The best no annual fee credit card in Canada for Costco shoppers (2026)

The best no annual fee credit card for most Costco shoppers in Canada is the CIBC Costco Mastercard: $0 a year, 3% at Costco gas and restaurants, and $336 a year back on our sample $2,000 a month budget. Two free cards did better: add the BMO CashBack Mastercard for supermarket groceries and the pair earned $432, still for $0.

Which no annual fee credit cards earn the most?

We ran the free cards through the same sample household as our best cash back cards guide: $2,000 a month, $700 of it at Costco and its gas bar.

The Costco card does well for a free card because Costco gas and restaurants earn 3%. The free cards that pay 0.5% outside their bonus categories, BMO CashBack and Tangerine, only edge out a flat 1% card here because of their grocery bonus; in the Costco warehouse they earn half as much.

Which free cards work at Costco?

Only the Mastercards. Canadian Costco warehouses and gas stations take Mastercard as their only credit card, so every card in the table works there. The free Visa cards, including the CIBC Dividend Visa and the Scotia Momentum No-Fee Visa, work on Costco.ca but not in the warehouse, and Costco Canada doesn't take American Express at all. Details are in which cards Costco accepts.

What are the catches with a free card?

• Income: Rogers Red World Elite and PC World Elite are free but need $80,000 personal or $150,000 household income. The CIBC Costco Mastercard needs $15,000, Tangerine $12,000.
• Weak base rates: BMO CashBack and Tangerine pay 0.5% on everything outside their bonus categories, including the Costco warehouse.
• How you're paid: the Costco card pays a Costco cash back certificate once a year; Walmart pays in Walmart Reward Dollars; PC World Elite in PC Optimum points.
• Interest: free cards charge full rates. Carry a balance and 21.75% on the Costco card costs far more than any fee; see low interest credit cards.
• Foreign currency: most charge a fee, often about 2.5%, on purchases in U.S. dollars; check the card's page.

Is a free card better than one with a fee?

Usually, for a Costco household. On our budget, no single fee card beat the free pair: the BMO CashBack World Elite came closest at $377 after its $139 fee. Only a fee card paired with the Costco card did better, Scotia Momentum at $468, and it needs $60,000 of income and big grocery and bill spending; our fee break-even shows where it starts to pay.

Which no annual fee card should you get?

• You shop at Costco and buy its gas: the CIBC Costco Mastercard. It also doubles as your membership card.
• You also spend $300 or more a month at a supermarket: add the BMO CashBack Mastercard, or Tangerine with Grocery and Recurring Bill Payments.
• You earn $80,000 or more and want one card: Rogers Red World Elite (1.5% everywhere, 2% with a Rogers, Fido or Shaw service).
• You carry a balance: a low-rate card first; the $0 MBNA True Line Mastercard charges 12.99%.
• You're a student or rebuilding credit: see student credit cards or cards for bad credit.