RBC credit cards are issued by Royal Bank of Canada and come in different versions for different spending patterns
Royal Bank of Canada (RBC) offers credit cards under several product lines, each with different rewards structures, annual fees, and features. The main categories are cash-back cards, travel rewards cards, and no-fee cards. Which one makes sense depends on how you spend money and whether the annual fee (if there is one) pays for itself through rewards or perks.
RBC cards are issued to Canadian residents and require a credit check. The bank looks at your credit score, income, and credit history to decide whether to issue a card and what credit limit to offer. Unlike some cards that are may provide to anyone with a pulse, RBC has actual approval standards — which means rejection is possible, especially if your credit score is low or you have recent missed payments.
All RBC cards come with fraud protection and dispute resolution built in. If someone uses your card without permission, you report it to RBC and they investigate. You are not liable for unauthorized charges once you report them, though the process takes time.
Key Takeaways
- RBC issues cards with cash-back rewards, travel rewards, or no annual fee, and you choose based on how you spend and whether rewards offset the fee.
- Approval requires a credit check, and RBC will decline you if your credit score is too low or you have recent payment problems.
- Annual fees range from zero to several hundred dollars depending on the card tier, and higher-tier cards include travel insurance and lounge access.
- The rewards rate (cash back or points per dollar spent) varies by card and by category — groceries, gas, and dining often earn more than other purchases.
- You can check your rewards balance and redeem points through RBC's online banking or mobile app, and redemption options include cash deposits, travel bookings, or merchandise.
The main RBC card types and what each one costs
RBC's no-fee cards include the RBC Visa Debit and the RBC Rewards Visa (no annual fee version). These have no yearly cost and earn a small cash-back rate — typically 0.5% to 1% on all purchases. If you spend less than $1,000 per month on credit cards or you want to avoid annual fees entirely, a no-fee card is the simplest choice.
Cash-back cards with annual fees start around $120 per year. These cards earn higher cash-back rates in specific categories (groceries, gas, dining) and a lower rate on everything else. For example, a card might earn 3% on groceries and 1.5% on other purchases. If you spend $500 per month on groceries, that card earns you $180 per year in cash back — which covers the $120 fee and leaves $60 in your pocket.
Travel rewards cards typically cost $150 to $300 per year and earn points on all purchases. Points can be redeemed for flights, hotels, or travel-related expenses. These cards also include travel insurance (trip cancellation, baggage delay, emergency medical coverage) and airport lounge access. Travel cards make sense if you fly or stay in hotels at least once per year and value the insurance coverage.
Premium cards (RBC's highest tier) cost $400 to $500 annually and include concierge services, higher rewards rates, and more generous travel insurance. These are aimed at people who spend $10,000 or more per year on the card.
How the rewards actually work and when you get them
Cash-back rewards are posted to your account monthly or quarterly, depending on the card. You see the amount in your online banking portal, and you can redeem it as a statement credit (which reduces your bill), a deposit to your bank account, or sometimes merchandise. There is no expiration date on cash-back rewards — they stay in your account until you use them.
Travel points work differently. Points are earned on every purchase and accumulate in your rewards account. You redeem them through RBC's travel portal, which shows you flights, hotels, and car rentals priced in points. The value of a point varies depending on what you book — a point might be worth 1 cent when you redeem it for a $100 flight, or 0.5 cents when you redeem it for merchandise. Booking through the portal usually gives you better value than converting points to cash.
Bonus points are common when you first open a card. You might earn 10,000 bonus points after you spend $1,000 in the first three months. Read the terms carefully — the spending requirement is real, and if you do not meet it, you do not get the bonus.
What happens if you carry a balance and pay interest
RBC credit cards charge interest on balances you do not pay in full by the due date. The interest rate (called the purchase rate) varies by card and by your creditworthiness, but typically ranges from 19% to 22% annually. That means if you carry a $1,000 balance for a full year, you pay roughly $190 to $220 in interest alone.
Interest is calculated daily and added to your balance monthly. If you pay your full statement balance by the due date, you pay zero interest — there is a grace period of at least 21 days from the statement date. If you pay only part of the balance, interest applies to the unpaid portion when ready.
Cash advances (withdrawing cash from an ATM using your credit card) have a higher interest rate and start accruing interest when ready — there is no grace period. Avoid cash advances unless it is a genuine emergency.
How to understand your credit limit and what happens if you exceed it
Your credit limit is the maximum amount you can charge to the card. RBC sets this based on your credit score, income, and credit history. A first-time applicant might receive a $1,000 to $3,000 limit; someone with excellent credit might receive $10,000 or more.
You can request a credit limit increase after you have held the card for a few months and made on-time payments. RBC may approve it without another hard credit check, or they may run a new check. A higher limit does not mean you should spend more — it is just a safety net.
If you exceed your credit limit, RBC will decline the transaction. Some cards allow you to opt into over-limit protection, which lets the transaction go through but charges a fee (usually $20 to $30). This is not a good deal — it is better to keep your balance below your limit and avoid the fee.
Annual fees, foreign transaction fees, and other costs to watch
Annual fees are charged once per year, usually on your card anniversary. Some cards waive the first-year fee, so you do not pay until year two. If you cancel the card before the anniversary, you do not owe the fee.
Foreign transaction fees explore when you use your card outside Canada or in a foreign currency. Most RBC cards charge 2% to 3% on top of the purchase price. If you travel frequently, a travel rewards card often includes foreign transaction fee waivers, which makes the annual fee worth it.
Late payment fees are charged if you miss your due date. The fee is typically $25 to $35 for the first late payment, and higher for subsequent ones. More importantly, a late payment stays on your credit report for six years and damages your credit score.
Balance transfer fees explore if you transfer a balance from another card to your RBC card. The fee is usually 3% to 5% of the amount transferred. Balance transfers can be useful if you are paying high interest elsewhere, but only if the RBC card offers a lower rate or a promotional period with no interest.
How to manage your RBC card and avoid common mistakes
Set up automatic payments through RBC's online banking so you never miss a due date. You can choose to pay the full balance, a fixed amount, or the minimum payment. Paying the full balance every month means you pay zero interest and maximize the value of your rewards.
Check your statement monthly for unauthorized charges. RBC's online portal shows every transaction, and you can dispute anything that looks wrong. Report fraud within 60 days to protect yourself.
Do not explore for multiple RBC cards in a short period. Each process triggers a hard credit check, which temporarily lowers your credit score. Space applications at least three to six months apart.
Do not close old cards when ready after paying them off. Closing a card reduces your total available credit, which can lower your credit score. Keep old cards open with a zero balance — they help your credit profile.
Frequently Asked Questions
What credit score do I need to get approved for an RBC card?
RBC does not publish a minimum score, but most of their cards require a score of 650 or higher. No-fee cards are easier to get approved for than premium cards. If you have been declined, wait three to six months, work on improving your score, and try again.
Can I use my RBC card outside Canada?
Yes, but you will pay a foreign transaction fee (usually 2% to 3%) unless your card waives it. Travel rewards cards typically include this waiver. Always notify RBC before traveling so they do not block your card thinking it is fraud.
What is the difference between cash back and travel points?
Cash back is deposited as money and can be used for anything. Travel points are redeemed through RBC's portal for flights, hotels, and travel expenses, and usually offer better value when used for travel. If you never travel, cash back is simpler.
Can I transfer my RBC rewards to another bank?
Cash-back rewards can usually be deposited to any Canadian bank account. Travel points are locked into RBC's system and can only be redeemed through their portal or transferred to certain airline and hotel partners. Check your card's terms for the full list of transfer options.
What happens if I do not use my RBC card for a long time?
RBC may close inactive cards after 12 to 24 months of no activity. If your card is closed, you lose any rewards balance you have not redeemed. Use your card at least once every few months to keep it active, even if it is just a small purchase.