Credit card types in Canada compared
How the main kinds of credit card work, who they suit and what to watch for, without ranking any issuer.
This table compares card structures, not specific cards or issuers. The same structure can be generous at one issuer and poor at another, and earn rates and fees change often. Use the table to decide which type fits your spending and payment habits, then compare actual cards using the information box on each application and the rewards value calculator.
Select a column header to sort.
| Card type | How it works | Good for | Watch out for |
|---|---|---|---|
| No-fee flat cashback card | Same percentage back on almost every purchase, paid as a statement credit or deposit | Simple spenders who want no annual fee and no tracking | Flat rates are usually low; some pay cashback only once a year |
| Tiered or category cashback card | Higher percentage on categories such as groceries, gas or recurring bills; base rate elsewhere; often with an annual fee | Households whose spending is concentrated in the bonus categories | Annual caps on bonus categories; merchant category codes decide what counts |
| Fixed-value points card | Points redeemable at a set value, often against travel or a statement credit | People who want points flexibility without learning transfer partners | Value per point varies by redemption; gift cards and merchandise often return less |
| Transferable or airline/hotel points card | Points can move to travel programs where award value varies by route and date | Frequent travellers willing to plan redemptions | Value is hard to predict; taxes and fees on award travel; program rules change |
| Store or co-branded retail card | Rewards or discounts at one retailer or network, sometimes with financing offers | Loyal shoppers at that retailer who pay in full | Higher interest rates are common; deferred-payment plans can carry heavy charges |
| Low-interest card | Lower purchase rate, few or no rewards, sometimes an annual fee | People who sometimes carry a balance | Rewards are minimal; check the cash advance rate and fees |
| Balance transfer promotional card | Low promotional rate on transferred balances for a set number of months, usually with a transfer fee | Clearing existing card debt quickly | Transfer fee; rate reverts; new purchases may be charged the regular rate |
| No foreign transaction fee card | Purchases in other currencies converted without the usual extra percentage fee | Travellers and people who often buy from foreign online merchants | May have an annual fee; the network exchange rate still applies |
| Secured credit card | Credit limit backed by a deposit you provide | New arrivals to Canada and people rebuilding credit | Fees vary; check that it reports to Equifax and TransUnion |
Descriptions are general; none of the figures on this site is an offer. Check every card's information box before you apply. Federal rules for banks are in the Bank Act and the Financial Consumer Protection Framework Regulations on the Justice Laws Website and are supervised by the Financial Consumer Agency of Canada. Quebec rules are explained by the Office de la protection du consommateur. Complaints that a bank does not resolve go to OBSI.