$0.00
Purchase: 20.99%
Cash: 22.99%
Income Requirement Is Not Specified.
Fair
1 Avion Point ≈ ¢0.58
$0.00
Purchase: 21.90%
Cash: 21.90%
Transfer: 21.90%
Income Requirement Is Not Specified.
Fair
1 Capital One Mile Point ≈ ¢0.5
$0.00
Purchase: 20.99%
Cash: 22.99%
Household: $15,000
Fair
1 Aeroplan Point ≈ ¢1
$0.00
Purchase: 19.99%
Cash: 24.99%
Transfer: 22.99%
Income Requirement Is Not Specified.
Fair
A no-fee credit card refers to a credit card that has no annual or monthly fee. Many of the best credit cards in Canada have a fee that is charged on the credit card either monthly or annually. This fee is charged as long as the card is activated. No-fee credit cards do not have that fee.
Credit cards with no annual fee may be useful if you do not use your credit card enough to get an advantage from high rewards or cash back. No-fee credit cards usually have very few perks and low rewards. If you are looking for a credit card with high cash back or good rewards, no-fee credit cards may not be the best product.
It is important to note that no-fee credit cards refer to credit cards that have a $0 annual fee. There are still a lot of different fees, including interest charges, that may be charged.
Even though you are technically not losing any money by getting a no-fee credit card, it is important to consider the benefits of each credit card with no annual fee before choosing one. The following sections will help you understand what to look for and how to maximize your rewards when choosing a no-fee credit card.
Some no-fee credit cards have welcome offers and bonuses. These welcome offers usually include promotional interest rates and additional rewards during the first months of opening the credit card. Welcome bonuses on credit cards with no annual fees are small and usually are valued at a few hundred dollars.
Card | Welcome Bonus |
---|---|
CIBC Aeroplan Visa Int. Rate: 20.99% Annual Fee: $0.00 | Up to 10000 Aeroplan points in Welcome Bonus Rewards:
|
AMEX SimplyCash Int. Rate: 20.99% Annual Fee: $0.00 | Up to $100.00 in Welcome Bonus Rewards:
|
AMEX Green Int. Rate: 20.99% Annual Fee: $0.00 | Up to 10000 AMEX points in Welcome Bonus Rewards:
|
MBNA Amazon.ca Rewards Mastercard Int. Rate: 19.99% Annual Fee: $0.00 |
|
MBNA The Royal Canadian Legion Rewards Mastercard Int. Rate: 19.99% Annual Fee: $0.00 | Up to 5000 MBNA points in Welcome Bonus Rewards:
|
Most no-fee credit cards are differentiated with rewards or cashback. These rewards are usually not as high as the rewards for premium credit cards. It is possible to see rewards on no-fee credit cards reaching 3% cash back equivalent value. Many of these credit cards offer grocery rewards or gas rewards because they are popular among customers.
No-fee credit cards usually offer some basic perks, such as basic travel insurance, store discounts, or extra spending bonuses. If you want a credit card with high-value perks, you should consider a premium card instead. The higher the annual fee, the more perks the card usually offers.
Annual Cost | Standard Benefits | Our Top Picks |
---|---|---|
$0 |
| |
$39 |
| |
$99 |
| |
$120 |
| |
Over $120 |
|
Interest rate is also an important consideration for a credit card if you plan to keep a balance. Most no-fee credit cards have an interest rate between 19.99% and 22.99%. If you plan to pay off your credit card in full every month, then a no-fee credit card may be a good option. If you want to keep a balance on your credit card, consider low-interest credit cards instead.
Credit cards that do not charge annual fees still have a list of other fees they can charge. Credit cards with no annual fee still charge interest on the unpaid balance. There are other fees that credit card companies can charge, even if it is a no-fee card. The following table shows common fees that no-fee credit cards may still charge.
Common Fees | Typical Charge |
---|---|
Over-Limit Fee | $29 |
Dishonoured Payment Fee | $48 |
Cash Advance Fee | 1% or $5 |
Foreign Transaction Fee | 2.50% |
Inactive Account Fee | $10 |
You should get a no-fee credit card if you are planning to use your credit card rarely. A clear advantage of credit cards with no annual fee over other credit cards is the lack of periodic fees. On the other hand, a no-fee credit card usually has low rewards and no additional perks such as included insurance and welcome bonuses.
Most people may be better off getting a credit card with an annual fee because of the various perks that come with these credit cards. You can get back your annual fee in credit card rewards. You may also be able to have access to free insurance and special discounts and perks. Some low interest rate credit cards have annual fees, but it may be worth it for people who carry a balance on their cards. You can calculate interest charges on your balance to see whether it makes sense to get a low-interest credit card.
Even though credit cards with no annual fee do not have a lot of benefits, there are still reasons why you should consider getting one:
Eligibility criteria may differ, but the following requirements are the most common for no-fee credit cards.
Age of Majority: You must be at the age of majority to be eligible to apply for a credit card. In Canada, you can apply for most credit cards at 18.
Residency Status: You must be a Canadian resident to be eligible to apply for a credit card in Canada.
Credit Score: Credit score requirements can differ depending on the lender and the credit card. If your credit score is low or you do not have a credit history in Canada, credit cards for bad credit may suit you better.
Personal or Household Income: Most no-fee credit cards do not have income requirements, but some upper-tier no-fee cards are tailored specifically to high-income earners.
Most credit cards have instant approval, meaning you can get approved for a credit card within a few minutes. Some credit card companies allow you to use your virtual credit card as soon as approved. To get instant approval on your no-fee credit card, you should follow the following steps:
Yes, there are many prepaid credit cards with no annual fees available. The most popular prepaid credit cards with no-fees are KOHO and Neo Financial. Even though they are no-fee credit cards, they may still charge your card for dishonored payments and over-limit purchases.
Credit cards have no annual fee, and the best rewards include BMO CashBack Mastercard and AMEX SimplyCash. Depending on what you are planning to purchase with your credit card, you may prefer one card over the other because of different rewards. If you have a favorite brand, store credit cards may also be a great no-fee credit card option.
Disclaimer: