Compare credit cards for March 2021

Finder’s free comparison service makes it easy to compare credit cards. Our editorially independent team has created this comprehensive guide to help you select the right credit card for your financial needs.

How credit cards work

Credit cards are a form of unsecured credit that allows you to borrow money from a credit provider without having to pay it straight away. You’ll have a minimum of 21 days to repay the balance before you’ll start to incur interest – with some cards offering up to 55 days interest-free. Credit cards are different from debit cards which are tied to actual money in a chequing account. While banks are the first place most people will go for a credit card, there are many credit unions, stores, supermarkets, airlines and stand-alone credit card companies that issue credit cards too.

A wide range of credit cards exist on the market, including cash back, balance transfer, rewards, travel, no annual fee, no foreign transaction fee, student, business and many others. The right credit card for you will often depend on your lifestyle and your financial goals. There are also prepaid cards on the market, which give you the convenience of a

Beginner’s guide to credit cards: How do credit cards work?

Best for

Everyday spending

American Express Cobalt Card

Best for

Rewards

BMO World Elite Mastercard

Best for

Cash back

Scotia Momentum Visa Infinite Card

Best for

Low rate

BMO Preferred Rate Mastercard

How to apply for a credit card

What cards are you looking for?

Balance transfer

Move your high interest debts to a low or 0% interest balance transfer credit card and pay off your debts faster.

No annual fee

Whether it’s a promotional offer or for the life of the card, save on yearly credit card costs with a no annual fee credit card.

Low interest rates

Avoid high interest on purchases and reduce your chances of falling into debt with a low interest credit card.

Earn rewards points

Earn rewards points as you spend and maximize the prizes and perks you can redeem with a rewards credit card.

Travel rewards

Compare travel rewards credit cards to earn points on everyday purchases to redeem for your next vacation with your favourite airlines.

Cash back

Earn cash rewards for every dollar you spend on your credit card.

Student cards

Manage your student expenses and establish your credit history by comparing a range of student credit cards.

Business owners

Keep track of your business expenses, earn reward points and manage employee spending under one account.

Intro offers

Enjoy a 0% or low interest promotional period, pay no annual fee for the first year or receive bonus points with a credit card introductory offer.

How to compare credit cards

To help you find the right card for you, there are a few factors to consider when you compare credit cards and your various options.

• Your income. This is one of the biggest factors as credit card providers want to know you’re able to pay back your debt. Generally speaking, the higher your income (not necessarily from employment), the more likely you are to get approved.
• Your credit score.Your credit score will play a big role in the type of credit cards available to you. The higher your credit score, the better the terms and rates that you’ll get. A score of 650 is often considered the “magic number” to get approved for a standard credit card.
• Your age. You need to be at least 18 (or the age of majority in your province or territory) to apply for a credit card. If you’re young, you’re likely to have a limited credit history. You could consider student credit cards that will improve your credit score over time and qualify you for better deals.
• Your personal interests. Some credit cards offer rewards that may compliment your lifestyle and interests. If you travel overseas, an Air Miles, Aeroplan or travel credit card might be a good choice. If you frequently buy gas at a specific gas station, you could take advantage of a credit card that offers discounts.
• Your financial situation. It’s not ideal to get credit cards just to fill the gap between income and expenses. Debt from credit cards can spiral out of control if the outstanding balance is not paid back regularly. Credit cards should instead be used to help you achieve your financial goals. For example, if you need to make a big purchase that you want to pay off over time, low purchase interest credit cards could help you do this without having to pay extra in interest.

Eligibility criteria

To apply for a credit card, you’ll need to make sure you meet the eligibility criteria. Just like with any other loan application, there’s no guarantee that the application will be approved. While eligibility criteria can vary between specific credit cards, it usually includes the following:

• Age. Be at least 18 years of age, or the age of majority in your province or territory. If you’re under 18, you can usually become an authorized user on a parent or guardians credit card.
• Residency. Be a Canadian citizen or a permanent resident with a Canadian residential address. However, some providers offer cards to temporary residents or those on certain visas – but either way you’ll need a Canadian address.
• Credit score. Many credit cards have a minimum recommended credit score that you must meet in order to be eligible for approval. While it varies between cards, the average minimum credit score tends to sit around 650.
• Income. Some credit cards will require that you make a certain amount of money each year in order to qualify. Minimum annual income usually sits around $12,000, while more prestigious cards can require minimum personal incomes of $60,000 – $80,000 a year.

What are the costs of a credit card?

• Repayments. You’re free to repay as much as you like as often as you like. You’re required to make the minimum repayment when your statement is issued. The minimum repayment is usually 2% or $10 of your outstanding balance. You will pay a late payment fee if you don’t make the minimum repayment by the statement due date.
• Annual fee. This is the cost to own a credit card. The annual fee ranges from $0 to hundreds of dollars depending on the credit card type. The credit card annual fee is typically deducted from your available credit and accrues interest at the purchase rate if it isn’t paid in the first statement period.
• Interest rates. Interest is the price you pay to borrow money. Credit card interest rates are much higher than other types of financing because credit cards are an unsecured product; financial institutions have no recourse to take your assets if you default on your repayments.
• Other fees. Other fees you may run into include late payment fees, overlimit fees (a fee for spending more than your credit limit), rewards program membership fees and cash advance fees. If you’re doing a balance transfer, you will also likely incur a balance transfer fee.

Important credit card features

To get the most out of the process when you compare credit cards and ultimately choose the right one for you, it is important to understand the different features that are included within credit card deals.

Compare credit cards by type or feature