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Today I’ll be breaking down the top 5 best no-fee credit card in Canada for 2021 all the cards on this list are free meaning that they do not charge an annual fee but they still offer great cashback bonuses
So there’s no reason not to sign up for them since there is no annual fee most of these cards are targeted towards people with modest incomes lower credit scores and even students so almost anybody can qualify for these cards
The cards on this list can save you between 2% and 4% in cashback but if you can’t pay your credit card bills in time that 2 to 4% means nothing compared to the 20% of interest charged against you so be smart control your spending and pay your bills on time.
So with that let’s jump into the top 5 best No Fee credit card in Canada starting at the top we have one of the best cashback credit cards out there
1. The Rogers World Elite Master Card
This card has the Best No Fee Credit Card In Canada but even so, it’s as good or even better than a lot of cards that charge $100 or more in annual fees the biggest downside with this card is that it’s hard to qualify for you really need to have a high income unlike the rest of the cars on this list.
But let’s start with the good stuff this card has no annual fee but it still offers 1.75% cashback on every purchase you make that’s the highest all-around cashback rate available for no fee credit cards and it’s almost as good as a 2% cashback grade you get with the American Express simply cash preferred card which is my favorite all-time credit card.
But the American comes with a $99 annual fee and the rogers MasterCard has no annual fee so if you use this rogers MasterCard for every purchase you make and you spend let’s say $10,000 a year you’ll earn yourself $175in free money as cashback with no fees at all even better.
If you purchase any rogers products like your internet cable or phone bill this card will earn you 2%2% cashback on those bills finally if you make a purchase in a foreign currency this card will earn you 4% in cashback all credit cards including this one charges you a 2.5% conversion fee.
Whenever you make a purchase in anything other than Canadian dollars but using this rogers MasterCard you’ll earn yourself 4% in cashback giving you a net gain of 1.5% so this card is incredibly useful whenever you travel outside of Canada or whenever you buy something online in the US dollars.
Such as shopping on amazon.com instead of amazon.ca. I recommended the home trust preferred visa for foreign purchases the home trust visa gives you a 1% cashback on everything and it never charges you that2.5% conversion fee giving you a net cashback of 1% on foreign purchases.
Both the rogers MasterCard and the home trust visa are excellent and you should definitely have at least one of them whenever you travel outside of Canada the home trust visa is easier to qualify for and since it never charges you the currency conversion fees you pay less upfront the rogers world elite MasterCard requires a high income to qualify for and it does charge you that 2.5% conversion fee.
When you’re traveling outside of Canada but it will also pay you more money in cashback month down the road when you finally redeem overall I’d say choose the rogers worldly MasterCard if you qualify for it if not take the home trust preferred via the rogers World Elite MasterCard also comes with some pretty nice benefits usually reserved for premium cards with the annual fee.
These benefits include free rental car damage insurance and emergency travel medical insurance also offer $25 of free cashback when you sign up for this card honestly this card is pretty amazing it has no annual fee and it offers some great cashback rates.
But the biggest problem with this card is that it’s very tough for most Canadians to qualify for it you’ll need to have a really strong credit score and you’ll need to have an income of at least $80,000 a year to qualify for this card.
I know that sucks and it’s probably a deal-breaker for a lot of you guys I know for a fact that the big banks like TD BMO and CIBC won’t check your income when you apply for a new credit card unless there are some glaring red flags the banks just want your business and so if you fudge your numbers and inflate your income a little bit during the application.
They’ll probably approve you but Rogers requires a much steeper income of 80kand I don’t know how strictly they enforce this rule when I got approved I didn’t have to provide any evidence of my income but just to be safe I Wouldnt risk lying about my income just to get this card it’s a great card but if you’re making less than 70 K,
I wouldn’t risk applying for it but donut worries all the other cars on this list are available for Canadians with low incomes even for students in fact if you make at least $15,000 a year you will qualify for all of these.
2. American Express Credit Card
The American Express (Best No Fee Credit Card In Canada) simply cash card after the Rodgers world elite MasterCard this American Express offers the second-best all-around cashback rate for a no-fee credit card so if your income isn’t high enough to qualify for the Rogers MasterCard definitely apply for the American Express simply cash.
This card has no annual fee and it offers 1.25% cash back on every purchase you make this card is like the little brother of the American Express simply cash preferred card which offers 2% cashback on every purchase but it comes with a $99 annual fee let’s do some quick math to compare.
These two American Express cards if you spend at least$13,000 a year then it’s better to go with the big brother the American Express simply cash preferred card to get that higher 2% cashback rate if you spend less than $13,000 a year stick to the little guy the American Express simply cash card to get that 1.25%1.25% cashback rate the $99 annual fee for the big brother just, isn’t worth it to make.
The American Express simply cash card also includes some of its Big Brother’s benefits including the front of the line early access to concerts and sporting events using your American Express you can buy tickets to a concert or a basketball game.
Three to five days before the tickets go on sale to the general public I personally love this you’re paying the same price for your ticket but you get to secure your seat days before everybody else.
So you almost never have to worry about the show selling out just a heads up, not all vendors in Canada accept American Express all the big stores like Walmart’s best buys and Sobeys all accept American Express but a lot of the smaller shops don’t so just to be safe always carry a Visa or MasterCard with you also you need to have an income of at least $15,000 a year to qualify for this card but even if you’re a student you’ll probably still get approved.
3. Tangerine Money-Back MasterCard
The tangerine money-back Master Card (Best No Fee Credit Card In Canada) this card offers flexibility and allows you to customize your cashback rewards based on the spending habits this tangerine card offers you 2%cash back on purchases.
You make in three out of the following categories groceries monthly bills gasoline, furniture, drug stores, restaurants home-improvement hotels entertainment and public transit, and parking you get to choose three out of these ten categories and you’ll earn 2% cashback on every purchase.
You make in these three categories everything else will only earn you the 0.5% cashback this card is really cool since you can customize your cashback to fit your spending habits if you don’t have a car then skip the gasoline category and choose entertainment instead although.
I would recommend scratching off groceries and restaurants because the next two credit cards on my list are better suited for those two categories to make this card even better they offer a generous promotional signup bonus if you apply for this card by January 31st, 2020.
You’ll be able to double your cashback to 4% cashback in your three categories for the first three months after that it will return to the 2% cashback this is one of the best promotional offers I’ve seen for a No-Fee credit card so definitely take advantage of it also to qualify for this card you only need an income of $12,000.
4. Simplii Financial Cashback Visa Card
The Simplii financial cashback Visa Card is a (Best No Fee Credit Card In Canada) new card and it’s the only credit card I’ve ever seen tailor-made for restaurants and eating out.
This card has no annual fee and it offers a whopping4% cashback on restaurants bars and coffee shops however this amazing cashback is limited to a total annual spend of $5,000if you spend more than$5000 a year on restaurants cashback will drop to 0.5%0.5%.
However, this $5,000 limit is $416 a month-month and hopefully, you’re not eating out that much you should save and invest that money instead of this card also offers1.5% cashback on gasoline groceries monthly bills and drugstores everything else only gets you 0.5% cashback. Best No Fee Credit Card In Canada
But you should be using your American Express or your Tangerine MasterCard for everything else to make this card even better they’re offering a signup bonus of 10% cashback on restaurants bars or coffee shops for the first four months or the first $500 you spend after the promotional period it returns to the 4%cashback rate and to qualify for this card you’ll need an income of $15,000.
5. CIBC Dividend Visa Card
The CIBC dividend Visa card this card is great (Best No Fee Credit Card In Canada) specifically for groceries and it offers a really generous signup bonus this card has no annual fee and offers 2% cashback on groceries everything else will only get you 0.5% cashback for the first$6,000 after you spend $6,000 every purchase.
You make will get you 1%1% cashback I would only really use this card for groceries to get that 2% cashback and then for everything else use the American Express or the tangerine MasterCard also if you spend more than$5000 a year on groceries.
I would go with this cards Big Brother the CIBC dividend Visa Infinite card this card has a $99 annual fee but it offers a whopping 4%cashback on gasoline and groceries so it more than makes up for this annual fee any less than $5,000 and that annual fee just isn’t worth it and you should stick to the little guy.
The CIBC dividend visa and get that 2% cash back on groceries with no annual fee one of the best things this card has going for it is its amazing sign-up bonus this card offers a promotional signup bonus of 5%cash back on every purchase. Best No Fee Credit Card In Canada
You make for the first four months or $2,000 you spend even a lot of premium credit cards don’t offer a promotional bonus this good so definitely take advantage of it this card requires an income of $15,000.
But if you’re a student you can apply for a student version of this credit card even if you have zero income this is one of the best student credit cards out there. Best No Fee Credit Card In Canada
So those are the top five Best No Fee Credit Card In Canada lets take a look at this table to summarize each of these cards and to figure out which card works best in different situations
Number one Best No Fee Credit Card In Canada, we have the Raw world elite MasterCard this card offers1.75% cashback on everything 2%cash back on Rogers products and4% cashback on foreign purchases
This card comes to the promotion of $25of free cashback but this card is very hard to qualify for and requires a high-income of at least $80,000 a year another great card for foreign purchases is the home trust preferred visa.
This card offers 3.5% cashback on foreign purchases and 1% cashback on everything else if you can’t qualify for the Rogers MasterCard.
The American Express simply cash card offers the best flat rate at1.25% cashback one very purchase you make as a signup bonus you can double your cashback at2.5% for the first three months
The tangerine MasterCard gives you flexibility by offering you 2%cashback on three categories as a signup bonus you can double your cashback to 4% for the first three months the simply financial visa is the best for restaurants giving you 4% cashback on restaurants bars and coffee shops and 1.5% cashback on groceries bills gasoline and drugstores as a signup bonus you can get 10%cashback on restaurants for the first 4months.
The CIBC dividend visa is great for groceries giving you 2%cashback at all grocery stores and as a signup bonus, it gives you 5% cashback on every purchase.
You make for the first 4 months so now let’s look at when we should use these credit cards to maximize our total cashback whenever you’re making a foreign purchase in any currency other than Canadian dollars use the Rogers World Elite MasterCard. Best No Fee Credit Card In Canada
If you can qualify for it if not use the home trust visa for groceries stick to the CBC dividend visa for restaurants definitely use the Simplii financial visa to get that 4% cashback and now for everything else find the 3 categories that you spend the most amount of money on and use the tangerine MasterCard on these 3 categories to get 2% cash back.
And finally, for everything else use the American Express simply cash card to get1.25% cashback, or if you qualify for the Rogers world elite MasterCard stick to that card to get 1.75%1.75% cashback on everything to follow these rules and you’ll be able to maximize your cashback and earn yourself free money all with no annual fee.
So there you have it those are the top 5 best no-fee credit card in Canada for 2021. Four out of these 5 cards are designed for lower-income customers so almost everybody should be able to qualify for them none of these cards have an annual fee
So you really (Best No Fee Credit Card In Canada) have nothing to lose with these cards you only have free money and cashback to gain these are cards that you can keep and hold on to for life there’s no annual fee so there’s no reason to ever cancel these cards use them and day by day you’ll be earning yourself free money and cashback and you’ll be building your credit score along the way
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