Most people default to whatever credit card their bank offers when they open an account, then stick with it out of inertia. That’s an expensive habit. The right card for a given spender can mean hundreds of dollars a year in either extra rewards earned or interest and fees avoided — and the “best” card genuinely depends on how you spend, whether you carry a balance, and what you actually value in a card. This guide walks through how to think about the decision, not which single card wins for everyone.

Start with one honest question: do you carry a balance?

This is the single biggest factor, and it’s the one people skip. If you pay your statement balance in full every month, the interest rate on your card barely matters — you’ll rarely or never pay it. In that case, you should optimize for rewards: cash back, points, or travel value, whichever matches how you spend.

If you sometimes carry a balance month to month, the math flips. A card advertising 2% cash back is not a good deal if you’re paying 20%+ interest on an unpaid balance — the interest cost swamps the rewards many times over. In that scenario, a lower-interest card is worth more than a rewards card, even with a modest annual fee attached.

The Scotiabank Value Visa is built specifically for this second group: a 13.99% purchase APR with no meaningful rewards program, aimed at people who want to minimize borrowing cost rather than maximize points. It’s a deliberately narrow tool, and it’s the wrong card for someone who pays their balance off monthly — for that person, a $0-rewards card with a low rate is pure opportunity cost.

No annual fee vs. paying for a card

No-fee cards make sense as a default, especially for anyone still building credit or spending under roughly $2,000-$3,000/month. Two of the cards in our pilot lineup illustrate this well:

Tangerine’s Money-Back Mastercard and BMO’s CashBack Mastercard both charge no annual fee and pay elevated cash back (commonly 2-3%) in a handful of categories you choose or that are fixed by the issuer, dropping to a lower flat rate everywhere else. The trade-off with category-based cash back cards is the cap: BMO’s CashBack card, for example, caps its 3% grocery and 1% bill-payment rates at the first $500 of spending per category, per statement period — past that, you’re earning the base 0.5%. If your spending regularly exceeds those caps, a flat-rate or premium card may out-earn a capped no-fee card even with the annual fee factored in.

Fee-bearing cards earn their keep through either a stronger overall rewards rate, a larger uncapped earning structure, or benefits you’d otherwise pay for separately (travel insurance, airport perks, purchase protection, concierge service). The Amex Cobalt and the RBC Avion Visa Infinite in our pilot lineup both charge an annual fee and both justify it differently — Cobalt through a high flat rate on everyday spending categories like groceries and dining, RBC Avion through flexible travel-point redemption and a broader insurance and travel-benefits package. Whether either fee is worth paying depends entirely on whether you’ll actually use what you’re paying for.

Matching a card to how you actually spend

A rewards card is only valuable if its bonus categories overlap with your real spending. Before comparing headline rates, look at three or four months of your own statements and ask where the money actually goes: groceries, dining, gas, bills, travel, or none of the above. A card that pays an excellent rate on travel is worthless to someone who doesn’t travel; a grocery-heavy card underperforms for someone who eats out constantly.

It’s also worth checking what a card does not reward. Costco purchases, for instance, are commonly excluded from “grocery” bonus categories and classified separately as warehouse-club spending — both BMO’s CashBack card and several competitors carve this out explicitly. If a meaningful share of your spending happens somewhere a card’s bonus categories don’t apply, the advertised headline rate will overstate what you’ll actually earn.

Welcome bonuses: real value, with caveats

Sign-up bonuses can be worth more than a year or more of ongoing rewards, but they come with conditions that are easy to skim past: minimum spending thresholds within a set window, annual-fee waivers that expire, and offers that are only available for a limited time. Every welcome offer should be read in full before applying, and it’s worth checking the issuer’s site directly rather than relying on a comparison page’s cached figure, since these offers change on a rolling basis — often every few months.

A quick way to think about it

• If you carry a balance sometimes: prioritize a low interest rate over rewards. A card like the Scotiabank Value Visa exists for exactly this reason.
• If you pay in full and spend modestly: a no-fee cash back card (Tangerine Money-Back, BMO CashBack) usually wins, as long as your spending fits the bonus categories and stays under the caps.
• If you spend heavily in a specific category (groceries and dining, for example) and always pay in full: a fee-bearing card with a strong flat or category rate, like the Amex Cobalt, can outperform a no-fee card once the higher earn rate clears the annual fee.
• If travel is a priority and you value flexible point redemption and a broader benefits package: a travel rewards card like the RBC Avion Visa Infinite is worth evaluating against the annual fee and income eligibility requirements.

None of this replaces reading a specific card’s current rates, fees, and terms before applying — issuer terms change, and the figures in any review should always be verified against the issuer’s own page as of today. This guide is general educational information, not personalized financial advice; if your situation is complicated (existing debt, a specific major purchase you’re financing, business versus personal spending), it’s worth a conversation with a qualified financial advisor rather than relying solely on a comparison article.