Best No Annual Fee Credit Cards

The best no-fee credit cards are ones that come with additional features. For instance, some people benefit from getting no-fee cards that offer reduced interest rates on balance transfers. Some no-fee cards also give cardholders the ability to earn rewards or cashback.

Best No Annual Fee Credit Card with Cashback Reward


Tangerine Money-Back Credit Card

Most Popular
Tangerine Cash Back Credit Card
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Specification: Tangerine Cash Back Credit Card

Balance Transfer Promo Rate 1.95% for 6 Months
Annual Fees $0
Purchase Interest Rate 19.95%
Balance Transfer Regular Rate 19.95%
Cash Advance Rate 19.95%
Network
Get 2% back in up to 3 categories of your choice

The card most likely to be the best no annual fee credit card for this year is the Tangerine Money-Back Credit Card, which was also popular in 2017. You receive 2 percent cashback in any two spending categories when you use this credit card for purchases. You also earn 0.5 percent cash back on anything else that you buy. Tangerine credits cashback once a month to your statement. You’ll get benefits in a third spending category receiving 2 percent cash back if you opt to let the bank place your earnings on a Tangerine savings account. The groupings available are restaurants, groceries, drugstore, gas, furniture, entertainment, recurring bills, hotel-motel, public transportation, home improvement, and parking. This credit card is well-liked in Canada because the category choices make it very customizable to your distinctive spending patterns.


Most Popular
Scotia Momentum®  Visa* Card
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Specification: Scotia Momentum® Visa* Card

Annual Fees $39
Purchase Interest Rate 19.99%
Balance Transfer Regular Rate 22.99%
Cash Advance Rate 22.99%
Network
2% Money-Back on Everything
Most Popular
American Express® AIR MILES® Gold Business Card
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Specification: American Express® AIR MILES® Gold Business Card

Annual Fees $0
Purchase Interest Rate 19.99%
Balance Transfer Regular Rate 22.99%
Cash Advance Rate 24.99%
Network

Do No Fee Credit Cards Offer Rewards?

There are some no-fee cards that provide cashback or rewards. Some cards give you the ability to earn enhanced category-based cashback or rewards. With some cards, you also stand to earn sign up bonuses.

Other Features on Offer

While no-fee credit cards tend to serve a very basic purpose, card providers now try to attract more customers by offering one or more added features. These may include:

  • Purchase insurance
  • Limited travel insurance
  • Extended warranties
  • Discounts on auto rentals
  • No foreign transaction fees
  • Balance transfer offer
  • 0% introductory APR
  • A low-interest rate on purchases

Interest Rates

Pay close attention to the interest you need to pay on purchases and cash advances. While paying no annual fee is great, you don’t want to end up paying high interest in return. This becomes particularly important if you don’t plan to pay your balance off in full each month, because any outstanding balance continues to attract interest. The interest rate on purchases in Canada typically varies from 12.99% to 19.99%. For cash advances, most cards charge interest of 22.99%. 

Are There Any Drawbacks to No Fee Credit Cards?

No-fee credit cards might work well for people who don’t plan to use additional features offered by cards that charge annual fees. However, if you wish to earn rewards or are looking for travel benefits, these cards might not be your best bet. For instance, while a no-fee card might offer cashback or rewards, they earn rate would typically be lower than other fee-based cards. In addition, a higher interest rate on purchases might work in offsetting you not paying an annual fee if you keep an outstanding balance in your account month after month. 

How Do You Qualify?

Your creditworthiness plays a role in determining whether or not you qualify to apply for any particular no-fee credit card. While some cards require applicants to have fair credit scores (560 to 659), you might need good (660 to 724) or excellent (760 to 900) credit to apply for others. Some cards also have minimum income requirements.

If you’re looking for a basic no-frills credit card that you may use to make purchases and pay bills, you may consider getting a no-fee card. Take some time to go through existing offers and promotions, and compare your options well.

Why Use a No Annual Fee Credit Card

There has never been a better time to look for the best no annual fee credit card in Canada than now. Whether you’re looking for rewards, cash back, a free flight, miles, or low-interest rates, issuers are stuffing tons of value onto their no annual fee card offerings. There are usually four excellent reasons to look for the best no annual credit card for you:

  1. Firstly, you don’t spend enough to justify a yearly fee.
  2. Secondly, if your primary credit card is frozen or it gets lost or stolen, you’ll have a back-up in your wallet.
  3. Thirdly, you don’t need some of the extras offered by annual fee credit cards.
  4. Finally, you’re unwilling to commit to the account type without trying it first.

Regardless of your reason, it’s important to note that there have never been more credit cards without annual fees providing as much value as we have today.

No Annual Fees Credit Cards – Conclusion

If you like rewards, keep in mind that the best offer is no annual fee for the first year, coupled with a welcome bonus of a free flight. If there are no yearly fees, you can take out as many cards with strong welcome incentives as you’d like. Just make sure you pay attention to any minimum spend requirements and be careful to spread out your applications a bit. Besides that, it’s an excellent opportunity to obtain a free flight and to test different cards to figure out which rewards program is the best!

Compare Credit Cards with No Annual Fee

In some cases, no-fee cards can bear many great privileges and benefits with their use such as cash-back bonuses, travel benefits, medical benefits and other privileges. Here is an example: By owning an American Express AIR MILES Credit Card you will reap 1 bonus mile for every $15 you spend in card transactions with approved and associated AIR MILES Sponsors as well as 1 bonus mile collected for every $20 you spend in other transactions. Additionally, you will also get a reward of 500 bonus miles the first time of using your card and the best part is, there is no annual fee charged. In case you want some cash back benefits, getting the SimplyCash Card from American Express is a great option. This card offers up to 5%  cashback that applies to all gas, supermarket, and restaurant transactions for an initial 6-month period and up to 1.25% cash back for all transactions that apply on the program after that. A lot of no-fee credit cards come with some pretty good benefits like rental vehicle discounts and deals, theft protection, 24-hour service in case of an issue, and others. As long as you pay the balance on time and you don’t use the card recklessly, you will reap these rewards with no extra fees.

Best No Fee Credit Cards

There are many ways banks waive fees or give away no-fee credit cards to their members.

Some credit card providers may waive their annual fees usually on the first year for new customers and then charge low subsequent annual fees.  Other banks may still charge annual fees but offer discounted fees or low-interest rates to their customers. Some credit card providers go far and beyond to lure potential members to sign up by offering zero fees or no fees on certain transactions such as foreign transaction fees.  Some banks may waive fees for foreign transactions which are truly beneficial especially to those who travel for pleasure, purchasing items along the way, and those conducting their businesses abroad who earn huge savings by not being imposed the extra fees for multiple international transactions. As usual, additional bonuses are offered to new customers including cash back rewards and mileage points that can be converted to free airline tickets when the customers have accumulated enough points from their credit card transactions.

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