No Annual Fee Credit Cards in Canada: How to Choose One

Annual fees usually appear once a year; fee cards usually offer extra rewards and benefits or a lower interest rate; some no-fee cards offer similar rewards and benefits; list of other fees; method of estimating rewards minus fee and the 1% on $4,800 vs $85 fee example; questions about using each benefit and already having it.

Merchant surcharges of up to 2.4% except in Quebec, disclosed before payment; cash advance fees; inactive account fees and possible closure after a year of inactivity; conversion charge worked example at 2.5%.

Interest from the date of purchase if the balance isn't paid by the due date.

Keeping an older account open, even with a zero balance, maintains credit history and utilization; consider keeping an account open if it has no annual fee, is easy to manage and can be used occasionally; payment history is the most important part of your score.

Lenders send information about credit accounts to Canada's two main credit bureaus, Equifax and TransUnion.

Foreign currency conversion fees of 1% to 3% are common; some cards charge no fee; such cards may not offer everyday rewards or other benefits.

Maximum legal liability of $50 for unauthorized credit card transactions unless grossly negligent.

Visa, Mastercard and American Express public commitment not to hold cardholders responsible for unauthorized transactions.

Some credit card companies offer extra warranty coverage; check before buying an extended warranty.

Information box on applications and credit card agreements from federally regulated institutions, including interest rates and annual fees; at least 30 days' written notice of changes.