You’ll find credit cards are the best way to earn points in Canada. They also play a big role in your credit score.
You’ll improve your credit score when you use credit cards responsibly, unlike cash or debit.
Here’s how credit cards impact your credit score in Canada and how you can use them to your advantage.
The AWP Newsletter
Fuel your adventures with points
Sign up to get your free guide. Get our newsletter with credit cards and points tips. See how easy it is to travel for nearly free.
The AWP Newsletter
Fuel your adventures with points
Sign up to get your free guide. Get our newsletter with credit cards and points tips. See how easy it is to travel for nearly free.
Payment History
You’ll see the biggest impact on your credit score from your payment history.
You’ll protect your score by paying in full and on time every month. Missed payments can bring your score down and make future approvals harder.
Learn more in our guide on managing credit cards responsibly and check your credit score regularly.
Top Offers
Wondering which credit card to get next?
Our recommendations for the best credit card offers in Canada for November 2025.
Top Offers
Wondering which credit card to get next?
Our recommendations for the best credit card offers in Canada for November 2025.
New Credit Applications
You’ll see a small drop in your score each time you apply for a new card. Such hard inquiries usually lower it by a few points for a short time.
With responsible use, your score will be back in no time, and often grow higher than before.
You’ll be better off pacing applications and applying when you have a plan for the minimum spend. Check out our guide on meeting minimum spending without overspending
Best Card Offers
-
-
Welcome Points: 90,000
Welcome Value: $3,380
Annual Fee: $599
-
Welcome Points: 85,000
Welcome Value: $3,280
Annual Fee: $599
-
Welcome Points: 85,000
Welcome Value: $3,580
Annual Fee: $599
-
Welcome Points: 85,000
Welcome Value: $3,580
Annual Fee: $599
-
Welcome Points: 50,000
Welcome Value: $1,919
Annual Fee:$139. 1st Year Rebate
-
Welcome Points: 120,000
Welcome Value: $5,100
Annual Fee: $799
-
Welcome Points: 45,000
Welcome Value: $1,819
Annual Fee:$139. 1st Year Rebate
-
Welcome Points: 15,000
Welcome Value: $590
Annually Fee: $191.88 ($15.99 Monthly)
Credit Utilization
You’ll want to watch how much of your credit limit you use. High balances compared to your limits can lower your score, even if you always pay on time. Try to keep usage under 30% of your total credit.
You can improve your utilization by paying down cards before the statement closes, so the reported amount is lower.
Length of Credit History
You’ll have a stronger score with a long, steady credit history. Closing your oldest card shortens that history and can lower your score.
AWP TIP
Keep your oldest no-fee card, like the American Express® Green, even if you rarely use it. You’ll keep your average account age longer and help your credit score stay higher.
Beginner’s Guide
From points newbie to booking your first trip.
Learn how easy it’s for Canadians to earn and redeem points with the best reward credit cards and programs. Make your first redemption for almost free travel in no time.
Beginner’s Guide
From points newbie to booking your first trip.
Learn how easy it’s for Canadians to earn and redeem points with the best reward credit cards and programs. Make your first redemption for almost free travel in no time.
Bottom Line
You’ll have a strong credit score when you use credit cards responsibly.
Pay on time and in full, keep balances low, and pace your applications. Cash or debit won’t raise your score the same way.
You’ll earn plenty of points for travel, save money, and qualify for the best credit card offers.
