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2021's Best Rewards Credit Cards for Canadians

Compare the best rewards credit cards to get the perks you actually want.

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Rewards credit card 101

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.

2021's Best Rewards Credit Cards in Canada

See the best Canadian rewards credit cards and find the perfect fit for your lifestyle.

American Express Cobalt Card

American Express CobaltTM Credit Card

card image
Welcome bonus
$787
AMEX Rewards points
Annual rewards
$1155
AMEX Rewards points
Annual fee
$120

Winner – Best Overall Rewards Card and Best Card for Young Professionals
Particularly great for individuals who live in the city, eat out often or order in.
Details at a glance Collapse details
Welcome bonus
$787
Annual rewards
$1155
Winner – Best Overall Rewards Card and Best Card for Young Professionals
Particularly great for individuals who live in the city, eat out often or order in.
Details at a glance Collapse details

Apply for the American Express Cobalt Card and earn 2,500 Membership Rewards® points each billing period you spend at least $500 in the first 12 months. Plus, when you apply by May 5, 2021, you can earn 15,000 Membership Rewards® points when you spend at least $3,000 in the first three months of opening the account. At the end of the year, you could have 45,000 extra points to spend on nearly anything you like.

Redeem points for travel, merchandise or your card purchases for endless options and flexibility. This card treats members for each aspect of an on-the-go lifestyle, from hailing a taxi to grabbing a drink with friends.

According to our Best of Finance methodology, the average Canadian will see $1,822 in Membership Rewards® points within the first year.

Credit score requirement for approval:

Fair: You have had a credit card or loan for one or more years. For the last two years or more, you’ve paid back debts to creditors with no defaults. You haven’t missed more than two payments on your credit in the last three months.

Monthly fee:

$10

($120 per year)

Limited time offer/bonus:

  • New cardmembers can earn up to 45,000 bonus points within the first year. Earn 2,500 Membership Rewards® points for each billing period you spend at least $500 on your card. Plus, when you apply by May 5, 2021, you can earn 15,000 Membership Rewards® points when you spend at least $3,000 in the first three months of opening the account.

Offer expiry date: May 5, 2021

Rewards:

  • Earn five points per dollar at grocery stores, restaurants, cafés, bars, and food delivery.
  • Earn two points per dollar on gas, travel and transit, including taxis, buses, subways and rideshare services.
  • Earn one point per dollar you spend on all other purchases.

Earning potential:

How does this card stack up to other rewards credit cards? We crunched the numbers using our Best of Finance methodology to see how much an average Canadian could earn over a 12-month period.

Rewards earned over a 12-month period = 111,000 Membership Rewards® points
Monetary value= $1,942.50
Annual fee = $120
Total earned over the first year (rewards minus annual fee) = $1,822.50

*The annual fee, in this case, is the total of 12 monthly fees at a rate of $10 per month.

You can redeem your points for:

  • Streaming services
  • Movie tickets
  • Dining out
  • Retail purchases
  • Merchandise
  • Flights through the Fixed Points Travel Program
  • Other travel through American Express Travel
  • Events
  • Purchases on Amazon.ca

Insurance:

  • Out of province/country emergency medical
  • Flight delay
  • Baggage delay
  • Hotel burglary
  • Lost or stolen baggage
  • Car rental theft and damage
  • $250,000 travel accident
  • Purchase protection
  • Extended warranty

Other perks:

  • Enjoy all that American Express Invites® has to offer, including advanced ticket sales, special offers and experiences, exclusive access, and onsite event privileges.

Scotiabank Gold American Express Card

Scotiabank®* Gold American Express® Card

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Welcome bonus
$400
Scotia Rewards points
Annual rewards
$744
Scotia Rewards points
Annual fee
$120

Winner – Best Travel Card and Best Card for Snowbirds/Cross Boarder Shopping
Strong travel perks and 0% foreign transaction fees compliment great reward value
Details at a glance Collapse details
Welcome bonus
$400
Annual rewards
$744
Winner – Best Travel Card and Best Card for Snowbirds/Cross Boarder Shopping
Strong travel perks and 0% foreign transaction fees compliment great reward value
Details at a glance Collapse details

Apply for the Scotiabank Gold American Express® Card and earn 30,000 bonus Scotia Rewards points when you spend at least $1,000 within the first three months. Get an additional 10,000 Scotia Rewards point when you spend at least $7,500 in everyday eligible purchases in your first year. Enjoy no foreign transaction fees on purchases made abroad or online at foreign merchants and various travel insurance coverages.

According to our Best of Finance methodology, the average Canadian will see $1024 in Scotia Rewards points in the first year.

Credit score requirement for approval:

Good: You’ve had a credit card or loan for at least six years. You’ve had good credit for the last seven years (no bankruptcies or defaults on credit as a result of failing to pay debts back to creditors). You haven’t opened a new credit card account, loan, or line of credit in the last nine months. You’ve made the minimum payments on any existing credit cards for the past three months.

Annual fee:

$120

Each supplementary card has an annual fee of $29.

Limited time offer/bonus:

  • Earn 30, 000 bonus Scotia Rewards points when you spend at least $1,000 in the first three months. Get an additional 10,000 Scotia Rewards point when you spend at least $7,500 in everyday eligible purchases in your first year.

Offer expiry date: August 31, 2021

Rewards:

  • Earn 5X the Scotia Rewards points per dollar on eating and entertainment. Earn rewards for grocery, restaurant, fast food, food delivery and food subscription purchases, as well as on entertainment like movies and tickets.
  • Earn 3X the Scotia Rewards points per dollar on transportation and select streaming services, including gas, public transit, taxis, rideshare, Netflix, and more.
  • Earn 1X the Scotia Rewards point per dollar on all other purchases.

You can redeem your points for:

  • Travel
  • Experiences
  • Merchandise
  • Gift cards
  • A statement credit
  • Converted to SCENE points

Insurance:

  • Travel emergency medical insurance
  • Trip cancellation/trip interruption insurance
  • Flight delay insurance
  • Delayed and lost baggage insurance
  • Travel accident insurance
  • Rental car collision loss/damage insurance
  • Hotel/motel burglary insurance
  • Purchase security
  • Extended warranty
  • Scotia Credit Card Protection (optional)

Other perks:

  • Enjoy all that American Express Invites has to offer, including exclusive access to events, presale tickets, and deals.
  • Get the Best Price Guarantee on airfare when you use the Scotia Rewards Travel Service for your next booking.
  • Enjoy no foreign transaction fees on purchases made abroad or online in foreign currency.
  • Save time with the 24/7 complimentary concierge service.
  • Receive a preferred discount on the Priority Pass membership and access airport lounges worldwide.

Scotiabank Passport Visa Infinite Card

Scotiabank PassportTM Visa Infinite* Card

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Welcome bonus
$300
Scotia Rewards points
Annual rewards
$228
Scotia Rewards points
Annual fee
$139

Winner – Best Frequent Flyer Card
Premium card for travellers that includes strong benefits and insurance
Details at a glance Collapse details
Welcome bonus
$300
Annual rewards
$228
Winner – Best Frequent Flyer Card
Premium card for travellers that includes strong benefits and insurance
Details at a glance Collapse details

For a limited time, the Scotiabank Passport Visa Infinite* Card is offering new cardmembers 30,000 bonus Scotia Rewards points when they spend at least $1,000 in the first three months. Plus, earn 10,000 bonus Scotia Rewards points when you spend $40,000 annually.

Enjoy six free lounge visits per year with the complimentary Priority PassTM membership. Cardholders can also enjoy no foreign transaction fees and a wide selection of travel insurance coverage.

According to our Best of Finance methodology, the average Canadian will see $389 in Scotia Rewards points in the first year.

Credit score requirement for approval:

Excellent: You’ve had a credit card or loan for at least 10 years. You’ve had good credit for the last seven years (no bankruptcies or no defaults on credit as a result of failing to pay debts back to creditors). You haven’t opened a new credit card account, loan, or line of credit in the last nine months. You’ve made the minimum payments on your existing credit cards for the past six months.

Annual fee:

$139

The first supplementary card is free. Each additional card has a $50 annual fee.

Limited time offer/bonus:

  • New cardmembers can earn 30,000 Scotia Rewards points when they make at least $1,000 in purchases in the first three months.
  • Get an additional 10,000 Scotia Rewards points when you spend at least $40,000 annually.

Offer expiry date: August 31, 2021

Rewards:

  • Earn two Scotia Rewards points per dollar on eligible grocery, dining, entertainment, and daily transit purchases, including buses and subways.
  • Earn one Scotia Rewards point per dollar everywhere else you shop.

You can redeem your points for:

  • Travel
  • Experiences
  • Merchandise
  • Gift cards
  • A statement credit
  • Convert to SCENE points

Insurance:

  • Travel emergency medical insurance
  • Trip cancellation/trip interruption insurance
  • Flight delay insurance
  • Delayed and lost baggage insurance
  • Travel accident insurance
  • Rental car collision loss/damage insurance
  • Hotel/motel burglary insurance
  • Purchase security
  • Extended warranty
  • Feel reassured (optional)

Other perks:

  • Cardholders can access the Price Protection Service. If an eligible item has a price drop within 60 days of your purchase, you can claim the price difference up to $100 per item and $500 a year. Other conditions apply.
  • This card features no foreign transaction fees, so you won’t see a foreign currency conversion mark-up typically charged by providers. The exchange rate still applies.
  • Enjoy six free airport lounge visits per year with complimentarily Priority Pass Membership and get an Avis Preferred Plus membership for discounts and upgrades on rental cars.
  • Benefits include the Visa Infinite Concierge services, Visa Infinite Luxury Hotel Collection, and the Visa Infinite Wine Country Program.

TD Aeroplan Visa Infinite Card

TD® Aeroplan® Visa Infinite* Card

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Welcome bonus
$250
Aeroplan Points
Annual rewards
$600
Aeroplan Points
Annual fee
$139
First Year Rebate

Best Aeroplan Credit Card in Canada
VIP benefits when travelling on Aeroplan flights, plus great travel insurance
Details at a glance Collapse details
Welcome bonus
$250
Annual rewards
$600
Best Aeroplan Credit Card in Canada
VIP benefits when travelling on Aeroplan flights, plus great travel insurance
Details at a glance Collapse details

Apply for the TD® Aeroplan® Visa Infinite* Credit Card and earn 20,000 bonus Aeroplan Points and a Bonus Buddy Pass. Get 10,000 Aeroplan points when you make your first purchase within the first three months of opening the account. Receive an Air Canada Buddy Pass when you spend at least $1,000 in the first 90 days. Plus, TD will rebate the annual fee for both the primary cardholder and one authorized user for the first year.

Enjoy Air Canada benefits, including your first checked bag for free, a NEXUS application fee rebate and access to enhanced travel insurance coverage.

According to our Best of Finance methodology, the average Canadian will see $962 in Aeroplan points in the first year.

Credit score requirement for approval:

Good: You’ve had a credit card or loan for at least six years. You’ve had good credit for the last seven years (no bankruptcies or defaults on credit as a result of failing to pay debts back to creditors). You haven’t opened a new credit card account, loan, or line of credit in the last nine months. You’ve made the minimum payments on any existing credit cards for the past three months.

Annual fee:

$139

Supplementary cards have a $75 annual fee.

Limited time offer/bonus:

  • New cardmembers can earn 10,000 Aeroplan points when they make their first purchase within the first three months of opening the account.
  • New cardholders can also get a Bonus Air Canada Buddy Pass when they spend at least $1,000 in the first 90 days. This Buddy Pass can score you a second ticket when you book an economy ticket (only pay the taxes and third-party charges).
  • Plus, TD will rebate the primary and first additional cardholder’s annual fee for the first year.

Offer expiry date: May 30, 2021

Rewards:

  • Earn 1.5 points per dollar you spend on eligible gas, grocery and Air Canada purchases.
  • Earn one point per dollar you spend on all other purchases.

Double-dip on rewards when you present your Aeroplan Membership Card at participating retailers.

Earning potential:

How does this card stack up to other rewards credit cards? We crunched the numbers using our Best of Finance methodology to see how much an average Canadian could earn over a 12-month period.

Rewards earned over a 12-month period = 38,500 Aeroplan points
Monetary value= $962
Annual fee = $0
Total earned over the first year (rewards minus annual fee) = $962

*The $139 annual fee is rebated for the first year.

You can redeem your points for:

  • Travel
  • Hotels
  • Flights
  • Car rentals
  • Merchandise
  • Gift cards
  • Experiences

Insurance:

  • Travel medical insurance
  • Trip cancellation/trip Interruption insurance
  • Flight/trip delay insurance
  • Delayed and lost baggage insurance
  • Common carrier travel accident insurance
  • Hotel/motel burglary insurance
  • Auto rental collision/loss damage
  • Emergency travel assistance
  • Mobile device insurance
  • Purchase protection
  • Extended warranty

Other perks:

  • As the primary or additional cardholder, you and up to eight travel companions on the same reservation can enjoy benefits through the Air Canada banner of brands, including Air Canada Rouge® and Air Canada Express®. Such perks include their first checked bag for free (up to 23kg/50lbs).
  • Receive a NEXUS application fee rebate every 48 months for the primary and additional cardholders when you enroll in the service.
  • Save on rental cars with Avis Rent A Car and Budget Rent A Car across the U.S. and Canada.
  • Take advantage of the Visa Infinite* Concierge service for requests big and small.
  • Enjoy exclusive benefits, including the Visa Infinite* Luxury Hotel Collection, Visa Infinite Dining Series, Visa Infinite Wine Country Program, Visa Infinite Entertainment Access, and Visa Infinite Troon Golf.
  • Access the optional TD Auto Club Membership.

HSBC +Rewards Mastercard

HSBC +Rewards™ Mastercard®

card image
Welcome bonus
$150
HSBC Rewards Points
Annual rewards
$144
HSBC Rewards Points
Annual fee
$25

Best Credit Card for Paying Down Your Balance
A rare low interest card earing you rewards redeemable on travel or statment credits
Details at a glance Collapse details
Welcome bonus
$150
Annual rewards
$144
Best Credit Card for Paying Down Your Balance
A rare low interest card earing you rewards redeemable on travel or statment credits
Details at a glance Collapse details

The HSBC +Rewards™ Mastercard® offers cardholders an annual interest rate of 11.9% on purchases, balances transfers and cash advances for a low annual fee of $25 per year. Not only that, but this card also offers HSBC Rewards points and price protection. For a limited time, cardholders can earn 30,000 bonus points make their first purchase within the first three months of opening the account.

According to our Best of Finance methodology, the average Canadian will see $269 in HSBC Rewards points within the first year.

Credit score requirement for approval:

Fair: You’ve had a credit card or loan for one or more years. For the last two years, you’ve paid back debts to creditors (with no defaults). You haven’t missed more than two payments on your credit in the last three months.

Annual fee:

$25

Supplementary cards have an annual fee of $10.

Offer expiry date: March 29, 2021

Rewards:

  • Earn two points per dollar you spend on eligible dining or entertainment purchases.
  • Earn one point per dollar you spend everywhere else you shop.

Earning potential:

How does this card stack up to other rewards credit cards? We crunched the numbers using our Best of Finance methodology to see how much an average Canadian could earn over a 12-month period.

Rewards earned over a 12-month period = 30,000
Monetary value= $269
Annual fee = $0
Total earned over the first year (rewards minus annual fee) = $269

*The primary cardholder receives a rebate for the $25 annual fee for the first year.

First-year savings:

We compared a credit card with a $2,000 balance and a standard interest rate of 19.99% to the HSBC +Rewards Mastercard with an interest rate of 11.90%. The average Canadian could save roughly $161.80 in interest charges with this low-interest credit card.

Credit card balance = $2,000
19.99% interest rate = $399.80
11.90% interest rate = $238.00
First-year savings (what you would be paying on a standard credit card – what you would be paying on a low-interest credit card) = $161.80

*The annual fee is accounted for in the rewards calculation.

You can redeem your points for:

  • Travel
  • Experiences
  • Merchandise
  • Gift cards
  • HSBC Savings account credit
  • HSBC Mortgage account credit
  • Statement credit

Insurance:

  • Purchase assurance
  • Extended warranty
  • Price protection
  • Travel and medical insurance (optional)

Other perks:

  • Take advantage of the low-interest rate on purchases, cash advances and balance transfers.

MBNA Rewards Platinum Plus Mastercard

MBNA Rewards Platinum Plus® Mastercard®

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Welcome bonus
$160
MBNA Rewards points
Annual rewards
$350
MBNA Rewards points
Annual fee
$0

Winner – Best No Fee Card
Flexible rewards redeemable for travel or cashback
Details at a glance Collapse details
Welcome bonus
$160
Annual rewards
$350
Winner – Best No Fee Card
Flexible rewards redeemable for travel or cashback
Details at a glance Collapse details

Apply for the MBNA Rewards Platinum Plus® Mastercard® and get four times the MBNA Rewards points per dollar you spend on gas, groceries and restaurant purchases for the first 90 days, up to the $5,000 annual spending cap in each of in these categories.

Plus, earn 5,000 bonus points when you make at least $500 in eligible purchases within the first 90 days. Get another 5,000 bonus points when you sign up for paperless e-statements within the same period. Redeem your rewards through the MBNA Rewards Catalogue for travel, merchandise and more.

According to our Best of Finance methodology, the average Canadian will see $510 in MBNA Rewards points within the first year.

Credit score requirement for approval:

Good: You’ve had a credit card or loan for at least six years. You’ve had good credit for the last seven years (no bankruptcies or defaults on credit as a result of failing to pay debts back to creditors). You haven’t opened a new credit card account, loan, or line of credit in the last nine months. You’ve made the minimum payments on any existing credit cards for the past three months.

Annual fee:

$0

Limited time offer/bonus:

  • Earn 4X the MBNA Rewards points per dollar you spend on eligible gas, grocery and restaurant purchases for the first 90 days, subject to an annual cap of $5,000 in total purchases in each category.
  • Get 5,000 bonus points when you make your first $500 in purchases within 90 days of opening the account. Get another 5,000 when you enroll in paperless e-statements within the same period.

Offer expiry date: N/A subject to change without notice

Rewards:

  • Earn one point per dollar everywhere you shop.

Earning potential:

How does this card stack up to other rewards credit cards? We crunched the numbers using our Best of Finance methodology to see how much an average Canadian could earn over a 12-month period.

Rewards earned over a 12-month period = 51,000 MBNA Rewards points
Monetary value= $510
Annual fee = $0
Total earned over the first year (rewards minus annual fee) = $510

You can redeem your points for:

  • Travel
  • Merchandise
  • Gift cards
  • Statement credit

Insurance:

  • Purchase assurance
  • Extended warranty

Other perks:

  • Save on rental cars with AVIS Rent A Car and Budget Rent A Car across the U.S. and Canada.
  • Feel some peace of mind with the Away from Home feature, including lost document and ticket replacement, lost luggage assistance, and legal assistance.

President's Choice Financial World Elite Mastercard

President’s Choice Financial® World Elite Mastercard®

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Welcome bonus
$20
PC Optimum Points
Annual rewards
$456
PC Optimum Points
Annual fee
$0

Winner – Best Card for Families
Great card for fans of the PC Optimum reward program looking to save even more on groceries
Details at a glance Collapse details
Winner – Best Card for Families
Great card for fans of the PC Optimum reward program looking to save even more on groceries
Details at a glance Collapse details

The President’s Choice Financial® World Elite Mastercard® is offering new cardholders 20,000 bonus PC Optimum points when they make their first purchase using the card. Not only will this card earn free groceries, but you can also earn rewards faster as a household. PC Optimum points are easy to redeem, and you only need a $10 value before you can cash in on free products and groceries. Plus, you can double-dip on points when you use your loyalty program card at the check-out.

According to our Best of Finance methodology, the average Canadian will see $476 in PC Optimum points within the first year.

Credit score requirement for approval:

Fair: You have had a credit card or loan for one or more years. For the last two years or more, you’ve paid back debts to creditors with no defaults. You haven’t missed more than two payments on your credit in the last three months.

Annual fee:

$0

Limited time offer/bonus:

  • Earn 20,000 bonus PC Optimum points when you make your first purchase.
  • Take advantage of the promotional interest rate of 0.97% on balance transfers for six months. Balance transfers must be made within 90 days of opening the account.

Offer expiry date: December 31, 2020

Rewards:

  • Earn 30 PC Optimum points for every dollar spent at:
    • President’s Choice grocery stores
    • PC Mobile
    • PC Travel
    • Shoppers Drug Mart
  • Earn at least 30 points per litre at Esso and Mobil gas stations.
  • Get 10 points per dollar everywhere else you shop.

Earning potential:

How does this card stack up to other rewards credit cards? We crunched the numbers using our Best of Finance methodology to see how much an average Canadian could earn over a 12-month period.

Rewards earned over a 12-month period = 476,000 PC Optimum points
Monetary value= $476
Annual fee = $0
Total earned over the first year (rewards minus annual fee) = $476

You can redeem your points for:

Start to redeem your rewards as soon as you collect 10,000 PC Optimum points, which is a $10 value.

Redeem points at Loblaw banner stores, including Loblaws, No Frills, Real Canadian Superstore, Valu-Mart, Zehrs, Independent, Fortinos, and Wholesale Club, as well as Shoppers Drug Mart locations.

  • Groceries
  • Merchandise

Redeem points online through:

  • Beautyboutique.ca
  • JoeFresh.ca
  • PC Express

Insurance:

  • Travel emergency medical
  • Car rental collision and loss damage waiver
  • Extended warranty
  • Purchase protection
  • Identity theft assistance

Other perks:

  • Enjoy 24/7 concierge services to reserve tickets for a fun night out or book dinner reservations for the family.

*Rates, product information, and rewards estimates are subject to change at any time and do not constitute financial advice.

Compare cashback and reward points to see which one suits your needs

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
 Pros
  • Versatile - Use cashback to pay off your credit card bill or make new purchases
  • Holds a 100% cash value, meaning that you can use the instant cashback as money
  • Cashback can be based on a fixed flat-rate or bonuses for certain categories like gas, groceries etc.
  • Earn more cashback on regular purchases like groceries and gas
  • Rewards points are usually more valuable that cashback, because you can only use them for certain purchases
    May offer accelerated ways to earn in loyalty programs you may be using already (For example, PC Optimum)
  • Rewards are accumulated in your rewards account
  •  Allows you to access perks like discounted travel tickets, gift cards, credit card partner services like SCENE points, etc., depending on the card
  • Some of the redeemable rewards are hard to get otherwise such as the Priority Pass, which allows you to access the airport lounges around the world
 Cons
  • Cashback cards often have less perks such as travel insurance or access to discounted companion airfare tickets
  • Can only be redeemed on items/services that are part of the rewards program

What type of credit card rewards can I earn?

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:

  • Travel rewards: If you’re a frequent traveler, travel rewards will be highly useful to you. A travel rewards credit card can earn you Air Miles or points that can be redeemed for flights, train tickets, hotel stays, travel upgrades and much more. See our travel cards.
  • Cash back rewards: Cashback rewards are great for the thrifty shopper. These cards give you instant cashback based on a specific percentage of your retail purchases, instantly saving you money. Cashback rewards can be based on a flat-rate, bonus, or flexible bonus structure. Learn more about cashback rewards.
  • Gift rewards: Some banks offer credit card rewards programs that allow you to use your points to redeem gift cards or items from their catalogues such as perfumes, vacuum cleaners, tablets etc. If you like to cash in your rewards frequently, you can use your points for multiple smaller rewards, like movie tickets or gifts cards for a dinner out. For example, the Scotiabank Rewards Points program allows you to browse through their rewards product catalogue to redeem your rewards points and select anything from coffee makers to a Swiss Chalet gift card.
  • Gas rewards: Do you spend a lot on gas every month? A gas rewards credit card can help you earn rewards or get cashback on your gas purchases. You can find two categories of gas rewards credit cards on the market: a rewards credit card with gas rewards or a loyalty gas credit card. A rewards credit card with gas perks allows you to purchase gas from anywhere and earn rewards each time you buy gas. In contrast, a loyalty gas rewards credit card will be tied to a specific gas retailer, allowing you to only earn rewards if you fill up your gas at their specified locations.

Credit card perks

In addition to rewards, you can also enjoy a variety of perks from most rewards credit cards.

  • Travel perks: Travel rewards credit cards often offer travel related perks such as discounted airfare prices and VIP airport lounge access with membership to services such as Priority Pass or LoungeKey. Almost every travel card also includes additional travel insurance perks which can save you time, money and peace of mind on short trips. Travel rewards over all make travel much more convenient and can save you a lot of money use all these features.
  • Insurance perks: Your rewards credit card can also come with a variety of insurance coverages such as travel, auto and accidental insurance. These can come in handy when you face unexpected situations like trip cancellations and roadside car issues. If you rent cars often, you might want to look for a rewards credit card that offers car rental insurance. As somebody who loves to travel, find a rewards credit card with travel insurance perks like trip cancellation insurance. Here’s an example of a credit card that comes with several insurance benefits:

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.

Trying to figure out which rewards will work for you? These common questions about rewards credit cards can help you decide.

How do I know which rewards credit card is for me?

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.

What is the annual fee for a rewards credit card?

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.

Why do rewards credit cards have annual fees?

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.

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How to Choose the Best Rewards Credit Card in 10 Easy Steps
Follow this simple checklist to ensure you choose the best rewards credit card for your lifestyle and financial goals.
Air Canada Expands Aeroplan Bonuses and Adds More Flexibility for Members
The pause on Aeroplan points expiry has been extended, along with a few additional measures to ensure members get the most out of their rewards.
Top 7 Credit Cards With Specialty Rewards
Specialty rewards credit cards help travel enthusiasts, motorheads, and hobbyists get the best return on spending and extra savings on unconventional purchases. Learn simple earning tactics to maximize specialty rewards as you indulge your interests.