Best American Express Credit Cards in Canada 2024

Who are American Express and how do their credit cards work?

American Express, often abbreviated as Amex, is a multinational financial services corporation renowned for its credit card, charge card, and traveler’s cheque services. Established in 1850 and headquartered in New York City, American Express has evolved into one of the most prestigious and globally recognized brands in the financial industry.

At the core of American Express’s offerings are its credit cards, which operate on a unique business model compared to traditional credit card issuers. While most credit card companies issue credit cards with revolving credit limits, American Express primarily issues charge cards and credit cards with a “pay in full” feature.

Charge cards: These cards require cardholders to pay the full statement balance by the due date each month, with no option for revolving credit or carrying a balance over time. As a result, cardholders are expected to settle their charges in full, thus avoiding interest charges. Examples of American Express charge cards include the iconic American Express® Gold Card and the Platinum Card®.

Credit cards with “pay in full” feature: Some American Express credit cards offer the option to carry a balance, but cardholders are encouraged to pay their balance in full each month to avoid accruing interest charges. However, they have the flexibility to carry a balance over time if necessary. These cards often come with rewards programs, benefits, and perks similar to charge cards. Examples include the American Express Cobalt™ Card and the Marriott Bonvoy™ American Express® Card.

American Express credit cards typically function on the global American Express network, accepted at millions of merchants worldwide. Cardholders enjoy benefits such as purchase protection, extended warranties, travel insurance, airport lounge access, and exclusive access to events and experiences.

Moreover, American Express offers various rewards programs tailored to different cardholders’ lifestyles, including Membership Rewards®, Marriott Bonvoy™, Aeroplan®, and more. These programs allow cardholders to earn points or miles for every dollar spent, which can be redeemed for travel, merchandise, gift cards, statement credits, and more.

In essence, American Express credit cards combine financial flexibility, premium benefits, and lucrative rewards, catering to the diverse needs and preferences of cardholders across the globe.

Pros and cons of American Express credit cards

American Express credit cards offer a range of benefits and features, but like any financial product, they also have their drawbacks. Here’s a detailed look at the pros and cons of American Express credit cards:

Pros:

1. Generous Rewards Programs: American Express offers some of the most lucrative rewards programs in the industry. Cardholders can earn points or miles for every dollar spent, which can be redeemed for travel, statement credits, merchandise, gift cards, and more. The Membership Rewards program, in particular, provides flexibility and value, with options to transfer points to various airline and hotel loyalty programs.

2. Premium Benefits: Many American Express cards come with premium perks and benefits, such as travel insurance, airport lounge access, concierge services, purchase protection, extended warranties, and exclusive access to events and experiences. These benefits enhance the cardholder experience and provide added value beyond just earning rewards.

3. Global Acceptance: American Express credit cards are widely accepted at millions of merchants worldwide, thanks to the extensive American Express network. Cardholders can use their Amex cards for purchases, travel bookings, and more, both domestically and internationally.

4. Customer Service: American Express is renowned for its exceptional customer service, with dedicated support available 24/7. Cardholders can easily reach customer service representatives for assistance with account inquiries, card replacement, disputes, and more.

5. Security Features: American Express employs robust security measures to protect cardholders against fraud and unauthorized transactions. Features such as fraud monitoring, purchase protection, and account alerts help safeguard cardholder accounts and provide peace of mind.

Cons:

1. Annual Fees: Many American Express cards come with annual fees, which can range from moderate to high. While the benefits and rewards often outweigh the annual fee for frequent users, some cardholders may find it challenging to justify the cost, especially if they don’t utilize the card’s features extensively.

2. Limited Acceptance: Despite its global presence, American Express cards may not be accepted at all merchants, particularly smaller businesses and establishments. Cardholders may encounter instances where Amex cards are not accepted, requiring them to carry an alternative payment method.

3. Interest Rates: American Express credit cards often come with variable interest rates, which can be relatively high compared to other credit card issuers. Cardholders who carry a balance from month to month may incur significant interest charges, offsetting the value of rewards earned.

4. Strict Approval Criteria: American Express is known for its stringent approval criteria, particularly for premium cards. Applicants with limited credit history or lower credit scores may have difficulty qualifying for certain Amex cards, limiting their options within the American Express portfolio.

5. Foreign Transaction Fees: Some American Express cards charge foreign transaction fees, typically around 2-3% of the transaction amount, for purchases made in foreign currencies or outside the card’s home country. These fees can add up for frequent international travelers, reducing the overall value of using the card abroad.

In summary, American Express credit cards offer a wealth of benefits and rewards but come with certain considerations, such as annual fees, limited acceptance, and interest rates. Cardholders should carefully assess their spending habits, travel preferences, and financial goals to determine if an Amex card aligns with their needs and lifestyle.

What types of American Express credit cards are available in Canada?

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

1. Travel Rewards Cards: These cards are designed for frequent travelers and offer rewards, benefits, and perks tailored to travel-related expenses. Cardholders can earn points or miles on travel purchases, enjoy travel insurance coverage, airport lounge access, and other travel-related perks.

2. Cash Back Cards: Cash back credit cards allow cardholders to earn cash back rewards on their everyday purchases. These cards typically offer a percentage of cash back on eligible purchases, which can be redeemed as statement credits, deposited into a bank account, or used for other redemption options.

3. Membership Rewards Cards: Membership Rewards is American Express’s flagship rewards program, offering flexibility and value through various redemption options. Cardholders can earn Membership Rewards points on eligible purchases and redeem them for travel, merchandise, gift cards, statement credits, and more.

4. Hotel Rewards Cards: American Express partners with hotel chains to offer co-branded credit cards that earn points on hotel stays and other purchases. These cards often come with elite status benefits, complimentary nights, and other perks specific to the hotel loyalty program.

5. Business Cards: American Express provides credit card options tailored to small businesses and entrepreneurs. Business credit cards offer rewards, benefits, and features designed to help manage business expenses, streamline accounting, and maximize rewards on business-related spending.

6. No Annual Fee Cards: Some American Express credit cards in Canada waive the annual fee, making them more accessible to a broader range of consumers. These cards still offer rewards, benefits, and features, albeit at a lower tier compared to premium cards with annual fees.

7. Charge Cards: In addition to credit cards, American Express offers charge cards in Canada, which require cardholders to pay the balance in full each month. Charge cards often come with premium benefits and rewards, catering to individuals who prefer to avoid revolving credit.

8. Specialty Cards: American Express occasionally introduces specialty or limited-edition credit cards with unique benefits, partnerships, or designs. These cards may target specific demographics, interests, or trends, offering an exclusive experience for cardholders.

Overall, American Express credit cards in Canada provide a wide array of options, allowing consumers to find a card that aligns with their preferences, spending habits, and financial objectives. Whether seeking travel rewards, cash back, or premium benefits, there’s likely an American Express credit card suited to meet various needs and lifestyle preferences in Canada.

How to find and choose the best American Express credit cards in Canada

Finding and choosing the best American Express credit card in Canada requires careful consideration of your individual preferences, spending habits, financial goals, and lifestyle. Here’s a detailed guide on how to navigate the selection process effectively:

1. Assess Your Spending Habits and Lifestyle:

   • Analyze your typical spending categories, such as groceries, dining, travel, and entertainment.
   • Consider your travel habits, including frequency, preferred airlines or hotel chains, and destinations.
   • Evaluate your priorities, whether you prioritize earning rewards, accessing premium benefits, or minimizing fees.

2. Identify Your Goals and Preferences:

   • Determine what you value most in a credit card, whether it’s travel rewards, cash back, flexible redemption options, or premium perks.
   • Establish specific goals, such as earning enough points for a particular trip, maximizing cash back on everyday purchases, or accessing travel benefits like airport lounge access and travel insurance.

3. Research American Express Credit Card Options:

   • Explore the range of American Express credit cards available in Canada by visiting the American Express Canada website or using comparison tools on financial websites.
   • Review the features, benefits, rewards structures, and fees associated with each card to understand how they align with your goals and preferences.
   • Pay attention to introductory offers, such as welcome bonuses or promotional interest rates, which can add significant value in the short term.

4. Consider Rewards Programs and Redemption Options:

   • Evaluate the rewards programs offered by American Express, such as Membership Rewards, hotel loyalty programs, or cash back programs.
   • Assess the earning rates for different spending categories and the flexibility of redemption options, including travel, merchandise, gift cards, statement credits, and more.
   • Determine which rewards program aligns best with your spending patterns and redemption preferences.

5. Review Card Benefits and Perks:

   • Examine the additional benefits and perks provided by each American Express credit card, such as travel insurance, airport lounge access, purchase protection, extended warranties, and concierge services.
   • Consider how these benefits complement your lifestyle and whether they justify any associated annual fees.

6. Compare Fees and Interest Rates:

   • Take note of any annual fees, foreign transaction fees, balance transfer fees, and other charges associated with each American Express credit card.
   • Evaluate the interest rates for purchases, cash advances, and balance transfers to understand the cost of carrying a balance on the card.

7. Read Reviews and Seek Recommendations:

   • Research online reviews and testimonials from other cardholders to gain insights into their experiences with specific American Express credit cards.
   • Seek recommendations from friends, family, or financial experts who may have firsthand knowledge or expertise in credit card selection.

8. Apply for the Card and Monitor Your Usage:

   • Once you’ve identified the best American Express credit card for your needs, submit an online application through the American Express website or by contacting customer service.
   • Upon approval, familiarize yourself with the card’s terms and conditions, rewards program details, and any introductory offers.
   • Use the card responsibly, making timely payments, maximizing rewards, and leveraging benefits to enhance your overall experience.

By following these steps and conducting thorough research, you can find and choose the best American Express credit card in Canada that aligns perfectly with your financial goals and lifestyle preferences.

How to apply for an American Express credit card in Canada

Applying for an American Express credit card in Canada is a straightforward process. Here’s a step-by-step guide to help you navigate the application process effectively:

1. Research Available Cards:

   • Explore the range of American Express credit cards available in Canada to identify the card that best suits your needs, preferences, and financial goals.
   • Consider factors such as rewards programs, benefits, fees, and interest rates to make an informed decision.

2. Check Eligibility Requirements:

   • Review the eligibility criteria for the American Express credit card you’re interested in, including minimum age, residency status, and credit history requirements.
   • Ensure that you meet the necessary qualifications before proceeding with the application.

3. Gather Required Information:

   • Collect the necessary personal and financial information needed to complete the credit card application.
   • This typically includes your full name, date of birth, contact information, residential address, employment details, annual income, and social insurance number (SIN).

4. Visit the American Express Website:

   • Access the American Express Canada website to explore the available credit card options and access the online application portal.
   • Alternatively, you can apply for certain American Express credit cards through authorized third-party channels, such as financial institutions or affiliated partners.

5. Select the Desired Card and Apply:

   • Navigate to the specific credit card page on the American Express website and click on the “Apply Now” or “Start Your Application” button.
   • Follow the prompts to complete the online application form, providing accurate and up-to-date information as required.
   • Double-check the information provided to ensure its accuracy before submitting the application.

6. Review Terms and Conditions:

   • Carefully review the terms and conditions associated with the credit card you’re applying for, including interest rates, fees, rewards programs, and cardholder agreements.
   • Familiarize yourself with any introductory offers, promotional terms, and important disclosures provided by American Express.

7. Submit Supporting Documents (if Required):

   • Depending on the card you’re applying for and your individual circumstances, American Express may request additional documentation to support your application.
   • Be prepared to provide proof of identity, income verification, and other relevant documents as requested.

8. Wait for Approval:

   • After submitting your credit card application, allow some time for American Express to review and process your application.
   • You may receive an instant decision in some cases, while others may require additional time for manual review.

9. Activate Your Card:

   • Upon approval, you will receive your American Express credit card by mail within a few business days.
   • Follow the instructions provided with the card to activate it either online or by phone before using it for purchases.

10. Start Using Your Card:

    • Once your American Express credit card is activated, you can start using it to make purchases, earn rewards, and access benefits and perks as outlined in the card’s terms and conditions.

By following these steps, you can successfully apply for an American Express credit card in Canada and begin enjoying the benefits and features of your chosen card.

What is credit score and how much do I need for an American Express credit card

A credit score is a numerical representation of your creditworthiness, which indicates the likelihood that you will repay borrowed money or fulfill financial obligations on time. Credit scores are typically calculated based on information found in your credit report, which includes details about your credit accounts, payment history, credit inquiries, and other factors.

In Canada, credit scores are typically provided by credit bureaus such as Equifax and TransUnion and are based on a scale ranging from 300 to 900. A higher credit score indicates lower credit risk, while a lower credit score suggests higher credit risk.

Credit scores are used by lenders, including credit card issuers like American Express, to assess the risk of extending credit to applicants. While credit scoring models may vary among lenders, a higher credit score generally increases your chances of approval and may also qualify you for better terms, such as lower interest rates and higher credit limits.

As for the specific credit score requirements for American Express credit cards in Canada, they can vary depending on the card you’re applying for and other factors such as income and employment status. American Express typically offers a range of credit cards targeting different segments of consumers, from entry-level cards to premium cards with exclusive benefits.

While American Express doesn’t publicly disclose specific credit score requirements for its credit cards, generally, applicants with good to excellent credit scores (typically above 660) have a better chance of approval for most American Express cards. However, meeting the minimum credit score requirement is just one aspect of the approval process. American Express considers various factors, including income, employment status, debt-to-income ratio, and credit history when evaluating credit card applications.

It’s essential to note that credit score requirements and approval criteria may vary based on the specific card you’re applying for, as well as individual circumstances. Therefore, it’s advisable to review the eligibility criteria for the American Express credit card you’re interested in and assess your credit profile to determine your likelihood of approval before applying. Additionally, you can use pre-qualification tools offered by American Express or other financial institutions to gauge your eligibility and potential credit limit before submitting a formal application.

What are Common interest rates, fees and costs for American Express credit cards in Canada

American Express credit cards in Canada typically come with a range of interest rates, fees, and costs that vary depending on the specific card you choose and your individual financial circumstances. While the exact terms may differ from one card to another, here are some common interest rates, fees, and costs associated with American Express credit cards in Canada:

Interest Rates:

1. Purchase APR (Annual Percentage Rate): This is the interest rate charged on purchases made with the credit card. The purchase APR can vary based on the card and may be a variable or fixed rate.

2. Balance Transfer APR: If the credit card offers balance transfer options, a different APR may apply to balance transfers from other credit cards. This rate may also vary depending on the card and may be subject to promotional offers.

3. Cash Advance APR: Cash advances, such as withdrawing cash from an ATM using your credit card, typically incur a higher APR compared to purchases. The cash advance APR may also vary depending on the card.

4. Penalty APR: If you miss payments or violate the terms of your credit card agreement, the issuer may impose a penalty APR, which is a higher interest rate applied to your outstanding balance as a penalty.

Fees:

1. Annual Fee: Many American Express credit cards in Canada come with an annual fee, which can range from relatively low to high, depending on the card’s features, benefits, and rewards program. Some premium cards may justify the annual fee through generous rewards and perks.

2. Foreign Transaction Fee: When you use your American Express credit card to make purchases in a foreign currency or outside of Canada, a foreign transaction fee may apply. This fee is typically a percentage of the transaction amount.

3. Balance Transfer Fee: If you transfer balances from other credit cards to your American Express card, a balance transfer fee may apply. This fee is usually calculated as a percentage of the amount transferred.

4. Cash Advance Fee: Cash advances often incur a fee, either a flat rate or a percentage of the cash advance amount. Additionally, cash advances may be subject to a higher APR compared to purchases.

5. Late Payment Fee: If you fail to make at least the minimum payment by the due date, a late payment fee may be charged to your account. This fee is typically a flat amount or a percentage of the overdue balance, whichever is greater.

6. Overlimit Fee: If you exceed your credit limit, an overlimit fee may be charged to your account. However, American Express discontinued overlimit fees for consumer cards in Canada in 2018.

Other Costs:

1. Interest Charges: If you carry a balance on your American Express credit card, you’ll incur interest charges based on the applicable APR for purchases, balance transfers, and cash advances. Interest is typically calculated daily based on the outstanding balance.

2. Reward Redemption Costs: While not necessarily fees, some American Express cards may have costs associated with redeeming rewards, such as annual fees for participating in rewards programs or fees for transferring points to airline or hotel loyalty programs.

It’s important to carefully review the terms and conditions, as well as the fee schedule, for any American Express credit card you’re considering to understand the applicable interest rates, fees, and costs associated with the card. Additionally, keep in mind that fees and costs may change over time, so it’s advisable to stay informed about any updates or changes communicated by American Express.

Alternatives to American Express credit cards

There are several alternatives to American Express credit cards in Canada, each offering unique features, benefits, and rewards programs. Here are some popular alternatives:

1. Visa Credit Cards: Visa is one of the largest payment networks globally, offering a wide range of credit cards in Canada. Visa credit cards are widely accepted at millions of merchants worldwide and come with various rewards programs, perks, and benefits. Examples include the Scotia Momentum® Visa Infinite Card, TD® Aeroplan® Visa Infinite Card, and CIBC Dividend® Visa Infinite Card.

2. Mastercard Credit Cards: Mastercard is another major payment network with a diverse selection of credit cards available in Canada. Mastercard credit cards offer global acceptance, rewards programs, and a range of benefits and perks. Examples include the BMO CashBack® World Elite® Mastercard®, HSBC World Elite® Mastercard®, and Tangerine Money-Back Credit Card.

3. Travel Rewards Credit Cards: Several Canadian banks and financial institutions offer travel rewards credit cards that provide points or miles for travel-related purchases. These cards often come with travel insurance, airport lounge access, and other travel perks. Examples include the TD® Aeroplan® Visa Infinite Card, CIBC Aventura® Visa Infinite Card, and RBC Avion® Visa Infinite Card.

4. Cash Back Credit Cards: Cash back credit cards allow cardholders to earn cash back rewards on their everyday purchases, making them a popular choice for those seeking simplicity and flexibility. Cash back credit cards come with varying earning rates and redemption options. Examples include the Scotia Momentum® Visa Infinite Card, Tangerine Money-Back Credit Card, and Simplii Financial™ Cash Back Visa Card.

5. Store Credit Cards: Many retailers and stores offer their own branded credit cards, often with rewards and benefits tailored to their customers’ shopping habits. Store credit cards may offer discounts, special financing offers, and loyalty rewards for purchases made at the respective store or affiliated brands.

6. Credit Union Credit Cards: Credit unions in Canada also offer credit cards with competitive features, benefits, and rewards programs. These cards may be a good option for individuals looking for personalized service and community-oriented financial institutions.

7. Secured Credit Cards: Secured credit cards are designed for individuals with limited or poor credit history. These cards require a security deposit, which serves as collateral, and can help individuals build or rebuild their credit over time. Examples include the Home Trust Secured Visa Card and the Capital One® Guaranteed Secured Mastercard®.

When choosing an alternative to American Express credit cards, consider factors such as rewards programs, fees, interest rates, benefits, and acceptance. Compare multiple options to find the credit card that best aligns with your financial goals, spending habits, and lifestyle preferences.

FAQs about the best American Express credit cards in Canada