Credit Tip Tuesday #14 - Comparing Major Canadian Credit Cards

Applying for a credit card can be a big decision. Almost every credit card offers different features that offer different benefits, depending on individual goals. This can be daunting for long-term credit users and new-credit users, as being bombarded with endless information on credit can be overwhelming.

However, Plastk wants to help make your journey applying for a credit card easier. Our team has broken down the pros and cons of various credit cards, to make the process of choosing the right card simple for you! 

While we can’t explain every detail about the credit cards listed or explore every type of credit card available in Canada; this article will help to break down some of the basic information about popular credit cards in Canada. 

Secured vs Unsecured 

Before reading about which credit card is right for you, we are going to explain the key differences between secured and unsecured credit cards. 

Secured Credit Card FAQ’s 

Secured credit cards can be used to build your credit. They are also the best credit cards to have if you’re looking to build your credit score. Secured credit cards can also be perfect for newcomers to Canada, looking to build their credit with a Canadian credit card company. 

Most secured credit cards also have easier approval processes than unsecured credit cards. This means they are credit cards that offer approval, for all individuals regardless of credit history or credit score. 

Unsecured Credit cards FAQ

These credit cards are more traditional than secured credit cards. Many require minimum incomes, credit scores or history with the banking institution you are looking to lend from. 

Plastk Secured Credit Card

Pros

• $300 minimum deposit 
• Cash back on all purchases
• Premium rewards 
• FREE Monthly credit score with Equifax 
• Referral program for rewards points
• 17.99% Interest rate 

Cons

• $48 Annual fee 
• $6 Monthly Maintenance fee

Plastk's Secured Credit Card is perfect for consumers who want to build their credit and get rewarded for it! Unlike some of the competitors in this list, Plastk offers cash back, rewards points and an app that gives its users the ability to check their credit score! 

Plastk’s Quick Take:

Consider this credit card if you are looking for a simple way to build your credit, earn cash back points, earn rewards points and have access to your free credit score! 

Tangerine Money-Back Credit Card 

Pros 

• Earn 2% cash back in up to three categories
• $0 Annual Fee
• Low minimum income requirement 

Cons 

• Balance transfer rate increases from 1.95% to 19.95% after the first 6 months 
• Credit score: 680+ required 
• $19.95% interest rate

Plastk’s Quick Take:

Consider this credit card if you’re looking for a cash back credit card with a low income requirement.

Consider another option if you’re looking for a credit card that doesn't require a minimum credit score or a credit score with a low interest rate. 

BMO CashBack World Elite Mastercard

Pros 

• $0 annual fee for the first year 
• 1.5% Cash Back rate 
• No late payment fee

Cons

• Minimum $80,000 income requirement
• Annual fee increases to $120 after first year 
• Great credit required 
• Must spend $2,500 a month minimum 

Plastk’s Quick Take: 

Consider this if you’re looking for a credit card with cash back.

Consider another option if you’re looking for a credit card with an easy approval and no monthly minimum.  

BMO CashBack Mastercard For Students

Pros 

• No annual fee
• Get up to 5% cash back in the first three months (up to a maximum spend of $2,000
• 3% cashback on groceries 

Cons 

• High interest rate
• No points/rewards program 
• This card is only for students 

Plastk’s Quick Take: 

Consider this if you’re a student looking for a no-fee credit card or a cash back credit card.

Consider another option if you are not a student or looking for a credit card that offers more rewards. This credit card has varying reward rates for different types of purchases. 

Home Trust Secured No-fee Visa

Pros

• $0 annual fee
• 95% approval rate
• Offers approval for those with bad credit 

Cons

• $500 minimum deposit 
• 19.99% interest rate
• No rewards system 
• Does not offer rewards cash

Plastk’s Quick Take:

Consider this if you’re looking for an easy approval credit card with a moderately priced required deposit.

Consider another option if you’re looking for a secured credit card that offers a lower interest rate and rewards system. 

Scotiabank Value Visa

Pros

• 12.99% interest rate
• 25% discount on select car rentals
• $29 annual fee 

Cons

• Minimum $500 deposit required 
• No rewards system 

Plastk’s Quick Take:

Consider this card if you’re looking for a credit card with a low interest rate. 

Consider another option if you are looking for a credit card that offers premium rewards, like cash back or travel rewards. 

Refresh Financial Secured Card

Pros

• $12.95 annual fee
• 17.99% interest rate
• $200 minimum deposit 
• Offers approval for those with bad credit 

Cons 

• No rewards system 
• No Rewards Cash back on purchases 

Plastk’s Quick Take:

Consider this card if you’re interested in a basic secured credit card.

Consider another option if you’re looking for a credit card that offers rewards or cash back for its members.

Koho

Pros

• Starting at $7 a month subscription fee 
• 2% cash back on premium accounts 
  
  

Cons

• Koho is a reloadable pre-paid visa
  • This means it is more like a debit card 

Plastk's Quick Take:

Consider this if you are looking for a bank card that is more like a debit card, without the monthly fees. 

Consider another option if you are looking for a credit card that offers more features associated with building credit history. 

Capital One Guaranteed Secured Mastercard

Pros

• Travel rewards points
• $75-$300 minimum deposit 

Cons

• $59 annual fee
• 19.8% interest rate 
• No free monthly credit score included 

Plastk's Quick Take:

Consider this card if you are looking for a secured mastercard that offers travel rewards. 

Consider another option if you are looking for a credit card with a low annual fee and low interest rate. 

Choosing the right credit card is not an easy task. Without countless different credit card options in Canada, it can be difficult to decide which card is best for you. Something important to remember is that in order to decide which credit card is best for you, you must weigh the pros and cons.

For example, some credit cards may have higher annual fees, but make up for this by offering cash back, rewards, lower interest rates or even mobile apps that make managing your finances more accessible!