Choosing a card
15 Canadian Credit Cards That Cost More Than They Earn
At typical spending, 15 of the 133 Canadian credit cards we value earn less in rewards than their annual fee, including 9 of 11 cards with a fee of $300 or more.
How many Canadian credit cards cost more than they earn?
15 of the 133 cards we value, at $2,000 a month of spending. The higher the fee, the more likely the rewards don’t cover it.
| Annual fee | Cards valued | Rewards below the fee |
|---|---|---|
| $0 | 60 | 0 |
| $1–$150 | 55 | 6 |
| $151–$299 | 7 | 0 |
| $300 or more | 11 | 9 |
WalletReturn example spending: $2,000 a month (groceries $500, dining $200, gas $150, online $300, recurring bills $200 and the rest across other categories). Points are valued at WalletReturn’s published point values.
Net annual rewards are a year of rewards minus the annual fee, without the welcome bonus.
Put it into practiceAdd this bonus table to your siteWhich premium cards earn less than their fee?
9 cards, led by The Platinum Card: −$523 a year after its $799 fee.
| Card | Annual fee | Rewards earned a year | Net after fee | First-year value |
|---|---|---|---|---|
| The Platinum Card | $799 | $276 | −$523 | $177 |
| Scotiabank Passport Visa Infinite Privilege | $599 | $300 | −$299 | −$299 |
| American Express Aeroplan Reserve Card | $599 | $318 | −$281 | $319 |
| CIBC Aeroplan Visa Infinite Privilege | $599 | $329 | −$270 | $730 |
| TD Aeroplan Visa Infinite Privilege | $599 | $331 | −$268 | $732 |
| CIBC Aventura Visa Infinite Privilege | $499 | $346 | −$153 | $647 |
| BMO eclipse Visa Infinite Privilege | $599 | $464 | −$135 | −$135 |
| RBC Avion Visa Infinite Privilege | $399 | $300 | −$99 | $451 |
| Rogers Red World Legend Mastercard | $495 | $480 | −$15 | −$15 |
For most of these cards the welcome bonus more than covers the first year, which is why the first-year value can be positive while the ongoing value is negative.
Why do low-rate cards show a loss?
They earn no rewards: 6 low-rate cards charge a small fee ($20–$39) in exchange for a lower interest rate.
| Card | Annual fee | Purchase interest rate |
|---|---|---|
| MBNA True Line Gold Mastercard | $39 | 10.99% |
| CIBC Select Visa | $29 | 13.99% |
| BMO Preferred Rate Mastercard | $29 | 13.99% |
| Scotiabank Value Visa | $29 | 13.99% |
| TD Low Rate Visa | $25 | 12.90% |
| RBC Visa Classic Low Rate Option | $20 | 12.99% |
If you carry a balance, the interest saved can be worth far more than the fee. If you pay in full every month, a no-fee rewards card earns more.
Can a premium card still be worth it?
Yes, if you use what it includes. Lounge access, travel credits, free checked bags, insurance and companion vouchers aren’t counted in these figures, and for frequent travellers they can outweigh the gap.
Spending more than $2,000 a month in the card’s bonus categories also raises the rewards. Use Find My Card with your own spending to see your number.
What can you do if your card costs more than it earns?
Ask the issuer for a retention offer, switch to the same issuer’s lower-fee or no-fee card (a product switch usually keeps your credit history), or move your spending to a card that pays more.
Before cancelling, check whether you’d lose points or the welcome bonus: some issuers take back bonus points if the card is closed within a year.
Keep reading
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Official sources and further reading
Terms vary by product. Confirm the provider’s current terms before acting. This guide does not predict approval, realized value or credit-score changes. How WalletReturn calculates value