Types of credit cards in Canada: low-interest, rewards, secured, student and more
Quick summary
The right card depends on how you use it. If you carry a balance, a low rate matters most. If you pay in full each month, rewards can pay off. If you have little or no credit history, a secured or student card may be the way in. Not sure where you stand? Try the credit card hub.
Checked November 10, 2026. Main source: FCAC: Choosing a credit card (modified October 15, 2025, read November 10, 2026). See all 2 sources.
The main types at a glance
| Type | Who it suits | What to watch |
|---|---|---|
| Low-interest | People who carry a balance | It may have an annual fee |
| Introductory low-rate | People who want a short low-rate period | The rate rises later, often after 6 to 12 months |
| Rewards and benefits | People who pay the balance in full | Fees, and the value drops if you carry a balance |
| No-fee | People who want to avoid annual fees | Compare the rewards and the rate |
| Student | Students | Lower limits, and the issuer sets who qualifies |
| U.S. dollar | People who often buy in U.S. dollars | Check the other fees |
| Retail | Shoppers at one store | Interest rates are often high |
| Secured | People with no credit, a low credit score or a past bankruptcy | You pay a deposit, and there may be fees |
Source: FCAC: Choosing a credit card (modified October 15, 2025, read November 10, 2026).
Low-interest cards
These are for people who carry a balance from month to month. FCAC gives an example. On a $4,000 balance, a 9% card with a $50 annual fee costs about $273 less in interest over a year than a 21% card with no fee.
Some cards offer a low or 0% rate for a short period, often 6 to 12 months. The rate rises afterward. It can end early if you go over your limit or pay late. Issuers must tell you the end date and the standard rate.
Source: FCAC: Choosing a credit card (modified October 15, 2025, read November 10, 2026).
Rewards and benefits cards
These earn cash back, points or discounts. Some have annual fees. FCAC says their value drops if you carry a balance or rarely use the benefits.
FCAC's examples show why. A grocery points card with a $25 fee nets about $15 in value on $4,000 of grocery spending. A 1% cash back card with an $85 fee loses money at $4,800 of yearly spending. A no-fee card may offer similar rewards.
Source: FCAC: Choosing a credit card (modified October 15, 2025, read November 10, 2026).
Student and secured cards
- Student cards often have lower limits and student perks. Some have low rates. The issuer decides who qualifies.
- Secured cards need a deposit, often a few hundred to a few thousand dollars, and the deposit usually sets your limit. There may be a set-up fee and an annual fee. The deposit comes back after you pay off the balance and close the account.
- FCAC says secured cards suit people with no credit history, a past bankruptcy or a low credit score. Cards without a major brand may be accepted at few places, so be careful with unknown or foreign issuers.
Source: FCAC: Choosing a credit card (modified October 15, 2025, read November 10, 2026).
Retail cards
These give store rewards or buy-now-pay-later plans with an interest-free period. FCAC warns that if you do not pay the balance in full before that period ends, interest may be charged from the day you bought. Retail rates are often high.
Source: FCAC: Choosing a credit card (modified October 15, 2025, read November 10, 2026).
What to compare before you choose
FCAC's How credit cards work page gives example rates of 19% for purchases and 22% for cash advances. These are examples, not fixed rates. It also says a merchant can charge up to 2.4% for paying by credit card, except in Quebec.
- The interest rate, especially if you carry a balance or take cash advances.
- The annual fee, and whether the rewards are worth it.
- Other fees: foreign currency, going over the limit, statement reprints and returned payments.
- The value of rewards after fees and any interest.
- When an introductory rate ends.
- The terms in your application and agreement.
Source: FCAC: Choosing a credit card (modified October 15, 2025, read November 10, 2026). Source: FCAC: How credit cards work (modified October 15, 2025, read November 10, 2026).
Questions people ask
What are the main types of credit cards in Canada?
FCAC describes low-interest, introductory low-rate, rewards and benefits, annual-fee, no-fee, student, U.S. dollar, retail and secured cards.
Which type of credit card is best?
It depends on how you use it. A low-interest card suits people who carry a balance. A rewards card suits people who pay in full. A secured card or student card can suit people with little credit history.
Is a rewards card worth it?
FCAC says its value drops if you carry a balance or rarely use the benefits. Subtract the annual fee and any interest from the rewards before you decide.
What is a secured credit card?
A card that needs a security deposit, which usually sets your limit. The deposit is returned after you pay off the balance and close the account.
Who is a secured card for?
FCAC says it suits people with no credit history, a past bankruptcy or a low credit score.
What is a student credit card?
A card with a lower limit and student perks. Some have low rates. The issuer decides who is eligible.
How long does an introductory rate last?
FCAC says often 6 to 12 months. The rate rises afterward, and it can end early if you go over your limit or pay late.
Is there a fee to use a credit card in a store?
FCAC says a merchant can charge up to 2.4% for paying by credit card, except in Quebec.