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Best Credit Cards in Canada for August 2025

Aug 1, 2025
NerdWallet Canada’s picks for the best credit cards include top contenders across numerous card categories. Compare these options to find the ideal card for you.
Profile photo of Shannon Terrell
Written by Shannon Terrell
Lead Writer & Spokesperson
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Edited by Athena Cocoves
Managing Editor
Profile photo of Shannon Terrell
Written by Shannon Terrell
Lead Writer & Spokesperson
+ 1 more
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.

Choosing the best credit card is part art, part science. Whether you're chasing rewards or cutting costs, no single option works for everyone. That's why our experts compared hundreds of cards across several categories to help narrow down your search.

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Best Credit Cards in Canada

Compare our top picks for August 2025

👇 Use the tabs below to see the best-overall credit cards and explore our top picks by goal or need.

Best Overall Credit Cards in Canada

How does a good card earn the 'best overall' spot in its category? Let our Nerds explain:

Best overall travel card
Scotiabank Passport® Visa Infinite* Card
5.0/5
5.0
NerdWallet rating
Scotiabank Passport® Visa Infinite* Card
Annual fee$150
Intro offerUp to 45,000 Points
Rewards rate1x-3x Points
APPLY NOW
on Scotiabank's website

When I think of the Scotiabank Passport® Visa Infinite* Card, the image of a Swiss Army knife springs to mind. As one of the more well-rounded mid-tier travel cards on the market, it can do a little bit of just about everything you’d want a travel card to do. Accelerated, flexible rewards points? Check. Travel insurance? Check. Free airport lounge access? Check.

Toss in some car rental discounts and waived FX fees, and I can’t find much to criticize. Sure, it costs $150 annually, but for the savvy cardholder, the Scotiabank Passport Visa Infinite Card’s cost is easily outweighed by perks.

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Methodology

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NerdWallet Canada selects the best credit cards based on overall consumer value as well as their suitability for specific kinds of consumers. Factors in our evaluation methodology include each card’s earning rates, rewards structure (such as flat-rate or bonus categories), annual fee, redemption options, promotional APR period for purchases, bonus offers for new cardholders, and noteworthy features such as insurance, loyalty bonuses or the ability to choose one’s own rewards categories.

Different types of best credit cards

Looking for certain types of credit cards? Check out more of our picks for different categories of best credit cards:

Best Travel Cards
Best Cash Back Cards
Best Rewards Cards
Best Business Cards
Best Student Cards
Best No-Fee Cards
Best Secured Cards
Best Cards for Bad Credit
Best Prepaid Cards
Best Balance Transfer Cards
Best Aeroplan Cards
Best Metal Cards

Beginner’s Guide to Credit Cards in Canada

A credit card is part of daily life for many Canadians. With the best credit cards, you can manage your expenses and earn rewards at the same time.

Using your card to pay for purchases can be more convenient than using cash. Ideally, you’d be able to pay your bill in full each month, so these interest charges would not apply. If you’re worried about your ability to do so, seek out a low-interest card to reduce your financial risk.

Think of credit cards as a short-term loan from your credit card provider — you make purchases with your card and pay for them later.

Pros:

  • Convenient and secure payment method.

  • May earn rewards.

  • May offer insurance coverage.

  • Builds credit when used responsibly.

Cons:

  • A more expensive form of borrowing than a personal loan or line of credit.

  • May lead to debt.

  • Harms credit when used irresponsibly.

A typical credit card transaction looks something like this:

When making a purchase, a typical transaction works like this:

  1. You charge a purchase to your card. When making purchases, choose credit as your form of payment. You’ll then tap, insert or swipe your card to initiate the payment. You may also be required to enter your pin number. If you’re making payments online, you’ll need to enter all your card information manually.

  2. Wait for authorization. The payment terminal will contact your credit card company to confirm the purchase amount.

  3. The merchant gets paid. Once approved, your credit card provider sends the merchant the funds. The merchant does pay a small fee to your credit card provider for this service.

  4. You get your bill and make a payment. Once your bill arrives, it’ll list your transactions, minimum payment requirement and due date. If you only make the minimum payment, you may see some interest charges on your next bill. To avoid this extra cost, pay your bill in full by that date so no interest is charged.

🤓Nerdy Tip

Ideally, you’d be able to pay your bill in full each month, so these interest charges would not apply. If you’re worried about your ability to do so, seek out a low-interest card to reduce your financial risk.

How Does Credit Card Interest Work?

Credit card companies charge interest on unpaid balances. When you pay your balance in full by the due date, you don’t owe any interest. But if you carry a balance past the grace period, interest starts to accrue — often at a high rate.

Types of credit card interest rates

Most credit cards apply more than one interest rate depending on the type of transaction.

You’ll typically find these rates listed in your cardholder agreement or your card’s terms and conditions:

  • Purchase rate: This is the most common rate — it applies to unpaid balances from everyday purchases. In Canada, the average purchase rate is around 20%.

  • Cash advance rate: This rate applies when you withdraw cash from an ATM using your credit card. It can also apply to gambling transactions, lottery ticket purchases, and wire transfers. Interest typically starts accruing immediately, with no grace period.

  • Balance transfer rate: If you transfer a balance from one card to another, this is the rate you’ll pay on that transferred amount. Some cards offer introductory 0% rates for a limited time.

  • Penalty rate: If you miss multiple payments, your issuer may apply a penalty APR — often higher than 25% — to your existing and new purchases for a set period.

What happens if you don’t pay off your credit card balance?

If you don’t pay your credit card balance in full, you’ll be charged interest. The amount depends on three factors:

  1. Your card’s interest rate

  2. Your balance

  3. The number of days in your billing cycle.

Say you have a credit card with a 19% interest rate. You made a $1,000 purchase, didn’t pay your balance in full, and your grace period has passed. Let's do the math:

  • Step 1: Calculate your daily interest rate

    • Annual rate ÷ 365 = daily rate

    • 19% ÷ 365 = 0.00052 (or 0.052% per day)

  • Step 2: Calculate daily interest on your balance

    • 0.00052 × $1,000 = $0.52 per day

  • Step 3: Multiply by days in billing cycle

    • $0.52 × 30 = $15.60 in interest after one month

That means a $1,000 purchase could cost you $15 in one month — and that's just one month.

If you carry a $1,000 balance for a full year without making any payments, interest doesn’t just add up — it compounds. Even with a 19% annual rate, daily compounding means you’d owe about $209 in interest — increasing your balance by nearly 21%.

That’s how everyday debt quietly turns into long-term cost.

🤓Nerdy Tip

Don’t want to crunch the numbers by hand? Use our credit card interest calculator to plug in your balance, interest rate, and billing cycle. It’ll show you exactly how much interest you’ll owe — and how to avoid it.

How Do Credit Card Rewards Work?

Types of rewards you can earn

The type of rewards — and how you earn them — depends on the card. They typically fall into four categories:

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.

Rewards earn rates

Your card’s earn rate determines how quickly you collect rewards. Most have two types of earn rates:

This is the default rate you earn on most everyday purchases — or once you’ve maxed out your bonus categories.

For example, you might earn 1% cash back or 1 point per dollar spent.

Some cards offer extra rewards for spending in specific categories, like groceries or gas. These are often called bonus categories.

For example, a card might give you 4% back on groceries or 2% on gas — helping you rack up rewards faster if those match your regular spending habits.

Earning and using your rewards

How and when you earn rewards — and how you redeem them — depends on the card and the transaction.

With certain credit cards, you can earn rewards when you make a purchase.

  1. Make a purchase. The transaction must be considered eligible by your card issuer to earn rewards.

  2. Rewards are calculated. Your provider uses the merchant category and your earn rate to determine how many rewards you’ve earned. Promotions can boost this amount.

  3. Rewards are deposited. Cash back may show up quickly, while travel or store points might appear after your statement posts.

  4. Redeem your rewards. In most cases, redeeming your rewards requires you to log in to your account. Cash back may be simple, but travel rewards might require booking through a portal or meeting certain conditions.

Most issuers make it easy to monitor your rewards:

  • In your account dashboard: You can typically see how many points you’ve earned per transaction, plus a running total.

  • On your statement: Your monthly statement may show bonus rewards, promotional earnings, or breakdowns by category.

  • Timing:

    • Standard rewards usually appear when your transaction posts.

    • Bonus rewards and promotions may show up at the end of the billing cycle.

Some special cases to note:

  • Companion vouchers or other premium perks may take longer to appear.

  • Welcome bonuses often require manual tracking. If the offer requires you to spend $3,000 in the first three months, it’s up to you to track your progress and confirm the bonus is issued.

  • Know how to earn points. Not all purchases earn the same — check your card’s reward rules.

  • Explore redemption options. Make sure the rewards suit your goals before signing up.

  • Watch for limited-time promotions. Promotional rates or redemption bonuses can boost your value.

  • Track expiration dates. Some points expire due to inactivity. Use your card regularly to keep rewards active.

🤓Nerdy Tip

Look for cards with bonus categories that align with your lifestyle — that’s where the real value is.

How to Compare Credit Cards

Narrowing down your options can be a challenge, but focusing on these key factors will make the process of comparing a lot easier. Here's what to consider:

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.

How to Apply for a Credit Card

When you apply for a credit card, there’s no guarantee you’ll be approved. The credit card provider needs to assess your financial profile to determine if you’re creditworthy.

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.

Types of Credit Cards in Canada

There are different types of credit cards in Canada, and each one supports different financial goals. For example, if you pay your balance in full each month, a rewards card may be a good fit. If you’re rebuilding credit or reduce interest, other card types may be a better fit.

Explore the options below to understand what makes sense for your needs.

Good pick for: Earning points, miles or cash back

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. Examples include:

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

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

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.

Frequently asked questions

Mastercard and Visa credit cards are the most accepted cards in Canada, although one major retailer doesn’t take Visa: Costco.

If you carry an American Express card, you may want a backup form of payment — it may be less frequently accepted in Canada.

It’s hard to declare a winner between Mastercard and Visa because these payment giants are credit card networks — not credit card issuers. Mastercard and Visa are among the most popular and well-established credit card processing networks in the world and share a lot in common. They’re both widely accepted and process billions of transaction dollars annually.

Mastercard and Visa predominantly work behind the scenes. They partner with card issuers, like banks and credit unions, to offer cards to the public. Eligibility requirements, rewards, and signup bonuses are all determined by card issuers.

Yes. Several Canadian banks offer non-resident and newcomer credit cards, including RBC, Scotiabank, TD, and more. These card programs are designed for newcomers and temporary residents and typically don’t require a credit check.

US citizens can also explore secured or prepaid credit card options. These Canadian credit cards require cash deposits before they can be used and can be a practical option for those paying a visit to the Great White North.

Canadian credit card issuers rarely disclose required credit scores, which makes it hard to know your chances of approval when comparing credit cards. However, higher scores generally mean better chances of approval, and that’s true regardless of the type of credit you’re applying for.

Want to learn more? Visit our “What Credit Score is Needed for a Credit Card?” page.

Credit scores in Canada range from 300 to 900. Generally, Canadian credit scores can be organized into the following categories:

  • Poor: 300 – 579.

  • Fair: 580 – 659.

  • Good: 660 – 739.

  • Very Good: 740 – 799.

  • Excellent: 800+.

The number of credit cards that’s right for you will depend on your spending habits, credit score and personal preferences.

There are benefits and drawbacks to carrying two or more credit cards. A few things to keep in mind:

  • Applying for a new Canadian credit card requires a hard credit check, which will likely drop your credit score by a few points.

  • Holding more than one credit card may improve your credit score if you use your cards responsibly.

  • Carrying more than one card means you’ll have access to multiple credit sources, which could lead to an increased risk of debt.

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