What's the difference between Visa, Mastercard, and American Express in Canada?

Visa, Mastercard, and American Express are payment networks — they don’t lend money themselves. The actual lender is the issuing bank (RBC, TD, Scotiabank, etc.). Key differences:- Visa - American Express: Slightly narrower acceptance at small merchants, but typically offers the strongest rewards programs (5x grocery on Cobalt, 1,400+ lounge network on Platinum); Most Canadian portfolios pair an Amex (for points) with a Visa or Mastercard (for universal acceptance and Costco).

How does the credit card grace period work in Canada?

Canadian credit cards offer a 21-day interest-free grace period on new purchases when you pay your statement balance in full by the due date. The grace period does not apply to:- Cash advances: Interest accrues from the day of withdrawal; - Balance transfers: Interest accrues immediately unless covered by a promotional 0% offer; - Existing balances: If you carry any balance forward, you lose the grace period on new purchases until you pay in full; Always pay the full statement balance, not just the minimum, to avoid interest at typical rates of 19.99%–22.99%.

What is a hard inquiry and how does it affect my credit score?

A hard inquiry happens whenever you apply for new credit (card, loan, mortgage). The lender pulls your credit report from Equifax or TransUnion, and the inquiry is recorded for 3 years. Each hard inquiry typically lowers your score by 5–10 points temporarily. Multiple inquiries in a short window have a compounding effect, which is why most experts recommend spacing card applications at least 3 months apart. Soft inquiries (such as checking your own score on Borrowell or Credit Karma) do not affect your score at all.

What credit limits should I expect when I apply for a Canadian credit card?

Initial credit limits in Canada vary widely based on income, credit history, and card tier:- No-fee starter cards: $500–$2,000 typical first limit; - Mid-tier cards (Cobalt, Scotia Momentum Visa Infinite +): $5,000–$15,000; - Premium cards (Platinum, World Elite, Visa Infinite Privilege): $10,000–$50,000+; Charge cards like the American Express Platinum® have no preset spending limit — transactions are approved based on payment history. After 6–12 months of on-time payments, you can usually request a credit limit increase, which also helps lower your overall credit utilization ratio.