Best Credit Cards in Canada 2026: Cash Back vs. Travel Points

Best Credit Cards in Canada 2026

Here is a simple financial rule for living in Canada: Unless you can't control your spending, stop using your Debit Card.

When you pay with debit, you get nothing but immediate withdrawal. When you pay with a good credit card, you get fraud protection, extended warranties, and most importantly, Rewards.

But with hundreds of cards on the market in 2026, which one should you choose? It comes down to your lifestyle: Cash, Travel, or the "Hybrid" King.

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Team Cash Back: "Show Me the Money"

If you prefer simplicity, Cash Back is king. You spend money, and once a year (or month), the bank gives you cash back.

• Pros: Flexible. You can use the cash for anything (bills, groceries, savings).
• Cons: No "outsized value." 1% is always 1%.
• Top Tier: Look for "Visa Infinite" cards (Requires $60k income). They often offer 4% back on groceries and gas (e.g., CIBC Dividend Visa Infinite, Scotia Momentum Visa Infinite).
• No-Fee Option: If you hate annual fees, look for the Tangerine Money-Back Card (2% in up to 3 chosen categories).

Team Travel: "Fly for Free"

If you love to travel, Points cards can be worth far more than cash.

• Pros: High potential value. 50,000 points might be worth $500 in cash, but could buy a $1,000 flight ticket if redeemed wisely.
• The King: Aeroplan is Canada's dominant loyalty program. If you fly Air Canada, an Aeroplan-branded card (TD, CIBC, Amex) is essential for perks like free checked bags and priority boarding.

The "Hybrid" King: Amex Cobalt

In 2026, one card continues to dominate the rankings: The American Express Cobalt Card.

It earns 5x points on "eats and drinks" (groceries, restaurants, bars). These points can be transferred 1:1 to Aeroplan. Effectively, you earn 5 Aeroplan points per dollar on food. It is widely considered the #1 card in Canada for maximizing value.

The "Welcome Bonus" Strategy

The fastest way to earn points isn't just by spending; it's by signing up.

Banks are competitive and offer massive "Welcome Bonuses" (e.g., "Get $300 value after spending $3,000 in 3 months"). Smart Canadians switch cards every few years to harvest these bonuses.

(Warning: Don't apply for too many cards at once. Spacing applications out by 6 months protects your credit score.)

Watch Out for Foreign Transaction Fees (FX Fees)

Do you shop on Amazon.com (USA) or travel abroad? Most Canadian cards charge a hidden 2.5% fee on every foreign currency purchase.

If you travel often, get a card with "No Foreign Transaction Fees".

• Credit Option: Scotiabank Passport Visa Infinite (save $25 on every $1,000 spent).
• Prepaid Option: Wealthsimple Cash Card (Great for those who want no annual fee).

The Golden Rule

Credit cards are powerful tools, but they are like chainsaws. Used correctly, they build your house (wealth). Used incorrectly, they cut off your leg (debt).

The Golden Rule: Only use a credit card if you can pay off the full balance every single month. If you pay 20% interest, no amount of points will save you.

(Disclaimer: This article is for informational purposes only. Credit card offers, annual fees, and interest rates are subject to change. Please read the cardholder agreement carefully before applying.)