fees or foreign transaction fees.
5. Limited acceptance: Some no annual fee credit cards may have limited acceptance, especially if they are issued by smaller financial institutions.
6. Temptation to overspend: Credit cards, including no annual fee credit cards, can make it easy to overspend and accumulate debt if you’re not careful. It’s important to use credit responsibly and only spend what you can afford to pay back.

No Annual Fee Credit Cards Facts

Here are some facts about no annual fee credit cards:

1. Many credit card issuers offer no annual fee credit cards, making it easy to find one that suits your needs.
2. No annual fee credit cards can offer a range of benefits, such as cash back, rewards points, or low interest rates, depending on the card issuer and specific card.
3. While there is no annual fee for the card itself, there may be other fees associated with the card, such as late payment fees, foreign transaction fees, or balance transfer fees.
4. No annual fee credit cards can be a good option for those who want to enjoy the benefits of having a credit card without having to pay extra fees, or for those who are looking to build credit or make purchases without carrying cash.
5. To get the most out of a no annual fee credit card, it’s important to use it responsibly, pay your bills on time, and avoid carrying a balance to avoid accruing high interest charges.
6. Some no annual fee credit cards offer additional perks and benefits, such as extended warranty coverage, purchase protection, or travel insurance, which can provide added value for cardholders.
7. No annual fee credit cards may have lower credit limits than cards with annual fees, which could limit your purchasing power. It’s important to consider this when choosing a card and to monitor your credit utilization ratio to avoid negatively impacting your credit score.

No Annual Fee Credit Cards FAQs

Here are some frequently asked questions about no annual fee credit cards:

1. What is a no annual fee credit card?

A no annual fee credit card is a type of credit card that does not charge an annual fee for the privilege of having the card. This means that you can use the card without having to pay an additional fee each year.

2. How do I find a no annual fee credit card?

Many credit card issuers offer no annual fee credit cards, and you can compare options and apply for cards online or through your financial institution. It’s important to carefully review the terms and conditions of any credit card you are considering to ensure it meets your financial needs and preferences.

3. What are the benefits of a no annual fee credit card?

No annual fee credit cards can offer a range of benefits, such as cash back, rewards points, low interest rates, and convenience. They can also be a useful tool for building credit and making purchases without carrying cash.

4. What are the potential drawbacks of a no annual fee credit card?

No annual fee credit cards may offer fewer perks and benefits compared to cards with annual fees, and they may have higher interest rates or lower credit limits. Additionally, some issuers may charge fees for other services, such as late payment fees or foreign transaction fees.

5. How can I use a no annual fee credit card responsibly?

To use a no annual fee credit card responsibly, it’s important to pay your bills on time, avoid carrying a balance, and monitor your credit utilization ratio to avoid negatively impacting your credit score. It’s also important to only spend what you can afford to pay back and to carefully review the terms and conditions of any credit card you are considering.

6. Can I earn rewards with a no annual fee credit card?

Yes, many no annual fee credit cards offer rewards programs, such as cash back or rewards points, which can be earned for purchases made with the card.

7. Are there any fees associated with a no annual fee credit card?

While there is no annual fee for the card itself, there may be other fees associated with the card, such as late payment fees, foreign transaction fees, or balance transfer fees. It’s important to carefully review the terms and conditions of any credit card you are considering to understand the fees that may apply.

8. Can a no annual fee credit card help me build credit?

Yes, using a no annual fee credit card responsibly can help you build credit by establishing a history of responsible credit use and making on-time payments. However, it’s important to only spend what you can afford to pay back and to avoid carrying a balance to avoid accruing high interest charges.

9. How do I choose a no annual fee credit card?

When choosing a no annual fee credit card, consider factors such as the interest rate, rewards program, credit limit, and any additional perks or benefits offered by the card issuer. It’s also important to review the terms and conditions of the card carefully to ensure it meets your financial needs and preferences.

10. Can I switch from a credit card with an annual fee to a no annual fee credit card?

Yes, you can switch from a credit card with an annual fee to a no annual fee credit card. However, it’s important to carefully review the terms and conditions of any new credit card you are considering to ensure it meets your financial needs and preferences. Additionally, it’s important to close your old credit card account properly to avoid negatively impacting your credit score.

11. Are there any drawbacks to switching from a credit card with an annual fee to a no annual fee credit card?

There may be drawbacks to switching from a credit card with an annual fee to a no annual fee credit card, such as losing out on rewards or benefits that were offered by the old card. Additionally, if you have a long history with the old credit card, closing the account could negatively impact your credit score. It’s important to carefully consider the pros and cons of switching before making a decision.

12. Can I have multiple no annual fee credit cards?

Yes, you can have multiple no annual fee credit cards. However, it’s important to use them responsibly and to only spend what you can afford to pay back. It’s also important to monitor your credit utilization ratio to avoid negatively impacting your credit score.

13. How can I make the most of my no annual fee credit card?

To make the most of your no annual fee credit card, use it responsibly by paying your bills on time, avoiding carrying a balance, and monitoring your credit utilization ratio. Take advantage of any rewards programs or perks offered by the card issuer, such as cash back or travel insurance. Finally, consider reviewing your credit card options periodically to ensure you have the best card for your current financial needs and preferences.

14. Can I apply for a no annual fee credit card with bad credit?

It may be more difficult to be approved for a no annual fee credit card with bad credit, as issuers may be more cautious about extending credit to individuals with a history of late payments or delinquent accounts. However, there are some no annual fee credit cards designed for individuals with less-than-perfect credit that you may be eligible for. Be sure to review the terms and conditions carefully to understand any fees or limitations that may apply.

15. Do no annual fee credit cards have the same benefits as cards with annual fees?

No, no annual fee credit cards may offer fewer benefits compared to cards with annual fees. For example, cards with annual fees may offer higher cash back rates, rewards points, or additional perks like airport lounge access or travel insurance. However, many no annual fee credit cards still offer valuable benefits, such as cash back or rewards points for purchases, low interest rates, or balance transfer promotions.

16. Can I use a no annual fee credit card for travel?

Yes, you can use a no annual fee credit card for travel. However, it’s important to review the terms and conditions of the card carefully to understand any fees or limitations that may apply, such as foreign transaction fees or travel insurance coverage. Some no annual fee credit cards also offer rewards or benefits specifically designed for travel, such as cash back on purchases made in a foreign currency or access to exclusive travel discounts.

17. What should I do if I can’t make a payment on my no annual fee credit card?

If you can’t make a payment on your no annual fee credit card, it’s important to contact the card issuer as soon as possible to discuss your options. Some issuers may offer payment plans or other solutions to help you manage your debt. Avoid missing payments or paying late, as this can negatively impact your credit score and lead to additional fees or interest charges.

18. Are no annual fee credit cards worth it?

No annual fee credit cards can be worth it for those who want to enjoy the benefits of having a credit card without having to pay extra fees. They can also be a good option for those who are looking to build credit or make purchases without carrying cash. However, it’s important to carefully review the terms and conditions of any credit card you are considering to ensure it meets your financial needs and preferences.

19. How can I compare no annual fee credit cards?

To compare no annual fee credit cards, consider factors such as the interest rate, rewards program, credit limit, and any additional perks or benefits offered by the card issuer. You can also use online comparison tools or speak with a financial advisor to help you find the best card for your needs and preferences.

20. Can I upgrade my no annual fee credit card to a card with an annual fee?

Yes, you can upgrade your no annual fee credit card to a card with an annual fee, if you meet the eligibility requirements. However, it’s important to carefully review the terms and conditions of the new credit card to ensure it meets your financial needs and preferences, and to consider the additional costs of the annual fee.