Canada
How to Choose a Credit Card in Canada (2026): Fees, Rates and Rewards Compared
Rewards are worth nothing if the interest rate eats them. Price the card by how you actually pay.
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- Typical purchase APR
- 19.99%-22.99%
- Cash advance APR
- 22.99%+ from day one
- No-fee cash back
- 1%-2%
- Foreign transaction fee
- 2.5% typical
The APR decides if you carry a balance
At 20.99%, a $3,000 balance costs about $52 a month in interest. No rewards rate survives that, so a low-rate card beats a rewards card for anyone carrying debt.
Cash advances start accruing immediately
There is no grace period on a cash advance and the rate is higher. A card used for ATM withdrawals is a different product to one used for groceries.
The 2.5% foreign fee is the quiet cost
On $500 of US spending that is $12.50 before any exchange margin. For cross-border spending, a no-FX card pays for itself fast.
Compare the insurance, not just the rate
Travel medical, rental cover and purchase protection vary widely. Read the certificate, not the summary box.
FAQ
Is a rewards card worth it with a balance?▾
Rarely - the interest exceeds the rewards.
What is the minimum payment in Canada?▾
Usually 3% of the balance or $10, whichever is more.
Do no-FX cards exist?▾
Yes, from several issuers.
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