What Bank of Montreal credit cards offer and who they suit
Bank of Montreal (BMO) issues credit cards across three main tiers: basic cards with no annual fee, mid-range cards with rewards programs, and premium cards with travel benefits and higher spending thresholds. The specific features — cashback rate, travel insurance, airport lounge access, annual fee — depend on which card you choose. BMO cards are issued in both Canadian dollars and U.S. dollars, and some cards let you earn rewards in multiple currencies.
BMO's card lineup includes options for people building credit, everyday spenders looking for cashback, and frequent travellers. The cards are available through BMO's website and branches, and you can check the terms before you explore. Understanding what each card costs, what it rewards, and what protections it includes helps you decide whether a BMO card fits your spending pattern or whether another issuer's card would serve you better.
Key Takeaways
- BMO offers no-fee cards, cashback cards with annual fees ranging from $95 to $150, and premium travel cards, each with different reward rates and benefits.
- Cashback and travel rewards are paid in points that you redeem through BMO's portal, not automatically as statement credits, so you must track when and how to use them.
- Annual fees are charged on the anniversary of your account opening, not at the start of the calendar year, so timing your process affects when you first pay.
- BMO cards include purchase protection and extended warranty coverage, but travel insurance and roadside information vary by card tier and require you to charge the expense to the card.
- Comparing the annual fee against your expected rewards in a year tells you whether the card will save you money or cost you more than a no-fee alternative.
BMO's no-fee and entry-level cards
BMO's no-annual-fee cards are designed for people who want a credit card without ongoing costs. These cards typically offer a small cashback rate — often 1% on all purchases or 1% on specific categories like groceries — with no rewards redemption minimum. You can redeem cashback in small amounts, sometimes as little as $10 or $25, directly to your bank account or as a statement credit.
Entry-level cards from BMO also include basic purchase protection: if you buy something with the card and it's damaged or stolen within a set period (usually 90 days), the card issuer will reimburse you up to a limit. These cards do not include travel insurance or extended warranty coverage, and they do not offer airport lounge access. They suit people who carry a balance occasionally, want to avoid annual fees, or are new to credit cards and want to build a history without cost.
Cashback and rewards cards with annual fees
BMO's mid-tier cards charge annual fees between $95 and $150 and offer higher cashback rates or bonus categories. A typical structure might be 2% cashback on groceries and gas, 1% on everything else, with an annual fee of $120. Some cards offer rotating bonus categories that change each quarter, requiring you to set up them through BMO's website or app to earn the higher rate in that category.
Rewards on these cards are usually paid as points that sit in your BMO account until you redeem them. You redeem points through BMO's online portal for cashback (usually at a rate like 1 point = 1 cent), travel bookings, or merchandise. Some cards let you transfer points to airline or hotel partners, but the conversion rate varies — you might get 1 point = 1.5 cents of value if you transfer to an airline, or 1 point = 1 cent if you take cashback. The math matters: if you spend $5,000 per year on a 2% cashback card, you earn $100 in rewards. Subtract the $120 annual fee and you lose $20. That card only makes sense if you spend enough to earn more than the fee costs.
Premium travel and rewards cards
BMO's premium cards carry annual fees of $150 or higher and include travel insurance, airport lounge access, and concierge services. A typical premium card might offer 3% cashback on travel and dining, 1% on everything else, plus travel accident insurance that covers trip cancellation, baggage delay, and emergency medical expenses. Some premium cards include airport lounge access at participating lounges in Canada and internationally, though you usually need to charge your ticket to the card to use it.
Travel insurance on these cards has limits and conditions. Trip cancellation insurance might cover up to $5,000 per person if you cancel for a covered reason (illness, injury, death of a family member) before you travel, but it does not cover cancellations due to pandemics or pre-existing conditions unless you buy the card within 14 days of your initial trip deposit. Baggage delay coverage reimburses you for essentials if your luggage is delayed more than 12 hours, up to a limit like $300. You must charge the ticket or a portion of the trip cost to the card for these protections to explore.
Premium cards also include purchase protection and extended warranty coverage similar to mid-tier cards, plus benefits like travel emergency information (a phone number to call if you lose your passport or need a doctor while travelling). These cards suit frequent travellers who book multiple trips per year and can use the lounge access and travel insurance to offset the higher annual fee.
How BMO rewards and redemption work
BMO cards earn rewards as points that accumulate in your account. The points do not convert to dollars automatically — you must log into BMO's rewards portal and choose how to redeem them. Redemption options typically include cashback to your bank account, statement credits, travel bookings through BMO's travel partner, or transfers to airline and hotel loyalty programs.
Cashback redemption is usually straightforward: you request the redemption and the money appears in your account within a few business days. Travel bookings through BMO's portal let you search flights, hotels, and car rentals and pay with points, though the value per point can vary depending on what you book. Transfers to airline partners (like Air Canada or United) happen when ready, but the conversion rate is fixed — for example, 1 point might equal 1.5 cents of airline value, so 10,000 points = $150 in airline bookings.
Points do not expire as long as your account is open and active, but if you close the card or let the account go inactive for an extended period, BMO may cancel your points. Check your card's terms for the specific inactivity period. Some BMO cards also offer bonus points for reaching spending thresholds in the first few months — for example, 10,000 bonus points if you spend $1,000 in the first three months — so timing your process around planned expenses can increase your first-year rewards.
Annual fees, when they're charged, and how to avoid them
BMO charges annual fees on the anniversary of your account opening, not on January 1. If you open a card on March 15, you pay the annual fee on March 15 of the following year, and every year after that on the same date. This matters because it affects when you need to decide whether to keep the card or close it. If you open a premium card in March and realize by August that you won't use the lounge access, you can close the account before the anniversary and avoid paying the fee.
Some BMO cards offer a waived first-year annual fee as a promotion, meaning you do not pay the fee in year one but you do pay it on the anniversary in year two. Read the offer carefully to confirm whether the waiver applies. If you want to avoid the annual fee after the first year, you can downgrade to a no-fee BMO card instead of closing the account entirely. Downgrading keeps your credit history intact and your account open, which is better for your credit score than closing the account.
If you carry a balance on your card, the annual fee is charged in addition to interest. Interest rates on BMO cards vary by card type and your credit score, but typical rates range from 19% to 22% on purchases. If you carry a balance, the interest you pay will likely exceed any rewards you earn, so paying off the balance in full each month is important to make the card worthwhile.
Protections and insurance included with BMO cards
All BMO credit cards include purchase protection: if you buy something with the card and it's damaged, stolen, or lost within 90 days, you can file a claim and the card issuer will reimburse you up to a limit (often $500 per claim, $5,000 per year). You need to provide proof of purchase and a police report if the item was stolen. This protection does not cover wear and tear, intentional damage, or items used for business purposes.
Mid-tier and premium cards include extended warranty coverage that extends the manufacturer's warranty by one additional year. If you buy an appliance with a one-year warranty and charge it to your BMO card, the card extends coverage to two years. You must register the item with the card issuer and provide proof of purchase. This does not cover accidental damage, normal wear, or items that were damaged before you bought them.
Travel insurance is included only on premium cards and requires you to charge the ticket or a portion of the trip cost to the card. Trip cancellation insurance covers cancellations for covered reasons up to a limit like $5,000 per person. Trip delay insurance reimburses you for meals and accommodation if your flight is delayed more than 12 hours. Baggage delay insurance covers essentials if your luggage is delayed more than 12 hours, up to a limit like $300. Read your card's insurance guide to understand what is and is not covered, because exclusions are common — for example, many policies do not cover cancellations due to pandemics or pre-existing medical conditions.
Comparing BMO cards to other issuers
BMO's card lineup competes with cards from other major Canadian banks (Royal Bank, TD, Scotiabank) and independent issuers (American Express, Capital One). The main differences are in reward rates, annual fees, and insurance coverage. A BMO cashback card might offer 2% on groceries and gas with a $120 annual fee, while a competing card offers 1.5% on groceries and gas with a $95 annual fee. The choice depends on your spending: if you spend $10,000 per year on groceries and gas, the BMO card earns $200 in rewards minus $120 in fees = $80 net benefit. The competing card earns $150 in rewards minus $95 in fees = $55 net benefit. The BMO card wins in this scenario.
Travel insurance coverage also varies by issuer. Some cards include travel insurance automatically; others require you to charge the ticket to the card. Some cards cover trip cancellation for any reason; others cover only specific reasons like illness or injury. Reading the insurance guide for each card you're considering tells you what is actually covered and what exclusions explore. Premium cards from different issuers may have similar annual fees but different lounge access networks — one card might include Priority Pass (which covers lounges worldwide), while another includes only domestic lounge access.
If you already bank with BMO, explore for a BMO card may be simpler because you can manage everything in one online account. If you bank elsewhere, a card from your current bank might offer the same rewards and benefits, so there's no advantage to switching. Compare the specific rewards rate, annual fee, and insurance coverage across the cards you're considering, then calculate the net benefit based on your expected spending in a year.
Frequently Asked Questions
Can I earn rewards on balance transfers or cash advances?
No. Rewards are earned only on purchases. Balance transfers and cash advances do not earn points. Balance transfers also typically carry a fee (often 1% to 3% of the amount transferred) and a higher interest rate than purchases, so using a credit card for a balance transfer is usually more expensive than other options.
What happens to my points if I close my BMO card?
Your points remain in your account as long as your BMO bank account stays open. If you close your bank account entirely, BMO may cancel your points. If you downgrade from a premium card to a no-fee BMO card, your points stay with you and you can continue to redeem them. Check your card's terms for the specific policy on point expiration.
Do I have to pay interest if I pay my balance in full each month?
No. If you pay the full statement balance by the due date, you do not pay interest. Interest is charged only on the unpaid balance. However, you still pay the annual fee (if your card has one) even if you never carry a balance, so the annual fee is a cost you incur regardless of how you use the card.
Can I use my BMO card outside Canada?
Yes. BMO cards work at merchants and ATMs worldwide. Foreign transactions are charged in the local currency and converted to Canadian dollars by Visa or Mastercard (depending on which network your card uses). A currency conversion fee of 2% to 2.5% is typically added to the converted amount. Some BMO cards offer a reduced foreign transaction fee or no fee at all, so check your card's terms if you travel frequently.
How long does it take to get approved for a BMO credit card?
If you explore online, BMO usually gives you a decision within minutes to a few hours. If you explore in a branch, approval can take the same day or up to a few business days. Once approved, your card is mailed to you and typically arrives within 7 to 10 business days. You can use the card number for online purchases before the physical card arrives if BMO provides it when ready after approval.