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Rewards Credit Cards

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These are the workhorse cards for people who use credit frequently and pay off their balance in full each month. The more you spend, the more you earn — in either cash back, points, or miles.

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Cash Back Credit Cards

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• You earn a percentage of every purchase back as cash

• Great for everyday spending (groceries, gas, dining).

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Example: Tangerine Money-Back Credit Card – lets you choose your bonus categories.

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Points and Travel Cards

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• Points are collected and can be redeemed for travel, merchandise, or gift cards.

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• Many come with premium perks like lounge access or insurance.

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Example: American Express Cobalt – strong for food and travel rewards.

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Best for: People who pay their balance in full, want perks, and use their card often.

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Watch out for: High interest rates and annual fees — these cards only work if you pay on time.

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Low Interest Credit Cards

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If you occasionally carry a balance or want a safety net, low-interest cards reduce the cost of borrowing. While they don’t offer flashy rewards, they can save you money when life happens.

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• Interest rates are often 8.99% to 12.99% (compared to 19.99%+ on typical cards).

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• Great for balance-carrying or emergencies.

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Example: MBNA True Line Mastercard – offers a low fixed rate.

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Best for: People trying to pay off credit card debt or avoid high interest in unpredictable months.

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Watch out for: Limited perks and rewards — these are about practicality, not prestige.

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Balance Transfer Cards

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Got credit card debt with high interest? A balance transfer card lets you move that debt to a new card with a low or 0% interest rate for a promotional period (usually 6 to 12 months).

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• Helps you pay down debt faster.

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• Some offer 0% for up to 12 months.

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Example: CIBC Select Visa Card – 0% interest for 10 months (with transfer fee).

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Best for: Debt repayment strategies where every dollar matters.

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Watch out for: Transfer fees (often 1–3%) and high interest rates after the promo ends

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If you’re new to credit, rebuilding, or have a low score, these cards are entry points into the world of credit. You provide a security deposit, and that becomes your limit.

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• Works just like a regular card.

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• Helps you build or repair credit.

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Example: Capital One Guaranteed Mastercard – available even with poor credit.

 

Best for: Newcomers to Canada, students, or anyone starting fresh.

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Watch out for: Small limits and limited rewards — these cards are temporary tools.

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Student Credit Cards

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Tailored to students with little to no credit history, these cards often come with no annual fee and simplified perks.

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• Often easier to qualify for.

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• Can include student-specific rewards or offers.

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Example: BMO CashBack Mastercard for Students – no annual fee, solid rewards.

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Best for: Students learning to manage credit and building financial habits.

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Watch out for: Low limits and limited benefits — but still a strong starting point.

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Premium Credit Cards

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These are your VIP cards — packed with luxury perks, airport lounges, insurance, concierge services, and high point multipliers. But they come at a price.

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• Annual fees can range from $120 to $699+.

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• Great for high spenders or frequent travellers.

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Example: Scotiabank Passport Visa Infinite – no foreign exchange fees, great travel perks.

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Best for: Experienced credit users who want to maximize rewards and don’t mind paying for value.

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Watch out for: High fees — only worth it if you use the benefits.

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Store and Retail Credit Cards

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These are branded cards offered through retailers (such as Canadian Tire, Hudson’s Bay, Walmart), often with bonus discounts, in-store rewards, and exclusive financing options.

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• Can be useful if you frequently shop at one retailer.

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Example: Triangle Mastercard (Canadian Tire) – collect CT Money with every purchase.

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Best for: Loyal shoppers who want discounts and store perks.

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Watch out for: High interest rates and limited usability outside the retailer.

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Choosing the Right Card: A Quick Self-Check

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Ask yourself:

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Do I carry a balance?

→ Consider low-interest or balance transfer cards.

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Do I pay in full monthly?

→ Go for a rewards or travel card.

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Am I building or repairing credit?

→ Start with a secured or student card.

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Do I travel often?

→ Choose a premium or no-FX-fee travel card.

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Do I shop often at one retailer?

→ A store card might be worth it.

 

Final Thoughts

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Credit cards aren’t status symbols — they’re financial tools. And the most powerful thing you can do is pick one that matches your actual spending habits, your goals, and your level of financial discipline.

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The worst card? One you don’t understand.

The best card? One that quietly helps you build wealth, avoid fees, and stay in control.

 

Ready to find yours?

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Explore our hand-picked cards by type →