In this article, let’s talk about the three best credit cards in Canada for 2020. Nowadays, everyone has a credit card. We do our research online and select the ones we know will get the maximum rewards.
Most of us already have a credit card or are considering changing or applying for a new one in the coming days. Even though many personal finance experts are against using credit cards for spending, we still can’t live without credit cards, right?
When we use our credit cards for our daily expenses such as groceries, gas, etc., we either earn cash back or reward points, such as Air Miles, PC Optimum, Aero miles, etc.
Research has shown that people are willing to spend more, up to 83% in some cases, when paying with a credit card rather than cash. While there are benefits to paying with a credit card, they don’t explain this huge increase in willingness to pay.
Some of the best credit cards mentioned below offer you the lowest interest rate, others will offer you rewards on your purchases and others.
Now let’s look at them one by one:
1. Scotiabank Gold American Express
It is currently by far the best credit card in Canada for spending everything: gas, groceries, shopping, utilities. This gives you four points for every dollar spent on gas, shopping and entertainment. You’ll almost end up earning one point per dollar.
Above all, the points you earn are considered the best because you can use them for any purpose: restaurant, travel, gas. There is no fixed limit on these points and any mall, gas station, grocery store in Canada will accept it.
Plus, there is no annual fee on this credit card for the first year. So you can try it before taking a call. So, if you are looking to invest in a credit card in Canada, this is the best option. It’s safe and has good back-up insurance. Your money will therefore be in good hands. You don’t have to worry about security either.
Features and benefits of Scotiabank Gold American Express
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Earn 15,000 bonuses Scotia Rewards Points points with your first $1,000 in daily purchases in the first 3 months. Earn 4 Scotia Rewards points on every dollar spent at eligible gas stations, grocery stores, restaurants and entertainment. Plus, you’ll earn 1 point for every dollar spent on everything else.
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Book and redeem for travel anywhere, anytime, with no travel restrictions
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Access to concierge services, airport lounges, special offers, merchandise, rewards and more
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Travel with confidence every trip with our comprehensive travel insurance coverage
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Annual fee – $99 CAD (1st year free)
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Interest rate – 19.99% on purchases. 22.99% on cash advances, balance transfers and Scotia credit card checks
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Minimum credit limit – $5,000 minimum
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You can convert your Scotia Rewards points to SCENE points or your SCENE points to Scotia Rewards points instantly, at any time. Remember that you must have a SCENE account to convert points
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As a Scotiabank Gold American Express cardholder, you can save up to 25% off base rates at participating AVIS branches and participating Budget branches in Canada and the United States 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 items when making purchasing decisions.
It has been shown that consumers are willing to pay an average of 10% more when credit card logos are present than when there is no logo. 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 market their rewards heavily.
2. American Express Cobalt Credit Card
You can only use this credit card pretty much only during transition and to eat out. But it gives you five points for every dollar spent dining out and for travel and public transportation it offers $2. So it gives you more reward points than Scotiabank Gold American Express.
Features and benefits of American Express Cobalt Card
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Benefit from a special interest rate of 7.99% on purchases charged to your card during the first 6 months.
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Monthly Fee – $10
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Annual interest rate – 19.99% on purchases and 22.99% on cash advances
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Additional cards – No additional costs
Up to 30,000 Bonus Points – During your first year as a new Cobalt cardholder, you can earn 2,500 Membership Rewards points for each monthly billing period that you spend $500 on purchases on your card. This could represent up to 30,000 points in a year
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From groceries to restaurants, earn 5 points for every dollar spent with the card at eligible restaurants, bars, cafes and even food delivery in Canada.
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This could be a taxi across town, the morning bus, or a weekend hotel stay. Earn 2 points for every dollar spent on eligible Canadian transit and gas purchases and eligible travel purchases.
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Concerts? Sneakers? Movie tickets? Whatever you like, earn 1 point for every $1 spent with the card on everything else.
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With your American Express Cobalt card, you can redeem your points for purchases made with the card of your choice. Your options are anything but limited:
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Streaming Services
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Cinema tickets
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Eat and drink
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Retail
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And more
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When asked to bid on tickets to Celtics and Red Sox games and on banners for those teams, business students were willing to pay 83 percent more when paying with a credit card than when paying with cash.
Overspending will almost always prevent you from achieving your financial goals. The impact may not be direct or immediately recognizable, but excessive spending will definitely affect your progress toward your goals of paying off debt, saving, 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, ask yourself if your choices will help you achieve 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 benefit from 10% cashback on your daily purchases. 4% is cashback on grocery and gas purchases.
The points you earn using this card can be used for travel expenses and taxes. In addition, you can travel on any date and in both economy and business class. This card comes with a $99 annual fee for its use.
Generally speaking, the more credit cards you have, the easier it is to overspend. Having multiple credit cards increases the amount of credit available and also more spending possibilities.
Having multiple credit cards also means you have to manage your credit balances across all credit cards. After all, you need to be more careful to keep your combined balances within your personal spending limit.
Features and benefits of Scotia Momentum Visa Infinite
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Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). Plus, no annual fees for the first year. A welcome offer of up to $299.
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Annual Fee – $99 CAD
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Interest rate – 19.99% on purchases. 22.99% on cash advances, balance transfers and Scotia credit card checks
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Credit limit – minimum of $5,000
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Load at least 75% of your ticket price onto your card and you are insured against accidental loss of life or mutilation.
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4% cash back on gas and groceries, 2% cash back on pharmacies and recurring bill payments.
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Plus, earn 1% cash back on everything you charge with your card.
I think everyone can benefit from being more conscious 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 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.
Ultimately, it’s up to you to decide which one best suits your spending and your family’s daily needs, to maximize the benefits they offer.
Finally, I personally like the Scotiabank Visa Infinite, but again, it’s my personal choice and it’s been really great so far in terms of earning points and maximizing rewards points.
Please leave your thoughts and comments below.
