MoneySense Magazine, September/October 2011
Canada’s best credit cards 2011
MoneySense presents the most sophisticated credit card ranking system in the country. We’ll help find the perfect card for your lifestyle.
Go straight to the credit card tool here.
Looking for a better credit card? You’re in luck. MoneySense is proud to present the results of the most sophisticated credit card ranking system in the country. We know the Canadian credit card marketplace can be overwhelming, with dozens of issuers offering hundreds of cards, each promising cash back rewards, free flights or low rates so you can pay off your debts faster. But which ones are the best? Comparing the different rewards systems takes a PhD in physics. As a result, many of us stick with the same old credit cards year and year out, wondering if there might be a better one for us out there somewhere.
To help you make a more informed decision, we’ve spent the last few months building a giant database of the 100 most popular credit cards in Canada. Then we designed a system to compare the features of each and every one of them. It wasn’t easy. We spent hundreds of hours reading the fine print of cardholder agreements, crunching numbers and researching consumer spending patterns.
To make our ranking as useful as possible, we started by dividing the credit card marketplace into five different card types: cash back cards, travel rewards cards, retail rewards cards, low rate cards and small business cards. Then, for each category, we came up with several different scenarios to capture how you actually use them.
For instance, the best cash back card for you depends on how much you spend each month. If you spend $500 a month, the MBNA card comes out on top. But if you spend $4,000, the Capital One card wins.
Factoring in the juicy sign-up bonus that many cards offer was another challenge. Those bonus points can completely overwhelm the points you get for your regular monthly spending. But we didn’t want to give top place to a card that doesn’t keep giving you a great return year after year. Our solution? We assumed that you’ll hang on to your new card for at least five years, and amortized the bonus points over that five-year period.
Travel rewards cards were even more complicated. Believe it or not, the best travel card for you depends not only on how much you spend, how often you travel and where you go — it actually depends on where you live. Some cards have better travel deals out of Vancouver, for instance, while others fare better out of Toronto.
But yes, we took that into account too. To find the cards that would take you farther, we looked at scenarios for nine different flights on various days from three different urban centres (just pick the one that’s closest to you). For all our scenarios, we were able to break down the nebulous value of the points or miles you earn into a tangible estimated cash value.
To get started, just answer the questions in the credit card tool. It will help you quickly narrow the field and make sure you don’t choose the wrong card category to begin with. For instance, if you carry a balance on your card, you shouldn’t even consider getting a rewards card. Thanks to the 19% interest rates on such cards, you’ll pay much more in interest every year than you get in rewards.
Once you find the category that’s best for you, you’ll find an overall list of the top cards in that category. If you want a perfectly tailored fit, look at the smaller tables that follow, which order the top cards based on specific spending patterns.
Whatever card you get, remember that credit cards are just a tool. If you use them wisely and never carry a balance, you can get valuable rewards to help your dollars go farther. But if you don’t pay them off, you’ll be the guy who’s helping to pay for someone else’s free flight.
See our methodology here.
MoneySense Magazine, September/October 2011









Hi Roslyn,
We did include this card in our study but it didn't make the top ten.
yours truly, Sarah
Where did the RBC Avion card rank in the travel rewards catagory?
The comparison lists an "Aspire Cash World MasterCard" with a $0 annual fee but the only one I can find is the "Capital One Aspire World MasterCard" that has a $120 annual fee. Does anyone know where to find the $0 version?
Hi Ken, Apologies about the confusion. The card in question is the Capital One Aspire Cash Platinum MasterCard. I will get it fixed in our database.
http://www.capitalone.ca/credit-card/rewards/cash...
Yours truly, Sarah
TD First class Visa Infinite was the clear winner for me too, as I also don't pay annual fees and now you can use points on expedia.com to pay for flights, hotels, anytime anywhere including the taxes.
I think one of the questions your tool should ask is what bank you use since I did my own comparison before choosing cards and the TD First class Visa Infinite was the clear winner for me since I have always banked with TD and carry the $5k balance so I pay 0 fees for banking and credit cards. Its nice to go to one website and see your bank and credit card balance too.
I hardly consider loaning the bank $5000 interest free infinitely is akin to not paying any fees. Here is my free advice to everyone who keeps $5000 dollars in an account to 'waive fees'. 1. Open a line of credit. They are 100% free, no overdraft fees, lower 'overdraft' interest and no minimum balances. 2. Put your 5k into TD stock and collect dividends quarterly. If you are 30 now and pay fees until you're 60, there is no risk in this investment and will most likely average you about 6% gross conservatively. 3. Go get some no fee credit card with some cash back option. 4. Do the math. You're welcome!
The tool in this article is excellent! The fact that it provides the readers with an easy way to find out which credit cards will work best for them will definitely narrow the chances of them filing with bankruptcy in the future. A lot of problems regarding bankruptcy stem from people having credit cards that they are uneducated on, or simply ones that don't fit their lifestyle. Awesome article! For those of you who weren't as fortunate to have read something like this years ago, check this out…it has great information. http://www.personalbankruptcycanada.ca/blog/consu...
Regarding Eden's comments about the PC Financial MC: naturally, banking considerations are irrelevant when there's no annual fee on the associated card and the products are not interdependent but when you compare this with a card such as the CapitalOne Aspire World with a $120AF the one-time start-up bonus does make a huge difference whether factored over 5 or even 10 years. But even barring this bonus, the CapO card outpaces the PC (1% cash back) at less than $1000 monthly and breaks even with the new black PC MC (2% cash back on PC purchases) just above $1000 monthly, when you factor in less than a quarter of those monthly charges as PC purchases. And it may be worthwhile when you consider the plethora of insurances not included with the PC card and the option to utilize those rewards as travel discounts which are more valuable than cash or grocery amounts. No other travel cards yield such value except possibly when they're associated with bank accounts which cancel out fees but the value therein varies and depends on a number of other individual factors.
Did the study consider the TD First Class VISA infinite, or the RBC Avion VISA infinite travel reward cards? I've had a CIBC Aventura VISA infinite card for some time, but they are heavily promoting cardholders convert their Aventura VISA card to a Aventura World Mastercard.
Hi Brian,
Yes, we did look at the TD First Class Visa Infinite and the RBC VISA Infinite Avion. They were not good enough to make our top travel card list. Overall, CIBC Aventura World MasterCard came out better than CIBC Aventura Visa Infinite, but they are both good cards.
cheers, Sarah
Did the study happen to look at the WestJet RBC credit card? If so how did it rank against the others? Thank you!
Hi Stacey, We didn't look at the WestJet card. We have gotten a few enquiries about it, so if we do the ranking again next year I would like to include it. cheers, Sarah