Best BMO Credit Cards in Canada

Who are BMO and how do their credit cards work?

BMO, or the Bank of Montreal, is one of Canada’s oldest and most reputable financial institutions, with a rich history dating back to 1817. As one of the “Big Five” banks in Canada, BMO offers a wide range of banking products and services, including savings accounts, checking accounts, mortgages, loans, investment options, and of course, credit cards.

BMO credit cards operate on the basic principles of credit card functionality, allowing cardholders to make purchases, both in-store and online, with the added convenience of deferred payment. Here’s a breakdown of how BMO credit cards work:

1. Credit Limit: When you apply for a BMO credit card, the bank assesses your creditworthiness based on factors such as your credit score, income, employment status, and financial history. Based on this evaluation, BMO assigns you a credit limit, which represents the maximum amount you can borrow using the card.

2. Making Purchases: Once you have a BMO credit card, you can use it to make purchases at any merchant that accepts credit card payments. Whether you’re buying groceries, dining out, booking travel, or shopping online, simply present your card or enter your card details, and the transaction will be processed electronically.

3. Billing Cycle: BMO credit cards typically operate on a monthly billing cycle. Throughout the billing cycle, you can make purchases up to your credit limit. At the end of the billing cycle, BMO will issue a statement detailing all the transactions made with the card during that period.

4. Payment Due Date: Along with the statement, BMO will specify a payment due date, usually around 21 days after the end of the billing cycle. It’s important to pay at least the minimum amount due by the due date to avoid late fees and negative impacts on your credit score.

5. Interest Charges: If you carry a balance on your BMO credit card beyond the grace period (usually 21 days), interest charges will apply to the outstanding balance. The interest rate depends on the specific card you have and your creditworthiness.

6. Rewards and Benefits: Many BMO credit cards offer rewards programs, allowing you to earn points, cash back, or other perks for every dollar spent. These rewards can be redeemed for travel, merchandise, statement credits, and more, enhancing the value of using the card for everyday purchases.

Overall, BMO credit cards provide a convenient and flexible payment solution, offering benefits such as rewards, purchase protection, travel insurance, and more, depending on the specific card you choose. By understanding how BMO credit cards work and using them responsibly, you can leverage their features to manage your finances effectively and maximize the value of your spending.

Pros and cons of BMO credit cards

Pros:

1. Diverse Range of Options: BMO offers a wide variety of credit cards tailored to different lifestyles and financial needs, ensuring there’s a card suitable for virtually every individual.

2. Generous Rewards Programs: Many BMO credit cards come with lucrative rewards programs, allowing cardholders to earn points, cash back, or travel rewards on their everyday purchases.

3. Travel Benefits: BMO credit cards often include travel-related perks such as travel insurance, airport lounge access, and no foreign transaction fees, making them ideal companions for frequent travelers.

4. Introductory Offers: Some BMO credit cards offer enticing introductory offers, such as bonus rewards points, waived annual fees for the first year, or low promotional interest rates on balance transfers and purchases.

5. Comprehensive Insurance Coverage: Depending on the card, BMO provides various insurance coverages, including purchase protection, extended warranty, rental car insurance, and travel medical insurance, offering peace of mind to cardholders.

6. Online Banking and Mobile App: BMO’s online banking platform and mobile app make it easy to manage your credit card account, track spending, view statements, make payments, and redeem rewards conveniently from anywhere.

Cons:

1. Annual Fees: Many BMO credit cards come with annual fees, which can range from moderate to high, depending on the card’s features and benefits. These fees may offset the value of rewards for some users, especially those who don’t spend enough to justify the cost.

2. Interest Rates: The interest rates on BMO credit cards can be relatively high, especially for those with lower credit scores or cards with premium features. Carrying a balance can result in significant interest charges over time, impacting overall affordability.

3. Eligibility Requirements: To qualify for certain BMO credit cards with premium rewards and benefits, applicants may need to meet specific income or credit score criteria, limiting access for some individuals.

4. Foreign Transaction Fees: While some BMO credit cards waive foreign transaction fees, others may charge a fee for purchases made in foreign currencies, reducing the appeal for international travelers.

5. Limited Acceptance: While BMO credit cards are widely accepted within Canada and internationally, there may be instances where merchants or establishments do not accept certain card types, potentially limiting usability.

6. Potential for Debt Accumulation: Without responsible spending habits and timely payments, using a BMO credit card could lead to debt accumulation, negatively impacting personal finances and creditworthiness over time.

Overall, while BMO credit cards offer numerous benefits and perks, it’s essential for cardholders to weigh these advantages against the associated costs and responsibilities to determine the best fit for their financial situation and lifestyle. By understanding the pros and cons, individuals can make informed decisions that align with their needs and preferences.

Types of BMO credit cards

BMO offers a diverse range of credit cards in Canada, catering to various lifestyles, spending habits, and financial goals. Here’s an overview of the different types of BMO credit cards available:

1. Cash Back Credit Cards: These cards offer cash back rewards on purchases, providing cardholders with a percentage of their spending back in cash or statement credits. Cash back cards may have different earning rates for different spending categories, such as groceries, gas, and dining.

2. Travel Rewards Credit Cards: Designed for frequent travelers, these cards allow users to earn points or miles for travel-related expenses such as flights, hotels, and rental cars. Travel rewards cards often come with additional perks like travel insurance, airport lounge access, and no foreign transaction fees.

3. Rewards Credit Cards: BMO offers rewards credit cards that earn points or other rewards for everyday purchases. These points can typically be redeemed for merchandise, gift cards, statement credits, or experiences, providing flexibility in how cardholders use their rewards.

4. Low Interest Credit Cards: Ideal for individuals who carry a balance on their credit card from month to month, low-interest credit cards offer a reduced interest rate compared to standard cards, helping to save on interest charges over time.

5. Student Credit Cards: Tailored for students and young adults, these cards often come with features like low fees, rewards for student spending, and tools to help build credit responsibly.

6. Secured Credit Cards: Designed for individuals with limited or poor credit history, secured credit cards require a security deposit, which serves as collateral against the credit line. These cards can help individuals establish or rebuild credit over time.

7. Business Credit Cards: BMO offers credit cards specifically designed for business owners, providing tools and benefits tailored to business spending, such as expense tracking, employee cards, and business rewards programs.

8. Affinity Credit Cards: These cards are branded in partnership with organizations or associations, offering exclusive benefits or rewards tailored to members of the affiliated group.

9. Premium Credit Cards: BMO also offers premium credit cards with enhanced features, benefits, and rewards for high-spending individuals. These cards often come with higher annual fees but may include perks like concierge service, luxury travel benefits, and premium insurance coverage.

Each type of BMO credit card is designed to meet different financial needs and preferences, offering a range of features, rewards, and benefits to suit diverse lifestyles and spending habits. By understanding the options available, individuals can select the card that best aligns with their goals and priorities.

How to find the best BMO credit cards in Canada

Finding the best BMO credit card in Canada involves considering several factors to ensure it aligns with your financial goals, spending habits, and lifestyle. Here’s a step-by-step guide to help you identify the right BMO credit card for your needs:

1. Assess Your Spending Habits: Start by evaluating your typical monthly expenses and spending patterns. Consider categories such as groceries, dining, travel, gas, and entertainment to determine where you spend the most.

2. Identify Your Priorities: Determine what benefits are most important to you in a credit card. Are you primarily interested in earning rewards, minimizing fees, accessing travel perks, or building credit? Clarifying your priorities will help narrow down your options.

3. Consider Rewards Programs: If earning rewards is a priority, explore the various rewards programs offered by BMO. Compare the earning rates, redemption options, and any bonus offers available to find a program that aligns with your spending habits and preferences.

4. Evaluate Annual Fees: Some BMO credit cards come with annual fees, while others have no annual fee or offer fee waivers for the first year. Assess whether the card’s benefits justify the annual fee based on your expected spending and usage.

5. Review Introductory Offers: Look for any introductory offers available, such as bonus rewards points, promotional interest rates, or waived annual fees. These offers can provide added value in the short term but be sure to consider the long-term benefits as well.

6. Examine Additional Benefits: Beyond rewards, consider the additional benefits offered by each card, such as travel insurance, purchase protection, extended warranty coverage, and concierge services. Determine which features are most relevant to your needs and preferences.

7. Check Eligibility Requirements: Some BMO credit cards may have specific eligibility requirements, such as minimum income levels or credit scores. Ensure you meet the criteria for the cards you’re interested in to increase your chances of approval.

8. Read Reviews and Compare Options: Take the time to read reviews and compare multiple BMO credit cards side by side. Look for insights from current cardholders regarding customer service, rewards redemption, and overall satisfaction with the card.

9. Utilize Online Tools and Resources: BMO’s website and online tools can be valuable resources for comparing credit cards, calculating potential rewards, and exploring eligibility. Take advantage of these resources to gather information and make an informed decision.

10. Apply for the Card: Once you’ve identified the best BMO credit card for your needs, submit an online application through BMO’s website or visit a branch to apply in person. Provide accurate information and documentation to complete the application process.

By following these steps and conducting thorough research, you can find the best BMO credit card in Canada that offers the features, benefits, and rewards you value most, helping you make the most of your spending and financial opportunities.

How to apply for a BMO credit card in Canada

Applying for a BMO credit card in Canada is a straightforward process that can be completed online, by phone, or in person at a BMO branch. Here’s a step-by-step guide to help you navigate the application process:

1. Research BMO Credit Cards: Start by researching the various BMO credit cards available in Canada to find the one that best suits your needs and preferences. Consider factors such as rewards programs, annual fees, interest rates, and additional benefits.

2. Check Eligibility: Review the eligibility requirements for the BMO credit card you’re interested in applying for. This may include factors such as minimum age, Canadian residency status, and minimum income or credit score requirements.

3. Gather Required Information: Before you begin the application process, gather the necessary information and documentation. This typically includes personal details such as your name, address, date of birth, social insurance number (SIN), employment information, and annual income.

4. Choose Application Method: Decide whether you prefer to apply for the BMO credit card online, by phone, or in person at a BMO branch. Each method offers convenience and flexibility, so choose the option that works best for you.

5. Online Application: To apply online, visit the BMO website and navigate to the page for the specific credit card you wish to apply for. Click on the “Apply Now” or “Apply Online” button to start the application process. Follow the prompts to enter your personal information, employment details, and financial information. Review the terms and conditions carefully before submitting your application.

6. Phone Application: If you prefer to apply by phone, you can contact BMO’s customer service or credit card application hotline. A representative will guide you through the application process and assist with any questions you may have. Be prepared to provide the same personal and financial information as required for an online application.

7. In-Person Application: If you prefer a face-to-face interaction, you can visit a BMO branch to apply for a credit card in person. A banking advisor will assist you with the application process, answer any questions you may have, and help you choose the best credit card option based on your needs and eligibility.

8. Review Application Status: After submitting your application, you may receive an instant decision online or by phone, depending on the application method. If additional information or verification is required, BMO may follow up with you by email, phone, or mail. You can also check the status of your application online or by contacting BMO’s customer service.

9. Receive and Activate Card: If your application is approved, you will receive your BMO credit card by mail within a few business days. Once you receive the card, activate it by following the instructions provided, typically by calling a toll-free number or visiting the BMO website.

10. Start Using Your Card: Once your BMO credit card is activated, you can start using it to make purchases, earn rewards, and enjoy the benefits and features associated with your chosen card.

By following these steps and providing accurate information during the application process, you can apply for a BMO credit card in Canada with ease and confidence, gaining access to convenient payment solutions and valuable rewards.

What is credit score and how much do I need for a BMO credit card?

A credit score is a numerical representation of an individual’s creditworthiness, indicating their likelihood of repaying debt responsibly. It’s based on various factors such as payment history, credit utilization, length of credit history, types of credit accounts, and new credit inquiries. Credit scores typically range from 300 to 900 in Canada, with higher scores indicating lower credit risk.

Here’s a breakdown of credit score ranges in Canada and their corresponding interpretations:

• Poor (300-579): Individuals with credit scores in this range may have difficulty obtaining credit or may be offered credit products with less favorable terms. They may have a history of missed payments, defaults, or high levels of debt.

• Fair (580-669): Credit scores in this range indicate some credit issues or a limited credit history. Individuals may qualify for credit products but may face higher interest rates or stricter eligibility requirements.

• Good (670-739): A good credit score suggests responsible credit management and a lower risk of default. Individuals with scores in this range are typically eligible for most credit products and may qualify for competitive interest rates and terms.

• Very Good (740-799): Scores in this range reflect excellent credit management and a strong credit history. Individuals with very good credit scores are likely to qualify for the best available rates and terms on credit products.

• Excellent (800-900): An excellent credit score indicates exceptional creditworthiness and a minimal risk of default. Individuals with scores in this range are highly likely to qualify for the most favorable rates, terms, and credit products.

When it comes to applying for a BMO credit card in Canada, the specific credit score required can vary depending on the card you’re interested in. BMO offers a range of credit cards with different features and eligibility criteria, including minimum income requirements and credit score thresholds.

Generally, BMO’s premium credit cards with enhanced features and rewards may require higher credit scores for approval, while cards with basic features or secured credit cards may be more accessible to individuals with fair or limited credit histories.

To determine the credit score needed for a specific BMO credit card, it’s best to review the card’s eligibility requirements on the BMO website or contact BMO directly for clarification. Additionally, keep in mind that while credit score is an important factor in the approval process, other factors such as income, employment status, and existing debts also play a role in the decision.

Common fees and costs for BMO credit cards

BMO credit cards in Canada may come with various fees and costs, depending on the specific card and its features. Here are some common fees and costs associated with BMO credit cards:

1. Annual Fee: Many BMO credit cards have an annual fee, which is charged annually for the privilege of using the card. The annual fee can vary widely depending on the card’s features, rewards, and benefits. Some BMO credit cards may waive the annual fee for the first year as an introductory offer.

2. Interest Charges: If you carry a balance on your BMO credit card beyond the grace period (usually around 21 days), you will be charged interest on the outstanding balance. The interest rate can vary depending on the card type and your creditworthiness. BMO credit cards typically have a standard interest rate for purchases and a separate rate for cash advances.

3. Foreign Transaction Fees: Some BMO credit cards charge a fee for transactions made in foreign currencies. This fee is typically a percentage of the transaction amount and can add up quickly when using the card for international purchases or travel.

4. Balance Transfer Fees: If you transfer a balance from another credit card to your BMO credit card, you may be charged a balance transfer fee. This fee is usually calculated as a percentage of the transferred amount and is subject to a minimum charge.

5. Cash Advance Fees: When you use your BMO credit card to withdraw cash from an ATM or obtain cash equivalent transactions (such as buying foreign currency), you may incur a cash advance fee. This fee is typically charged as a percentage of the cash advance amount and is subject to a minimum charge.

6. Overlimit Fees: If you exceed your credit limit on a BMO credit card, you may be charged an overlimit fee. This fee is typically charged each billing cycle that you exceed your credit limit and can vary depending on the card terms.

7. Late Payment Fees: If you fail to make at least the minimum payment by the due date on your BMO credit card statement, you may be charged a late payment fee. This fee is typically a fixed amount and can be avoided by making timely payments.

8. Returned Payment Fees: If a payment made on your BMO credit card is returned unpaid, you may be charged a returned payment fee. This fee is typically a fixed amount and is charged for each returned payment.

9. Additional Cardholder Fees: Some BMO credit cards allow you to add additional cardholders to your account for a fee. This fee may be charged annually or as a one-time fee for each additional card issued.

It’s essential to review the terms and conditions of any BMO credit card you’re considering to understand the full cost structure, including fees and charges. By understanding the potential fees associated with a BMO credit card, you can make informed decisions about how to use the card responsibly and minimize costs.

Alternatives to BMO credit cards

Several alternatives to BMO credit cards are available in Canada, offered by other banks, credit unions, and financial institutions. These alternatives may provide similar or different features, benefits, and rewards programs to suit various preferences and financial needs. Here are some alternatives to consider:

1. Scotiabank Credit Cards: Scotiabank offers a range of credit cards with various rewards programs, including cash back, travel rewards, and rewards points. The Scotiabank Gold American Express Card, for example, is known for its travel rewards and flexible redemption options.

2. TD Credit Cards: TD Bank provides a selection of credit cards tailored to different lifestyles and spending habits. The TD Cash Back Visa Infinite Card offers cash back rewards on everyday purchases, while the TD Aeroplan Visa Infinite Card provides travel rewards for Aeroplan members.

3. RBC Credit Cards: Royal Bank of Canada (RBC) offers a diverse lineup of credit cards, including cash back, travel rewards, and premium cards with exclusive benefits. The RBC Avion Visa Infinite Card is popular for its flexible travel rewards program and extensive insurance coverage.

4. CIBC Credit Cards: Canadian Imperial Bank of Commerce (CIBC) offers credit cards with various rewards programs and benefits, including cash back, travel rewards, and premium perks. The CIBC Dividend Visa Infinite Card is known for its cash back rewards on everyday spending.

5. Desjardins Credit Cards: Desjardins Group, a cooperative financial group, provides credit cards with rewards programs, travel benefits, and exclusive perks for members. The Desjardins Odyssey World Elite Mastercard offers travel rewards and comprehensive insurance coverage.

6. Tangerine Credit Card: Tangerine Bank offers the Tangerine Money-Back Credit Card, which allows cardholders to earn cash back on everyday purchases with no annual fee. The card offers customizable rewards categories and flexible redemption options.

7. HSBC Credit Cards: HSBC Bank Canada offers credit cards with rewards programs, travel benefits, and exclusive privileges. The HSBC World Elite Mastercard, for example, provides travel rewards, lounge access, and comprehensive insurance coverage.

8. National Bank Credit Cards: National Bank of Canada offers credit cards with various rewards programs, including cash back, travel rewards, and points-based programs. The National Bank World Elite Mastercard is known for its travel benefits and rewards points.

9. MBNA Credit Cards: MBNA Canada, a division of TD Bank, offers a range of credit cards with rewards programs, cash back options, and balance transfer offers. The MBNA Rewards World Elite Mastercard provides flexible rewards and travel benefits.

10. American Express Credit Cards: In addition to issuing cards directly, American Express offers cobranded cards in partnership with other financial institutions. These cards provide unique benefits and rewards, such as Membership Rewards points and exclusive offers.

When exploring alternatives to BMO credit cards, consider factors such as rewards programs, annual fees, interest rates, and additional benefits to find the card that best suits your financial goals and lifestyle preferences.

FAQs about the best BMO credit cards in Canada