Best no fee credit cards in Canada

Money.ca rates no annual fee credit cards on a scale of 1 to 5 (with 5 being the best) and are based on the following criteria (if applicable): annual percentage rate (APR), annual fee, balance transfer fee, foreign transaction fee, penalty fee and APR, rewards programs, sign-up bonuses, customer service, security, insurance coverage, additional features, acceptance, and credit score requirements.

Our ratings process collects and analyzes more than 70 unique data points, including the features listed above, to better understand the real-world and everyday value each credit card provides Canadians. Different categories of cards are rated using different weightings, with the top no fee credit cards listed below. Money.ca’s business relationships have no effect on ratings.

For more, read Money.ca’s complete review methodology.

The combination of one of Canada’s top cash back rate on groceries and no annual fee is already an advantageous opportunity for cardholders, but the BMO CashBack Mastercard^® raises the bar further adding 1% back on any recurring bill payments*.

The card is ideal for for consumers looking for a cash back card with no annual fee who spend a lot on groceries and recurring bills for things like streaming services or other bills but adds a level of simplicity thanks to its automatic cash back redemptions starting at just $1.

Special cash back rate: 3% (up to a monthly max of $500) cash back on groceries. 0.50% cash back on all other purchases..

Added features: Purchase protection and extended warranty

With its max 2% cash back rate and an unlimited, choose-your-own cash back policy, the Tangerine Money-Back Credit Card has become one of the most popular no annual fee credit cards in Canada. The card is ideal for those newer to credit cards as it provides impressive rewards with no annual fee.

Earn 2% cash back on two categories of your choice (e.g. groceries, recurring bills, gas, drug stores, etc.) Get a Tangerine Savings account and add a third 2% cash back category.

Added features: Purchase protection* and extended warranties*

If you’re looking for a no-fee, no-frills credit card that’ll let you earn points as you spend on essentials, the Scotia Momentum No-Fee Visa Card might be right for you. The card is designed to help you earn points on your everyday purchases, including gas, groceries, drugstore purchases, and recurring bill payments. You'll earn a 1% cash back rate on these categories, making it perfect for those who want to earn rewards on their routine spending.

Most merchants today accept both Mastercard and Visa, and in general we advise readers to focus on a card’s individual attributes rather than the payment network it belongs to. That said, some stores only accept one or the other, so if you shop frequently at a spot that accepts only Visa and not Mastercard, the Scotia Momentum No-Fee Card is probably the best no annual fee card for you, particularly if groceries are the largest line item in your budget.

To be eligible for this offer, you must apply for a new eligible card using the “Apply Now” link available on this webpage.^†

† Conditions apply

The Tangerine World Mastercard is very similar to the previously mentioned Tangerine Money-Back, just with more to love. Earn 2% cash back in two categories of your choice (e.g. groceries, restaurants, gas, entertainment, recurring bill payments and more) Get a Tangerine Savings account and get a 3rd 2% cash back category..

Where the World Mastercard version shines, however, is its impressive insurance and travel perks. Cardholders enjoy access to premium travel insurance protections and travel perks like Boingo Wi-Fi and more.

Of all the no annual fee cards, we like the MBNA Amazon.ca Rewards Mastercard because of how well it performs with its namesake brand.

Eligible Prime members get 2.5% back on eligible purchases at Amazon.ca and Whole Foods Market stores. Get 1% back on eligible purchases everywhere else Mastercard is accepted.

So, if you value cash back and online shopping, the MBNA Amazon.ca Rewards credit card is a great option to consider. Oh, it works for regular Costco or No Frills shoppers, too!

Comes with a generous welcome offer.

Earn 1 point on gas, EV charging, groceries and drug stores†, 1 point on travel through the CIBC Rewards Centre† and 1 point for every $2 spent on all other purchases†.

But, the fact they throw in travel accident insurance and credit card rental car insurance is the biggest plus that you won't find with many other no annual fee travel cards.

Canadians looking to consolidate their other credit card balances or lines of credit under one low rate can do so with this card at no annual fee. The MBNA True Line Mastercard credit card offers a great welcome offer. Get a 0% promotional annual interest rate (“AIR”)† for 12 months on balance transfers✪ completed within 90 days of account opening, with a 3% transfer fee. Plus, the purchase APR is 12.99% so you won’t have to feel so guilty for using it when you shop.

This is especially true if your balances were previously exposed to high rates. It’s also worthwhile to note that MBNA offers a slightly different card (the MBNA True Line® Gold Mastercard® credit card) to those who would pay a small annual fee in exchange for a lower standard rate on balance transfers and purchases.

If you’re looking for a rewards credit card that offers a great points program on everyday purchases and strong welcome offer along with its no annual fees, then we recommend the MBNA Rewards Platinum Plus Mastercard (for more options, check out our full list of the Best Rewards Credit Cards in Canada).

As one of Canada's best no fee credit cards, MBNA offers rewards on digital media memberships, utility payments, groceries, and restaurant purchases (a hefty portion of most monthly bills). Earn 2 MBNA Rewards points for every $1 spent†† in several categories, including groceries, restaurants, digital media, memberships, and household utilities. Earn 1 MBNA Rewards point for every $1 spent†† on any eligible purchase made with the card.

Earn 4 points per $1 spent on eligible restaurant, grocery, digital media, membership, and household utility purchases until $10,000 is spent annually. You could also receive up to 10,000 bonus points.

Yes, responsibly using a no-fee credit card can improve your credit score by establishing a history of timely payments.

No-fee credit cards may offer fewer benefits and rewards compared to those with annual fees, which often provide more extensive perks and higher rewards rates.

No-fee credit cards may offer fewer benefits and rewards compared to those with annual fees, which often provide more extensive perks and higher rewards rates.

Eligibility for no-fee credit cards in Canada typically depends on your credit score and financial history.

While there's no annual fee, some no-fee credit cards may have other charges like late payment fees or foreign transaction fees.

Foreign transaction fees on no-fee cards can vary, and some might offer competitive rates similar to fee-bearing cards.

Obtaining a no-fee credit card with bad credit is challenging, but some issuers offer options designed for building or rebuilding credit. Read our guide on credit cards for fair credit for more info.

Free credit cards in Canada don't exist but no-fee credit cards do, which means they don't charge an annual fee for the cardholder, however, these no fee credit cards still charge interest on purchases, cash advances and balance transfers.