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Looking to get more out of your credit card? Rewards credit cards help you earn back valuable cash rewards, point rewards, travel rewards, or a combination on every purchase you make through your credit card. Find out which of these credit card rewards match your lifestyle and compare the best Canadian rewards credit cards on RATESDOTCA.
Finding a credit card which complements your lifestyle and spending habits can be daunting. There are so many to choose from, and nobody has time for all that fine print! Well, nobody except for us that is. Our team analyzed over 150 credit cards across 13 categories for the best value, to help take the guesswork out of shopping for a new card.
Scroll through the categories below, or click here for the full list of Best of Finance 2020 award winners.
Best Rewards Credit Card
Best No-Fee Credit Card
Best Travel Credit Card
Best Cash Back Credit Card
Best Premium Perks Credit Card
Best Credit Card for Paying Down Your Balance
Best Credit Card for Rebuilding Credit
Best Credit Card for Young Professionals
Best Credit Card for Students
Best Credit Card for Frequent Flyers
Best Credit Card for Snowbirds or Cross-Border Shoppers
Best Credit Card for Newcomers to Canada for 2020
Best Credit Card for Families
Both cashback and rewards/travel points have benefits. This table breaks down some of the pros and cons for both types of cards.
| Rewards Type | Cashback | Rewards/ Travel points |
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| Cons |
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Each rewards credit card comes with a unique rewards program. Depending on the card, the rewards points can be redeemed for travel rewards, instant cashback, gift cards and much more. The type of rewards credit card you choose greatly depends on the kind of rewards you want to ultimately redeem for.
Here are the most popular credit card rewards and perks:
In addition to rewards, you can also enjoy a variety of perks from most rewards credit cards.
Tip: You can also use a combination of rewards credit cards to take advantage of multiple rewards programs. For example, you can use a bonus cashback card and a travel rewards card to save money and at the same time earn travel rewards for your trips. This strategy will help you maximize your annual credit card rewards and perks.
Different cashback credit cards offer different perks. Here are the three different type of cashback offers you can expect to find in a credit card rewards program:
Trying to figure out which rewards will work for you? These common questions about rewards credit cards can help you decide.
When choosing a rewards credit card, remember to look for rewards and perks that complement your lifestyle. There are many different types of rewards cards. Some offer travel rewards, while others cater to cashback, retail discounts, gift cards and much more. Look for cards that have rewards and ways to earn that better suit your financial and lifestyle goals.
Two things to consider when choosing a rewards card
1) How will I earn points/cash back (Or what / where do I spend money): Cards have different earn rates on different spend categories – get a card with a high rate on the thing you buy the most (if you are a big family, maybe this is groceries – if you are a young urbanite, maybe this is entertainment)
2) What do I want to spend (redeem) my points on: Some credit card users want cash back or statement credits because it’s the most flexible. However, cards that offer only cashback usually have lower reward rates than say their travel point counterparts. Even if the card has a flexible points rewards option (you can redeem earned points for cashback or travel) it is common for the redemption value of cash reward to be less than if the points were redeemed on travel.
To be eligible for most rewards credit cards, you must have good to excellent credit. If you need to work on your credit score, opting for a low interest credit card or a no-fee credit card can help you get there.
Rewards credit cards typically come with an annual fee ranging anywhere from $100-$200. Some credit card companies waive the first year fee. Choose your rewards card strategically so the advantages outweigh the annual fee.
Most rewards credit cards come with an annual fee due to the high-value benefits that come with the card. When choosing a rewards program, pick one that will help you get the most out of your credit card. For example, say you choose a cashback rewards credit card that has an annual fee of $100, comes with a 2% instant cashback on groceries and gas purchases, and 0.5% on other purchases. If you spend an average of $900 a month on groceries and gas alone, you’ll earn at least $216 in cashback by the end of the year, which offsets the annual credit card fee.
Similarly, most travel rewards credit cards come with bonuses. For example, say you choose a travel rewards card that comes with a welcome bonus of 2,000 Air Miles and a promise of an additional 4,000 Air Miles when you spend more than $10,000 in the next six months. You also can earn one Air Mile for every $10 spent. This offers you the potential to earn more than 6,000 Air Miles within six months of holding the card. These Air Miles are worth a few or more domestic trips, helping you save up on travel costs.
Looking for great offers on rewards credit cards? Check out the latest offers on credit cards.
