Best Challenger Bank Credit Cards For October 2025
The best credit cards offered outside of the Big 5 Canadian banks.
Challenger banks offer some of the best credit cards in Canada, particularly for those who may struggle to qualify for traditional credit cards. The Rogers Red World Elite Mastercard is the best challenger credit card, as it charges no annual fee and offers excellent earning rates.
Other challenger bank options include a secured credit card and prepaid card option, so there’s truly a card for everyone on our list.
Here, we examine the unique features of top challenger bank credit cards, review eligibility requirements, and more, so you can make an informed decision when choosing a new card.
Key Takeaways
- The Rogers Red World Elite Mastercard is a no fee card that earns enhanced rates if you’re a Fido, Rogers, or Shaw customer.
- The Neo Financial Mastercard has a low standard earn rate, but gives you up to 5% back when shopping with retail partners.
- You can apply for a secured credit card, like the Home Trust Secured Visa, if you’re trying to build your credit score.
Comparing the best challenger bank credit cards
| Category | Credit card | Annual fee | Current offer |
|---|---|---|---|
| Best challenger bank credit card | Rogers Red World Elite Mastercard | $0 | None |
| Best for unique rewards | Neo Mastercard | $0 | $25 after your account is opened |
| Best secured card | Home Trust Secured Visa Card | $0 | None |
| Best prepaid card | KOHO Extra Mastercard | $144 |  $100 GeniusCash + $20 after the first purchase |
1. Best challenger bank credit card
Every year, Rogers comes up with improvements to their credit cards – and with the Rogers Red World Elite Mastercard, you'll get respectable earn rates and nice perks for no annual fee.
If you shop in the U.S., you’ll earn a whopping 3% cash back, putting you ahead even with the 2.5% foreign exchange fee. Plus, your World Elite Mastercard perks include lounge access for just $32 USD per visit.
You can redeem your cash on demand ($10 minimum) – and if you redeem it towards a bill credit with Rogers, you’ll get a 50% bonus.
But be forewarned: the minimum spend on this card is $15,000 per year. Spend less and you risk being downgraded to the Rogers Red Mastercard.
Pros:
- World Elite Mastercard benefits
- No annual fee
- Includes 6 types of insurance coverage
- High earn rate on USD purchases
Cons:
- Minimum spend of $15,000 per year
- $80,000 personal or $150,000 household income required
2. Best challenger bank credit card with unique rewards
Rewards:
- Average of 5% cash back at partner retailers
- 1% cash back on gas, up to $500 spent monthly
- 1% cash back on groceries, up to $500 spent monthly
Don't want to be tied down to a few categories for bonus rewards? Neo Financial has a unique twist on rewards with the Neo Mastercard: instead of earning on specific categories, you’ll earn rewards when shopping at their large selection of retail partners, where you can earn an average of 5% back.
While you won’t earn cash back at non-Neo retailers, you’re guaranteed to earn a minimum of 0.5% cash back across all your purchases.
This card doesn't include any insurance or special perks to speak of – but it also has no annual fee.
Pros:
- Average of 5% cash back when shopping with Neo partners
- No annual fee
- Ability to upgrade your card with Neo perks (fee varies)
Cons:
- No insurance included
- No rewards outside of Neo partners
3. Best challenger bank secured credit card
Rewards:
- None
Need help rebuilding your credit with a secured credit card? The Home Trust Secured Visa Card is the best offering from the challenger banks. And while it doesn’t offer much in terms of perks (after all, that’s not what these cards are about), it can help you rebuild your credit score for no annual fee.
To get a card, you need to provide a security deposit of at least $500 (or as high as $10,000), which becomes your credit limit. Then, you can use your Home Trust Secured Visa Card like any other credit card. Make your payments on time, and Home Trust will report your good payment history to the credit bureaus.
Pros:
- Near-guaranteed approval
- No annual fee
- Lower foreign exchange fee of 2%
Cons:
- No rewards on purchases
- No insurance included
4. Best challenger bank prepaid credit card
Rewards:
- 1.5% cash back on groceries, restaurants, and transportation
- 0.25% cash back on all other purchases
If you’re worried that your credit score will prohibit you from getting a credit card, check out the KOHO Extra Mastercard. While it’s a prepaid card, you’ll actually earn rewards on your purchases – up to 1.5% back. Plus, it’s super easy to get your rewards. You’ll see the cash automatically appear in your account one to two days after the purchase.
Pros:
- Up to $20 welcome bonus
- Earn up to 5% interest on your card balance
- No credit check required
- No foreign exchange fees
Cons:
- Annual fee of $144
- Does not improve your credit score
- No insurance included
How we get our rankings
We look at over 126 card features in seven different categories and then run them through our algorithm to generate an overall score out of 5 – our Genius Rating. Our rewards estimate is based on an average monthly spend of $2,000.
Learn more about our Genius Rating methodology
What is a challenger bank?
A challenger bank is a bank that is outside of the Big 5 (or Big 6) banks in Canada. These banks are typically online only or have minimal brick-and-mortar presence. Their aim is to provide customers with better value and to do away with the usual big bank corporate culture.
Here are the challenger banks and fintech companies whose credit cards we considered.
- Neo Financial: Neo is a fintech company out of Calgary that offers credit cards and a high-interest savings account. Their credit cards offer unique rewards, offering bonus rewards with a wide variety of merchants rather than just one or two set categories.
- Brim Financial: This fintech company based in Toronto only offers two Mastercards, but they come with the ability to earn rewards and make payments via installments.
- KOHO: KOHO is another fintech company offering a lineup of prepaid cards with plenty of different features like a card that earns rewards. The company also has a high interest saving account.
- Home Trust: Home Trust started as a mortgage broker, but it also offers a selection of credit cards, including the best secured credit cards in Canada.
- Rogers Bank: This subsidiary of the telecom giant has three different credit cards available.
Challenger banks do not include the following:
- BMO
- CIBC
- Simplii (owned by CIBC)
- National Bank
- RBC
- Scotiabank
- Tangerine (owned by Scotiabank)
- TD
- American Express
Why choose a challenger bank credit card?
The big banks might have more locations, but challenger banks have some distinct advantages, including easy approval and low fees.
It’s often easier to get credit card approval with a challenger bank. Neo Financial is an excellent example of a challenger bank that serves people with little to no credit.
Many Canadians consider a challenger bank because they typically have lower fees than the big banks. This is especially true of credit unions, which require membership but act in the interest of their members, not shareholders.
Challenger banks may also have unique offerings or business goals. For example, you might receive discounts through merchant partnerships, or you might opt for a challenger bank that gives back to your local community.
How to choose a challenger bank card
Choosing a challenger bank card is similar to selecting a card from a big bank. First, you’ll want to narrow your options by the cards you’re eligible for. Look at each card’s income and credit score requirements to learn more.
Then, consider each card’s annual fee and interest rates to find a card with terms that suit you. You can start narrowing down options even more by deciding what benefits and rewards you’re looking for.
If you’re having trouble choosing a challenger bank card, think about your spending habits and look for a card that closely matches your spending style. This will help you maximize the value of the card.
Pros and cons of challenger bank credit cards
If you haven’t made up your mind about getting a challenger card, consider the following advantages and disadvantages.
- No annual fees for most cards: Only two of the cards we’ve mentioned charge an annual fee – most challenger bank credit cards are free of annual fees.
- Relatively high rewards: Cards with no annual fees tend to offer minimal rewards – but some challenger bank cards offer solid earn rates and valuable redemption options (we’re looking at you, Rogers!)
- Lower income requirements: Typically, challenger banks don’t have the steep income requirements that big banks do.
- Little to no perks: Big banks generally offer higher perk values than challenger banks. Some of the top cards in Canada can earn you up to $900 in perks, compared to just $144 from a challenger bank-issued card.
- No insurance coverage: Most challenger bank cards offer little, if anything, in the way of insurance coverage.
What to consider before choosing a challenger bank
Do your research on challenger banks before filling out any account applications. For the most part, you’re considering similar factors like trust and stability. It can help to ask yourself these questions:
| Costs and fees | Rewards programs | Features and services | Customer service | What to consider | |
|---|---|---|---|---|---|
| Challenger banks | Challenger banks tend to have lower fees than traditional banks. | Limited number of partners means rewards programs might be small | Fewer digital tools, features, and benefits | May have limited customer service hours or might be restricted to phone/email | * Is the bank licensed, and are deposits protected? * Do chequing or savings accounts charge monthly fees? * How do interest rates or overdraft fees compare? |
| Traditional banks | Typically charge more than challenger banks | More extensive rewards programs with many partners | User-friendly digital tools like mobile apps, a wider network of branches and partners | Wider variety of contact options with 24/7 service | * What types of accounts are offered? * Does the bank provide international services? * Does the bank’s website offer useful financial tools or a blog? |
Are challenger banks secure?
While they may not be at the same level as big banks, yes - the challenger banks and fintech companies we have listed are secure. There is little chance of you being locked out of your funds unfairly.
FAQ
What are the best challenger banks in Canada?
The best challenger banks in Canada include Neo Financial, Brim Financial, Home Trust, KOHO, and Rogers Bank. Since their products and services change more frequently than those of big banks, it's essential to check their information regularly.
Is it better to get a credit card from a big bank?
Since big banks charge annual fees and higher interest rates, they can afford to offer welcome bonuses or valuable perks and rewards. If you’re looking for high rewards, valuable perks, and benefits, go with a big bank card.
What is the best credit card from a challenger bank?
The best credit card from a challenger bank is the Rogers Red World Elite Mastercard, which offers a solid insurance package, 3% cash back, and comes with World Elite Mastercard benefits – all for no annual fee.
Do challenger banks have branches?
No, challenger banks typically don’t have physical branches. They primarily operate online or through mobile apps. Sometimes, however, challenger banks may partner with other banks, allowing you to use ATMs from bigger banks without incurring fees.
What are the disadvantages of challenger banks?
Challenger banks can lack the convenience of traditional banks: fewer digital tools (like mobile apps), reduced customer service options, and a smaller network of branches. Plus, you might not earn as many rewards or benefits.
What is the best bank for credit cards in Canada?
There’s not necessarily a best bank for credit cards, since many banks offer credit cards with similar features. If you’re looking for the bank with the most credit card options, check out Scotiabank, which offers cards from all three networks.
Editorial Disclaimer: The content here reflects the author's opinion alone. No bank, credit card issuer, rewards program, or other entity has reviewed, approved, or endorsed this content. For complete and updated product information please visit the product issuer's website. Our credit card scores and rankings are based on our Rating Methodology that takes into account 126+ features for each of 229 Canadian credit cards.
