12 Best No-Fee Credit Cards in Canada for May 2025
NerdWallet Canada selected the best no-fee cards in Canada across numerous categories after analyzing dozens of no-annual-fee credit cards. Whether you’re looking for cash back, valuable travel rewards, impressive perks, lower interest rates, or more, our list of the best no-fee cards offer spectacular benefits without the burden of an annual fee. Consider our selections to choose the best option for your lifestyle and financial goals.
Get unlimited 2% cash back in 2 categories of your choice, 0.5% back on everything else, and up to 2% Money-Back Rewards deposited into your Account monthly. Plus, in the first 2 months, get a bonus 10% cash back up to $100. Click "Apply Now" for details.
Compare the best no-fee credit cards in Canada
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Card detailsEarn a 0% promotional annual interest rate for 12 months on balance transfers completed within 90 days of account opening. Click "Apply Now" for details.
Methodology
BACK TO TOPHow no-fee credit cards work in Canada
Common features of a no-fee credit card
Every no-fee credit card is unique, so the included features will differ. That said, here are some of the common features you may get:
Interest-free grace period.
Fraud protection.
Increased earn rate on some merchant categories.
Rewards (cash back, travel, store, etc).
Purchase protection.
Extended warranty.
Admittedly, no-fee credit cards often have fewer benefits than credit cards with an annual fee. But some no-fee credit cards may still include helpful perks, such as mobile device protection or travel insurance.
Types of no-fee credit cards in Canada
Many types of no-fee credit cards are available, with the best offering the ability to earn valuable rewards, cash back and more, all without having to pay an annual fee.
- No-fee cash back credit cards
Cash-back credit cards are fairly simple as far as perks are concerned: spend money; get a percentage of what you’ve spent back in cash. Now, as for the type of purchases that earn rewards and how much cash back you get for them, that’s what separates different types of cash-back cards.
Take the Simplii Financial™ Cash Back Visa Card: it’s a no-fee cash back card that offers 4% cash back each time you swipe your card at a restaurant, bar or coffee shop, up to $5,000 per year.
In comparison, the Tangerine Money-Back Credit Card, and the World version, both offers unlimited cash back at a 2% rate in up to three money-back categories of your choice.
- No-fee travel credit cards
Travel cards offer travel-related rewards when you use your card. Some travel cards charge large annual fees in exchange for premium perks, like comprehensive travel insurance packages.
But the rewards offered by no-fee travel credit cards are nothing to sneeze at. The CIBC Aeroplan® Visa Card doesn’t carry an annual fee and earns Aeroplan points every time you spend on gas, electric vehicle charging, groceries and Air Canada travel purchases, for example.
And the BMO AIR MILES®† Mastercard®*, another no-fee card, earns Air Miles rewards and comes with car rental discounts.
- No-fee rewards cards
Rewards cards allow you to earn points for making eligible purchases. And these points can be redeemed for all types of perks, from travel vouchers to electronic gift cards.
For example, the American Express® Green Card lets you earn rewards points across a variety of spending categories and points can be put towards purchases, travel spending, gift cards and more. Plus, you can transfer points to other loyalty programs, like Aeroplan and Marriott Bonvoy.
- No-fee Mastercards
Credit cards branded with the Mastercard name or logo belong to the Mastercard network. Mastercard is not a card issuer, it simply processes credit card payments. And because Mastercard is one of the most popular card processors in the world, there are plenty of cards to pick from — including cards without annual fees.
One example of a no-fee Mastercard with generous perks is the Brim Mastercard. It earns rewards points on everyday purchases, offers free global WiFi access and comes with travel, event ticket and mobile device insurance coverage.
How to choose a no-fee credit card
When comparing credit cards, assessing the annual fee they charge is typically important. Of course, with no-fee cards, this isn’t a concern. But that doesn’t necessarily mean they’re all the same.
Here are some other things to consider when deciding between no-fee credit cards in Canada.
All credit cards — even no-fee cards — charge interest and those interest rates should factor into the card you choose. The no-fee cards on our list carry an average purchase interest rate of about 20%, which is pretty standard. Cards with lower rates in the 10%-12% range exist, though they often have fewer perks.
If you tend to carry a balance on your card, keep your eyes peeled for no-fee cards with lower interest rates — anything under 20% is a competitive rate in this category.
Introductory offers often come in the form of special cash-back offers or extra rewards points. They’re designed to help incentivize new card applications and could be a factor worth considering as you narrow down your no-fee credit card options.
The caveat to welcome bonuses? You typically don’t get the points or cash just for signing up. To nab the intro offer, you may have to spend a minimum amount within a certain time frame after opening the card, for example. The thing to note about welcome bonuses or intro offers is that they’re typically temporary, often ending after a few months.
When comparing no-fee card options, take a look at what type of rewards the card will earn even after the intro offer expires — more specifically, how they’re earned and ways they can be redeemed.
Whether you earn points from affiliated travel programs or cold hard cash back on eligible purchases, you’ll want a rewards program that will encourage you to make the most of your spending.
Perhaps even more important, however, is how points are earned. One card may offer triple the points on your weekly grocery bill, while another may let you double down on your travel miles each time you book a flight with a qualifying carrier.
Some no-fee credit cards come with insurance coverage, but not all. Insurance coverage offerings may include travel insurance, event ticket protection, extended warranty and purchase security protection and more.
Insurance coverage through your no-fee credit card may not be a strict necessity if you have coverage through an independent insurer or through your employer. But it can offer added protection and peace of mind, depending on the coverage available.
Frequently asked questions
Who should get a no-fee credit card?
Who should get a no-fee credit card?
A no-fee credit card is ideal for anyone who doesn’t want to pay an annual fee to carry a credit card. In particular, a card with an annual fee may not be practical for those who are on a tight budget or who don’t use their credit card benefits enough to justify the added expense.
How are no-fee credit cards different from debit cards?
How are no-fee credit cards different from debit cards?
Credit cards operate like short-term loans. You borrow money from your credit card issuer and those funds must eventually be paid back. With your debit card, you can only spend money from your bank account. Since you aren’t borrowing money with a debit card, you won’t be charged interest.
Is a no-fee credit card a free credit card?
Is a no-fee credit card a free credit card?
While no-fee credit cards don’t charge you an annual fee, there are often other associated costs, including:
Over limit fees.
Inactivity fees.
All of these additional fees should be clearly outlined in the terms and conditions that come with your card. As long as you use your no-fee credit card responsibly, it may be possible to avoid fees completely.
Do no-fee credit cards still earn rewards?
Do no-fee credit cards still earn rewards?
There are many no-fee credit cards that earn rewards. Common rewards categories include"
General rewards points, like Scene+, PC Optimum and more.
Travel rewards points, like Aeroplan points and Air Miles.
Cash back.
How do I apply for a no-fee credit card?
How do I apply for a no-fee credit card?
Before you apply for a no-fee credit card, review its eligibility criteria, including any applicable annual income requirements, to ensure you qualify.
To apply for a credit card, you can typically visit the provider’s website or mobile app to access its online application. Alternatively, if the card provider offers in-person facilities, you can visit a branch during business hours to complete an application.
Can you get a no-annual-fee credit card with bad credit?
Can you get a no-annual-fee credit card with bad credit?
If you have a low credit score, you may not be approved for a traditional no-fee credit card. That said, there are credit cards for people with low or no credit, including prepaid and secured cards.
What are the pros and cons of a no-fee credit card?
What are the pros and cons of a no-fee credit card?
Pros
Budget-friendly. No-fee credit cards are a budget-friendly alternative to cards that charge annual fees.
Earn rewards. A number of no-fee cards earn rewards, offering the opportunity to earn points or cash-back that can be redeemed for travel, merchandise and more.
Contributes to credit history. Since there’s no annual cost, it’s more feasible to keep a no-fee card account open, even if you decide to get a card with an annual fee at a later date. This contributes to the length of your credit history and may have a positive impact on your credit utilization ratio.
Emergency use. Without the burden of an annual fee, no-fee cards can serve as excellent backup or emergency-use credit cards.
Cons
Limited benefits. Generally speaking, the higher a card’s annual fee, the more luxurious its perks. Credit cards with no annual fee may still earn rewards and offer benefits, though they may be limited compared to cards that charge more to carry them.
High-interest debt. Like all credit cards, no-fee cards carry the potential for high-interest debt if the card’s balance isn’t paid before the statement’s due date.
When is an annual fee worth paying?
When is an annual fee worth paying?
Whether a credit card’s annual fee is worthwhile depends on your financial situation, lifestyle and spending habits. Generally speaking, the fee may be worth paying if the amount of value you can squeeze from the card’s benefits or insurance offerings offsets the cost of the fee.
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