To help Canadians get more out of everyday purchases, RATESDOTCA reveals the top credit cards
As part of the 9th annual Best of Finance report, a recent survey from RATESDOTCA found the number of Canadians relying on e-commerce and contactless payments at least half the time has increased by 23 per cent during COVID-19 (from 60 to 74 per cent). Sixty-eight per cent of respondents say they plan to continue shopping this way post-pandemic, suggesting a permanent shift in Canadian mindset and behaviour. As these trends emerge, Canadians should evaluate whether the credit cards in their wallet are offering the best value for their lifestyle and habits.
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Just over half (53 per cent) of respondents said their average monthly spending on groceries or food delivery increased, with Ontario (60 per cent), Alberta (59 per cent) and British Columbia (57 per cent) leading the way. Of those who increased their grocery spending, 81 per cent saw a hike of less than $200, while 19 per cent say they are spending $200 or more than they would have before the pandemic took hold.
“Canadians’ increase of credit card use is really two-fold; firstly they provide a safe contactless payment option in-store and secondly it adds an extra layer of protection when shopping online, so it’s not surprising that more people are choosing this method during COVID-19,” said Sara Kesheh, Vice-president, Money, RATESDOTCA. “It’s important now more than ever to evaluate what cards we have in our wallet. Recognizing changes in lifestyle and spending habits and understanding and leveraging the benefits from credit card rewards are all excellent reasons to assess whether your credit cards are providing you with the best possible value.”
Best of Finance 2020 winners
The 9th annual Best of Finance report analyzed over 150 credit cards across 13 categories for the best value. The report is designed to help Canadians take some of the guesswork out of shopping for a new credit card but still encourages consumers to compare credit cards and find the best card that works for them.
This year’s best overall rewards credit card winner is the American Express Cobalt™ Card. Users of this card would see a first-year value of $1,560, significantly more than most credit cards.
“It was surprising and admittedly disappointing to learn that only 11 per cent of Canadians would consider evaluating their credit card options following a change in lifestyle, spending habits or financial circumstance,” said Kesheh. “We want people to know they could be losing out on a significant added value, and there are tools to help them find the best match for them and their current situation.”
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The best credit card for families is the President’s Choice Financial® World Elite Mastercard®. Families can expect to see around $476 back in PC Optimum points in the first year. In comparison, a general cash back card that offers 1.25 per cent back on all purchases would only earn roughly $375 over that period, $101 less than the grocery rewards card.
RATESDOTCA has ranked the best credit cards in Canada for 2020:
- Best rewards credit card: American Express CobaltTM Credit Card
- Best no-fee credit card: MBNA Rewards Platinum Plus® Mastercard®
- Best travel credit card: Scotiabank Gold American Express® Card
- Best cash back credit card: TD Cash Back Visa Infinite* Card
- Best premium perks credit card: The Platinum Card®
from American Express
- Best credit card for paying down your balance: HSBC +Rewards™ Mastercard®
- Best credit card for rebuilding credit: Home Trust Secured Visa
- Best credit card for young professionals: American Express CobaltTM Credit Card
- Best credit card for students: BMO® CashBack® Mastercard®* for Students
- Best credit card for frequent flyers: Scotiabank Passport™ Visa Infinite* Card
- Best credit card for snowbirds or cross-border shoppers: Scotiabank Gold American Express® Card
- Best credit card for newcomers to Canada: BMO® CashBack® Mastercard®*
- Best credit card for families: The President’s Choice Financial® World Elite Mastercard®
The RATESDOTCA survey in support of the 2020 Best of Finance report also reveals:
- Twenty-eight per cent of Canadians would consider getting a new credit card if there was an appealing welcome offer.
- Two-in-ten Canadians (20 per cent) saw their average monthly spending on technology or connectivity increase.
- Quebecers were more likely to increase their monthly spending by $200 or more on home furnishings than the rest of Canada, at 12 per cent and six per cent respectively.
- Older Canadians seem to be set in their ways, with six per cent of consumers aged 35 and over willing to consider applying for a new credit card after lifestyle, goal or spending changes compared to 24 per cent of younger Canadians (aged 18 to 34).
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