How Credit Cards Work

What is a Credit Card?

A Credit Card gives you the choice to pay for your purchases in full or to carry a balance and make minimum monthly payments. You can use it to pay for purchases online, over the phone or in person. You can even use it to pay for goods and services in other countries. There are other advantages to having a Credit Card – many offer benefits such as rewards and insurance related coverages. 

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What is a Charge Card?

Charge Cards differ from Credit Cards as they give you the financial flexibility of no pre-set spending limit for purchases¹, and you must pay the balance in full each month. No pre-set spending limit doesn’t mean unlimited spending. Purchases are approved based on several factors including your current spending patterns, payment history, credit record, and financial resources. Proof of resources and security may be required.

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Discover American Express Card types

Different types of Cards exist so that you can choose the one that best suits your individual needs and the way you spend:

• Travel Rewards Cards and Frequent Flyer Cards - If you’re a jet-setter, this type of Card will earn you travel rewards for making everyday purchases on your Card.

• Cash Back Credit Cards – Enjoy cash back on every day purchases, from shopping at the supermarket to paying your bills.

• Platinum Cards — Incredible rewards and luxurious benefits for those who appreciate the finer things in life.

• No Annual Fee Cards – For those who’d like to experience benefits with a no annual fee.Low Rate Credit Cards — Enjoy more financial flexibility with a low interest rate on purchases.

• Air Miles Credit Cards – You can earn AIR MILES^®* Reward miles on all purchases you charge to your Card.

• Aeroplan Cards – You can earn Aeroplan^®** Miles on purchases you charge to your Card.
  

Explore our Types of Cards
 

How to Apply for a Card

To apply for a personal Card in Canada you need to meet certain eligibility criteria. To save time you click below for all the information you’ll need to apply for an American Express^® Card. 

Find out how to apply for a Card
 

Understanding interest on purchases

It is important to remember that if you have a Credit Card and you don’t pay off your balance in full by the due date shown on your statement, you will be charged interest on all purchases shown on that month’s statement and interest will applied to your account. The amount of interest you may be charged is impacted by:

• Whether you pay your Credit Card balance in full or make a minimum payment.
• The amount you spend and the interest rate on your purchases.

When you receive your statements, the details of your purchases and the amount of interest you have been charged will be clearly displayed. 

Learn more about Card Interest
 

Credit Card Fees

Some American Express^® Cards charge an annual fee – The amount will vary depending on the Card you apply for, along with the benefits and features available to you on that card. 
 

Learn more about Card Fees
 

What is Credit Limit?

When you open your Credit Card Account you are assigned a Credit Limit which is the maximum amount that can be outstanding at any time on your account. Every Credit Card comes with a Credit limit.  

Learn more about Credit Limits
 

Minimum Payments

You will need to pay at least the minimum payment requested by the payment due date shown on your statement. By paying off more than the minimum payment each month by the due date, you will pay less interest. To avoid paying interest, you should make a practice of paying your entire balance prior to your statement due date. 

Learn more about Credit Card Repayment
 

What is Credit Score?

Your credit score is one of your most important financial tools. Understanding your credit score can help you plan for the future and is a strong indicator of your likelihood of being approved for a credit card. 

Learn more about Credit Score
 

Where is American Express Accepted?

You can use your American Express Card for purchases big and small, including the places you love to shop at every day. American Express Cards are warmly accepted at thousands of Merchants across Canada.  

Find out where American Express is accepted
 

Using your Card Abroad

American Express^® Cards are accepted around the world, so you can have peace of mind when using your Card to make purchases overseas.   

Find out how to use your Card Abroad
 

American Express Benefits

Footnotes

1. No Pre-Set Spending Limit on purchases does not mean unlimited spending. Your purchases are approved based on a variety of factors, including your credit record, account history and personal resources. Proof of resources and security may be required.

^®,^™ : Used by Amex Bank of Canada under license from American Express

^®*^™ Trademarks of AIR MILES International Trading B.V. Used under license by LoyaltyOne, Inc. and Amex Bank of Canada.

^®**: Aeroplan, AeroplanPlus, the Aeroplan logo, Fixed Mileage Flight Rewards and Market Fare Flight Rewards are registered trademarks of Aeroplan Inc.