Top 3 Canadian Credit Cards Reviewed & Compared

In this article, let’s talk about the three best credit cards in Canada for 2020. Everybody nowadays has a credit card. We do our research online and pick the ones we know we will get the maximum rewards from. 

Most of us already have a credit card or plan to switch or apply for a new one in the coming days. Even though a lot of personal finance experts are against the usage of credit cards for spendings, we still can’t live without credit cards right? 

As we use our credit cards on day-to-day spendings for groceries, gas, etc, we earn either cash-back or reward points – such as Air Miles, PC Optimum, Aero miles, etc. 

Research has shown that people are willing to spend more as much as 83% in some cases when paying with a credit card instead of cash. While there are benefits to paying with a credit card, they do not explain this enormous increase in willingness to pay

Some of the best credit cards mentioned below give you the lowest interest rate, others will give you rewards on shopping and other stuff. 

Now let’s take a look at them one by one :

1. Scotiabank Gold American Express 

This is by far the best credit card in Canada right now for spending on everything – gas, grocery, shopping, utilities. It gives you four points on spending every dollar on gas, shopping, and entertainment. You will almost end up making one point per dollar. 

Above all, the points you earn are considered the best as you can use the points for any purpose – dining out, travel, gas. There is no fixed limit on these points and any shopping mall, gas station, grocery in Canada will accept it.

Moreover, there is no annual fee on this credit card for the first year. Therefore you can try it before taking a call. So if you are looking to invest in a credit card in Canada then this is the best option. It’s safe and has good backup insurance. So your money will be in reliable hands. You don’t have to worry about safety too. 

Features And Benefits Of The Scotiabank Gold American Express

• Earn 15,000 bonus Scotia Rewards points with your first $1000 in everyday purchases in the first 3 months. Earn 4 Scotia Rewards points on every $1 you spend at eligible gas stations, grocery stores, on dining and entertainment. Also, you’ll earn 1 point for every $1 you spend on everything else.

• Book and redeem for travel anywhere, anytime, with no travel restriction

• Access to concierge services, airport lounges, special offers, merchandise, rewards, and more

• Travel with confidence on every trip with our comprehensive travel insurance coverage

• Annual Fees – $99 CAD (1st year free)

• Interest Rates – 19.99% on purchases. 22.99% on cash advances, balance transfers, and Scotia Credit Card Cheques

• Minimum Credit Limit – $5000 Minimum 

• You can convert your Scotia Rewards points to SCENE or your SCENE points to Scotia Rewards points instantly, anytime you want.   Remember that you must have a SCENE account to convert the points

• As a Scotiabank Gold American ExpressCardholder, you can save up to 25% off base rates at participating AVIS locations and at participating Budget locations in Canada and the U.S. when you pay with your Scotiabank Gold American Express card.   

Even the presence of a credit card logo has an effect on how we value objects when we make decisions about purchases.

Consumers have been shown to be willing to pay an average of 10% more when credit card logos are present than when there’s no logo present. One possible explanation for this is that we are preconditioned to have positive associations with spending and credit cards.

This makes sense when you consider that credit cards heavily market their rewards

2. American Express Cobalt Credit Card

You can use this credit card pretty much only on transition and for eating out. But it gives you five points on eating out on every dollar and for traveling and transit, it offers 2 dollars. So it offers you more reward points as compared to Scotiabank Gold American Express.

Features And Benefits Of The American Express Cobalt Card

• Enjoy a special low interest rate of 7.99% on purchases charged to your Card within the first 6 months

• Monthly fee – $10

• Annual Interest Rate – 19.99% on purchases and 22.99% on funds advances

• Additional Cards – No additional cost

  Up to 30,000 Bonus Points – In your first year as a new Cobalt Cardmember, you can earn 2,500 Membership Rewards points for each monthly billing period in which you spend $500 in purchases on your card. This could add up to 30,000 points in a year

• From grocery shopping to dining out, earn 5 points for every $1 in Card purchases at eligible restaurants, bars, cafés, and even food delivery in Canada

• It can be a cab across town, the morning bus, or a weekend hotel stay. Earn 2points for every $1 spent on eligible transit & gas purchases in Canada and eligible travel purchases

• Concerts? Sneakers? Movie tickets? Whatever you’re into, earn 1 point for every $1 in Card purchases on everything else

• With your American Express Cobalt Card, you can redeem your points towards whatever card purchases you want – your options are anything but limited:

  • Streaming services

  • Movie tickets

  • Eats & Drinks

  • Retail

  • And more

When asked to bid on tickets for Celtics and Red Sox games and banners for these teams, business students were willing to pay 83% more when paying with a credit card than when paying with cash. 

Overspending will almost always hinder you from your financial goals. The impact may not be directly or immediately recognizable, but too much overspending will definitely affect your progress towards your goals of paying off debt, building up savings, or retiring early. 

Think about where you want to be financially in the next 5, 10, 15 even 25 years. As you face spending decisions, consider whether your choices will help you reach your financial goals.

 3. Scotia Momentum Visa Infinite Card

This is the third credit card on the list and by far the best cash-back credit card in Canada. With this card, you will get 10% cashback on your day-to-day purchases. 4% is the cashback on the purchases of groceries and gas.

Points you get back using this card can be used for traveling expenses and taxes. Moreover, you can travel on any date and both on economic and business classes. This card comes with a $99 annual fee for using it. 

Generally speaking, the more credit cards you have, the easier it is to overspend. Having multiple credit cards increases the amount of credit available to you and likewise more opportunities for spending.

Owning multiple credit cards also mean you have to manage your credit balances for all the credit cards. After all, you have to take more caution with keeping your combined balances within your personal spending limit.

Features And Benefits Of The Scotia Momentum Visa Infinite

• Earn 10% cashback on all purchases for the first 3 months (up to $2,000 in total purchases). Plus, no annual fee in the first year. A welcome offer of up to $299.

• Annual Fees – $99 CAD

• Interest Rates – 19.99% on purchases. 22.99% on cash advances, balance transfers and Scotia Credit Card Cheques

• Credit Limit – $5000 Minimum 

• Charge at least 75% of your ticket cost to your card and you’re insured against accidental loss of life or dismemberment

• 4% Cashback on gas & groceries, 2% cashback on Drug Stores, and recurring bill payments.

• Plus earn 1% cash back on everything else you charge to your card.

I think everyone can benefit from being more aware of their spending – by creating a budget and tracking their purchases. Using credit cards linked to online tools is one of the fastest ways to get you the most relevant data on your spending and savings.

Conclusion

Each of the three credit cards reviewed today has its own advantages and more pros than cons. 

It’s your decision at the end of the day on which one is best for your spendings and day-to-day needs for your family, to maximize the benefits they offer. 

Finally, I personally like the Scotia Bank’s Infinite Visa, but again that’s my personal choice and it’s been really great so far in terms of earnings points and maximizing reward points. 

Please leave your thoughts and comments below.