top rewards credit cards Canada
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Scotiabank Gold American Express Card
Pros
- Earn 5x Scene+ points on select categories
- No foreign transaction fees
- Travel insurance and exclusive benefits
- Competitive annual fee
Cons
- Higher interest rate for cash advances and balance transfers
- Limited travel insurance compared to other premium cards
- Annual fee not waived in the first year
Key Features
The top rewards credit cards in Canada offer a range of benefits, including cashback, travel points, and insurance coverage. When choosing a rewards credit card, it's essential to consider your spending habits, financial goals, and credit score. A typical credit score range for approval is 650-900, but this may vary depending on the issuer and card. Newcomers to Canada may face stricter eligibility criteria, such as a higher income requirement or a shorter credit history.
Some key features to look for in a rewards credit card include:
- Welcome bonus: Check the current offer on the issuer's website, as it may change over time.
- Fees: Varying fees apply, such as annual fees, interest rates, and foreign transaction fees.
- Earn rates: Standard rates apply to purchases, but some cards offer accelerated earn rates for specific categories, such as gas, groceries, or travel.
- Interest rate: With the current prime rate at approximately 7.20%, it's crucial to understand the interest charges on your credit card and make timely payments to avoid accruing debt.
Pros & Cons
Rewards credit cards can be an excellent way to earn points or cashback on your daily purchases, but they also come with some potential downsides. Some pros of rewards credit cards include:
- Earning rewards on your purchases, which can be redeemed for travel, merchandise, or statement credits.
- Building credit by making on-time payments and keeping credit utilization low.
- Access to exclusive benefits, such as travel insurance, purchase protection, and concierge services.
However, some cons to consider include:
- Higher interest rates, which can lead to debt if you don't pay your balance in full each month.
- Annual fees, which may not be worthwhile if you don't earn enough rewards to offset the cost.
- Complex rewards programs, which can be difficult to navigate and redeem points.
How It Compares
To find the best rewards credit card for your needs, it's essential to compare different products and issuers. Here's a comparison of three popular rewards credit cards in Canada:
| Card | Welcome Bonus | Annual Fee | Earn Rate | Interest Rate |
|---|---|---|---|---|
| American Express Cobalt Card | Check current offer | $120 | 5x points on food, 3x points on streaming, 2x points on travel | 20.99% |
| Toronto-Dominion (TD) Cash Back Visa Card | Check current offer | $0 | 1% cashback on all purchases, 3% cashback on gas and groceries | 19.99% |
| Royal Bank of Canada (RBC) Avion Visa Infinite Card | Check current offer | $139 | 1x point on all purchases, 2x points on travel | 19.99% |
Each card has its unique features, benefits, and drawbacks. It's crucial to evaluate your spending habits, financial goals, and credit score to determine which card is the best fit for you.
Who It's For
Rewards credit cards are suitable for individuals who:
- Have a good credit score (650-900) and a stable income.
- Want to earn rewards on their daily purchases, such as cashback, travel points, or merchandise.
- Are willing to pay an annual fee for premium benefits and rewards.
- Can afford to pay their balance in full each month to avoid interest charges.
Newcomers to Canada may need to consider alternative options, such as a secured credit card or a credit-builder loan, to establish their credit history before applying for a rewards credit card.
How to Apply
To apply for a rewards credit card, follow these steps:
- Check your credit score and report to ensure you meet the issuer's eligibility criteria.
- Choose a card that aligns with your spending habits, financial goals, and credit score.
- Read the terms and conditions, including the interest rate, fees, and rewards program.
- Apply online or in-person at a bank branch, providing required documentation, such as proof of income and identification.
Remember to always review the terms and conditions carefully and ask questions if you're unsure about any aspect of the card.
FAQ
What is the minimum credit score required for a rewards credit card?
A typical credit score range for approval is 650-900, but this may vary depending on the issuer and card. Some cards may require a higher credit score, while others may consider applicants with lower scores.
Can I apply for a rewards credit card as a newcomer to Canada?
Newcomers to Canada may face stricter eligibility criteria, such as a higher income requirement or a shorter credit history. Consider alternative options, such as a secured credit card or a credit-builder loan, to establish your credit history before applying for a rewards credit card.
How do I redeem my rewards points?
Redeeming rewards points varies depending on the card and issuer. Typically, you can log in to your online account or mobile app to redeem points for travel, merchandise, or statement credits. Some cards may offer exclusive benefits, such as travel insurance or purchase protection.
What is the interest rate on a rewards credit card?
The interest rate on a rewards credit card can range from 19.99% to 20.99% or higher, depending on the issuer and card. It's essential to understand the interest charges on your credit card and make timely payments to avoid accruing debt.
Can I use my rewards credit card for international transactions?
Yes, most rewards credit cards can be used for international transactions, but be aware of foreign transaction fees, which can range from 2.5% to 3.5% of the transaction amount. Some cards may offer no foreign transaction fees or exclusive benefits for international travel.
Not financial advice. Rates and offers change. Read provider terms.
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BGR's editorial team evaluates every Canadian credit card using a 7-factor scoring model aligned with FCAC guidelines.
Data sources: FCAC, CMHC, issuer websites, Equifax Canada, TransUnion Canada. Last audit: June 2026.