5 best personal credit cards in Canada

If you aren’t familiar with credit cards and how they work, it can be difficult to differentiate between a good one and a bad one at first. But once you get a hang of the basic features of most credit cards, the good and the bad aspects of every card become more apparent. In this article, we will be reviewing some of the best credit cards Canada to help you make the best decision depending on your needs and situation.

The Best Overall Credit Card

If you prefer getting one card for all your payments, the American Express Cobalt Card is your best pick. The card is relatively new in the market but it offers shoppers the highest rewards. You will get the best deal of 5x the amount you spend on food and 2x the expenditure on travel. The card also gives you a point for every other dollar you spend.

American Express has given card users a relief from the high annual fee that most cards charge in a lump sum. Instead of paying a lump sum of $120, you can pay $10 per month. The same applies to bonus rewards. You do not need to spend a large amount to be eligible for the bonus payout. For every month you spend $500, you earn 2,500 points.

Best Credit Card for Travel

The best credit cards include reward points for travel expenses. You can pay in cash for many expenses within the month but travelling requires a lump sum payment, especially when booking flights. If you travel a lot for business or pleasure, the American Express Gold Rewards Card is for you. The card charges an annual fee of $150 and has no limit on the minimum personal income. You can access it if your credit score is anywhere between fair and good.

You need to spend at least $1500 within the first three months to enjoy the huge welcome bonus of 25,000 points. The great thing about this bonus is that you can convert it into 25,000 bonus Aeroplan miles at no cost. You can use the free miles to redeem a return from any city in Canada and North America. Alternatively, you can get $200 worth of credit against your travelling expense.

In addition to the huge welcome bonus, you earn two Aeroplan miles for every dollar you spend on travel, gas, groceries, and pharmacy. Most credit cards in the market offer 1.5 miles per dollar.

Best Credit Card for Cash Back

If you do not need a card for a specific category of payments like travelling or insurance, consider the cashback rates. For this category, our choice is Tangerine’s Cash-Back Card for various reasons.

One of the things we like about this card is how convenient it is. The credit card makes it so easy for you to choose payment categories that will earn you the highest returns. Even if you use one card for all payments, you know where you spend most of your income. And redeeming your earnings is super easy. You can apply your monthly cash back to your balance or send it to your Tangerine Savings Account.

The Tangerine card offers different categories where you can earn 2% cash back on purchases. The categories include hotel-motel, drug stores, furniture, home improvements, public transport and parking, recurring bills, and entertainment. And you can earn 0.5% on all other purchases that do not fit into the two or three high-earning categories. However, please note that while the card has no annual fee, you need a minimum personal income of $15,000 to be eligible.

The Best Credit Insurance Coverage

You earn points for the amount you spend on airfare and purchases when travelling. However, you need protection in case the unexpected happens and you are involved in an accident or incidents. The BMO World Elite Mastercard ranks near the top of the best credits cards in Canada for insurance coverage. Your credit score should be at least good and your income at least $80,000 to apply.

The out-of-province emergency cover is perhaps the best offer that Canadians get from this credit card. Should you experience an emergency when travelling, you enjoy a $2 million medical cover for your hospital and other related costs. Your cover is not limited to the $2 million worth of medical expenses. The card covers you for trip cancellation, flight delays, rental cars, interruptions, and lost baggage.

Other services that you enjoy on a trip include replacing lost documents and emergency cash. Cardholders enjoy a welcome bonus of 35,000 points and access VIP lounges at airports. In addition, you earn two points for every dollar spent on eligible purchases.

Best Credit Card for Household Expenses

We cannot end this review without considering one major expense that most people prefer to pay with a credit card. Many people get surprised at the amount charged on their cards for household items. You can cut back on many credit expenses, but household expenses will always be on the budget. We recommend the CTFS Triangle World Elite Mastercard for such expenses. The first feature that should make you consider this card is that it has no annual fee and no minimum income requirement.

You can apply for the card with a fair credit score and start earning from your daily or weekly shopping trips. Cardholders earn a high reward of 3% of all their purchases from the eligible grocery stores. Some transactions qualify for a 4% cash back rewards. The best part about the rewards is that you can spend them as cash in all participating stores. Another feature to note about the Canadian Tire Money is that has no expiry date. You can use it at any time as long as your account is open.

So, which card is the best for you? Analyze your spending habits and then pick one with the highest rewards for your highest expenses. You can apply for more than one card to increase your earnings as long as you do not overspend. However, make sure to consider the application requirements and the process of redeeming your rewards and points as well.