5 Best Low Monthly Fees Credit Cards
When it comes to managing your finances, finding the right credit card can make a significant difference. For Canadians, the key is often balancing the benefits of a credit card with its costs.
Low monthly fee credit cards are particularly attractive because they offer the perks and flexibility of credit cards without the burden of high annual fees.
In this article, we will explore five of the best low monthly fee credit cards available in Canada, detailing their benefits, costs, and who they are best suited for.
1. Tangerine Money-Back Credit Card
The Tangerine Money-Back Credit Card is a popular choice among Canadians seeking a low-cost credit card with solid cashback rewards.
This card is unique in that it allows you to choose your own cashback categories, giving you the flexibility to earn more on the purchases that matter most to you.
Key Features:
- Monthly Fee: $0 (No annual fee)
- Cashback: 2% on up to three spending categories of your choice (e.g., groceries, restaurants, gas, etc.) and 0.5% on all other purchases.
- Welcome Offer: 15% cashback on up to $1,000 in purchases within the first two months.
- Interest Rate: 19.95% on purchases.
Who It’s Best For:
The Tangerine Money-Back Credit Card is ideal for budget-conscious individuals who want to earn cashback without paying an annual fee.
It’s particularly beneficial for those who spend regularly in specific categories, as you can maximize your rewards by selecting the ones that match your spending habits.
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2. Rogers World Elite Mastercard
The Rogers World Elite Mastercard is another excellent option for those looking for a card with low fees and generous rewards.
Although it comes with a slightly higher income requirement, the benefits it offers, especially for frequent travelers and online shoppers, are substantial.
Key Features:
- Monthly Fee: $0 (No annual fee)
- Cashback: 1.5% on all purchases, 3% on purchases in U.S. dollars, and 2% on Rogers products and services.
- Travel Insurance: Includes trip cancellation/interruption insurance, emergency medical insurance, and rental car collision/damage insurance.
- Interest Rate: 19.99% on purchases.
Who It’s Best For:
This card is best suited for individuals who frequently travel to the U.S. or shop online in U.S. dollars. It’s also a great choice for those who want to earn consistent cashback without the hassle of categorizing their spending.
3. MBNA True Line Mastercard
For those who prioritize low-interest rates over rewards, the MBNA True Line Mastercard is a standout option.
This card offers one of the lowest interest rates on the market, making it a great choice for anyone looking to minimize their interest payments.
Key Features:
- Monthly Fee: $0 (No annual fee)
- Interest Rate: 12.99% on purchases (significantly lower than the standard 19.99%).
- Balance Transfer Offer: A promotional 0% interest rate on balance transfers for the first 10 months (1% transfer fee applies).
- Additional Perks: Extended warranty and purchase protection.
Who It’s Best For:
The MBNA True Line Mastercard is perfect for individuals who occasionally carry a balance and want to avoid high-interest charges.
It’s also a good choice for those looking to consolidate debt through a balance transfer offer.
4. BMO CashBack Mastercard
The BMO CashBack Mastercard offers a simple, straightforward cashback program with no annual fee, making it an attractive option for everyday use.
Its easy-to-understand rewards structure and additional perks make it a competitive choice in the low-fee category.
Key Features:
- Monthly Fee: $0 (No annual fee)
- Cashback: 3% on groceries, 1% on recurring bill payments, and 0.5% on all other purchases.
- Welcome Offer: 5% cashback on all purchases for the first 3 months (up to $2,500 in spending).
- Interest Rate: 20.99% on purchases.
Who It’s Best For:
This card is ideal for families and individuals who spend heavily on groceries and recurring bills.
The BMO CashBack Mastercard is particularly beneficial for those who want to earn rewards without tracking multiple spending categories.
5. CIBC Dividend Visa Card for Students
For students looking to build their credit while earning cashback, the CIBC Dividend Visa Card for Students is an excellent option.
It offers a solid cashback program with no annual fee and additional benefits tailored to the needs of students.
Key Features:
- Monthly Fee: $0 (No annual fee)
- Cashback: 2% on groceries, 1% on Tim Hortons and Telus purchases, and 0.5% on all other purchases.
- Welcome Offer: 5% cashback on all purchases for the first 4 months (up to $2,000 in spending).
- Interest Rate: 20.99% on purchases.
Who It’s Best For:
This card is designed specifically for students who want to build their credit history while earning cashback on everyday purchases.
It’s also a good option for those looking for a straightforward rewards program without an annual fee.
Conclusion
Choosing the right low monthly fee credit card can make a significant difference in your financial health, especially if you’re looking to avoid high costs while still enjoying valuable perks and rewards.
The Tangerine Money-Back Credit Card and BMO CashBack Mastercard are excellent choices for those focused on cashback, while the MBNA True Line Mastercard is ideal for those who prioritize low interest rates.
Students can benefit from the CIBC Dividend Visa Card for Students, which offers rewards tailored to their needs.
Ultimately, the best card for you will depend on your spending habits and financial goals. By understanding the benefits and costs associated with each of these top low monthly fee credit cards, you can make an informed decision that aligns with your financial strategy.
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