Compare the best no-fee credit cards in Canada. Just like that.

Best no-fee credit cards in Canada

Fees attached to credit cards used to mean those cards had something to offer in the form of rewards, travel miles or cash-back. In some cases, cards had fees with no rewards, as well. And if a card didn’t have a fee, you likely didn’t get anything in return at all.

But many financial institutions looking to attract customers have developed no-fee cards that are more attractive and offer some form of reward back to customers.

What exactly is a no-fee credit card?

It’s all in the name. A no-fee credit card is a card that doesn't have an annual fee. A lot of cards charge a fee just for the privilege of using them, or for the promise of some form of reward, but no-fee credit cards give you basic credit card benefits and don't charge a dime. These days, financial institutions offer no-fee cards that come with rewards, cash back and other perks.

Who should get a no-fee credit card?

Students, the budget-minded and anyone who wants a basic, backup credit card. Most students don't have a lot of extra money lying around, so paying annual credit card fees doesn't make sense. And if you're trying to stick to a budget, an annual credit card fee won't help your cause.

No-fee credit cards are also great for people who have no credit and want to build that up for future loans or credit needs, or even people who might want to repair their credit.

At the higher end, some people who use high-reward American Express or MasterCard credit cards may carry an extra card in case their main card doesn't work (or they max it out). That's where the no-fee credit card comes in. No-fee cards cost nothing to own, so they're the perfect backup.

Advantages and disadvantages of having a no-fee credit card.

No two people are the same financially. Everyone has their personal budgetary restraints and limits. That is why different credit cards will appeal to and work better for some people more than others. When considering the type of credit card you need, alongside your own budgetary framework, be mindful of what no-fee cards do and do not offer.

What features and benefits do no-fee credit cards have?

Cards without annual fees often come with good rewards programs. Many offer cash back, travel rewards and other rewards points.

For example, here are some of the perks you can get with an American Express AIR MILES Credit Card:

• You can earn 1 reward mile for every $15 in card purchases at AIR MILES Sponsors and 1 reward mile for every $20 in purchases made everywhere else.

• Receive a bonus of 500 reward miles the first time you use your card. All for no annual fee.

If you prefer cash rewards, the SimplyCash Card from American Express might be perfect for you. With the SimplyCash Card, you can:

• Earn up to 5% cash back on all your gas, grocery and restaurant purchases for the first 6 months.

• Earn up to 1.25% cash back on all eligible purchases afterwards.

The Tangerine Money-Back Credit Card earns you:

• 2% money-back rewards on your everyday purchases in two 2% money-back categories of your choice.

• 0.50% money-back rewards on all your other everyday purchases.

Many no-fee credit cards also offer things like:

• Concierge services

• Rental car discount

• Fraud protection

• 24-hour customer service

If you pay your balance on time and use your card responsibly, you'll get all these benefits at no extra charge.

Are there any disadvantages to using a no-fee credit card?

If you simply want or need credit and are not concerned with the perks, a no-fee credit card does the job.

However, no-fee credit cards often don't provide the same level of rewards benefits that fee-charging cards offer.

They usually come with fewer travel benefits as well. You probably won't get trip cancellation coverage, baggage loss reimbursement or travel emergency medical coverage with a typical no-fee card.

Check the table below to see how some of our favourite no-fee credit cards stack up against a comparable fee card.