With so many different credit cards to choose from it can be difficult to decide which card makes the most sense for you. One of the most popular choices are credit cards that do not charge an annual fee. This helps reduce costs related to the credit card, but can also reduce the benefits and perks the credit card offers. Here we review everything you need to know about no annual fee credit cards.
Apply for a Tangerine Money-Back Credit Card by April 30, 2024 and earn an extra 10% back (up to $100) when you spend up to $1,000 in everyday purchases within your first 2 months.*
1.95% interest on the transferred balance for the first 6 months
Regarded as one of the best credit card in Canada, Tangerine Money-Back Credit Card provides no annual fee, a lucrative 2% cash back in up to 3 merchant categories, and 0.5% on all other purchases with no caps, tiers or limits. It provides choice, value and convenience to beginner credit card users and even works great as a secondary credit card.
The most notable feature is the cash back rewards. Who wouldn't want to earn money while they spend! In order to determine an estimate of how much you'll earn using this card, take your total credit card spending per month and multiply it by 1%. Typically, these card users average out to 1% cash back on purchases between the special 2% categories and 0.5% on all other purchases. If you spend $1,000 a month, you'll earn $10 ($1,000 x 0.01)!
Tangerine's Money Back Credit Card has lower than average fees as well. In addition, they are an excellent bank to work with since they're owned by Scotiabank. More often than not, Tangerine's clients benefit indirectly from Scotiabank's services without paying the big bank fees. That being said, Tangerine's services are so affordable because they don't offer in person services the way traditional banks do. If that's something you value, this card might not be right for you.
Wondering what's the difference between the 2 cards Compare the Tangerine Money Back vs World Mastercard®
If you’re looking for a straightforward cash back credit card - this could be an ideal option for you! With no annual fee, earn 1.25% cash back, obtain insurance coverage and access to American Express special events. This is an ideal credit card for individuals wanting to earn cash back without making a big commitment to an annual fee.
The American Express SimplyCash® Card features no annual fees and offers cardholders a flat, unlimited cashback rate. Just as with the SimplyCash® Preferred Card, American Express offers its members the opportunity to receive a generous bonus for referrals. Its customer care professionals are available around-the-clock to address cardholder concerns and fraud protection is included with every card.
Pros
Cons
The SimplyCash® Card from American Express is among the best choices for individuals who are looking for a cashback card that doesn't cost an arm and a leg. Because cashback earnings aren't limited with this card and the interest rate is reasonable, this card makes a great choice for everyday use. Those who travel frequently and require comprehensive insurance may want to consider upgrading to the SimplyCash Preferred Card, as the SimplyCash card's travel insurance benefits are limited by comparison.
7.99% introductory interest rate on purchases for the first 6 months
Although it comes with no bells and whistles, the Scotia Momentum MasterCard Credit Card has an attractive low balance transfer promotion that may be appealing for people looking to pay off their debt. This no-fee cashback credit card also has solid features enough to make it ideal for people who want to build their credit.
Why We Like It:
The Scotia Momentum® Mastercard® * Credit Card is a standard card that gives you a 20.99% interest rate on purchases and 22.99% on cash advances. It comes with no annual fee and gives you back 1% on all purchases.
However, what sets this product apart from the market is the 7.99% introductory interest rate for 6 months.
This card, despite being without any cost, gives you some great perks and benefits. Here are some of them below:
- Gain access to handpicked Mastercard experiences in Canada
- Get a free supplementary card for your spouse, friend or family members
- Enjoy 24-hour access to the Mastercard Global Services
- Be able to purchase from Costco wholesale
- Save up to 25% on car rentals
- Zero liability protection: you'll not be held responsible for unauthorized purchases made with your card
- Get optional protection in the event of hospitalization, disability, loss of employment or death
With no foreign transaction fee and no annual fee in one credit card, what’s not to like about the Home Trust Preferred Visa? And because this is a no fee credit card, all benefits come free.
Why We Like It:
One of the most attractive features of the Home Trust Preferred Visa is the cash back rewards. Cash can be earned on all eligible purchases and there is no limit on how much cash you can earn. Your rewards are paid as a credit to your credit card statement annually (every January).
In addition to the lucrative cash back rewards, there is no annual fee for this card. There are also secondary benefits that card holders are eligible for including no foreign exchange fees.
The most notable of this list is the lack of foreign exchange fees. If you’re an avid traveler or do a lot of online shopping in foreign currencies, the Home Trust Preferred Visa is an excellent choice. Foreign transaction fees might seem like nothing, but they add up, especially when you factor in foreign exchange rates.
Not only is the Home Trust Preferred Visa great from a financial aspect, the bank itself has stellar ideals and makes it their mission to cater to their customers. They aim to provide financial services to individuals who don’t have a typical credit background and can’t reach their financial goals with traditional banks.
There are some drawbacks to using this credit card and working with Home Trust. For one, this card is not accessible in Quebec. In addition, the amount of transactions the cardholder can incur per day is ten. Most credit card users won’t exceed this limit, but it’s a hassle to always have it on your mind. The card also does not allow for tap payments and customer service is not available 24/7, only during business hours.
Overall, the Home Trust Preferred Visa is a phenomenal choice. If you’re an individual who travels a lot, this card is especially beneficial considering how rare no foreign transaction fees are in combination with no annual fee. Home Trust is a small, yet effective, bank that delivers to their customers.
This credit card has a close cousin which is the Home Trust Secured Visa.To get more information read our review on the Home Trust Secured Visa.
Earn extra Rewards
Boingo Wi-Fi for Mastercard®
On-Demand and Subscription Services
Mobile Device Insurance
The Tangerine World Mastercard is a new addition to Tangerine’s financial products. As with the Tangerine Money-Back Mastercard, there is no annual fee, 2% cash back on three categories and 0.5% cash back on all other purchases. Some of Tangerine’s spending categories include restaurants, furniture, groceries, gas, home improvement and entertainment.
Apply for a Tangerine World Mastercard® by April 30, 2024 and earn an extra 10% back* (up to $100) when you spend up to $1,000 in everyday purchases within your first 2 months.
The World Mastercard offers new perks to their customers that are not available to Tangerine Money-Back Mastercard users. Mobile insurance of $1,000, rental car insurance worth $65,000 for 31 days and Mastercard airport experiences are perks that cardholders gain access to. Both of these insurance packages are beneficial for individuals who have a smartphone and renting cars often. In addition, with the Mastercard LoungeKey membership, you can access airport lounges all over the world at a discounted rate.
All in all, the Tangerine World Mastercard is an excellent choice because of the cash back rewards and other perks. Start earning cash on your expenditures today!
Tangerine has two credit cards. The Tangerine Money-Back Credit Card and the Tangerine World Mastercard. Both offer no annual fee and a 19.95% interest rate. They offer purchase assurance and extended warranty on products fully purchased with their credit cards.
Tangerine also offers 2% Money-Back Rewards in two categories of your choice and 0.05% on all other everyday purchases. If you deposit your Money-Back directly into a Tangerine savings account, you unlock a third 2% Money-Back Rewards category. This credit card has no cap on the amount of Money-Back Rewards you can earn. The Tangerine Money-Back Credit Card is a great choice and is competitive with the credit card options of big banks. The Tangerine World Mastercard has added benefits and is harder to qualify for. Benefits include: Mastercard travel rewards, Mastercard airport experiences, mobile device insurance, car rental insurance, and worldwide wi-fi hotspot access.
To qualify for this credit card, you must have: a gross annual income of $12,000 plus, be the age of majority in your province or territory, be a permanent resident of Canada and be clear of bankruptcies over the past 7 years.
To qualify for this credit card, you must have: $60,000 plus gross annual income OR $100,000 plus household income OR $250,000 in Tangerine bank accounts. AND you must: be the age of majority in your province or territory, be a permanent resident of Canada and be clear of bankruptcies over the past 7 years.
Yes, Tangerine will do a credit check as you must agree to a credit check as part of your application process for either credit card Tangerine offers.
Tangerine pulls credit history and credit scores using the TransUnion credit reporting agency.
Tangerine does not provide information on their website about how to increase credit card limits. In most cases, maintaining a good payment history and low borrowing load will welcome credit increases. Often banks and creditors will offer regular increases without requests, but you will be asked and must approve these increases. If you would like a credit increase, you can call and speak to Tangerine’s client service representatives, who can walk you through their specific process and submit your request for a credit increase. Tangerine, like most banks, has an online credit increase form you should be able to complete and submit on your own too.
How can I apply for a Tangerine credit card?You can apply for a Tangerine credit card online, but you will need to register as a Tangerine client first. If you are already a Tangerine client, you can apply online or call now.
Wondering what's the difference between the 2 cards? Compare the Tangerine Money Back vs World Mastercard®
If you love to get a lot of cash back on your purchases and you want to see those dollars pouring in, then you'll simply love the Simplii Financial® Cash Back Visa* Card. This "simple" cash back card offers some of the best rewards on the Canadian market, giving you cash back of up to 10%.
This amazing card comes with no annual fee and allows you to add up to 3 additional cardholders. It offers you a wide range of rewards, including unlimited cash back, payment app integration, extended protection insurance, purchase security, and extras.
In terms of cash back, you'll earn 4% on eligible restaurants and coffee shops, 1.5% on groceries, pre-authorized payments, gas & drugstore purchases, and 0.5% on all other credit card purchases. You can quickly calculate your cash back with the tool on their website.
Optionally, you can add CIBC payment protector insurance and emergency travel medical insurance. To become eligible for this card, all you need to have is a minimum of $15k household income.
The American Express Green® Card is a points card that comes with a variety of benefits. Members receive points on every purchase and can redeem them for bill credits, gift cards, travel purchases, and eligible purchases on Amazon.ca. The card also includes special access to concerts, dining, and other experiences. As with all American Express cards, the Green® Card comes with 24/7 access to customer care, fraud protection, and emergency card replacements when needed.
Features and Benefits of the American Express Green® Card
Pros and Cons of the American Express Green® Card
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The Takeaway
The American Express Green® Card is a simple, day-to-day credit card that's ideal for consumers who are after a card without annual fees. Its Membership Rewards program is a great benefit that shows appreciation for cardholders by providing access to the rewards they want most in return for using their card. While the 10,000 point bonus is a major selling point for this card, it's important for new cardholders to keep in mind that they need to spend $1,000 in the first three months to qualify for this benefit.
Neo Financial is a Canadian, technologically driven financial services company. They’ve recently partnered with Mastercard to offer their customers a cash back credit card. Cardholders earn the highest cash back when they spend with Neo Financial partners. Learn more below.
The Neo Card is ideal for individuals who live in urban areas. Neo Financial partners with thousands of restaurants, coffee shops, grocery stores and gas stations. If you don’t live close to the partner vendors, it’ll be challenging to take advantage of the cash back rewards. In addition, Neo Financial’s flexibility and no fees are beneficial for all users.
Some credit cards charge you a fee to use their credit cards. It is paid annually and covers various charges or special services provided by the card. As the name implies, no annual fee cards provide their cards without a fee.
As mentioned, there are many different credit cards, of which some charge an annual fee. These fees cover a number of special features from rewards programs to discounts or VIP status with various retailers and services. When you have a no annual fee credit card you do not pay a fee to use your card. However, it is important to remember other fees might apply such as a missed or late payment fee and you still pay interest for unpaid balances and cash advances.
No annual fee credit cards work the same way as other credit cards without having to pay a fee to use the card each year. You use it, in the same way, to make purchases or take cash advances and receive a statement with those transactions listed and tallied. You then can pay the balance or the minimum payment. For any balances carried you are charged interest, often with a higher interest rate for cash advances than purchases. You will also be charged other fees such as missed or late payment fees.
For the most part, the reason Canadians choose to pay credit card fees is that it offers them access to what often proves to be measurable financial benefits. For example, these cards tend to offer rewards programs including cash back and travel rewards in hand with special offers not available to everyone. However, there are also no annual fee credit cards that do offer rewards including cash back. Here is the advantage of no annual fee credit cards:
The only drawback to annual fee credit cards is that you miss out on the features, loyalty programs and other special offers provided by cards with a fee. Of course, these drawbacks are based on what you desire in a credit card, as opposed to any disadvantages you would find across the board.
Anyone can get a no annual fee credit card. However, those who benefit the most from these cards include:
Basically, these cards work well for people who don’t want to pay a fee, or who will not use the card often so, therefore, will waste money on fees.
When choosing a no annual fee credit card consider the following:
Interest rates
Interest rates vary from card to card and determine how much additional money you will pay for any balance you carry. Therefore when choosing a no annual fee credit card you want to find the lowest interest rate if you feel you are likely to carry a balance. This will save you money. To get an idea of how interest rates and annual fees impact your balance, a typical scenario for a balance of $4000 paid off over a year can be compared as follows:
Although you pay an annual fee of $50 for the second card, your low interest rate saves you $273 in interest. So you really need to consider interest rates and determine if it is worth paying the annual fee for that lower interest rate.
Introductory Offers
Next look at the no annual fee credit cards with introductory offers. Often you can get a lower interest rate for a limited time. While this might sound good, if you feel you are likely to carry a balance beyond this limited time offer, the introductory offer will end, and your rates could go sky high. This ends up costing you more money in the end. Therefore consider:
All of these things are important, but if you don’t intend to use the card often, finding a standard lower interest rate makes the most sense.
Rewards and Benefits
Although finding a no annual fee credit card with lots of rewards or benefits is possible, you will have less to consider when compared to cards with fees. However, there are options such as the AMEXSimply card which has no fees but offers cash back rewards, or the BMOCashback card that offers cash back on groceries and recurring bills. This can really help with savings over time, and when used for certain purchases and when paying your balance every month, you really can see some true benefits. To choose the right no annual fee credit card with rewards consider:
This can help you decide if the reward offers make sense for your needs.
Other Fees
As mentioned, although you aren’t being charged an annual fee, other fees can apply including:
All fees must be considered before you sign on for the card.
If you prefer to mostly pay cash and won’t use your credit card often, then the no annual fee credit card is ideal for you. However, if you use a credit card often, you might find it better to pay a nominal fee so you can get more perks and rewards.
Are no annual fee credit cards totally free?
Yes and no. You do not pay an annual fee, but you do still pay interest on the unpaid balance. Some cards also charge:
You have to check each card to see what additional fees you might have to pay.
Is it worth paying an annual fee for a credit card?
It really is all about what you are willing to pay, what features you want and how your credit rating will affect the cards available to you. Some reasons people choose annual fee credit cards include:
It really is based on what you are looking for from your credit card.
Can you get a no annual fee credit card with bad credit?
Yes, there are no annual fee credit cards available for those with bad credit including:
This card requires you have a $500 deposit. The interest rate is 19.99% which is applied when you carry a balance. It is a secured credit card so if you use this card and pay off the balance on time each month it is an excellent way to improve your credit score. They do charge an inactive fee of $12 if you don’t use your card in 12 months, so always use it at least once a year. The basic terms are:
This card requires applicants to earn at least $12,000 per year for approval. You also can’t have declared bankruptcy within the past seven years. Cards offer a minimum credit limit of $500 and also have a very good interest rate of just 12.99% on purchases. This is an unsecured card so is a good choice if you have a bad credit score. Watch for introductory offers when applying. The basic terms are:
These options can help rebuild your credit or build your credit history.
Mohamed Konate is a personal finance expert, blogger, and marketing consultant based in Toronto. He is a former financial services professional who worked at major Canadian financial institutions for many years. He managed the marketing strategy around various financial products ranging from credit cards to lines of credit. Mohamed is passionate about personal finance and holds a Bachelor's in Business Administration from the University of Quebec (Montreal) and a Master's in International Business from the University of Sherbrooke (Quebec). He is also the author of the Canadian Credit Card Guidebook.