One of the benefits of no-fee credit cards is taking advantage of the card rewards without paying an annual fee. This means you can continue to use the card for free if you pay your balance before the due date.
Everyone needs to build a credit history. But, before moving on to a card with an annual fee, start with a card with no annual fee to establish credit and better understand your spending habits.
However, no-fee credit cards do not offer premium benefits like travel insurance, lounge access, etc., that come with annual fee cards. (See also: When Are Annual Fee Credit Cards Worth it?).
If you are looking for the best no-fee credit cards in Canada to build your credit, here are our recommendations.
1. Mastercard MBNA Rewards Platinum Plus
Key card features
- No annual fee
- Mobile device insurance
- Birthday bonus points
- Apply through this secure link for a $50 rebate
MBNA Rewards Platinum Plus Mastercard is our favorite pick for the best no-fee credit card in Canada. Why? Compared to other cards with no annual fee, it offers a sizeable welcome bonus and excellent bonus earning rates for spending on popular categories. There’s nothing more you could ask for from a credit card with no annual fee.
Another advantage of this card is the birthday bonus. Each year, you will receive Birthday Bonus Points equal to 10% of the total number of points earned in the 12 months before the month of your birthday. This point is capped to a maximum of 10,000 Points every year.
The best part is that the rewards points are versatile and can be used for any travel booking on the MBNA Rewards platform. You can redeem points for travel at a fixed rate of 1 cent per point or for statement credits at 0.83 cents per point.
2. American Express Green Card
Key card features
- No annual fee
- 10000 MR points welcome bonus
- Exclusive access to Amex cards benefits
- Transfer points 1:1 to several frequent flyer and other loyalty programs
- Apply through this secure link for a $20 rebate
The American Express Green Card is the best option for lovers of Amex cards. If you spend $1000 in the first three months of getting your card, you will earn a Welcome Bonus of 10,000 Membership Rewards points.
As for daily rewards, you will receive 1 MR point per dollar spent on every purchase. And you can redeem your Membership Rewards points for a statement credit. (Note: 1,000 points = $10 statement credit).
In addition, you will enjoy all the benefits of having an Amex card, such as Amex Offers, Front of the Line event presale tickets, and unique invitations to notable events in Canada.
3. PC World Mastercard
Key card features
- No annual fee
- Purchase assurance and extended warranty
- 24/7 concierge service
- Apply through this secure link
The PC World Mastercard is one of PC Financial credit cards. It is an excellent no-fee card for those who regularly shop at Loblaws banner stores and Shoppers Drug Mart. The card rewards cardholders with PC optimum points that can be redeemed at every PC affiliated store across Canada.
Spend $1 at grocery stores participating in the PC Optimum program and earn 20 points. However, you will earn a boosted rate of 35 points for every $1 spent at Shoppers Drug Mart.
If you have a minimum income of $80,000, you should consider getting the PC World Elite Mastercard. It has the best earn rate and offers more unique features and perks.
In conclusion
While paying an annual fee can be worthwhile if it results in much larger earnings or more rewards, you’ll need to use the credit card perks to make up for the annual fee. For example, if you pay a yearly fee for a credit card with lounge access and you are not a frequent flyer, you are just wasting your money. (See also: Best Free Airport Lounge Access Credit Cards In Canada).
If you want a card to build your credit history, a credit card with no annual fee is your best bet.