The Best no fee Credit Cards in Canada for 2024

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Are you looking for the best no fee credit cards in Canada? Whether you’re looking to travel for less, earn cash back, or you want a card with a low interest rate, there’s a no fee card that’s good for you. I personally looked at dozens of cards to come up with my personal list of the best no fee credit cards in Canada based on some popular categories.

Credit cardBest for
American Express Green CardTravel
CIBC Aeroplan Visa CardAeroplan
Tangerine Money-Back Credit CardCash back
SimplyCash Card from American ExpressFlat rate cash back
Wealthsimple Cash CardNo foreign exchange fees
Rogers MastercardCash back for Rogers customers
PC Financial World Elite MastercardGroceries
Scotiabank Scene+ Visa CardStudents
MBNA True Line MastercardLow interest / Balance transfer
Neo Secured CardSecured card

Best no fee card for travel

American Express Green Card

  • No annual fee
  • 10,000 Membership Rewards points welcome bonus
  • Earn 1 point per $1 spent on all purchases
  • Earn 1 Additional point per $1 spent on American Express Travel
  • Buyer’s assurance and purchase protection

The best no fee credit card in Canada for travel is the American Express Green Card. You’ll earn 2 American Express Membership Rewards points per $1 spent on hotels and car rentals booked via Amex Travel Online, while all other purchases get you 1 point per $1 spent. 

American Express Membership Rewards is incredibly Flexible. 1,000 points can be redeemed for a $10 statement credit. That means you can apply your points to travel or everyday purchases. That makes Membership Rewards a hybrid travel/cash back program, which will appeal to many people.

In addition, American Express has a fixed points travel program where you can double the value of your points when redeeming them for select flights. Alternatively, you can transfer your points to some travel loyalty programs such as Aeroplan and Marriott Bonvoy.

Eligibility: There’s no minimum income required. A credit score of 660 is recommended before applying.
Welcome bonus: It’s consistently been 10,000 points when you charge $1,000 to your card in the first three months of cardmembership.

Best no fee card for Aeroplan Rewards

CIBC Aeroplan Visa Card

  • No annual fee
  • 10,000 Aeroplan points when you make your first purchase
  • Earn 1 Aeorplan point per $1 spent on gas, groceries, and Air Canada
  • Earn 1 Aeroplan point per $1.50 spent on all other purchases

If you want to earn Aeroplan points but don’t want to pay an annual fee, the CIBC Aeroplan Visa Card is the best choice. Your earn rate is 1 Aeroplan point per $1 spent on gas, groceries, and Air Canada purchases. All other expenses get you 1 Aeroplan point per $1.50 spent. Generally speaking, 1 Aeroplan point is worth 1.5 to 2 cents each, so there’s some good value here.

Since Air Canada is the largest airline in Canada, it makes sense for people who want to save on travel to collect Aeroplan points. The points you’ve accumulated can be used for any available seat on Air Canada. This includes their mainline, Rouge, and Jazz. In addition, Aeroplan has 45+ airline partners that make some seats available for redemption with points. In other words, it’s possible to get to most destinations in the world on points.

Although this is a no fee card, you still get some basic benefits. Any purchases charged to your card are covered for 90 days from theft, loss, and damage. The manufacturer’s warranty is also doubled for up to one additional year. Note that despite this being a co-branded Aeroplan card, you get no Air Canada benefits.

Eligibility: Minimum income of $15,000. A credit score of at least 640 is recommended.
Welcome bonus: Typically 10,000 Aeroplan points after your first purchase.

Best no fee card for cash back

Tangerine Money-Back Card

  • No annual fee
  • 10% cash back up to $1,000 in spending ($100 cash back) for the first 2 months
  • 2% cash back on up to 3 categories
  • 0.5% cash back on all other purchases

With the Tangerine Money-Back Credit Card, you get to pick two categories to earn 2% cash back. A third category is given if you have your cash back paid directly into your Tangerine account. Some categories include grocery, restaurants, gas, drug stores, and more. All other purchases earn you 0.5% cash back. It’s no surprise that this is one of the best no fee credit cards in Canada since no other card allows you to pick your bonus categories.

Unlike some of the best cash back credit cards in Canada, Tangerine pays out your rewards monthly, regardless of how much cash back you’ve accumulated. You can apply your cash back as a statement credit, or you can have it deposited right into your Tangerine Savings Account. Going the deposit route is more beneficial since it gives you access to that third 2% category.

It’s worth noting that there’s also a Tangerine World Mastercard available where you get additional benefits such as mobile device insurance (cell phone protection) and a Mastercard Travel Pass Provided By DragonPass (no free passes). You’ll automatically be considered for this card if you meet the higher minimum income requirement.

Eligibility: A personal income of $12,000. If you have a personal income of $60,000, a household income of $100,000, or a balance of $250,000 or more with Tangerine, you may qualify for the Tangerine World Mastercard. A minimum credit score of 660 is recommended.
Welcome bonus: Typically 10% cash back up to $1,000 in spending in the first two to three months. This bonus offer has been worth as much as 15%.

Best no fee cash back card for flat rate

SimplyCash Card from American Express

  • No annual fee
  • Spend $300 each month and get a $10 statement credit for 10 months ($100 total)
  • 2% cash back on groceries
  • 2% cash back on gas purchases
  • 1.25% cash back on all other purchases
  • Buyer’s assurance
  • Purchase protection

The SimplyCash Card from American Express is appealing since it gives you 2% cash back on gas and grocery purchases. All other purchases give you 1.25% cash back. While the increased earning rate on gas and groceries is great, each is capped at $15,000 in spending each year. Once you reach that cap, your earning rate drops to the base earning rate of 1.25%.

This increased flat rate is good for anyone who spends a lot outside of the standard enhanced categories. That said, with American Express, your cash back is paid out only once a year as a statement credit in January. This is annoying for some people since many cards now offer monthly payments.

On a positive note, you get some good benefits such as travel accident insurance, buyer’s assurance and purchase protection. In addition, you get access to American Express experiences, which include things such as front of the line presales, reserved tickets, and offers.

Eligibility: There’s no minimum income required. A credit score of 660 is recommended before applying.
Welcome bonus: New cardholders usually get a $10 statement credit when spending $300 each month for 10 months. That’s a total of $100 in statement credits you could earn.

Best no fee card for no foreign transaction fees

Wealthsimple Cash Card

  • No annual fee
  • Up to $3,000 welcome bouns
  • 1% back in cash, stocks, or crypto on all purchases
  • 4% interest on deposited funds
  • No foreign transaction fees on purchases or ATM withdrawals
  • CDIC insurance protection

Without a doubt, the Wealthsimple Cash Card is the best no fee credit card without foreign transaction fees. Most Canadian credit cards charge you a fee of 2.5% whenever you make a purchase in any currency that’s not Canadian dollars, but not with the Wealthsimple Card. Instead, you just pay the spot rate. This applies to ATM withdrawals, too, but note that the local ATM may charge you a one-time fee.

In addition, you’ll earn 1% cash back on all purchases made. Plus, any funds you have deposited to the card earn you interest. Deposits are required since this is a prepaid card. That means your spending limit is tied to how much you have on your card. You also won’t earn a credit history since this isn’t a real credit card.

There are many no foreign transaction fee credit cards in Canada, but the Wealthsimple Cash Card is arguably the most convenient and gives you the most benefits. 

Eligibility: Must have a Wealthsimple Cash account, but no income or credit history is required.
Welcome bonus: Up to $3,000 (it’s random)

Best no fee cash back card for Rogers customers

Rogers Mastercard

  • No annual fee
  • 10% Cash back for 3 months (up to $100)
  • 2% cash back on all purchases for Rogers, Fido and Shaw postpaid customers
  • 1.5x redemption bonus on Rogers, Fido and Shaw purchase
  • 5 Free Rome Like Home days

The Rogers Mastercard is the best no fee, cash rewards credit card. But there’s a catch. You must have at least one qualifying Rogers, Fido, or Shaw service to maximize your earning and rewards potential. If you meet the criteria, you’ll get 2% cash back on all your purchases. If you don’t have a qualifying service, you’ll only earn 2% cash back on U.S. dollar purchases and 1% cash back on everything else.

To sweeten the deal, if you apply the cash back you’ve earned to Rogers services or products, you’ll get an additional 30% in cash back. That works out to a flat earning rate of 2.6%, which is higher than some cards with an annual fee.

The other major benefit of this card is five free Roam Like Home days. That’s a value of up to $75, but only Rogers wireless customers can access Roam Like Home, so it’s useless if you’re with Fido or anyone else.

Eligibility: There’s no minimum income required. A credit score of 660 is recommended before applying.
Welcome bonus: 10% Cash back for 3 months (up to $100 in cash back earned).

Best no fee card for groceries

PC Financial World Elite Mastercard

  • No annual fee
  • Earn 45 PC Optimum Points per $1 dollar spent at Shoppers Drug Mart
  • Earn 30 PC Optimum Points per $1 spent where PC Products are sold and at PC Travel
  • Earn at least 30 PC Optimum Points per litre at Esso/Mobil locations
  • Earn 10 PC Optimum Points per $1 spent on all other purchases

Anyone who shops at Loblaws-owned grocery stores, such as Loblaws, No Frills, and Superstore, should get the PC Financial World Elite Mastercard. The earning rate is 45 PC Optimum points per $1 spent at Shoppers Drug Mart, 30 points at Loblaws-owned grocery stores and Esso/Mobil gas stations, and 10 points on all other purchases. That works out to a 3% return at eligible grocery stores. It’s no wonder this card is on the list of the best no fee credit cards in Canada.

You can redeem 10,000 PC Optimum points for $10 off when buying groceries at Loblaws-owned stores. However, if you wait for bonus redemption events at Shoppers Drug Mart, you can get extra value. For example, some past promotions have included redeeming 200,000 points for $300 off. That’s an extra $100 in value.

This card is only beneficial if you shop at Loblaws-owned grocery stores. If you get your food from somewhere else, you’ll want to consider a different card.

Eligibility: A personal income of $80,000 or $150,000 is required. That said, two other PC Financial Mastercards have lower earning rates and a lower minimum income requirement. A credit score of 700 is recommended.
Welcome bonus: You can sometimes get up to 100,000 PC Optimum points when signing up in a store.

Best no fee card for students

Scotiabank Scene+®* Visa* Card

  • No annual fee
  • 2,500 Scene+ points when you spend $250 in the first 3 months
  • Additional 2,500 Scene+ points when you spend $1,000 in the first 3 months
  • Earn 2 Scene+ points per $1 spent at Cineplex™ theatres, and Empire owned grocery stores
  • Earn 1 Scene+ point per $1 spent on all other purchases

I personally recommend the Scotiabank Scene+ Visa Card to any student who who wants a no annual-fee card. The rewards you earn are useful to students, there’s a high chance of being approved if you bank with Scotiabank, and you get a minimum credit limit of $500.

As for the earning rate, you’ll get 2 Scene+ points per $1 spent at Empire-owned grocery stores (Sobeys, Safeway, Foodland & Participating Co-ops, FreshCo, etc.), Home Hardware, and Cineplex. All other exepnses earn you 1 Scene+ point per dollar spent.

When you’re ready to redeem your Scene+ points, you can redeem 1,000 points for $10 off Empire-woned grocery stores, Cineplex, and select restaurants (Swiss Chalet, Harvey’s, East Side Mario’s). This is ideal for students as it gives you discounts on groceries, entertainment, and dining. 

Eligibility: A personal income of $12,000 is required, but students may be approved without income. The recommended minimum credit score before applying is 660.
Welcome bonus: Typically worth 5,000 Scene+ points when spending $750 in the first three months.

Best no fee card for roadside assistance

Tangerine World Elite Mastercard

  • No annual fee
  • Earn 4% in CT Money at Canadian Tire, Sport Chek, Mark’s/L’Équipeur, Atmosphere, Party City, Sports Rousseau, Hockey Experts, L’Entrepôt du Hockey, and participating Sports Experts stores
  • Earn 3% in CT Money on grocery purchases (up to $12,000), 1% on all other purchases
  • Earn 7¢ per litre in CT Money on premium fuel, and 5¢ per litre on all other fuel types at Gas+/Essence+ locations
  • Free Roadside Assistance Gold Plan
  • No fee, no interest financing available

The Triangle World Elite Mastercard is a highly underrated card. The best benefit you get is the Roadside Assistance Gold Plan. This serviceperk normally costs $99.95 annually and gives you access to 24-hour tows, battery boosts, fuel delivery, flat tire changes and more. Each year, you’re entitled to give service calls up to 250 kilometres, but if you’re going to a Canadian Tire Auto Service centre within your limits, there’s no limit.

The earning rate for this card is also good. You’ll get 4% in CT Money at Canadian Tire, Sport Chek, Mark’s/L’Équipeur, Atmosphere, Party City, Sports Rousseau, Hockey Experts, L’Entrepôt du Hockey, and participating Sports Experts stores, 3% at grocery stores (up to $12,000 per year) and 1% on all other purchases. If you fill up at Gas+/Essence+ locations, you get 7¢ per litre in CT Money on premium fuel and 5¢ per litre on all other fuel.

One other benefit of this card that’s worth mentioning is the no interest financing. When you make a purchase of $150 or more at participating Canadian Tire corporate-owned merchants, you can choose to pay for the purchase in installments over a one-year period. If your purchase is $500 or more, you get a two-year window. There are no additional fees or charges as long as you make your payments on time.

Eligibility: A personal income of $80,000 or $150,000 is required. A minimum credit score of 700 is recommended.
Welcome bonus: None.

Best no fee prepaid card


  • No annual fee
  • $20 for free when signing up with a referral link
  • Earn up to 5% cash-back
  • 1% cash back on groceries and transportation
  • 0.5% interest on your spending and savings accounts with direct deposit set up

KOHO has quickly become one of the best prepaid cards in Canada. Although you won’t build your credit score when using this card, it does help you manage your money. Through the KOHO app, you can get a detailed breakdown of your spending. By analyzing this data, you can make adjustments to your budget. 

Even though this is a prepaid card, you can earn up to 5% cash back on your purchases. There’s a base earn rate of 1% cash back on grocery and transportation purchases. Select retail partners will give you 5% cash back. As for any money deposited to your card, you’ll get 0.5% interest. It is possible to get a higher earning and interest rate, but that requires a paid subscription.

Admittedly, if you want a prepaid card, the Wealthsimple Cash Card gives you a higher cash back and interest rate. However, KOHO has better tools if you’re looking to manage your spending.

Eligibility: None.
Welcome bonus: $20 when signing up with a referral link.

Best no fee card with low interest

MBNA True Line Mastercard

  • No annual fee
  • 0% balance transfer for 12 months – 3% balance transfer fee applies
  • 12.99% standard interest rate
  • Save with Avis Rent A Car and Budget Rent A Car

Anyone who wants to focus on paying down their debt should consider the MBNA True Line Mastercard. A balance transfer promotional rate of 0% interest is available for 12 months, as long as new cardholders perform the transfer within 90 days of account opening. Although there’s a balance transfer fee of 3%, the interest you’ll save overall could be worth it.

Once the promotional period ends, your interest rate increases to 12.99%. That’s the same interest rate for new purchases. Despite this higher rate, it’s still much lower than most other credit cards, as they typically charge 20% – 24% interest. The idea here is to pay down your balance as quickly as possible before your rate goes back up.

Eligibility: There’s no minimum income requirement. A minimum credit score of 660 is recommended.
Welcome bonus: Balance transfer option with 0% interest for 12 months (3% fee applies).

Best no fee secured card

Neo Secured Credit Card

  • No annual fee
  • Up to 15% cash back on first-time purchases at participating partners
  • 5% Average cash back at over 12,000 Neo partners
  • 0.5% minimum cash back guarantee (up to $50 per month)

The Neo Secured Credit Card is designed for people wit little to no credit history or who are looking to improve their credit score. Since the card has guaranteed approval and no annual fee, it can be a good choice for people in different situations.

Since this is a secured card, you need to load funds which act as a security deposit. Although you can’t use these funds to pay your balance, you will get the money back if you cancel your cards. Secured cards are designed for consumers who want to show that they’re responsible with credit. As long as cardholders use their cards responsibly, they should see their credit score increase over time.

What’s interesting about this secured credit card is that it offers cash back rewards. Neo claims the average cash back earned is 5%, but you’re guaranteed a minimum of 0.5% cash back if you average less than that.

Eligibility: You’re guaranteed to be approved for this card.
Welcome bonus: Up to 15% cash back on your first-time purchases at participating merchants.

What is a no fee credit card?

A no fee credit card is a credit card that doesn’t charge an annual fee. Unlike premium credit cards that often give you a generous welcome bonus when you spend a certain amount within three months of cardmembership, no fee cards typically have no or a limited welcome bonus. In addition, no fee cards typically have limited additional benefits.

That said, some premium credit cards have promotions where the annual fee is waived for the first year. That means you can test out the card for a year without paying any fees. That’s quite the incentive since you can get incredible benefits such as insurance coverage for car rentals and an increased earn rate on dining with select cards.

Fees that still apply

While the term ‘no-fee credit card’ is meant to refer to a credit card with no annual fees, the ‘no-fee’ part can be misleading. There are still other fees that you need to be aware of when holding these credit cards.

  • Interest charges – If you do not pay off your credit card in full every month’s billing cycle  then you risk being charged interest charges on your credit card balance. Credit cards are known to have very high interest rates, around 20%, so this is something you want to avoid.
  • Foreign transaction fees – If you shop online in a different currency or travel abroad and use your credit card to pay for something in a different currency then you will likely be charged foreign transaction fees. There are specific credit cards in Canada that waive these fees but most don’t and will result in a 2.5% surcharge on your purchase.
  • Cash Advance fees – If you choose to take out cash from your credit card rather than your debit card there is a fee associated with that plus additional interest charges. It’s best to avoid this because it can result in so many fees but it can be handy in an emergency situation. Just be sure to pay it off right away and don’t take out more than you need.
  • Inactivity fee – Inactivity fees are charged when you haven’t used your credit card for a prolonged amount of time. Usually, it’s a year and the charge is around $10. 
  • Over-limit fees – When you get a credit card there is a limit as to how much you can spend on it. If you go over that amount, you’ll be charged a fee of around $30. If you think you will have to go over your limit, it’s best to get in touch with your credit card provider and ask them to increase the limit. 
  • Balance Protection Insurance – This is an add-on feature that many credit card providers encourage you to opt into. Essentially, it’s used to pay off your credit card balance in the event of your death so your family doesn’t have to worry about it. However, it’s incredibly expensive. 

No fee credit card features

Typically speaking, no-fee credit cards aren’t known for their perks and benefits. These are generally reserved for credit cards that do charge a fee and oftentimes, the higher the fee the better the benefits. That being said, these days, we see more no-fee credit cards offered with some perks. You can’t expect airport lounge access (those are typically reserved for high-end travel cards) but some features you might see offered include things like purchase assistance and extended warranty. You may also see some basic insurance coverage and brand-specific benefits like American Express Experiences and Front of the Line access to advance ticket sales.

Do no fee credit cards earn rewards?

Many of the best no fee credit cards in Canada earn you rewards. The type of rewards you’ll earn depends on the type of card you get. Generally, you can break down rewards into three categories:

  • Travel – With travel rewards, you’ll earn points or miles, which can then be redeemed for free or discounted travel. Aeroplan, Air Miles, and American Express Membership Rewards are the most popular travel rewards programs.
  • Cash back – Cash back cards are easier to understand than travel rewards since you’ll earncash back on all your purchases. Best of all, some bonus categories will give you an increased earn rate.
  • Store and retail – A few stores have their own loyalty program or are partnered with a loyalty program where you can earn rewards points. The points you earn can later be used for discounts, merchandise, gift cards, and more. Some retail loyalty programs include PC Optimum and Scene+.

How to choose a no fee credit card

With a no-fee credit card you are starting on equal ground as all your options have no annual fee. From here there are a few things you can consider and compared to choose the best credit card for you. Look at:

  • The interest rate
  • Any rewards programs
  • Perks or benefits included in the credit card
  • Welcome bonus for new cardholders 

How to apply for a no fee credit card

Applying for an airline credit card follows the same method as other credit card applications. They are often easiest when completed online but if there is a physical branch for the card issuer, you can do it in person as well. 

  1. Gather all necessary documents needed for the application. You will need to know all of your personal information including contact information. Your annual income and contact information for your workplace is also required. You may need your social insurance number (SIN) so have that handy as well.
  2. Decide which card you would like to apply for based on the list above. Consider the application requirements and make sure you qualify. Most credit cards have credit score and minimum income requirements. Once you have determined your card choice, go to the web page for the credit card and click the button to apply. Or visit a bank branch in person to start your application if applicable. Step 3: Fill out the form. Note that you will presented with some small print details. credit card. Make sure you understand the terms and conditions. If you are happy, continue the application form and submit it online or to a representative at the bank.
  3. Wait for approval. Many online applications offer instant approval but it still might take a couple of weeks for the card to get to you. Once received, activate it and you can start using it. 

Are no fee credit cards worth it?

When it comes to applying for a new credit card, many people look towards rewards cards or cash back cards, which will give them something in return for using their credit card. However, these cards often come with fees. If you don’t use a credit card a lot, then it might not be worth paying for one with an annual fee. In this case, a no-fee credit card is a smart choice. But, if you plan on using a credit card frequently, it might be worth considering getting one with higher rewards. 

No fee credit cards are also good for those just starting out and looking to build credit. Typically, they don’t require high credit scores and annual income which makes them easier to apply for.


What is the best no fee credit card in Canada?

As mentioned above, no fee credit cards don’t tend to have the same perks as credit cards that do charge an annual fee, there are are sometimes still benefits and rewards offered that might be worth taking advantage of depending on your spending habits. For example, Tangerine money back offers cash back while the CIBC Aeroplan Visa allows you to earn Aeroplan points on your purchases. Another critical thing to pay attention to is the welcome bonus as these vary from card to card.

Can you get a no annual fee credit card with bad credit?

This depends on your circumstances. While most no fee credit cards may not require high income or excellent credit scores to qualify, that doesn’t mean everyone can qualify.

If you are a student with no credit, then there are no fee student credit card options, which you will likely be approved for. However, if you are someone with poor credit or a new-comer to Canada, you likely would be better off starting with a secured credit card to build your credit, then move onto a no annual fee credit card from there.

Who should get a no fee credit card?

There are a few scenarios where getting one of the best no fee credit cards in Canada makes sense. In the end, it depends on your situation, but consider the following:

  • You want to minimize your costs – Since no fee credit cards won’t cost you anything and you still get access to credit, they can be a great tool to help you manage your finances without becoming an additional cost to worry about. 
  • You need a back up credit card – Many people have a primary credit card but keep a backup card in their wallet just in case. This is handy if the merchant does not accept your main card’s credit card issuer (Visa, Mastercard, or American Express). Or in situations where you may lose a credit card, have it compromised, or even just have a big purchase that you need to divide onto a couple of credit cards. 
  • You don’t use credit much – There are some people that prefer to use cash or their debit card. This is perfectly acceptable, but there are some places that require you to have a credit card. For these situations, it’s likely not worth getting a cash back or rewards card. If you rarely use it, then you won’t get enough value to make it worth the annual fee. So in this circumstance, a no fee credit card is great to have handy in your wallet. 
  • You want to build your credit score – Using your credit card responsibly will help you improve your credit score. This is especially true for students who are getting their first credit cards and starting to build credit. Many student cards are no-fee cards making it easy to start building your credit without having to worry about bringing on any additional costs.

Are credit cards with an annual fee better?

Some people are totally against the idea of paying an annual fee for a credit card, but the benefits typically far exceed what you’re paying. That said, premium credit cards can chance an annual fee of $120 to $699, so it is a healthy amount to be paying.

You need to ask yourself, how much value are you getting from the annual fee? For example, many travel rewards credit cards come with comprehensive travel insurance. That benefit is typically worth $300 a year, which is much more than a card that has an annual fee of $120 – $150.

Even the American Express Platinum Card, which has an annual fee of $699, pays for itself since you get perks such as unlimited lounge access, hotel status upgrades and more.

As long as you can extra more value out of the benefits provided than what you’re paying in annual fees, you’re coming out ahead.

What are the pros and cons of a no fee credit card?

Like all credit cards, there are pros and cons to be aware of when debating a no-fee credit card. Here are the main points to be aware of to help in your decision making.

Pros of a no fee credit card

Besides not having to pay an annual fee, no fee credit cards can be useful for many reasons including:

  • Building your credit history – Your credit score is important if you ever want to get a loan in the future. Using a no fee credit card and paying your bills in full and on time will show lenders that you’re creditworthy.
  • You can make purchases – You can obviously make purchases with any credit card, but a no fee credit card is best suited for people who don’t use credit often. Get a no fee card and keep it in your wallet so you can access credit when needed.
  • It can be a backup card – If you already have one of the best travel credit cards in Canada, then getting one of the best no fee credit cards in Canada can complement your spending. For example, American Express isn’t accepted anywhere so you can use your no fee card instead.

Cons of a no fee credit card

While there’s no denying the advantages of a no fee credit card, there are also some disadvantages to consider.

  • Mediocre welcome bonuses – Don’t expect the sign up bonus to be anything spectacular.
  • Lower earn rate – A 50% decrease in earn rate compared to premium credit cards isn’t uncommon and applies to cash back and travel rewards cards.
  • Fewer benefits – You typically get limited benefits with no fee cards. It’s unlikely you’ll get things such as extended travel medical insurance, mobile device insurance, lounge access or travel credits.

on’t incur any interest charges. That said, paying an annual fee can be worth it since the welcome bonus and annual perks are almost always worth more than the fee you pay.

About Barry Choi

Barry Choi is a Toronto-based personal finance and travel expert who frequently makes media appearances. His blog Money We Have is one of Canada’s most trusted sources when it comes to money and travel. You can find him on Twitter:@barrychoi

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