9 Best No-Fee Cash Back Credit Cards In Canada (Oct 2022)

September 12, 2022
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There are quite a few good no-fee cash back credit cards out there, but some stand out above the rest for their impressive welcome bonuses, promotional cash back rates, and excellent rewards. I constantly keep up with the latest promo rates and policy changes and make my recommendations below based on years of experience.

I recommend the BMO CashBack Mastercard as Canada's #1 cash back credit card due to its high promotional cash back rate, extended warranty, and instant deposits. It is one of the most flexible cards and comes with perks like discounts on car rentals and cash back on all categories.

What Is A No-Fee Cash Back Credit Card?

No-fee cash back credit cards are a type of reward credit card that allows you to earn rewards in the form of cash back when you make purchases. Cash back rewards are usually divided in two main types: category-based cash back cards, which earn you cash back when you make purchases towards categories like groceries or gas, and store cash back cards, which earn you cash back only when you shop at select partner stores. 

No-fee cards offer cash back rates of up to 3% on select categories, and most have an annual limit on how much cash back you can earn. For store-bound cash back cards, cash back rates can reach 4%, but they are considerably less flexible. Some no-fee cash back cards offer promotional cash back periods, but keep in mind those periods usually last just a couple of months.

Without further ado, here are the best no-fee cash back credit cards Canada has to offer:

The Best No-Fee Credit Cards In Canada

  1. BMO CashBack Mastercard: Best for promotional cash back rate
  2. BMO AIR MILES Mastercard: Best for travel perks
  3. Tangerine World Mastercard: Best for customizable categories
  4. Canadian Tire Triangle World Elite Mastercard: Best for purchasing at partner stores
  5. Home Trust Preferred Visa Card: Best for no foreign exchange fees
  6. MBNA Rewards Platinum Plus Mastercard: Best for generous welcome and anniversary bonus
  7. Neo Financial Mastercard: Best for no cap on how much cash back you can earn
  8. SimplyCash Card from American Express: Best for comprehensive insurance
  9. Tangerine Money-Back Credit Card: Best for low interest on balance transfers

BMO CashBack MasterCard

Great for high earn rate on groceries and very low balance transfer fees
  • Annual Fee
    $0
  • Interest Rate
    19.99% on purchases, 22.99% on cash advances
  • Welcome Bonus
    $25
  • Rec. Credit Score
    660+
  • Features & Benefits

    • $125 in cash back as a welcome bonus after spending $2,500 within your first 3 months
    • Get a 1.99% introductory interest rate on Balance Transfers for 9 months, 1% fee applies to balance amounts transferred
    • Redeem your cash back as a direct deposit, credit on your statement, or a deposit to your BMO InvestorLine account
    • Extended Warranty and purchase protection
    • Discount on car rentals
  • Pros & Cons

    Why we like it

    Great for high earn rate on groceries and very low balance transfer fees

    Pros

    • Earn 5% cash back on all purchases for the first 3 months
    • 3% cash back on groceries
    • Very low introductory interest rate (1.99%) for the first 9 months
    • Redeem any amount of cash back instantly & set up automatic deposits
    • Extended warranty and protection on all purchases
    • 25% off at National Car Rental and Alamo Rent a Car locations

    Cons

    • Cash back capped at $500/month
    • Low base earn rate
  • More Details

    Bonuses and fees

    The BMO CashBack Mastercard is a no-fee credit card that offers very competitive cash back rates, even compared to some premium credit cards. New cardholders can enjoy a 5% cash back on all purchases for the first three months. If you’re looking to transfer your balance, this is also a great option; the BMO CashBack Mastercard charges just 1% in transfer fees and has a fixed 1.99% rate for the first 9 months.

    Rewards

    The BMO CashBack Mastercard offers cash back on all purchases and bonuses in certain categories. Here’s the breakdown:

    • 3% cash back on groceries 
    • 1% on subscriptions like streaming services and utilities
    • 0.5% on all other purchases

    Perks and Benefits

    Redeeming Your Cash Back

    After accumulating $25 in cash back, you can redeem it at any time. Here are the options you have:

    • Set up deposits directly into a BMO account (Savings, Chequing, or InvestorLine)
    • Get a credit on your monthly statement
    • Set up recurrent payments when you accumulate a certain amount of cash back
    • Get a one-time lump sum payment

    Keep in mind your cash back rewards won’t expire as long as your account is in good standing.

BMO AIR MILES MasterCard

Great for travel perks, bonus points on partner stores, and travel insurance
  • Annual Fee
    $0
  • Interest Rate
    19.99% on purchases, 22.99% on cash advances
  • Welcome Bonus
    1,500 pts
  • Rec. Credit Score
    660+
  • Features & Benefits

    • Earn 1,500 AIR Miles bonus miles as a welcome bonus
    • No Annual fee
    • Discount on car rentals in Canada and abroad
    • Extended Warranty and purchase protection
  • Pros & Cons

    Why we like it

    Great for travel perks, bonus points on partner stores, and travel insurance

    Pros

    • 1,500 bonus welcome points
    • Earn 3 BMO AIR MILES for every $25 spent at AIR MILES partner stores
    • Show your AIR MILES Card at participating partners and earn twice the amoung of AIR MILES
    • Add additional cardholders and get free AIR MILES
    • Comprehensive travel insurance
    • 25% off at National Car Rental and Alamo Rent a Car locations

    Cons

    • Needs a good credit score (660+)
    • Low earn rate when not shopping at partner stores (1 point per $25 spent)
  • More Details

    Bonuses and fees 

    The BMO AIR MILES Mastercard is a no-fee low-interest travel card. It comes with a generous welcome bonus and is a great option if you want to transfer your card balance: there is a 1% fee on transfers and an introductory interest rate of just 1.99% for the first 9 months. 

    Rewards

    You can earn AIR MILES in two ways. Rates are:

    • 3 miles per $25 spent at participating AIR MILES partners
    • 2 miles per $25 spent on groceries

    Additionally, you can get double the miles by showing your AIR MILES card at participating shops and retailers.

    Perks and Benefits 

    • 25% off at partner rentals National Car Rental and Alamo Rent A Car locations
    • Bonus miles when you add an authorized users
    • Warranty and purchase protection

    Insurance 

    The BMO AIR MILES World Elite Mastercard has comprehensive medical and travel insurance, including car rental, flight delay, and baggage insurance.

Tangerine World Mastercard

Great for promotional cash back rate and customizable cash back categories
  • Annual Fee
    $0
  • Interest Rate
    19.95% on purchases, 19.95% on cash advanes
  • Welcome Bonus
    $150
  • Rec. Credit Score
    725+
  • Features & Benefits

    • Earn $100 cash back welcome bonus after spending $1,000 within your first 2 months
    • Earn bonus cash back on 2 categories plus an additional category when you link your Tangerine Savings Account
    • No limit on how much cash back you can earn
  • Pros & Cons

    Why we like it

    Great for promotional cash back rate and customizable cash back categories

    Pros

    • $150 bonus
    • Earn 10% cash back on all purchases for the first 2 months (2% cash back on 2 categories afterwards)
    • Unlock a third category and earn 2% cash back by creating a Tangerine Savings Account
    • There's no annual limit to how much cash back you can earn
    • Mobile device & rental car insurance
    • Customizable cash back spending categories

    Cons

    • No free passes included with the Mastercard Travel Pass (DragonPass)
    • Requires a minimum yearly income of $60,000
  • More Details

    Bonuses and fees

    The Tangerine World Mastercard is a no-fee customizable cash back card that allows you to choose how to earn additional cash back. You can choose from 10 categories and earn bonus cash back with no annual limits. New cardholders will get promotional cash back of 15% for the first two months on all purchases up to $1,000 spent ($150 cash back).

    Rewards

    With Tangerine, you can select which categories you will earn extra cash back on. Keep in mind you can change them at any time, but it will take up to 90 days before it takes effect.

    • 2% cash back in two categories (choose from gas, groceries, hotels, home improvement, and more)
    • 0.5% cash back on all other purchases

    Perks and benefits

    • Unlock an additional 2% bonus cash back category by linking your Tangerine Savings Account with your credit card
    • Access to the Mastercard Travel Rewards program when purchasing abroad
    • Access to the Boingo Wi-Fi network worldwide
    • Complimentary DragonPass Mastercard Travel Pass
    • Choose from 10 cash back categories to earn bonus cash back

    Insurance

    Up to $60,000 in coverage for all purchases plus:

    • Loss, theft, and damage insurance
    • Extended warranty (up to 1 additional year)

Canadian Tire Triangle World Elite Mastercard

Great for high earn rate on Canadian Tire stores
  • Annual Fee
    $0
  • Interest Rate
    19.99% on purchases, 22.99% on cash advances
  • Welcome Bonus
    $50
  • Rec. Credit Score
    760+
  • Features & Benefits

    • 4% back at Canadian Tire stores, including Mark's Work Wearhouse, SportChek, and Atmosphere,
    • 3% back at grocery stores (up to $12,000 per year),
    • 7 cents per litre of fuel at Canadian Gas+ and Husky locations
    • 1% back on all other purchases
  • Pros & Cons

    Why we like it

    Great for high earn rate on Canadian Tire stores

    Pros

    • Earn 4% back on Canadian Tire, SportChek, and Atmosphere stores
    • Earn 3% back on groceries, and 1% back on all other purchases
    • Earn 7 cents per litre at Canadian Gas+ and Essence+ gas stations
    • No annual fee
    • Concierge service
    • Complimentary membership to the Roadside Assistance Gold Plan

    Cons

    • Rewards are paid in CT money
    • Requires a minimum yearly income of $80,000
  • More Details

    Bonuses and fees

    The Canadian Tire Triangle World Elite Mastercard doesn’t charge annual fees, but it has an $80,000 annual income or a combined $150,000 household income, and it has an estimated 760 credit score minimum.

    Rewards

    Rewards are paid out in CT Money, which is equivalent to Canadian dollars 1:1 and can be redeemed on qualifying purchases at Canadian Tire, Sport Chek, and Atmosphere, among other partner stores. Earn rates at those partner stores yields 4%, also paid out in CT Money.

    Grocery store purchases earn 3%, capped at $12,000 per year, and all other purchases qualify for 1% back.

    Perks and Benefits

    • Purchases over $150 at participating stores qualify for no fee, no interest financing
    • 5-7 cents back in CT Money when refilling at Gas+ or Essence+ gas stations

    Insurance

    The Canadian Tire Triangle World Elite Mastercard has very basic insurance coverage that includes warranty and purchase protection and very basic rental car damage coverage.

Home Trust Preferred Visa Card

Great for no foreign fees and no limit on how much cash back you can earn
  • Annual Fee
    $0
  • Interest Rate
    19.99% on purchases, 19.99% on cash advances
  • Welcome Bonus
    N/A
  • Rec. Credit Score
    660+
  • Features & Benefits

    • No foreign exchange fee
    • No limit on how much cash back you can earn
    • No annual fee
  • Pros & Cons

    Why we like it

    Great for no foreign fees and no limit on how much cash back you can earn

    Pros

    • No foreign exchange fees when purchasing abroad or online
    • No annual fee
    • 1% cash back on all purchases
    • No cap on how much cash back you can earn
    • Car rental insurance
    • Visa Zero Liability Policy

    Cons

    • No welcome bonus
    • Needs a good credit score (660+)
  • More Details

    Bonuses and fees

    The Home Trust Preferred Visa Card offers cash back on all purchases and doesn’t charge any annual or management fees. The cash back rate is low compared to other credit cards, but it makes up for it by not charging foreign exchange fees and offering no-limit cash back on all purchases.

    Perks and Benefits 

    • 1% cash back on all purchases
    • No foreign exchange fees
    • No limit on how much cash back you can earn every year
    • Zero Liability policy
    • Accepted wherever Visa is accepted

MBNA Rewards Platinum Plus Mastercard

Great for high earn rates on restaurants, groceries, and household utilities
  • Annual Fee
    $0
  • Interest Rate
    19.99% on purchases, 24.99% on cash advances
  • Welcome Bonus
    10,000 pts
  • Rec. Credit Score
    660+
  • Features & Benefits

    • Earn 5,000 bonus points as a welcome bonus after spending $500 within 90 days
    • Earn 5,000 bonus points as a welcome bonus after enrolling for paperless e-statements within 90 days
    • Earn 20% bonus points every year on the anniversary of your account
    • Redeem your points for cash back, travel, merchandise, or gift cards
  • Pros & Cons

    Why we like it

    Great for high earn rates on restaurants, groceries, and household utilities

    Pros

    • 10,000 bonus welcome points
    • No annual fee
    • Earn 4 points per $1 spent on eligible restaurants, groceries, and household utilities for the first 90 days (2 points per $1 thereafter)
    • Car rental & mobile device insurance (for up to $1,000)
    • Annual birthday bonus of 10% of all the points you earned in the last 12 months (maximum 10,000)
    • Extended warranty on purchases

    Cons

    • Low point yield after earning 10,000 points in a year (1 point per $1 spent)
    • Can only earn bonus points on select categories
  • More Details

    Bonuses and fees 

    The MBNA Rewards Platinum Plus Mastercard is one of the few travel credit cards that offer generous point earn rates and benefits, plus it doesn’t have any income requirement. To apply for this card and start enjoying the generous rewards, you only need a credit score of 660 or higher.

    Rewards

    Considering this card it doesn’t charge annual fees, the rates are very good. You will earn:

    • 4 points per $1 spent on groceries, restaurants, memberships, and household utilities (up to $10,000 spent on each category annually)
    • 2 points per $1 spent on groceries, restaurants, memberships, and household utilities after reaching the annual limit
    • 1 point per $1 spent on all other categories
    • Birthday bonus points: 10% of the points you earned in the previous 12 months as a free bonus

    There’s no limit to how much cash back you can earn in a year, and your points will not expire as long as your account is in good standing.

    Perks and benefits

    Some additional benefits include:

    • Access to the MBNA Payment Plan to schedule monthly payments for a large purchase
    • 10% off at partner rentals National Car Rental and Alamo Rent A Car locations
    • Mobile device insurance
    • Extended warranty

Neo Financial Mastercard

Great for cash back rate on your first purchase and no cash back limits
  • Annual Fee
    $0
  • Interest Rate
    24.99% on purchases, 26.99% on cash advances
  • Welcome Bonus
    N/A
  • Rec. Credit Score
    660+
  • Features & Benefits

    • Earn 15% in cash back on your first purchase as a welcome bonus
    • No annual fee
    • Quick sign-up process
    • Sync your Neo credit card with Apple Play and Google Pay
  • Pros & Cons

    Why we like it

    Great for cash back rate on your first purchase and no cash back limits

    Pros

    • Earn 15% cash back on your first purchase
    • Earn 5% cash back at partner stores (Canadian Tire, Sport Chek, Loblaws, and more)
    • No cap on how much cash back you can earn
    • No annual fees
    • No minimum income requirement
    • Mastercard Zero Liability Protection

    Cons

    • Needs a good credit score (660+)
    • Very limited features
  • More Details

    Bonuses and fees

    The Neo Financial Mastercard is a no-fee cash back card that is part of the Neo family of products (Savings, Invest, and Mortgages). Neo is partnered with over 7,000 merchants through the Merchant Partners program and offers time-limited cash back offers and promotions. When you make your first purchase at Merchant Partners, you will earn 15% in cash back (this may vary slightly depending on the offer).

    Rewards

    Neo doesn’t offer a fixed cash back rate. Instead, you will earn cash back based on the offers available and the plan you choose. You can expect average cash back of 5% on every purchase; they’re so confident about how much you’ll earn that if you fall below 0.5% on average, they’ll top you up to 0.5%. So, there is a base rate of 0.5% on all purchases – with the potential to be much higher. Make sure to take advantage of all the offers available.

    Perks and benefits

    • Cash back is credited instantly to your account.
    • Budgeting and spending insights tools, accessible from the app
    • Access to a virtual card
    • New monthly cash back offers when purchasing at thousands of stores
    • Zero liability policy
    • Minimum 0.5% cash back guaranteed

SimplyCash Card from American Express

Great for promotional cash back for the first 6 months, and road trip plus flight insurance
  • Annual Fee
    $0
  • Interest Rate
    19.99% on purchases, 21.99% on cash advances
  • Welcome Bonus
    $200
  • Rec. Credit Score
    660+
  • Features & Benefits

    • Earn $200 cash back as a welcome bonus after you spend $5,000 within the first 6 months
    • No limit to the amount of cash back you can earn
    • Access to exclusive virtual events and special offers
    • Access to American Express Experiences
    • 24/7 Customer Service
  • Pros & Cons

    Why we like it

    Great for promotional cash back for the first 6 months, and road trip plus flight insurance

    Pros

    • $200 bonus
    • Earn 4% cash back on all purchases for the first 6 months
    • Earn 1.25% cash back on all purchases after the welcome period ends
    • There's no annual limit to how much cash back you can earn
    • Book your travel with the SimplyCash card to get road trip & flight insurance
    • Earn up to $750 cash back bonus when referring friends & family

    Cons

    • Cash back rewards can be redeemed once a year
    • It isn't as widely accepted in Canada as Visa or Mastercard
  • More Details

    Bonuses and fees

    The SimplyCash Card from American Express is a no-fee cash back card that offers a steady rate across all purchase categories. For new users, there’s a promotional cash back period of six months where you’ll earn 4% cash back on all purchases, up to a maximum of $200 cash back ($5,000 spent).

    Rewards

    After the promotional period ends, you can still earn cash back. You will earn:

    • 4% promotional cash back for the first six months
    • 1.25% cash back on all purchases after the promo period ends
    • Up to $750 cash back bonus for approved referrals

    Insurance

    This card offers very complete coverage, including categories like:

    • Emergency Medical Insurance
    • Flight Delay Insurance
    • Lost or Stolen Baggage Insurance
    • Mobile Device Coverage
    • $250,000 Travel Accident Insurance

Tangerine Money-Back Credit Card

Great for no annual cash back limit and a low interest rate on balance transfers
  • Annual Fee
    $0
  • Interest Rate
    19.95% on purchases
  • Welcome Bonus
    $100
  • Rec. Credit Score
    660+
  • Features & Benefits

    • Earn $100 cash back welcome bonus after spending $1,000 within your first 2 months
    • Earn bonus cash back on 2 categories plus an additional category when you link your Tangerine Savings Account
    • No limit on how much cash back you can earn
  • Pros & Cons

    Why we like it

    Great for no annual cash back limit and a low interest rate on balance transfers

    Pros

    • $100 bonus
    • Select 2 Money-Back categories and start earning 2% cash back (0.50% cash back on all others)
    • There's no annual limit to how much cash back you can earn
    • Cash back earnings are paid out monthly
    • Customizable cash back spending categories
    • Low 1.95% interest on balance transfers

    Cons

    • Very limited features
    • Low cash back rate compared to other cash back cards
  • More Details

    Bonuses and fees

    The Tangerine Money-Back Credit Card is a no-fee cash back card that can be customized to match your spending. With this card, you can choose your favorite cash back categories and earn bonus cash back. It comes with a promotional cash back rate of 15% on all purchases for the first 2 months, capped at $1,000, so you can earn up to $150 in cash back.

    Perks and Benefits

    The Tangerine Money-Back Credit Card brings a lot of flexibility compared to other cash back cards out there. For starters, cardholders can choose their preferred cash back categories and earn 2% cash back in two categories – three if you create a Tangerine Savings Account – and 0.5% cash back on all others. Here are the eligible categories:

    • Gas
    • Groceries
    • Pharmacies & drug stores
    • Entertainment
    • Hotels & motels
    • Home Improvement
    • Restaurants
    • Transportation

    Keep in mind you can change your chosen categories at any time, but it might take some time for it to take effect.

    Redeeming Your Rewards

    Cash back rewards are deposited directly into your Tangerine Savings Account, if you have one (highly recommended, to unlock the third bonus category), or applied to your credit card balance. Cash back rewards are paid out monthly, and there is no limit to how much cash back you can earn.

How Do No-Fee Cash Back Credit Cards Work?

No fee cash back credit cards work like regular cash back cards. When you make a purchase with a credit card you earn rewards in the form of cash or points that can be redeemed for cash or products. Cash back credit cards can help you save on most everyday purchases, and rewards are very easy to redeem.

Depending on your goals, a cash back card may be more beneficial than travel cards or another type of reward card. Travel cards are harder to navigate and have a more complex points system, plus travel perks that are only beneficial for you if you travel a lot.

Cash back credit cards are the most flexible cards, and even if you have a different card, like a low-interest or travel card, you will still benefit from the higher rates of dedicated cash back cards.

Pros & Cons Of A No-Fee Cash Back Credit Card

Pros: Why A No-Fee Cash Back Credit Card May Be Worth It

  • No annual fee
  • Earn rewards on all your spending
  • Flexible and easy-to-understand rewards system
  • Pick and choose select categories and enjoy higher cash back rates
  • Access to shopping perks like extended warranties, return guarantees, and more

Cons: Why A No-Fee Cash Back Credit Card May Not Be Worth It

  • High credit score requirement (660+)
  • Cash back cards are not free money – you need cash to earn cash
  • Annual cap on how much you can earn per year

Types Of No-Fee Cash Back Credit Cards In Canada

#1 Flat-Rate Cash Back Cards

A flat-rate cash back credit card offers the same cash back percentage for all spending categories. It’s the most basic type of cash back card and one of the most used as a catch-all solution. Reasonable earn rates for this type of card are between 1.5% and 2% in all categories.

One major drawback is that if you’re not taking advantage of most categories and instead have higher spending on a particular one, you’re potentially missing out on the full benefit of the card. In that case, you’d be better off with a Bonus category or a Customizable category cash back card.

Here are two examples of two no-fee flat-rate cash back cards in Canada:

Home Trust Preferred Visa Card1% cash back on all categories
SimplyCash Card from American Express1.25% cashback on all categories

#2 Bonus Category Cash Back Cards

A bonus category cash-back credit card offers different cash back rates depending on the category type. This type of card requires more planning than a flat-rate card, and you need to make sure you’re taking advantage of the higher-rate categories. Reasonable rates for this type of card are 3% on select categories and 1% on all other categories.

Here are two examples of bonus category cash back cards in Canada:

BMO CashBack Mastercard3% on groceries, 1% on recurring bills, 0.5% on all other purchases
MBNA Rewards Platinum Plus Mastercard4 points per $1 on groceries & restaurants, 1 point per $1 on all other purchases

#3 Customizable Category Cash Back Card

A customizable category cash back credit card offers its users the ability to pick and choose specific categories and earn an increased rate. These cards may have lower rates than regular bonus category cards, but if you choose your categories smartly, you may earn more. Make sure to choose the categories based on your specific spending habits.

One drawback of these cards is that there’s usually a waiting period if you want to change your preferred categories.

Tangerine Money-Back2% in up to 3 categories of your choice, 0.5% on all other purchases

How To Choose A No-Fee Cash Back Credit Card In Canada

Welcome Bonus And Promotional Rates

Some cash back cards in Canada come with a welcome bonus or promotional rate. Welcome bonuses are one-time rewards for new cardholders, which can take the form of higher cash back rates for fixed periods (usually no more than 3 months and with a built-in spending limit).

Bonus Categories

Based on your spending, you should pick a card that can maximize how much cash back you can earn. Some credit cards allow you to choose your preferred categories so you can earn additional cash back, like the Tangerine World Mastercard. For reference, here are some of the most common spending categories in cash back credit cards:

  • Grocery stores
  • Gas stations
  • Restaurants
  • Travel
  • Drugstores
  • Home improvement stores

Interest Rates

Another important factor is the interest rates; if you often fall behind on credit card payments, a cash back card might not be for you. The standard interest rate for cash back cards is 19.99%, and it can easily outweigh the cash back benefits if you miss payments.

How To Redeem Your No-Fee Cash Back Credit Card Rewards

Depending on the card you choose, you will have different options to redeem your rewards. Some of the most common options include:

  • A direct deposit to your checking or savings account
  • A check sent to your mail
  • A statement credit
  • Gift cards
  • Merchandise

Some cash back cards pay back rewards monthly, like the Tangerine Money-Back Card, while others have minimums you have to reach before you cacn claim your cash back.

Most cards listed here offer a promotional cash back rate plus a fixed rate for categories like groceries and gas. The BMO CashBack MasterCard offers the best rates for groceries, and the Tangerine World Mastercard has an excellent promo rate plus allows you to choose your cash back categories.

In general, cash & gift card rewards allow a lot more flexibility than store-locked rewards, like those offered by the Canadian Tire Triangle World Elite Mastercard, which can only be redeemed at select stores..

How To Apply For A No-Fee Cash Back Credit Card In Canada

Age

In Canada, the minimum age to request a credit card is the age of the majority. Teens under that age can’t get approved for credit cards but can be added as authorized users to one of their parent’s credit cards. For reference, the age of the majority in Alberta, Manitoba, Ontario, Quebec, Prince Edward Island, and Saskatchewan is 18 years old. In all other provinces, the age of the majority is 19.

Residency Status

Canadian credit cards are available to residents and non-permanent residents. However, most cash back cards require you to be a Canadian resident. For other card types like a prepaid, store, and secured credit cards, you don’t even need a credit history. Credit score

No fee cash back credit cards require a good credit score, starting from 660 to 760. The higher you score, the more likely your application will be accepted, and the more generous the cash back rates and the welcome bonuses.

Personal Or Household Income Requirements

Some premium cash back credit cards come with an income requirement, usually ranging from $60,000-$80,000 or $100-$150 household income. These cards tend to require a higher credit score and come with the best benefits. However, this is not the norm: most cash back credit cards have no-or-very-little income requirements.

No-Fee Cash Back Credit Cards FAQs

Are No-Fee Cash Back Credit Cards worth it?

When no-fee cash back cards might be worth it for you:

  • If you have a high credit score and can access the best no-fee cash back credit cards
  • If you find yourself making a lot of purchases and spending a lot of money every year at eligible stores like restaurants, gas stations, and grocery stores
  • If you have no trouble keeping up with your monthly credit card payments and are very unlikely to fall behind on payments
  • If you want to save up on the annual fee charged by most cash back credit cards

When no-fee cash back cards might not be worth it for you

  • If you have trouble keeping up with payments, a cash back credit card might not be for you
  • If you don’t want to increase your spending, a cash back card can be counterproductive

What Is The Best Free Cash Back Credit Card In Canada?

The best free cash back credit card in Canada is the BMO CashBack MasterCard. It comes with a 5% cash back earn rate for the first three months, no annual fee, and a welcome bonus of $125 that you can earn over the course of three months if you spend over $2,500.

How Many Credit Cards Should A Person Have?

A common strategy for cash back cards is to have two cards; one with a flat rate of 1.5% or more across several categories and a specialized card that offers 5% back on select purchases like groceries or gas. That way, you earn money on all purchases and keep a manageable number of cards. Usually, it’s a good idea to have cards from the same issuer to keep things as simple as possible, but that’s not always an option.

The major drawback of having too many cards are the fees and interest charges on each; it’s also harder to keep track of all payments (which can be very time-consuming), and you may not reach the spending minimum to start redeeming rewards.

Does Having Multiple Credit Cards Affect Your Credit Score In Canada?

Yes, having multiple credit cards affects your credit score – but usually in a positive way. Having multiple cards can be beneficial by decreasing your credit card utilization percentage and thus increasing your score. In the very short term, it may hurt your credit due to the credit history checks.

Is There A Downside To Cash back?

One of the biggest downsides is that some users end up over-spending to earn cash back. Another drawback is that cash back rewards generally are not instantly redeemable; instead, you may have to wait for months or even yearly payments.

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