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Nearly 88% of Canadian credit cards offer some type of rewards program, according to a 2021 report from Payments Canada. This is good news considering over 60% of Canadians said the ability to earn loyalty rewards or discounts was one of their top reasons for using a credit card, according to the same report.
Compare our picks for the best rewards credit cards in Canada, offering travel rewards, cash back, gift cards and more so that you can find the optimal card for your goals and spending habits.
Partner spotlight
American Express Cobalt® Card
Combined with the intro offer of up to 30,000 points, earn up to 180,000 points (up to $3,600) in your first year! Earned points are easily transferable to popular airline and hotel loyalty programs such as Aeroplan and Marriott Bonvoy. Conditions Apply.
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Best rewards credit cards in Canada
Best overall rewards card
CIBC Aventura® Gold Visa* Card
![CIBC Aventura® Gold Visa* Card](https://www.nerdwallet.com/ca/wp-content/uploads/sites/2/2022/06/CIBC-Aventura-Gold-Visa-Card.jpeg)
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Annual Fee$139Waived first year
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Interest Rates20.99% / 22.99%20.99% for purchases, and 22.99% for cash advances (21.99% for Quebec residents).
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Rewards Rate1x-2x Points2x for every $1 spent on travel purchased through the CIBC Rewards Centre, 1.5x on for every $1 spent at eligible gas stations, electric vehicle charging stations, grocery stores and drug stores (up to $80,000 annual spend), 1x for every $1 spent on all other purchases.
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Intro OfferUp to 35,000 PointsGet a total of up to 35,000 Aventura Points (up to $800 in travel value) during your first year: 1. 20,000 Aventura Points when you make your first purchase. 2. 15,000 Aventura Points when you spend $1,000 each monthly statement or more during the first year.
Access flexible rewards, travel insurance and a generous welcome offer worth a flight from any location in Canada or U.S. to any location in Canada or U.S. (except Hawaii and Alaska) — no established Canadian credit history required.
Pros
- Annual fee waived for the first year.
- Flexible rewards program.
- Airport lounge access and additional travel perks.
Cons
- $139 annual fee.
- Intro offer: Earn up to 35,000 Aventura Points (up to $800 in value) during your first year. Receive 20,000 Aventura Points when you make your first purchase, and an additional 15,000 Aventura Points when you spend $1,000 each monthly statement or more during the first year.
- Get a one-time annual fee rebate ($139) for you (the primary cardholder) and up to three authorized users ($50 each): over $189 value.
- Enjoy a Priority Pass Membership and 4 complimentary visits per year at 1,300+ airport lounges: over $200 value.
- Plus, get a NEXUS Application Fee rebate: a $50 value.
- Offer applies to newly approved card accounts only.
- 2x for every $1 spent on travel purchased through the CIBC Rewards Centre.
- 1.5x on for every $1 spent at eligible gas stations, electric vehicle charging stations, grocery stores and drug stores, up to $80,000 annual spend.
- 1x for every $1 spent on all other purchases.
- 1x for every $4.00 spent on a CIBC Global Money Transfer, through June 30, 2022.
- Redeem points for airline tickets, merchandise, gift cards and more.
- Apply points to your CIBC Aventura card balance or select CIBC financial products.
- $139 annual fee.
- Access to more than 1,300 airport lounges across the globe. Priority Pass membership with 4 complimentary lounge visits a year. Zip in and out of the country with a rebate on one NEXUS™ application fee every 4 years.
- Fly any airline with points that don’t expire.
- Use Aventura Points to cover full airfare including taxes and fees.
- Link your Journie Rewards card to save on every fill-up at participating Pioneer, Fas Gas, Ultramar and Chevron gas stationsabout the features of this card.
- Visa’s Zero Liability Policy and Fraud Alerts.
- Valuable insurance included: Out-of-Province Emergency Travel Medical Insurance, Flight Delay and Baggage Insurance, Auto Rental Collision and Loss Damage Insurance, $500,000 Common Carrier Accident Insurance, Purchase Security and Extended Protection Insurance, Hotel Burglary Insurance and Mobile Device Insurance.
- Access to installment plans through CIBC Pace It.
- Preferred rates: 20.99% for purchases, and 22.99% for cash advances (21.99% for Quebec residents).
- To be eligible, a $15,000 individual annual income is required and you must be a Canadian resident that has reached the age of majority in your province.
Best for: Aeroplan welcome offer
TD® Aeroplan® Visa Infinite* Card
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Annual Fee$139To receive the first-year annual fee rebate, you must activate your Card and make your first Purchase on the Account within the first 3 months after Account opening and you must add your Additional Cardholders by January 4, 2024.Waived first year
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Interest Rates20.99% / 22.99%20.99% on purchases, 22.99% on cash advances.
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Rewards Rate1x-1.5x PointsEarn 1.5 points† for every $1 spent on eligible gas, grocery and direct through Air Canada® purchases (including Air Canada Vacations®) made with your card. Earn 1 point† for every $1 spent on all other Purchases made with your Card.
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Intro OfferUp to 50,000 PointsEarn up to 50,000 Aeroplan points†: Earn a welcome bonus of 10,000 Aeroplan points when you make your first purchase with your new card†. Earn 25,000 Aeroplan points when you spend $5,000 within 180 days of Account opening†. Plus, earn an anniversary bonus of 15,000 Aeroplan points when you spend $7,500 within 12 months of Account opening†. Account must be approved by January 3, 2024.
The TD Aeroplan Visa Infinite Card provides access to exclusive food, golf and drink experiences, making it an excellent choice for shoppers with a taste for the finer things. The $7,500 spending target in the first year should put the introductory point offers within reach for many cardholders.
Pros
- A low annual fee and unique perks, including 10% off car rentals at Avis and Budget.
- Earn points twice when you provide your Aeroplan number.
Cons
- Opportunities for earning more than 1.5x the points are rather limited.
- Some perks, like a once-every-four-years NEXUS rebate, might not blow your hair back.
- Earn up to $1,400 in value†, including up to 50,000 Aeroplan points†, no Annual Fee for the first year† and additional travel benefits. Account must be approved by January 3, 2024.
- To receive the first-year annual fee rebate, you must activate your Card and make your first Purchase on the Account within the first 3 months after Account opening and you must add your Additional Cardholders by January 4, 2024.
- Earn 1.5 points† for every $1 spent on eligible gas, grocery and direct through Air Canada® purchases (including Air Canada Vacations®) made with your card.
- Earn 1 point† for every $1 spent on all other Purchases made with your Card.
- Earn points twice when you pay with your Card and provide your Aeroplan number at over 150 Aeroplan partner brands and at 170+ online retailers via the Aeroplan eStore (www.aeroplan.com/estore).
- Interest Rates: 20.99% on purchases and 22.99% on cash advances.
- Earn big rewards on the little things: Earn 50% more Aeroplan Points and 50% more Stars at participating Starbucks® stores. Simply link your TD Aeroplan Visa Infinite Card to your Starbucks® Rewards account. Conditions apply.
- Your Aeroplan Points do not expire as long as you are a TD® Aeroplan® Visa Infinite* Cardholder in good standing.
- Travel lightly through the airport and save on baggage fees†: Primary Cardholders, Additional Cardholders, and travel companions (up to eight) travelling on the same reservation will all enjoy their first checked bag free (up to 23kg/50lbs) when your travel originates on an Air Canada flight.
- Complimentary Visa Infinite Concierge†: On-call 24 hours a day, seven days a week, the Visa Infinite Concierge can help with any Cardholder request — big or small, to help you get the most out of life whenever you travel, shop and use your Card.
- Visa Infinite Luxury Hotel Collection†: Receive seven exclusive benefits when you book your stay through the Visa Infinite Luxury Hotel Collection featuring over 900 of the world’s most intriguing properties.
- Travel Medical Insurance†: Up to $2 million of coverage for the first 21 days. If you or your spouse is aged 65 or older, you are covered for the first 4 days of your trip. Additional top-up coverage is available.
- Trip Cancellation/Trip Interruption Insurance†: For Trip Cancellation coverage of up to $1,500 per insured person, with a maximum of $5,000 for all insured persons, and for Trip Interruption coverage of up to $5,000 per insured person, with a maximum of $25,000 for all insured persons on the same covered trip.
- To be eligible, a $60,000 annual personal income or $100,000 household annual income is required. You must also be a Canadian resident and be the age of majority in the province or territory where you live.
- †Terms and conditions apply.
- This offer is not available for residents of Quebec.
- The Toronto-Dominion Bank (TD) is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete and current information on any TD product, please click the Apply Now button.
Best for: Points on food delivery
American Express Cobalt® Card
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Annual Fee$155.88$12.99 monthly fee.
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Interest Rates20.99% / 21.99%20.99% on purchases, 21.99% on cash advances.
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Rewards Rate1x-5x Points5x on eligible eats and drinks in Canada, including groceries and food delivery*, 3x on on eligible streaming subscriptions in Canada, 2x on eligible transit & gas purchases in Canada and eligible travel purchases, and 1x on purchases everywhere else.
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Intro OfferUp to 30,000 PointsIn your first year as a new Cobalt Cardmember, you can earn 2,500 Membership Rewards® points for each monthly billing period in which you spend $500 in net purchases on your Card (up to 30,000 points).
The American Express Cobalt Card boasts high rewards rates on everyday spending, a generous welcome bonus, comprehensive travel insurance coverage, flexible point redemption and plenty of specialty perks to keep things interesting all year long.
Pros
- Earn 150,000 points in the first year by spending up to $30,000 on eats, drinks and groceries. Combined with the 30,000 point intro offer, you could earn 180,000 points in your first year, which you could redeem for travel and more.
- Easily transfer the points you earn to popular airline and hotel loyalty programs, such as Aeroplan and Marriott Bonvoy.
Cons
- Airport lounge access isn’t provided, which may disappoint some frequent travellers.
- No travel medical coverage for cardmembers over the age of 65.
- In your first year as a new Cobalt Cardmember, you can earn 2,500 Membership Rewards® points for each monthly billing period in which you spend $500 in net purchases on your Card. This could add up to 30,000 points in a year. That’s up to $300 towards a weekend getaway or concert tickets.
- Earn 5x the points on eligible eats and drinks in Canada, including groceries and food delivery.*
- Earn 3x the points on eligible streaming subscriptions in Canada.
- Earn 2 points for every $1 spent on eligible transit & gas purchases in Canada and eligible travel purchases. That’s 2X the points on purchases that get you from point A to B.
- Earn 1 point for every $1 in Card purchases everywhere else. We won’t tell you where to spend, we’ll just reward you on your Card purchases.
- Transfer points 1:1 to several frequent flyer and other loyalty programs.
- Cobalt Cardmembers receive regular Perks such as bonus reward offers and access to great events.
- Access Front Of The Line® Presale & Reserved Tickets to some of your favourite concerts and theatre performances and special offers and events curated for Cardmembers with American Express® Experiences.
- *Effective August 15, 2023, Cobalt Cardmembers will earn 5x the points on all eligible eats & drinks charged to their Card up to $2,500 monthly, for the same total of $30,000 annually already in place today. Cardmembers will also continue to earn 3x on streaming subscriptions, 2x on eligible transit, gas & travel purchases and 1x on everything else. T&Cs apply. While the annual earn does not change, the new monthly construct intends to curb gaming activity. The change should have little to no impact on the majority of Cardmembers who utilize the Card and Membership Rewards program as it was intended.
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details, current product information and Terms and Conditions, click the Apply now link. Conditions Apply.
Best for: Cash welcome offer
SimplyCash® Preferred Card from American Express
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Annual Fee$119.88$9.99 monthly fee.
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Interest Rates20.99% / 21.99%20.99% on purchases, 21.99% on cash advances.
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Rewards Rate2%-4%Earn 4% cash back on eligible gas station purchases in Canada, 4% cash back on eligible grocery store purchases in Canada (up to $1,200 cash back annually) and 2% cash back on all other purchases.
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Intro OfferUp to $400In your first 10 months as a new SimplyCash® Preferred Card from American Express Cardmember, you can earn a $40 statement credit for each monthly billing period in which you spend $750 in purchases on your Card. This could add up to $400 in statement credits in the first 10 months.
Get rewarded at the gas station and grocery store with 4% cash back, plus enjoy a high ongoing flat-rate of 2% cash back on everything else.
Pros
- The unlimited 2% cash-back earn rate is among the highest we evaluated.
- You can earn up to $400 in the first ten months.
Cons
- The bonus rewards rate on gas and groceries drops down to 2% after a $30,000 annual spend.
- In your first 10 months as a new SimplyCash® Preferred Card from American Express Cardmember, you can earn a $40 statement credit for each monthly billing period in which you spend $750 in purchases on your Card. This could add up to $400 in statement credits in the first 10 months.
- Earn accelerated earn rates on eligible gas and grocery purchases.
- Earn 4% cash back on eligible gas station purchases in Canada, 4% cash back on eligible grocery store purchases in Canada (up to $1,200 cash back annually) and 2% cash back on all other purchases.
- Access events and special offers curated for Cardmembers with American Express® Experiences.
- Extensive insurance coverage and 24/7 Customer Service.
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information click the Apply now link. Conditions apply.
Best for: Bad or no credit
Neo Secured Credit
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Annual Fee$0
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Interest Rates19.99%-29.99% / 22.99%-31.99%19.99%-29.99% on purchases, 22.99%-31.99% on cash advances.
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Rewards Rate0.5%-15%Earn a 0.5% cash back guarantee, an average of 5% unlimited cash back at thousands of Neo partners, and up to 15% cash back on your first purchase at participating partners.
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Intro Offer$25Sign up using "Apply Now" link. $25 new customer welcome offer fulfilled by Neo.
Pros
- A small $50 minimum deposit makes this card accessible to consumers of all budgets.
- Earn up to 15% cash back on purchases with select Neo partners.
Cons
- Interest rates could be as high as 29.99% for some users.
- Earn a 0.5% cash back guarantee, an average of 5% unlimited cash back at thousands of Neo partners, and up to 15% cash back on your first purchase at participating partners.
- No annual fee for the Standard rewards plan.
- $50 minimum security fund deposit required.
- $10,000 maximum security fund deposit.
- To apply, visit member.neofinancial.com and create an account. Select “Credit”, pick either the Neo Credit or the Hudson’s Bay Mastercard, and then choose “Secured Card” as the type of credit you are looking for.
- Hard credit checks are not made on applications.
- Guaranteed approval, as long as you meet eligibility requirements.
- Ability to upgrade to an unsecured rewards credit card.
- Link your account to a Neo Money™ account and earn 2.25% interest on savings.
- Purchase rates range from 19.99%-29.99%. The standard rate on purchases and cash advances is dependent on Neo Financial’s assessment of your credit application, credit profile, and your province.
- To be eligible, you must be able to provide security funds and be a Canadian resident of the age of majority in the province or territory where you live.
- Customers can get up to 4% cashback on all purchases at Shell gas stations and convenience locations when they use their Neo Credit, Neo Secured Credit or Neo Money™ card. Earn 2% cashback at the pump or convenience store locations. Earn 4% cashback on transactions made through the Shell App. Offer available in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. Boost these offers by 50% when you add Everyday Essentials perks to your card.
Best for: Rewards on entertainment
Scotiabank Gold American Express® Card
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Annual Fee$120
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Interest Rates20.99% / 22.99%20.99% on purchases. 22.99% on cash advances.
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Rewards Rate1x-6x PointsEarn 6X Scene+ points for each $1 CAD charged to your account on all eligible purchases¹ at Sobeys, IGA, Safeway, Foodland, FreshCo, Voilà by Sobeys, Voilà by IGA, Voilà by Safeway, Chalo! FreshCo, Thrifty Foods, IGA West, Les Marchés Tradition, Rachelle Béry and Co-Op. Earn 5X Scene+ points for every $1 CAD spent on eligible grocery stores, restaurants, fast food, and drinking establishments. Includes popular food delivery and food subscriptions. Earn 5X Scene+ points for every $1 CAD spent on eligible entertainment purchases. Includes movies, theatre, and ticket agencies. Earn 3X Scene+ points for every $1 CAD spent on eligible gas and daily transit. Includes rideshare, buses, taxis, subway, and more. Earn 1X Scene+ point for every $1 spent on every other purchase.
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Intro OfferUp to 40,000 PointsTo qualify for the 40,000 bonus Scene+ points offer: 1. Earn 20,000 bonus Scene+ points by making at least $1,000 in everyday eligible purchases in your first 3 months. 2. Plus, for a limited time, you are eligible to earn a 20,000 Scene+ point bonus when you spend at least $7,500 in everyday eligible purchases in your first year. Offer ends October 31, 2023.
Not only does the Scotiabank Gold American Express card reward you with impressive rates in six popular spending categories, but it also comes with no foreign exchange fees.
Pros
- No foreign exchange fee on any foreign currency purchases while travelling abroad or shopping online — you just have to pay the exchange rate.
Cons
- The bonus rewards rates drop down to the 1x flat rate after a $50,000 annual spend. This sounds like a lot, but much of your daily spending is probably included in the six bonus categories, so you might hit the limit faster than you’d think.
- Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points. NEW OFFER May 1, 2023 – October 31, 2023.
- You will not pay 2.5% foreign transaction fees on any foreign currency purchases, including online shopping and when travelling abroad. Only the exchange rate applies.
- Earn 5X Scene+ points for every $1 CAD spent on eligible grocery stores, restaurants, fast food, and drinking establishments. Includes popular food delivery and food subscriptions.
- Earn 5X Scene+ points for every $1 CAD spent on eligible entertainment purchases. Includes movies, theatre, and ticket agencies.
- Earn 3X Scene+ points for every $1 CAD spent on eligible gas and daily transit. Includes rideshare, buses, taxis, subway, and more.
- Earn 1X Scene+ point for every $1 spent on every other purchase.
- You’ll earn 6X Scene+ points for each $1 CAD charged to your account on all eligible purchases¹ at Sobeys, IGA, Safeway, Foodland, FreshCo, Voilà by Sobeys, Voilà by IGA, Voilà by Safeway, Chalo! FreshCo, Thrifty Foods, IGA West, Les Marchés Tradition, Rachelle Béry and Co-Op.
- Discounted Priority Pass™ membership, which grants you access to over 1200 VIP lounges around the world.
- Score deals on shopping, dining, travel and more with Amex Offers®, and experience special events and discounts with American Express Invites®.
- Access to Amex Front Of The Line® presale and reserved tickets.
- To be eligible, $12,000 (individual) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.
- Terms and Conditions Apply. Click ‘Apply Now’ for complete details.
Best for: Students
BMO CashBack® Mastercard®* for Students
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Annual Fee$0
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Interest Rates20.99% / 22.99%20.99% on purchases, 22.99% on cash advances.
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Rewards Rate0.5%–5%5% intro offer. Then earn 3% cash back on grocery purchases, 1% cash back on recurring bill payments and 0.5% unlimited cash back on all other purchases.*
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Intro OfferUp to $125Receive 5% cash back on all purchases made in the first three months. 5% rate applies to spending up to $2500 ($500 on grocery, $500 on recurring bill payments, and $1,500 on all other purchases). New cardmembers only. Must apply by July 31, 2023. Terms and conditions apply.
The BMO CashBack® Mastercard®* for Students has impressive earn rates — including 3% on groceries — and valuable perks, all without an annual fee.
Pros
- Earn flexible and easy-to-redeem cash rewards on everyday purchases.
- There’s no minimum threshold for redeeming your cash-back rewards. Redeem as little as $1 if you want.
Cons
- Accelerated earn rates for groceries and recurring bills are capped at $500 per billing cycle.
- Insurance is limited to extended warranty and purchase protection.
- Welcome offer: Get 5% cash back in your first 3 months.*
- Then get 3% cash back on grocery purchases, 1% cash back on recurring bill payments and 0.5% unlimited cash back on all other purchases!*
- Now earn the highest cash back on groceries in Canada without paying an annual fee!†
- Get cash back every time you spend, plus start building a healthy credit history.
- Want to get your cash back ASAP? Now you can redeem your cash back anytime through direct deposit, as a credit on your statement or into your BMO InvestorLine account.*
- No Annual fee.*
- Extended Warranty.*
- Purchase Protection.*
- Receive a discount on car rentals.*
- *Terms and conditions apply.
- †Statement based on a comparison of the non-promotional grocery rewards earn rate on Canadian cash back credit cards as of January 4, 2023.
- BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.
Best for: Cash back on subscriptions
Scotia Momentum® Visa Infinite* Card
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Annual Fee$120Open a new Scotia Momentum® Visa Infinite* credit card account by October 31, 2023 to qualify.Waived first year
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Interest Rates20.99% / 22.99%20.99% on purchases, 22.99% on cash advances.
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Rewards Rate1%-10%10% intro offer (Ends October 31, 2023), Earn 4% for every $1 you spend on grocery store purchases, recurring bill payments, and subscription purchases. Earn 2% for every $1 you spend on gas purchases and daily transit purchases. Earn 1% cash back on all other purchases with no cash back limit.
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Intro OfferUp to $200Earn 10% cash back on all purchases for the first three months (up to $2,000 in total purchases). Must open a new account by October 31, 2023.
Earn up to $1,000 in cash back on grocery shopping and recurring bill payments with a 4% rewards rate in both categories.
Pros
- It’s rare for a credit card to offer 4% cash back on two major spending categories. It’s even rarer to set a $25,000 annual limit to that 4% — a $1,000 value — before reverting to the healthy 1% base rate.
- You can waive the $120 annual fee every single year by using the Scotiabank Ultimate Package.
Cons
- The cash back earned is hands-off. You have to wait until November, and then it’s only redeemable as a statement credit. If you have a Scotiabank account, that annual payout can be deposited into your bank account.
- The 4% rate won’t mean much to you if you don’t buy a lot of groceries or often buy your food at somewhere that Visa doesn’t classify as a grocery store or supermarket, such as Canadian Tire, FreshCo, London Drugs, Walmart and No Frills.
- SPECIAL OFFER: Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). No annual fee in the first year, including on supplementary cards. Offer ends October 31, 2023.
- Earn 4% for every $1 you spend on grocery store purchases, recurring bill payments, and subscription purchases.
- Earn 2% for every $1 you spend on gas purchases and daily transit purchases.
- Earn 1% cash back on all other purchases with no cash back limit.
- Redeem cash back as a statement credit in November.
- Visa Infinite benefits, including Visa Infinite* Concierge, Visa Infinite* Luxury Hotel Collection, Visa Infinite* Dining Series, and entertainment and lifestyle offers.
- Save up to 25% off base rates at participating AVIS locations and at participating Budget locations in Canada and the U.S.
- Access to Scotia SelectPay™.
- To be eligible, $60,000 (individual) or $100,000 (household) annual income is required, or $250,000 minimum assets under management. Also, you must have a Canadian credit file and be a Canadian resident that is the age of majority in the province or territory where you live.
- Terms and Conditions Apply. Click ‘Apply Now’ for complete details.
Best for: American Express Membership rewards
American Express® Green Card
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Annual Fee$0
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Interest Rates20.99% / 21.99%20.99% on purchases, 21.99% on cash advances.
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Rewards Rate1x-2x Points2x on eligible hotel and car rental bookings, and 1x on all other eligible purchases.
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Intro Offer10,000 PointsEarn 10,000 Membership Rewards points when you spend $1,000 in the first three months. New cardmembers only.
The American Express Green Card has a simple rewards program with an accelerated earn rate on hotel and rental car bookings, and it’s easy to transfer your points to other loyalty programs for maximum redemption value. Oh, and the card itself is made from 99% recycled plastic.
Pros
- No limits on rewards spending, and more ways to redeem your points than other no-fee rewards credit cards on this list.
- Cardholders who enjoy VIP treatment will enjoy access to a multitude of perks through American Express Experiences.
Cons
- Reward earn rates are lower than some other no-fee credit cards.
- Lacks some of the travel perks and insurance options offered by other cards.
- Get the Card that lets you live in the moment while getting ready for the future.
- The American Express® Green Card lets you go for it with every swipe or tap of your Card.
- As a new American Express® Green Cardmember, you can earn a Welcome Bonus of 10,000 Membership Rewards® points when you charge $1,000 in purchases to your Card in the first 3 months of Cardmembership. That’s $100 towards groceries or concert tickets.
- Earn 1x the points on Card purchases.
- Charge an eligible purchase to your Card and redeem your Membership Rewards points for a statement credit (All eligible purchases: 1,000 points = $10 statement credit).
- With American Express Experiences and Front Of The Line®, American Express Cardmembers get access to amazing events in Canada.
- Transfer points 1:1 to several frequent flyer and other loyalty programs.
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information click the Apply now link. Conditions apply.
Best for: Points on groceries
TD First Class Travel® Visa Infinite* Card
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Annual Fee$139To receive the first-year annual fee rebate, you must activate your Card and make your first Purchase on the Account within the first 3 months after Account opening and you must add your Additional Cardholders by January 4, 2024.Waived first year
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Interest Rates20.99% / 22.99%20.99% on purchases, 22.99% on cash advances.
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Rewards Rate2x-8x PointsEarn 8 TD Rewards Points† for every $1 you spend when you book travel through Expedia® For TD†. Earn 6 TD Rewards Points† for every $1 you spend on Groceries and Restaurants†. Earn 4 TD Rewards Points† for every $1 you spend on regularly recurring bill payments set up on your Account†. Earn 2 TD Rewards Points For every $1 you spend on other Purchases made using your Card†.
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Intro OfferUp to 115,000 PointsEarn up to 115,000 TD Rewards Points†: Earn a welcome Bonus of 20,000 TD Rewards Points when you make your first Purchase with your Card†. Earn 95,000 TD Rewards Points when you spend $5,000 within 180 days of Account opening†. Earn a Birthday Bonus of up to 10,000 TD Rewards Points†. Account must be approved by January 3, 2024.
With a large welcome bonus and accelerated earn rate on travel booked through ExpediaForTD.com, the TD First Class Travel® Visa Infinite* Card is perfect for travellers aiming to score free flights and hotel visits.
Pros
- A generous welcome bonus worth up to $1,000 in value.
- Travel expenses eligible for redemption include more than just hotel stays and flights – baggage fees, airport parking, car rentals, cruises, travel attractions, entertainment and more are all fair game.
Cons
- This card doesn’t have as many travel perks as others on the list, but you can quickly earn free flights and hotel stays.
- No free airport lounge access — you only receive an annual discount on a Priority Pass lounge membership.
- Earn up to $1,000 in value†, including up to 115,000 TD Rewards Points† and no Annual Fee for the first year†. Conditions Apply. Account must be approved by January 3, 2024.
- To receive the first-year annual fee rebate, you must activate your Card and make your first Purchase on the Account within the first 3 months after Account opening and you must add your Additional Cardholders by January 4, 2024.
- Get a free 12 month† Uber One membership (that’s $120 in value†).
- Earn 8 TD Rewards Points† for every $1 you spend when you book travel through Expedia® For TD†.
- Earn 6 TD Rewards Points† for every $1 you spend on Groceries and Restaurants†.
- Earn 4 TD Rewards Points† for every $1 you spend on regularly recurring bill payments set up on your Account†.
- Earn 2 TD Rewards Points For every $1 you spend on other Purchases made using your Card† plus earn an annual Birthday Bonus† of up to 10,000 TD Rewards Points.
- No travel blackouts†, no seat restrictions† and no expiry† for your TD Rewards Points as long as your account is open and in good standing.
- Each year, you will receive one $100.00 TD Travel Credit on your first Eligible Travel Credit Purchase of $500.00 or more made with Expedia For TD and posted to the Account in a calendar year.
- Interest Rates: 20.99% on purchases and 22.99% on cash advances.
- Go Places on Points: Your Points are worth more when you redeem through Expedia® For TD: Search over a million flights, hotels, packages and more! When you’re ready to book, you can redeem† your TD Rewards Points towards your travel purchase right away.
- Redeem your TD Rewards Points towards making purchases at Amazon.ca with Amazon Shop with Points. Conditions apply.
- Shop online through TDRewards.com Redeem your TD Rewards Points for great deals on a wide selection of merchandise and gift cards.
- Option to purchase TD Auto Club Membership†: and be covered 24 hours a day for emergency roadside assistance services in case something goes wrong when you are out on the road.
- Travel Medical Insurance†: Up to $2 million of coverage for the first 21 days. If you or your spouse is aged 65 or older, you are covered for the first 4 days of your trip. Additional top-up coverage is available.
- Trip Cancellation/Trip Interruption Insurance†: For Trip Cancellation, up to $1,500 of coverage per insured person, with a maximum of $5,000 for all insured persons, and for Trip Interruption, up to $5,000 of coverage per insured person, with a maximum of $25,000 for all insured persons on the same covered trip.
- To be eligible, $60,000 (individual) or $100,000 (household) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.
- †Terms and conditions apply.
- This offer is not available for residents of Quebec.
- The Toronto-Dominion Bank (TD) is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete and current information on any TD product, please click the Apply Now button.
Best for: Points on utilities
MBNA Rewards World Elite® Mastercard®
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Annual Fee$120
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Interest Rates19.99% / 24.99%19.99% on purchases, 24.99% on cash advances.
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Rewards Rate1x-5x PointsEarn 5 points‡ for every $1 spent on eligible restaurant, grocery, digital media, membership, and household utility purchases until $50,000 is spent annually in the applicable category. 1 point‡ for every $1 on all other eligible purchases.
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Intro OfferUp to 30,000 PointsEarn 20,000 bonus points†† (approximately $165 in cash back value) after you make $2,000 or more in eligible purchases within the first 90 days of your account opening. Earn 10,000 bonus points††(approximately $80 in cash back value) once enrolled for paperless e-statements within the first 90 days of account opening.
This card offers a competitive sign-up bonus and accelerated earn rates on useful categories like restaurant and grocery purchases and household utility bills.
Pros
- An impressive array of perks and insurance benefits for travellers, such as concierge services and rental car discounts.
- Flexible redemption options, including cash back, brand-name merchandise, gift cards, charitable donations and travel.
Cons
- Intro offer does not include a waived annual fee.
- The 5x bonus rewards rate on restaurants, groceries, digital media, memberships and utility drops down to a 1x flat rate after you spend $50,000.
- 20,000 bonus points†† (approximately $165 in cash back value) after you make $2,000 or more in eligible purchases within the first 90 days of your account opening.
- 10,000 bonus points††(approximately $80 in cash back value) once enrolled for paperless e-statements within the first 90 days of account opening.
- Earn 5 points‡ for every $1 spent on eligible restaurant, grocery, digital media, membership, and household utility purchases until $50,000 is spent annually in the applicable category. 1 point‡ for every $1 on all other eligible purchases.
- Each year, you will receive Birthday Bonus Points‡ equal to 10% of the total number of Points the Account earned in the 12 months before the month of your birthday, to a maximum Birthday Bonus each year of 15,000 Points.
- Redeem points‡ for cash back, brand-name merchandise, gift cards from participating retailers, charitable donations, and travel.
- Standard Annual Interest Rates of 19.99% on purchases, 22.99% on balance transfers✪, and 24.99% on cash advances.
- Mobile Device Insurance*** With Mobile Device Insurance, you’ve got up to $1,000 in coverage for eligible mobile devices in the event of loss, theft, accidental damage or mechanical breakdown.
- $120 annual fee. $50 Additional Card Annual Fee for one authorized user (if you have one).
- To qualify, your personal annual income must be greater than $80,000, or your household annual income must be $150,000 or greater††††.
- ††, ‡, ✪, ***, ††††, Terms and Conditions apply.
- This offer is not available for residents of Quebec.
- Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.
Best for: Customizable spending categories
Tangerine World Mastercard®
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Annual Fee$0
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Interest Rates19.95%19.95% on purchases and cash advances
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Rewards Rate0.5%-10%10% intro offer (ends October 31, 2023). Earn 2% Money-Back Rewards in two 2% Money-Back Categories of your choice, and 0.50% Money-Back Rewards on all your other everyday purchases.
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Intro OfferUp to $100Apply for a Tangerine World Mastercard® by October 31st, 2023 and earn an extra 10% back* (up to $100) when you spend up to $1,000 in everyday purchases within your first 2 months.
You can earn unlimited cash back at a 2% rate in up to three categories of your choice and 0.50% back on other everyday purchases while benefiting from exclusive Tangerine World Mastercard® perks and insurance cover.
Pros
- Choose the best 2% rewards categories for you based on your spending.
- A variety of additional perks like savings on subscription services, rental car collision/loss damage, mobile device insurance, and more.
Cons
- Higher eligibility requirement for gross income.
- Apply for a Tangerine World Mastercard® by October 31st, 2023 and earn an extra 10% back* (up to $100) when you spend up to $1,000 in everyday purchases within your first 2 months.
- Earn 2% Money-Back Rewards on purchases in two 2% Money-Back Categories of your choice, and 0.50% Money-Back Rewards on all other purchases.
- Have your Money-Back Rewards deposited into a Tangerine Savings Account, and get a 3rd 2% Money-Back Category.
- No limit on the amount of Money-Back Rewards you can earn.
- Change your 2% Money-Back Categories to suit your spending.
- With Mastercard Travel Rewards, you can unlock cashback offers and get a rebate applied directly to your statement, by using your Tangerine World Mastercard at select merchants that accept Mastercard while travelling outside of Canada.
- Save on the things you love with your Tangerine World Mastercard. Enjoy special benefits and offers from a growing lineup of on-demand apps and subscription services made available to you as a Tangerine World Mastercard cardholder.
- Make the most of your travel with Mastercard® Travel Pass Provided by DragonPass. Your complimentary membership gives you exclusive dining, retail and spa offers in over 650 airports worldwide, along with access to over 1,300 airport lounges at $32 USD per visit. Learn more at Mastercard® Travel Pass.
- Rental Car Collision/Loss Damage Insurance**: Damage and theft protection for your car rental when you rent for up to 31 consecutive days and charge the full cost of your rental to your Card.
- Mobile Device Insurance**: Protection on new cell phones, smartphones or tablets when you charge the full cost to your Card, or when you purchase it through a plan and charge all of your wireless bill payments to your Card. Covers up to $1,000 if your mobile device is lost, stolen, accidentally damaged or experiences mechanical failure.
- Preferred rates: 19.95% for purchases and cash advances.
- To be eligible, a $60,000 (individual) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.
Best for: Businesses
American Express® Business Edge™ Card
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Annual Fee$99
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Interest Rates20.99% / 21.99%20.99% on purchases, 21.99% on cash advances.
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Rewards Rate1x-10x Points10x intro offer on eligible business essentials including office supplies & electronics, rides & gas, eats & drinks within the first six months (up to 10,000 points). Earn 3x the points for Card purchases on eligible business essentials including office supplies & electronics, rides & gas, eats & drinks when your Welcome Offer ends. Caps and other conditions may apply. Earn 1x the points on all other purchases charged to the Card.
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Intro OfferUp to 67,000 PointsEarn up to 67,000 welcome bonus Membership Rewards® points: Earn 45,000 Welcome Bonus points when you charge $5,000 in purchases to your Card in your first three months of Cardmembership. Plus, earn 10x the points for every $1 spent on eligible business essentials including office supplies & electronics, rides & gas, eats & drinks within 6 months of Cardmembership, up to a maximum of 10,000. You can earn an extra 1,000 Membership Rewards points for each monthly billing period in which you spend $3,000 in purchases on your Card. This could add up to 12,000 extra points in a year.
There’s a lot of value packed into the American Express Business Edge Card: a manageable annual fee, impressive earn rates on common business purchases, and a wide range of perks and special offers, such as business and expense management tools and payment flexibility.
Pros
- The generous welcome offer and 1,000-point monthly spend bonus should be attainable for many businesses.
- A healthy earn rate on several everyday business purchases, like office supplies, electronics and gas.
- Ability to add up to 99 supplementary cards — and up to $100,000 in coverage in case of employee misuse.
Cons
- Not all retailers accept American Express.
- Because of the relatively low spending limits associated with the 10x and 3x earn rates, the increased rewards may not be in effect for long for some businesses.
- Limited insurance coverage included.
- Earn up to 67,000 welcome bonus Membership Rewards® points.
- Earn 45,000 Welcome Bonus points when you charge $5,000 in purchases to your Card in your first three months of Cardmembership.
- Plus, earn 10x the points for every $1 spent on eligible business essentials including office supplies & electronics, rides & gas, eats & drinks within 6 months of Cardmembership, up to a maximum of 10,000.
- You can earn an extra 1,000 Membership Rewards points for each monthly billing period in which you spend $3,000 in purchases on your Card. This could add up to 12,000 extra points in a year.
- That’s $670 in statement credits that can be reinvested in your business.
- Earn points that you can redeem in a variety of ways.
- Earn 3x the points for Card purchases on eligible business essentials including office supplies & electronics, rides & gas, eats & drinks when your Welcome Offer ends. Caps and other conditions may apply.
- Earn 1x the points on all other purchases charged to the Card.
- Use points to offset business expenses. Membership Rewards® allows you to offset business expenses by covering the cost of purchases made on your Card, in full or in part. Redeem points for statement credits and to book flights, hotels, and car rentals.
- Transfer points to frequent flyer and hotel programs, including one-to-one to Aeroplan®* and Avios.
- Make the most out of a full suite of business management tools that give you more control over your business – anytime and anywhere.
- Leverage your cash flow with the option of carrying a balance or paying in full each month.
- Employee Card Misuse Protection is a benefit created specifically for business owners and it provides coverage of up to $100,000 per Basic Cardmember in the event an employee misuses their Supplementary Card for unauthorized charges.
- Access coverage that can protect your business purchases when you charge the full price of eligible items to your American Express Business Edge™ Card.
- Protect your eligible purchases against accidental physical damage and theft for up to 90 days with Purchase Protection® Plan.
- Double the manufacturer’s original warranty up to one additional year with Buyer’s Assurance® Protection Plan.
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information click the Apply now link. Conditions apply.
Best for: Cash back on groceries
BMO CashBack® World Elite®* Mastercard®*
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Annual Fee$120Waived first year
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Interest Rates20.99% / 23.99%20.99% on purchases, 23.99% on cash advances (21.99% for Quebec residents).
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Rewards Rate1%–10%10% intro offer, then 5% on groceries*, 4% on transit including ride sharing, taxis and public transportation*, 3% on gas and electric vehicle charging*, 2% on recurring bill payments like your monthly phone bill or favourite streaming service*, 1% unlimited cashback on all other purchases*.
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Intro OfferUp to $260Receive 10% cash back in the first three months, up to $2,600 in purchases (equal to $260 cash back). Must apply by July 31, 2023. Terms and conditions apply.
You won’t need a strategy to make the most out of this bonus-category card. The BMO CashBack® World Elite®* Mastercard®* spends like a flat-rate card thanks to stellar rates on four popular daily spending categories.
Pros
- Score generous cash-back rates for popular spending categories: 5% on groceries, 4% on transit, 3% on gas, 2% on recurring bills, and 1% on everything else.
- Feel protected with 13 types of insurance and fantastic travel benefits.
Cons
- Spending categories come with easily-hit spending caps, but the 1% base rate still earns you value once you hit your monthly bonus rate limits.
- The $120 annual fee is pretty steep. While we think you’ll more than make up for it through cash back savings, the no-fee BMO CashBack® Mastercard®* is a great alternative.
- Welcome offer: Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year.*
- Earn more cash back on the categories that mean the most: 5% on groceries.* 4% on transit including ride sharing, taxis and public transportation.* 3% on gas and electric vehicle charging.* 2% on recurring bill payments like your monthly phone bill or favourite streaming service.* 1% unlimited cashback on all other purchases.*
- Get the highest cash back earn rate on groceries in Canada.†
- Get valuable benefits and offers for digital everyday services from a variety of on-demand apps and subscription services.
- Extended Warranty Plus.*
- Purchase Protection Plus.*
- Complimentary membership in Mastercard Airport Experiences provided by LoungeKey.*
- Access over 1 million Wi-Fi hotspots around the world – all at no added cost, and no added fees or roaming charges.*
- Complimentary Roadside Assistance Program.*
- BMO CashBack World Elite Travel and Medical Protection.*
- BMO Concierge Service.*
- Unlock Mastercard Travel Rewards cashback offers when you travel and shop outside of Canada.
- *Terms and conditions apply.
- †Statement based on a comparison of the non-promotional grocery rewards earn rate on Canadian cash back credit cards as of January 4, 2023.
- BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.
Best for: AIR MILES points
BMO AIR MILES®† World Elite®* Mastercard®*
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Annual Fee$120Waived first year
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Interest Rates20.99% / 23.99%20.99% on purchases and 23.99% on cash advances (21.99% for Quebec residents).
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Rewards Rate0.08x-0.25x MilesEarn 3x the Miles for every $12 spent at participating AIR MILES Partners and 2x the Miles for every $12 spent at any eligible grocery store.* Earn 1 reward mile for every $12 in credit card purchases, everywhere you spend.*
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Intro Offer2,000 MilesSpend $3,000 in the first three months to earn 2,000 AIR MILES Bonus Miles. Waive the $120 annual fee in the first year. Applications must be received by July 31, 2023. Terms and conditions apply.
With airport perks, travel benefits, 24/7 concierge access, and an impressive standard earn rate — 1 AIR MILE for every $12 spent — the BMO AIR MILES®† World Elite®* Mastercard®* offers frequent flyers a luxury travel experience at a great value.
Pros
- Airport lounge access with a complimentary membership in Mastercard Airport Experiences provided by LoungeKey.
- Strong insurance policy, including up to $2 million in out-of-province/out-of-country emergency medical insurance.
Cons
- This card doesn’t offer accelerated earn rates on certain spending categories.
- Welcome offer: Get 2,000 AIR MILES Bonus Miles and we’ll waive the $120 annual fee for the first year.*
- Get 3x the Miles for every $12 spent at participating AIR MILES Partners and 2x the Miles for every $12 spent at any eligible grocery store*.
- Earn 1 reward mile for every $12 in credit card purchases, everywhere you spend.*
- Get valuable benefits and offers for digital everyday services from a variety of on-demand apps and subscription services.
- Use your card at Costco.*
- Extended Warranty.
- Access over 1 million Wi-Fi hotspots around the world – all at no added cost, and no added fees or roaming charges.*
- Complimentary membership in Mastercard Travel Pass provided by DragonPass.*
- Use less Miles with our exclusive 25% discount on one worldwide AIR MILES flight redemption during the calendar year.*
- BMO AIR MILES World Elite Travel and Medical Protection.*
- BMO Concierge Service.*
- Unlock Mastercard Travel Rewards cashback offers when you travel and shop outside of Canada.
- *Terms and conditions apply.
- BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.
Best for: Newcomers
Scotia Momentum® No-Fee Visa* card
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Annual Fee$0
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Interest Rates19.99% / 22.99%19.99% for purchases, 22.99% for cash advances.
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Rewards Rate0.5%-1%Earn 1% cash back on all eligible gas stations, grocery stores, drug stores purchases and recurring payments. Earn 0.5% cash back on all other eligible purchases.
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Intro OfferUp to $100Earn 5% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). Must open a new account by October 31, 2023.
The Scotia Momentum No-Fee Visa Card doesn’t provide any bells or whistles, but it also doesn’t charge an annual fee, making it an option for people looking to build credit while earning cash back on everyday purchases.
Pros
- No annual fee.
- Benefit from a 0.99% introductory interest rate on balance transfers for the first 6 months (22.99% after that).
- Earn up to 1% cash back on eligible purchases and recurring bill payments.
- Opportunity to earn 5% cash back for a limited time with new cards opened by October 31, 2023.
Cons
- No premium perks or benefits.
- The balance transfer promotional period cannot be used to transfer a balance from another Scotiabank Account.
- Special Offer: Earn 5% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). Plus, get 0.99% introductory interest rate on balance transfers for the first 6 months (22.99% after that; annual fee $0). Offer expires Oct. 31, 2023.
- No annual fee.
- Earn 1% cash back on all eligible gas stations, grocery stores, drug stores purchases and recurring payments.
- Earn 0.5% cash back on all other eligible purchases.
- Save up to 25% off base rates at participating AVIS locations and at participating Budget locations in Canada and the U.S.
- Preferred rates: 19.99% on purchases, 22.99% on cash advances.
- To be eligible, $12,000 (individual) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident that is the age of majority in the province or territory where you live.
- Terms and Conditions Apply. Click ‘Apply Now’ for complete details.
Best for: Low annual fee
RBC ION Visa Credit Card
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Annual Fee$0
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Interest Rates20.99% / 22.99%20.99% on purchases, 22.99% on cash advances.
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Rewards Rate1x-1.5x PointsEarn 1.5X Avion points¹ on: Grocery – Satisfy your taste buds by earning points on groceries.ⁱ Rides, Gas & EV Charging – Enjoy earning points on gas, rideshare, daily public transit, electric vehicle charging.ⁱⁱ Streaming, Digital Gaming & Subscriptions – Stay entertained while earning points on streaming, gaming, eligible digital subscriptions, eligible digital downloads, and in-game purchases.ⁱⁱⁱ Earn 1 Avion point for every $1 spent on all other qualifying purchases.¹
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Intro Offer6,000 PointsGet 6,000 Avion welcome points upon approval¹ – that’s $40 of value in gift cards!+ Apply by October 31, 2023.^
The no-fee RBC ION Visa Card earns Avion points on every dollar spent with elevated rates for eligible grocery, gas, gaming purchases and more. Cardholders can save up to 3 cents per litre on fuel when they pay with their RBC ION Visa at Petro-Canada. It may lack lavish travel perks and robust insurance coverage, but as far as no-fee cards are concerned, the RBC ION Visa has a respectable lineup of benefits for everyday spenders.
Pros
- No annual fee.
- Petro-Canada fuel discounts.
- Earn bonus Be Well points on Rexall purchases.
- Accelerated earn rate on eligible grocery, gas, transit, streaming and digital gaming purchases.
Cons
- Insurance is limited to purchase security & extended warranty protection.
- Get 6,000 Avion welcome points upon approval¹ – that’s $40 of value in gift cards!+ Apply by October 31, 2023.^
- Earn 1.5X Avion points¹ on:
- Grocery – Satisfy your taste buds by earning points on groceries.ⁱ
- Rides, Gas & EV Charging – Enjoy earning points on gas, rideshare, daily public transit, electric vehicle charging.ⁱⁱ
- Streaming, Digital Gaming & Subscriptions – Stay entertained while earning points on streaming, gaming, eligible digital subscriptions, eligible digital downloads, and in-game purchases.ⁱⁱⁱ
- Earn 1 Avion point for every $1 spent on all other qualifying purchases.¹
- Pay With Points – Redeem your Avion points to pay bills, your credit card balance or even send money to friends with Interac e-Transfer⁴. Minimum redemption is only $10, so you can use your points where you need them most.
- Save at Petro-Canada – Save 3¢/L on fuel and earn 20% more points when you pay with a linked RBC card.⁶
- Earn more Be Well points at Rexall – Earn 50 Be Well points for every $1 spent on eligible purchases at Rexall when you pay with your linked RBC card and scan your Be Well card.⁷
- Save Big on Delivery with DoorDash – Get a 3-month complimentary DashPass subscription – a value of almost $30.⁸ Enjoy unlimited deliveries with $0 delivery fees on qualifying orders of $15 or more when you pay with your eligible RBC credit card⁹. See how to save with DoorDash.
- Purchase Security and Extended Warranty Insurance⁵ – Automatically protects eligible card purchases against loss, theft or damage within 90 days of purchase, and doubles the manufacturer’s original Canadian warranty by up to one additional year, to a maximum of five years.
- Corresponding legal references and product terms are available on the RBC website, which will be available and agreed upon in the customer onboarding process.
Best for: Low interest rate
HSBC +Rewards™ Mastercard®
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Annual Fee$25Annual fee rebate for the first year*
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Interest Rates11.90%11.90% on purchases and cash advances.
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Rewards Rate1x-2x Points2x on dining and entertainment, and 1x on everything else.
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Intro OfferUp to 35,000 PointsEarn 35,000 points* when you spend $1,000 within 60 days of account opening ($175 travel value). Must apply by September 29, 2023. Conditions apply.
This low-interest and low-annual fee rewards card offers bonus points on dining and entertainment purchases, as well as several types of insurance.
Pros
- At 11.9%, you’ll benefit from a lower interest rate on purchases and cash advances than many other rewards cards.
- Redeem points for travel, as gift cards or as financial rewards.
Cons
- Despite the low interest rate, there’s no balance transfer promotional period.
- Travel and medical insurance coverage costs an additional $69 per year.
- Get up to $200 in total value* for the first year! Must apply by September 29, 2023. Conditions apply.
- Earn 2 Points for every $1 spent on eligible dining or entertainment purchases.
- HSBC’s lowest interest rate for purchases, cash advances and balance transfers.
- Price Protection Service – find a lower price within 60 days of your purchase, the difference will be refunded, up to $500 per eligible item.
- Primary Cardholder Annual Fee: $25.
- Annual Interest on Purchases: 11.9%.
- Authorized User Annual Fee: $10 Per Card.
- *Terms and Conditions apply.
- ®/TM Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. Used pursuant to license.
Best for: Points on travel
HSBC World Elite® Mastercard®
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Annual Fee$149Annual fee rebate for the first year*
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Interest Rates20.99% / 22.99%20.99% on purchases, 22.99% on cash advances.
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Rewards Rate2x-6x Points6 points per $1 on all eligible travel purchases, 4 points per $1 on all eligible gas, grocery, and drugstore purchases, 2 points per $1 on all other eligible purchases.
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Intro OfferUp to 50,000 PointsEarn up to 50,000 points* ($250 travel value): Welcome bonus of 20,000 points* ($100 travel value), Earn 30,000 points* when you spend $1,000 within 60 days of account opening ($150 travel value). Must apply by September 29, 2023. Conditions apply.
Not only does this World Elite card offer a high rewards rate on travel purchases, but it also comes with premium travel perks, like a $100 travel enhancement credit and 31-day worldwide emergency travel medical insurance.
Pros
- A $100 annual travel enhancement credit covers seat upgrades, baggage fees, lounge passes, and more.
- No foreign transaction fees.
Cons
- Select types of travel insurance won’t apply unless you charge 75% of your travel expenses to the card.
- No travel medical coverage for cardmembers over the age of 65.
- Get up to $499 in total value* for the first year! Must apply by September 29, 2023. Conditions apply.
- Primary Cardholder Annual Fee: $149.
- Annual Interest on Purchases: 20.99% (19.9% for Quebec residents).
- Annual Interest on Cash Advances and Balance Transfers: 22.99% (21.99% for Quebec residents).
- Authorized User Annual Fee: $0 Per Card.
- *Terms and Conditions apply.
- ®/TM Mastercard and World Elite are registered trademarks, and the circles design is a trademark of Mastercard International Incorporated. Used pursuant to licence.
Best for: Cash back on gas
CIBC Dividend® Visa Infinite Card
![CIBC Dividend® Visa Infinite Card](https://www.nerdwallet.com/ca/wp-content/uploads/sites/2/2022/01/CIBC-Dividend-Cashback-460x290.jpeg)
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Annual Fee$120Waived first year
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Interest Rates20.99% / 22.99%20.99% on purchases, 22.99% on cash advances (21.99% for Quebec residents).
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Rewards Rate1%-4%4% on gas, electric vehicle charging, and groceries and , 2% on transportation, dining and recurring payments, and 1% on everything else.
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Intro OfferN/A
You can earn some extremely attractive rates on gas and groceries with the CIBC Dividend Visa Infinite Card — up to a $3,200 cash-back value.
Pros
- Flexible and easy redemption. You can redeem cash back anytime through CIBC Online and Mobile Banking.
- Generous cash back rates on five popular spending categories.
Cons
- You’ll only earn 1% cash back after spending $80,000 across bonus categories. Most credit cards have specific limits for each category, but the CIBC Dividend Visa Infinite collectively caps all bonus rates with an $80,000 limit.
- Insurance offerings are limited compared to what you might expect from a card with a $120 annual fee. However, you can avoid this cost every single year with a CIBC Smart Plus™ Account.
- 4% on groceries, gas, and electric vehicle charging, and 2% on transportation, dining and recurring payments. Accelerated rates apply to the first $80,000 spent per year.
- 1% on everything else, and after spending $80,000.
- 0.25% cash back for every $1 spent on a CIBC Global Money Transfer, with no foreign transaction fees.
- Redeem a minimum of $25 cash back at any time through CIBC Online and Mobile Banking.
- $120 annual fee.
- Visa Infinite benefits, including Visa Infinite Concierge, Visa Infinite Luxury Hotel Collection, Visa Infinite Dining Series, and entertainment and lifestyle offers.
- Save up to 10 cents per litre at Chevron, Ultramar and Pioneer gas stations when you link your card with Journie Rewards.
- Access to CIBC Pace It.
- Five types of insurance provided, including 10-day out-of-province/out-of-country emergency medical benefits — up to $5 million in coverage.
- Preferred rates: 20.99% for purchases, 22.99% for cash advances.
- To be eligible, $60,000 (individual) or $100,000 (household) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident of the age of majority in the province or territory where you live.
Best for: Flat rate rewards
CWB World Elite® Mastercard®
![CWB World Elite® Mastercard®](https://www.nerdwallet.com/ca/wp-content/uploads/sites/2/2023/06/cwb-world-elite.jpeg)
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Annual Fee$120No annual fee for the first year, then $120.Waived first year
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Interest Rates19.99% / 21.50%19.99% on purchases, 21.50% on cash transactions
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Rewards Rate2x-30x PointsEarn 2 reward points on every $1 spent, plus earn up to 30 rewards points on every $1 spent with CWB Rewards partners.
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Intro OfferN/A
The CWB World Elite Mastercard comes with perks travellers will appreciate, like airport lounge access, comprehensive travel insurance and free global Wi-Fi. But steep annual income criteria means not everyone will qualify.
Pros
- Free global Wi-Fi and airport lounge access.
- Robust travel insurance.
Cons
- High annual income and card spending requirements.
- Rewards that are limited by annual spending caps.
- Reward yourself faster by earning 2 points for every $1 spent on your purchases, up to a $25,000 annual spending limit. After that, earn 1 point per $1 spent.
- Earn more with CWB Rewards partners by earning up to 30 rewards points on every $1 spent.
- Redeem CWB Rewards powered by Brim as cash back or to pay for purchases.
- Free Global Wi-Fi access to over 1 million Boingo Wi-Fi hotspots.
- Lounge access, exclusive restaurant offers, airport transfers and security fast track with Mastercard Travel Pass.
- Feel fully protected with 15 types of insurance coverage, including mobile device insurance.
- To be eligible, an $80,000 annual income or $150,000 household income is required.
Best for: Cash back
Simplii Financial™ Cash Back Visa Card
![Simplii Financial™ Cash Back Visa Card](https://www.nerdwallet.com/ca/wp-content/uploads/sites/2/2022/01/simplii-financial-cashback-visa-credit-front-292x460-1-184x290.jpeg)
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Annual Fee$0
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Interest Rates19.99% / 22.99%19.99% on purchases, 22.99% on cash advances.
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Rewards Rate0.5%-20%20% intro offer. 4% at restaurants, bars and coffee shops, 1.5% on gas, groceries, drugstores and pre-authorized payments, and 0.5% on everything else.
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Intro OfferUp to $100Earn 20% cash back on eligible gas, groceries, drugstore purchases and pre-authorized payments made within your first 3 months (up to $500 spend).
The $0-annual-fee Simplii Financial Cash Back Visa Card earns bonus cash-back on the purchases you make almost every day.
Pros
- New cardmembers can earn a 9.99% introductory annual interest on purchases for the first six months.
Cons
- The 0.5% base rate isn’t exactly impressive, but it only applies after you hit the annual spending limits of bonus categories.
- It only includes purchase security and extended protection insurance.
- 4% on restaurant, bar and coffee shops, up to $5,000 per year.
- 1.5% on gas, groceries, drugstores and pre-authorized payments, up to $15,000 per year.
- 0.5% on everything else.
- Plus, for your first 3 months, enjoy 20% bonus cash back on eligible gas, groceries, drugstore purchases and pre-authorized payments (up to $500 spend).
- Redeem cash back as a statement credit in December.
- No annual fee.
- Cash back when you send money abroad with a Simplii Financial Global Money Transfer. No transaction fees and no interest charges.
- Purchase security and extended protection insurance provided.
- Preferred rates: 19.99% for purchases, 22.99% for cash advances.
- To be eligible, a $15,000 (individual) annual income is required. Also, you must have a Canadian credit file and be a Canadian resident (excluding Quebec) that is the age of majority in the province or territory where you live.
American Express Cobalt® Card
Combined with the intro offer of up to 30,000 points, earn up to 180,000 points (up to $3,600) in your first year! Earned points are easily transferable to popular airline and hotel loyalty programs such as Aeroplan and Marriott Bonvoy. Conditions Apply.
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Summary of the best rewards credit cards
CARD NAME | OUR PICK FOR | ANNUAL FEE | INTRO OFFER |
---|---|---|---|
Simplii Financial™ Cash Back Visa Card | Best for: Cash back. | $0 | Up to $100 |
BMO CashBack® Mastercard® for Students | Best for: Students. | $0 | Up to $125 |
Neo Secured Credit | Best for: Bad or no credit. | $0 | $25 |
American Express® Business Edge™ Card | Best for: Businesses. | $99 | Up to 67,000 Points |
BMO CashBack® World Elite® Mastercard® | Best for: Cash back on groceries. | $120 | Up to $260 |
Scotia Momentum® Visa Infinite* Card | Best for: Cash back on subscriptions. | $120 | Up to $200 |
Tangerine World Mastercard® | Best for: Customizable spending categories. | $0 | Up to $100 |
CWB World Elite Mastercard | Best for: Flat rate rewards. | $0, then $120 | N/A |
American Express® Green Card | Best for: American Express Membership rewards. | $155.88 | Up to 30,000 Points |
BMO AIR MILES® World Elite® Mastercard® | Best for: AIR MILES points. | $120 | 2,000 Miles |
CIBC Aventura® Gold Visa Card | Best overall rewards card. | $139 | Up to 35,000 Points |
Scotia Momentum® No-Fee Visa card | Best for: Newcomers. | $0 | Up to $100 |
TD First Class Travel® Visa Infinite Card | Best for: Points on groceries. | $139 | Up to 115,000 Points |
RBC ION+ Visa Credit Card | Best for: Low annual fee. | $48 | 12,000 Points |
American Express Cobalt® Card | Best for: Points on food delivery. | $155.88 | Up to 30,000 Points |
TD® Aeroplan® Visa Infinite* Card | Best for: Aeroplan welcome offer. | $139 | Up to 50,000 Points |
MBNA Rewards World Elite® Mastercard® | Best for: Points on utilities. | $120 | Up to 30,000 Points |
Scotiabank Gold American Express® Card | Best for: Rewards on entertainment. | $120 | Up to 40,000 Points |
SimplyCash® Preferred Card from American Express | Best for: Cash welcome offer. | $119.88 | Up to $400 |
HSBC +Rewards™ Mastercard® | Best for: Low interest rate. | $25 | Up to 35,000 Points |
CIBC Dividend Visa Infinite Card | Best for: Cash back on gas. | $120 | N/A |
HSBC World Elite Mastercard | Best for: Points on travel. | $149 | Up to 50,000 Points |
Methodology to choose the best rewards credit cards
NerdWallet Canada selects the best rewards credit cards based on overall consumer value as well as their suitability for specific kinds of consumers. Factors in our evaluation methodology include each card’s cash-back earning rates, rewards structure (such as flat-rate or bonus categories), annual fee, redemption options, promotional APR period for purchases, bonus offers for new cardholders, and noteworthy features such as insurance, loyalty bonuses or the ability to choose one’s own rewards categories.
How rewards credit cards work in Canada
By Barry Choi and Shannon Terrell
With so many choices out there, selecting a rewards credit card can quickly become overwhelming.
Do you go for a credit card that rewards you for shopping at a particular store, a card that has accelerated earn rates on a category that fits your lifestyle, a card that has flexible redemption options, or something else?
Knowing how rewards work before and after you apply for a rewards credit card can help you decide.
What is a rewards credit card?
With rewards credit cards, you can earn points or miles on just about every purchase you make. The type of rewards you get depends on the credit card you have. Additionally, how you can use your rewards depends on the loyalty program set up by the issuer.
What makes rewards credit cards appealing is the idea that everyday purchases could be transformed into something you really want, like tickets to a concert or a free first-class flight.
How rewards credit cards work
As far as usage is concerned, rewards credit cards are similar to any other credit card. You charge your purchases, and then you get your statement when your monthly billing period is up. It is especially important to pay off your balance with rewards cards because interest charges can erode the rewards you earn.
In other words, as long as you’re on top of your bills, you can earn some sweet rewards without doing anything extra.
Types of rewards credit cards
There are dozens of rewards cards out there, but generally speaking, you can break them down into five different categories. Knowing what’s typically included within each category is essential since it’ll help you determine what card is best for you.
Flexible-points credit cards
Most major financial institutions have a general rewards credit card. The points you earn can typically be redeemed for a variety of lifestyle rewards, such as entertainment, merchandise, gift cards or financial rewards, as well as travel purchases.
Unlike travel rewards cards, general rewards credit cards might not offer the same travel perks and benefits expected by frequent travellers, such as comprehensive travel insurance or free airport lounge visits. But, foregoing these perks often means a lower annual fee.
Airline rewards credit cards
Airline credit cards allow you to earn points or miles for a specific airline. What’s interesting about airline credit cards is that the points you earn can usually be used on any airline that’s part of its network.
For example, Aeroplan is the loyalty program for Air Canada. Even if you don’t have one of the best Aeroplan credit cards, or you can use your points for a flight on any carrier that’s part of the Star Alliance network. There are also some general travel rewards programs, such as Air Miles, that also earn miles and can offer some additional value.
Depending on the tier of your airline rewards credit card, you may get additional perks such as free checked bags, priority boarding and increased status. Having an airline credit card is highly lucrative if you frequently fly with one airline or network.
Hotel rewards credit cards
While some people love the idea of free flights, getting a luxury stay at a nice hotel appeals to other people. Some would argue that hotel rewards are better than airline rewards since some hotel chains have a greater reach. For example, Marriott has over 7,000 properties in 130+ countries, so no matter where you’re travelling, it won’t be hard to find a room where you can use your points.
Hotel rewards credit cards will also typically include benefits that will make your stay more comfortable. For instance, you could get early check-in and late check-out. You could also get free high speed Wi-Fi or enhanced status.
Travel rewards credit cards
If you’re not loyal to one specific airline or hotel chain, then a general travel rewards program is something that will interest you. The points you earn can typically be used for any type of travel redemption, such as airfare, hotels, car rentals, cruises, and even vacation packages. Since your points don’t belong to one specific program, you have more options.
Some travel credit cards only allow you to use your points when booking travel through their online portal, while others let you use your points for any travel purchases you charge to your card.
Store or brand rewards credit cards
Many major retailers have their own loyalty programs and some even have a co-branded credit card. If you were to sign up for their store credit card, you would usually earn more points on in-store and online purchases.
Admittedly, the overall rewards you earn with a store credit card may not be as lucrative compared to travel rewards, but they can still be valuable. For example, many store cards offer an immediate bonus when you apply. You may also get an immediate welcome bonus when you apply, such as 15% off on first-day purchases. Plus, most store credit cards don’t have an annual fee, so one could make sense if you frequently shop at the same store.
Gas rewards credit cards
If you’re often on the road, you may want to consider a gas rewards credit card. These cards offer points or cash back rewards whenever you spend money to top up your tank at a gas station. Some gas rewards cards offer accelerated earnings when you spend money on fuel — any time, anywhere. Other rewards cards only let you earn points when you visit eligible gas station chains.
Popular credit card rewards programs in Canada
Credit card rewards programs are very appealing, but with so many different ones available, it’s important to understand how each loyalty program generally works before choosing a card. You don’t need to know the ins and outs of every program, but you do want to have a general idea of what they can do for you and how you could use your points.
Here’s a breakdown of some of the most popular rewards and loyalty programs in Canada:
Air Miles rewards
With nearly 10 million active Air Miles accounts in Canada, there’s a decent chance you’re already familiar with the Air Miles rewards program. Members collect Air Miles rewards — also called Rewards Miles — by making purchases at partner retailers using an Air Miles credit card. Rewards Miles can be redeemed for free flight tickets, cruise tickets, hotel stays, merchandise and more.
Aeroplan rewards
Aeroplan is a travel rewards loyalty program run by Air Canada, Canada’s largest airline.
Aeroplan points can be earned by signing up for an Aeroplan credit card; flying with Air Canada or any of its partner airlines, including Air India, Lufthansa and United; or booking qualifying hotel stays, car rentals and in-store purchases with Aeroplan’s brand partners, like Avis, Home Hardware and Sephora.
Like Air Miles rewards, Aeroplan points can be redeemed for flight tickets, hotel stays, gift cards and more.
PC Optimum rewards
The PC Optimum loyalty rewards program is owned and operated by Loblaws, a Canadian retail conglomerate. Members earn points each time they make qualifying purchases at eligible stores, including Loblaws, Real Canadian Superstore, No Frills and Shoppers Drug Mart. Members can also earn points when purchasing fuel at Mobil and Esso gas stations.
The PC Optimum points system is straightforward: every 10,000 points is worth $10 and can be applied to in-store purchases at partner stores. There’s even a PC Optimum mobile app to help you track points and special weekly offers.
American Express Membership rewards
AmEx carriers, this one’s for you: the American Express Membership rewards program is only available to — you guessed it — American Express cardholders. The program offers points every time you swipe your card on an eligible purchase. Points can be redeemed for travel experiences, merchandise, gift cards — you can even use your points to pay for Amazon purchases.
Petro-Points rewards
The Petro-Points rewards program offers points for visiting Petro-Canada gas stations. The system is straightforward enough: pump 1L of gas or spend $1 in-store — earn 10 Petro-Points. Points can be redeemed for fuel, car washes, in-store purchases or online gift cards.
Petro-Canada doesn’t issue its own credit cards but some RBC credit cards offer accelerated Petro-Point earn rates.
SCENE+ Rewards
If you’ve visited a Cineplex theatre in the last decade, you’ve likely heard of Scene+ rewards points. What started out as a rewards program for Cineplex ticket purchases and concession stand spending has since evolved into a robust points system with numerous ways to earn and redeem, called Scene+. This new points system is the offspring of the Cineplex SCENE program and Scotia Rewards, Scotiabank’s credit card rewards program.
You can still earn Scene+ points when you visit a Cineplex theatre, but you can also earn points when you visit Playdium, eat at partnered restaurants, shop with partnered retailers — even book travel excursions through Scene+ Travel. Earn accelerated Scene+ points with the Scotiabank SCENE Visa credit card.
Does the card network matter? Visa vs. Mastercard vs American Express
Credit card companies, commonly referred to as issuers, are the banks, credit unions and other financial providers through which you might apply for a credit card. There are dozens of credit card issuers in Canada.
Credit card networks, on the other hand, provide the technology and infrastructure that makes credit card transactions possible — and effortless — almost anywhere in the world. Canada has only three credit card networks: Visa, Mastercard and American Express.
The network to which your rewards credit card belongs may affect how widely the card is accepted, processing costs and cardholder benefits. Generally, however, all three of the major networks offer attractive reward card options in Canada.
Using credit card rewards
When choosing a rewards credit card, it’s important to understand the rate at which you will earn points and what options you have for redeeming them.
How rewards credit cards earn perks
The earn rate on a rewards credit card is the number of rewards points or miles you earn on each dollar spent.
Some cards offer a flat rate, meaning you earn the same rewards on every purchase. For example, you may earn 2 points for every $1 you spend with your card.
Most rewards credit cards have a tiered rewards structure when making purchases. The type of structure can vary quite a bit between cards. For example, you may have an accelerated earn rate on purchases made in certain categories, such as travel, groceries, gas and drugstores, or at stores that belong to a certain brand family. All other purchases will use the lower base earn rate.
Ideally, you want to choose a credit card with an accelerated earn rate that is aligned with your spending habits.
How to calculate the value of credit card rewards
Knowing how to calculate the value of your points or miles is essential since not every redemption value is the same. By establishing a baseline value for your points, you can decide if specific redemptions are worth it — even if you’re not getting the maximum value.
The formula used to determine the value of one point is as follows:
Cash value of the redemption x 100 / number of points required = Cost per point
This formula can be applied to any redemption regardless of the loyalty program. For example, let’s say you want to redeem 13,400 points for a $100 gift card. Your formula would be the following:
$100 x 100 / 13,400 = .75 cents per point
Do rewards points ever expire?
It doesn’t matter how long you’ve been a member of a loyalty program or how many points you’ve accumulated; you can lose everything if you’re not paying attention.
Generally speaking, most loyalty programs that belong to an airline or hotel have a defined expiry date of 12 – 18 months. However, that only applies if there’s been no account activity in your account during that time. Your clock would reset if you earn or redeem just one point during that time. Even if you’re not travelling anytime soon, you could make a small redemption or donate some points to ensure you don’t lose the rest of your points.
When it comes to bank credit card rewards programs, it’s unlikely your points will expire as long as your credit card account is in good standing. Your account would only fall out of good standing if it becomes delinquent or your credit card is used for fraudulent activity.
How to redeem credit card rewards
Rewards programs offered through a bank typically have their own website where you can make redemptions. They’ll usually have separate tabs where you can choose from travel, gift cards, merchandise, and financial rewards. While this can be handy, you’re typically limited to their offerings. For example, you wouldn’t be able to book an Airbnb via their site.
That said, some general rewards programs allow you to redeem travel purchases that weren’t made through the bank’s website as long as you charge it to your credit card.
Redeeming store rewards points
Store rewards points are typically redeemable only in-store or online. When you’re checking out, have the cashier scan your loyalty card. You’ll then be able to redeem as many points as you like. If you’re making an online purchase, you’ll need to log in first. Then, when you’re paying, there should be an option to redeem your points.
Rewards credit card terms and conditions
Like all credit cards, rewards credit cards generally have a set of terms and conditions to which you must agree in order to become a cardholder. Terms and conditions specific to your credit card issuer, as well as each type of rewards card they offer, should be available online. You will also likely receive a written copy of the terms and conditions when you receive your physical card in the mail.
Common terms and conditions include:
- The rights of your card issuer under the agreement.
- Your rights under the agreement.
- How you earn points.
- Rewards categories.
- How you can use your points.
- How to transfer your points.
- Under what circumstances you might lose your points.
- When your reward points might expire.
How to pick the right rewards credit card
Every rewards credit card is good for at least one thing, so deciding on which card is best for you can be difficult. Here are some important criteria to compare and consider:
Type of rewards
Think about your short and long-term goals. For example, if you’re planning a honeymoon and want to have an epic trip, then getting a travel rewards credit card to earn a free flight might be the right thing to do. Alternatively, let’s say you want to save money on your grocery bills. Then getting a credit card with grocery rewards or a co-branded store credit card to earn discounts and in-store credit might be a better choice.
Welcome bonus
If you’re trying to decide between several cards with similar rewards, the tiebreaker can often be the sign-up bonus. Some credit cards offer a generous intro offer that is more than the annual fee or jumpstarts your earning with thousands of free points or miles.
Interest rate
When comparing rewards cards, be sure to take a look at the interest rate — and there may be more than one:
- Promotional interest rate. Some cards offer promotional or introductory interest rates that stay in effect for a set period of time — typically six to 18 months. These rates tend to be lower than the regular rate that applies once the introductory period is over. Some cards even offer 0% introductory interest rates.
- Purchase interest rate. This rate determines how much interest you’ll owe on any outstanding balance, which is especially important if you don’t always pay off your credit card in full.
- Cash advance interest rate. If you withdraw cash from an ATM using your credit card, that transaction may be subject to a different interest rate than the one applied to regular purchases. This interest rate, also called a cash advance rate, may be higher than your purchase interest rate and may also be accompanied by a flat-rate transaction fee.
- Balance transfer interest rate. Transferring an existing balance from one credit card to another may call your balance transfer interest rate into effect: an interest rate that only applies to funds relocated from another credit card.
Earn rate
Every credit card has a base earn rate, but just about all of the best rewards credit cards in Canada have an increased earn rate for specific bonus categories. For store rewards cards, you’ll usually get an increased earn rate on in-store and online purchases. However, if you have a general rewards credit card, you could earn extra points on categories such as groceries, gas, pharmacies and more. The earn rate is essential since choosing a card that lines up with your spending can quickly increase the number of points or miles you earn.
Annual fee
If you’re firmly against the idea of paying an annual fee for your credit card, you’ll instantly narrow down your choices. That said, rewards credit cards that have an annual fee typically come with more benefits that could be worth more than that yearly fee.
Reward flexibility
Having a lot of points is meaningless if it’s hard to redeem them. Look for a loyalty or rewards program where you know you’ll be able to use your points without much trouble. What you’re looking for are programs where there are no blackout dates and many different redemptions options. You’ll also want to consider if the program has any transfer partners, as that’s another way to use your points. Additionally, knowing if and when your points expire is key to making sure you don’t lose your hard-earned rewards.
Additional benefits of reward credit cards
Besides the main categories covered by general rewards credit cards, consider the additional perks that are included. These extra perks can often be the thing that helps you choose one card over another.
Consider the following benefits that often come with rewards credit cards:
- Rental car discounts and insurance. Certain cards will earn you cheaper rates on rental cars — even internationally — as well as some insurance coverage.
- Security features. It’s becoming more common for rewards cards to offer things like identity theft protection, the ability to lock your card, or block foreign and online transactions, via a mobile app.
- Mobile device insurance. In recent years, mobile device insurance has become a popular benefit. Basically, if your mobile device, including your wireless phone and tablet, is damaged, lost or stolen, you can make a claim.
- Roadside assistance. This perk can help you out if you ever run into car troubles. Be sure to read the details of your roadside assistance plan, as the process of making a claim can be very specific.
- Extended warranty. Many credit cards will lengthen your warranty up to one additional year as long as you charge the full cost of the purchase to your card.
- Price protection. If you find a lower price after making a purchase, some credit cards will give you back the difference as long as it falls within a specific time period.
- Concierge service. A credit card concierge can help you with basic tasks such as booking travel, ordering fits and securing event tickets.
- Airport lounge access. Some credit cards include airport lounge access, plus free annual lounge passes. These benefits could easily have a value of over $300, so it can offset any annual fee you might pay.
- Travel insurance. Depending on the credit card, an extensive travel insurance package could be included. This could cover things such as medical expenses, trip cancellation, lost luggage, and more.
- No foreign transaction fees. Many credit cards charge a 2.5% fee when you make a purchase in any currency that’s not Canadian dollars. If your card has no foreign transaction fees, then you’re just paying the straight exchange rate.
As you can see, the list of additional benefits you can get with your rewards credit cards can be pretty extensive. Always prioritize the perks that are important to you when applying for a card.
How to get a rewards credit card
Eligibility criteria for rewards credit cards are fairly standard: you need to be a Canadian resident and you need to be the age of majority in the province or territory where you live.
Outside this, there may be credit score and annual income threshold minimums to consider, but these vary by card.
When you apply for a rewards credit card, there’s no guarantee you’ll be approved. The credit card provider needs to assess your financial profile to determine if you’re creditworthy. The application process will typically look something like this:
Steps to apply for a rewards credit card
- Fill out an application. This can be done online or at your financial institution. The application will ask for some basic information, such as your name, date of birth, address, social insurance number, employer and income.
- Your information is checked. The credit card issuer will check your credit history and verify the information that you provided.
- A decision is made. If you apply online, instant approval (or disapproval) is possible, but there’s also a chance the credit card issuer will ask you to contact them to provide additional information.
- Your card is mailed out. Your credit card will immediately be mailed out and will typically arrive within 14 business days.
- Activate your card. Once your card arrives, you’ll need to activate it by logging into your account or calling the number on your card. Once activated, you can use your card to make purchases.
Should you have multiple rewards credit cards?
The number of credit cards you should have ultimately comes down to your financial health, spending habits and goals.
Different rewards credit cards offer bonus or accelerated earn rates for different categories of spending. Likewise, cards vary in the types of reward they can deliver.
In some cases, it can make sense to have a rewards card that helps you capitalize on your biggest areas of spending, like one card that earns significant travel rewards and another that earns bonus points at the grocery stores.
However, multiple credit cards represent multiple opportunities for accumulating high-interest debt, so make sure you’re confident in your ability to pay the bills in full regularly. And keep in mind that each credit card application can result in a hard inquiry on your credit report, temporarily reducing your credit score.
Is a rewards credit cards worth it?
Everyone sees a different value in rewards credit cards. What works for you may not necessarily be suitable for someone else. Generally speaking, a rewards credit card is worth it in the following scenarios:
Reasons a rewards credit card might be worth it
- No annual fee. Many credit cards with no yearly fee still come with a few benefits.
- Rewards align with your spending. If you shop at a specific store regularly or find that a lot of your budget goes toward groceries, a card that rewards you for those behaviours is often worth it.
- You have a goal in mind. Having a specific redemption in mind is essential since you can then apply for rewards credit cards to help you reach that goal.
- Good welcome bonus. Sign-up bonuses and intro offers that are given to new applicants are often worth hundreds of dollars.
- You’re looking to save money. The points you earn from a store rewards credit card can reduce the cost of your purchases.
- You want a specific benefit. If the credit card comes with a benefit you want, such as no foreign transaction fees or roadside assistance, it could be reason enough to sign up.
Reasons a rewards credit card might not be worth it
Even though the positives are compelling, situations, where it may not be worth getting a rewards credit card, include:
- You typically carry a balance. No amount of rewards is worth it if you’re paying interest.
- You’re worried about your spending. Some people will spend more when they have access to a credit card.
- You can’t meet the requirements. Most rewards credit cards require applicants to have a good credit score, meet certain income requirements and be the right age. If you aren’t eligible, consider a more suitable option.
- You’re not getting value out of the annual fee. You may want to get a no-fee card if you’re not using any of your included benefits.
- You prefer something simple. Even though redeeming rewards can be easy, it still takes some planning. If you like simplicity, going with a cash-back card may be better.
How to make the most of your rewards credit card
If you’ve decided that a rewards credit card is for you, you can follow a few tips to ensure you get the most out of your card.
- Always pay your bill in full and on time, so you don’t pay any interest.
- Make sure you meet the minimum spending requirement to get your welcome bonus.
- Pay attention to your earn rate and use your rewards card on purchases that earn extra points.
- Research your rewards program so you know what you can do with your points or miles.
- Always calculate the value of your points before making a redemption.
- See if your loyalty program has a partner network where you can earn additional points.
Although choosing a rewards credit card may require you to do some research, the value you get is often worth it. Getting free stuff on points feels great, especially if it’s something you’ve been saving a long time for.
Other types of credit cards to consider
Although cash-back cards are easy to understand, they aren’t always one of Canada’s best credit cards. Depending on your situation, you may want to consider one of the following types of credit cards instead.
- Travel rewards credit card. For those who want to use their rewards for travel.
- No-fee credit card. A credit card that doesn’t charge an annual or monthly fee.
- Student credit card. A smart choice for university students who are building credit.
- Cash-back credit card. A card that earns a percentage of what you spend back in cash.
Frequently asked questions about rewards credit cards
The value of your rewards credit card points or miles will vary depending on the rewards program you join and what you redeem them for. If you can, go with the reward that has the highest value.
By calculating a baseline value for your points, you can decide if specific redemptions are worth it — even if you’re not getting the maximum value.
The formula used to determine the value of one point is as follows: Cash value of the redemption X 100 / number of points required = Cost per point.
Credit card rewards are considered a rebate/discount by the Canada Revenue Agency, so you won’t be taxed. Rewards are really no different from a coupon, which isn’t taxable. That said, if you earn cash-back rewards as part of your employment or business, it may be taxable.
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