Canada’s Best Credit Cards for May 2025

Your card’s 19% interest rate is an annual rate. To find your daily rate, divide your annual interest rate by the number of days in one year.

Next, determine how much daily interest you’ll accrue on your unpaid balance by multiplying your daily rate by your average daily balance — which in this case, is the $100 you spent on concert tickets.<br>

To determine how much interest your unpaid balance accrues over one month, multiply daily interest by the number of days in your billing cycle.<br>

The purchase interest rate is the rate you pay on overdue balances from everyday spending. In Canada, most cards have a purchase interest rate of about 20%.

You’ll pay your credit card’s cash advance interest rate on any money you withdraw from an ATM — also called a cash advance. Cash advance interest rates also apply to lottery ticket purchases, gambling site transactions and wire transfers.

Balances transferred from one credit card to another are subject to balance transfer interest rates.

Missing multiple credit card payments may result in a penalty interest rate that’s much higher than the purchase rate. For a set period, you’ll pay a penalty interest rate instead of your card’s purchase interest rate on everyday transactions.

For every purchase you make, get a set percentage back in cash. The pay-out date for your cash back earned differs depending on the card. It can be monthly, annually or when you reach a minimum threshold.

Credit card travel rewards programs let you earn points or miles when you make purchases. You can use your rewards to offset the cost of flights, hotels, car rentals, vacation packages and more.

Most rewards programs offer the option to redeem the points you’ve earned for general merchandise, gift cards, experiences, entertainment, financial rewards, and more.

Many merchants have a co-branded credit card. The points you earn can be used in-store or online at any participating stores. Groceries and merchandise are typical redemption options for store rewards cards.

The earn rate is a critical factor when it comes to getting rewards. Every rewards card has a base earn rate, but some cards also have higher earn rates on certain highly lucrative purchases. Knowing the difference between the two can help you maximize your rewards.

You’ll get this for any purchase that doesn’t fall into an increased earn rate category, or after you’ve hit any applicable limits in those categories. For example, you might get 1% cash back or 1 point per dollar spent.

Getting extra points on bonus categories that line up with your regular spending is a great way to rack up rewards even faster. For example, some of Canada’s best cash-back credit cards may give you 4% back on groceries or 2% on gas.

Get the most out of your credit card rewards with the following tips:

Not all purchases may be treated equally — at least not in the eyes of your card issuer. Some purchases may earn you more points than others, so familiarize yourself with your card’s rewards program.

Card rewards range from travel perks to cold hard cash. If you’re card shopping, take a look at the reward options before signing up.

Keep an ear out for time-sensitive promotional periods when your points may be worth more.

Some points expire after a prolonged period of card inactivity, so keep your card in good standing to maintain your point balance.

Different cards carry different credit score and income requirements. To ensure you meet the eligibility criteria, learn how to check your credit score. And be mindful of personal or household income requirements, too — you’ll often encounter these criteria with high-tier luxury cards.

Decide if you want to pay an annual fee or not. Cards that have an annual fee typically come with better benefits.

The type of rewards you want to earn will quickly help you narrow down your choices.

Try to choose a card with increased earn rates in the categories where you naturally spend more.

If you’re comparing similar cards, choose the one with a better sign-up offer.

See if there are any additional benefits you want, such as no foreign transaction fees, travel insurance, extended warranty, etc.

This can be done online or at your financial institution. The application will ask for some basic information, such as your name, date of birth, address, social insurance number, employer and income.

The credit card issuer will check your credit history and verify the information that you provided.

If you apply online, instant approval (or disapproval) is possible, but there’s also a chance the credit card issuer will ask you to contact them to provide additional information.

Your credit card will immediately be mailed out and will typically arrive within 14 business days.

Once your card arrives, you’ll need to activate it by logging into your account or calling the number on your card. Once activated, you can use your card to make purchases.

You’ll get cash back on every purchase you make. See our picks for the best cash back credit cards in Canada.

The points you earn can be used for gift cards, merchandise, experiences and sometimes travel. See our picks for the best general rewards credit cards in Canada.

The points you earn can be used for any type of travel redemption. See our picks for the best travel credit cards in Canada.

Co-branded airline rewards can be used on a specific airline and its partners.

Points earned through hotel credit cards can be used at any participating property.

Use the points you’ve earned for groceries, merchandise and more.

No-fee credit cards come with no annual fee. They can be any type of credit card, but often feature rewards or a low interest rate. Some no-fee cards are geared towards students and have easier requirements.

Balance transfer credit cards typically come with a low introductory interest rate. Because of this, you can use them to move your balance from a credit card with a high rate to one with a lower rate, allowing you to pay down debt faster.

Low-interest credit cards often have an interest rate of between 9% – 13%. This is significantly lower than standard interest rates, so low-interest credit cards can be helpful for people who may carry a balance.

Student credit cards typically have more relaxed qualification requirements and often charge no annual fee. They’re a good choice for students who may be looking to build their credit or establish good spending habits.

Student credit cards typically have more relaxed qualification requirements and often charge no annual fee. They’re a good choice for students who may be looking to build their credit or establish good spending habits.

Despite the name, what unites black credit cards isn’t colour; it’s exclusivity. Black cards are deluxe credit cards — the crème de la crème — typically available by invitation only to high earners and splashy spenders. The eligibility criteria for a black credit card differs by card provider, but typically, applicants need an excellent credit score and a personal income of at least six figures annually.

Millions of Canadians are members of Aeroplan, the loyalty program associated with Air Canada. There are several ways to become an Aeroplan member, but the easiest is carrying an Aeroplan personal or business credit card. The best Aeroplan credit cards make it easy to earn points that can be used for special perks and benefits. Armed with one of these travel cards, your trip may be more enjoyable and affordable than ever.

The Air Miles program launched in 1992 and remains one of Canada’s most popular rewards programs. Air Miles collectors can redeem Dream and Cash Miles for various items, including airfare, cash rewards, merchandise and more. The best Air Miles credit cards earn rewards on every eligible dollar spent and come with attractive perks, like airport lounge access and robust travel insurance.

Business credit cards typically offer accelerated rewards rates on business spending. Merchants may also appreciate common business credit card perks, like higher credit limits and supplementary cards for employee use.

Prepaid credit cards are like debit cards: cardholders can only spend up to the amount they’ve deposited to the card. Prepaid cards don’t charge interest because cardholders don’t borrow money — they spend their own funds. Prepaid credit card activity isn’t reported to Canadian credit bureaus, so using one won’t impact your credit score.