Rewards credit cards offer more than just the opportunity to spend money—they allow you to earn points simply by making everyday purchases. The key is to select a rewards credit card with robust points-earning potential and a rewards program that aligns with your lifestyle.
Here’s our curated list of the best rewards credit cards in Canada, evaluated based on the following criteria:
1) Points-Earning Potential: We consider the card’s earn rate for points on various spending categories, such as groceries, gas, dining, and travel.
2) Rewards Program: We assess the versatility and value of the rewards program, including redemption options, flexibility, and ease of use.
3) Annual Fees and Additional Benefits: We evaluate the annual fee in relation to the card’s benefits, perks, and additional features like travel insurance, lounge access, and annual bonuses.
Based on these criteria, we’ve compiled a list of the top rewards credit cards in Canada to help you make an informed decision.
A rewards credit card offers various incentives such as cash back, travel rewards, or store rewards based on your spending. The type of rewards you earn depends on the specific card you choose. Additionally, the amount of rewards you can accumulate is determined by the card’s earning rate. Some cards offer higher earning rates for specific spending categories, while others provide a flat rate regardless of where you make purchases.
When selecting the right card for you, it’s essential to analyze your spending habits. Look for a card that allows you to earn points on purchases you regularly make. For instance, frequent travelers may find value in a hotel rewards card that offers extra points for hotel stays. Families with significant grocery expenses might benefit from a rewards card that earns points at their primary grocery store. Similarly, individuals who commute extensively could opt for a card that offers generous rewards on gas purchases.
In most cases, you’ll need a credit score ranging from fair to excellent to get approved for a rewards credit card. The specific credit score range required may vary depending on the card issuer. In Canada, a fair credit score typically falls between 575 and 650, while a score of 760 and above is generally considered excellent.
It’s essential to understand that applying for a credit card can temporarily lower your credit score. Each credit card application typically results in a minor drop of 5 points or less in your credit score. While this decrease may seem significant, it’s important to note that the impact of a new credit card on your score is generally less severe than that of a missed payment or default. Additionally, this effect on your credit score diminishes over time, typically lasting for about one year.
As long as you haven’t applied for multiple new credit cards within a short period, a credit card application should have minimal negative impact on your ability to obtain additional credit in the future.
While the decision ultimately depends on your personal preference and comfort level with managing multiple credit cards, owning more than one rewards credit card can be advantageous—especially if they offer different types of rewards. Ideally, you should consider having two distinct rewards credit cards from different providers (such as Visa, Mastercard, or American Express) that offer the best rewards rates on travel, shopping, cashback, etc.
Although many credit cards now allow customers to redeem points for a variety of benefits, certain rewards credit cards may still offer a better return on specific types of rewards. Therefore, the optimal card combination for you might involve pairing a travel rewards card with a cashback rewards card, for example. You can explore further options using our guide to the best credit cards in Canada.
Canadians have access to some of the world’s top rewards credit cards, offering various benefits such as immediate cash bonuses, valuable rewards accumulation, or enhanced travel experiences. While all the highly rated credit cards listed here are likely to meet your needs, it’s essential to align the rewards structure with your lifestyle and spending habits.
When using a rewards credit card, you’ll earn points, miles, or cash back on eligible purchases. However, certain transactions like cash advances, gambling activities, casino visits, and lottery ticket purchases usually do not qualify for rewards. Additionally, if you receive a refund on a purchase, any rewards earned on that transaction will typically be deducted from your account.
After obtaining a rewards credit card, you’ll earn points on eligible purchases, with some categories offering additional points. For instance, certain cards provide higher rewards rates for groceries and gas expenses. When selecting a rewards credit card, prioritize programs aligned with your preferences and spending habits. Look for cards offering enhanced rewards rates in your primary spending categories.
Additionally, some rewards programs partner with specific retailers, allowing you to “double dip” by earning rewards points from both the retailer and the credit card issuer when you use your rewards credit card for payment after scanning your rewards card.
Each rewards program offers unique redemption options, requiring thorough research to understand your choices. For instance, the American Express Membership Rewards program enables redemption of 1,000 points for a $10 statement credit, while Aeroplan allows points redemption for any available seat on Air Canada flights.
Cash back programs also have specific terms to consider. Some programs set a minimum cash back threshold for redemption, while others allow flexible redemption. However, certain cash back programs only distribute rewards annually.
Redeeming rewards is typically facilitated online or through mobile apps. It’s important to note that rewards often come with expiration dates, and accounts with no activity for 12 to 24 months may result in the loss of accumulated points or miles.
In Canada, there is a diverse array of rewards credit cards available, and each loyalty program may offer multiple credit card options. Given the variations in rewards and loyalty programs, it often necessitates thorough research to determine the most suitable card for your needs. Typically, cards with higher annual fees and income requirements offer more extensive benefits. If you’re uncertain about which credit card to choose, start by considering the type of rewards offered by each card.
Cash back rewards are straightforward and easy to grasp. With a cash back credit card, you’ll earn a predetermined percentage back on your purchases, depending on the merchant. However, the redemption process varies across programs. Some allow you to cash out your rewards at any time, while others have monthly or yearly payout schedules. Additionally, there may be a minimum cash back threshold required before you can redeem your rewards. For further insights, delve into our comprehensive guide comparing cash back and rewards credit cards.
All major financial institutions offer general rewards credit cards, which are not tied to a specific loyalty program. Instead, you accumulate points with your credit card provider that can be redeemed for various items like travel, gift cards, merchandise, and more. While flexible rewards are advantageous, it’s essential to note that each redemption option carries a different value. Typically, using your points for travel bookings through your bank’s travel portal yields the highest return on investment.
Airline credit cards are affiliated with specific airlines such as Air Canada or WestJet, each offering multiple co-branded credit cards. These cards come in various tiers, with higher tiers offering enhanced benefits like free checked luggage, priority boarding, lounge access, and more. Many individuals favor airline credit cards as they enable discounted air travel and offer additional cost-saving benefits. It’s worth noting that some general travel rewards programs also have partnerships with airlines, indirectly functioning as airline rewards credit cards.
Hotel rewards credit cards are associated with specific hotel chains like Marriott. These cards offer valuable rewards in the form of points that can be redeemed for complimentary stays. Benefits typically include an accelerated earn rate during hotel stays, upgrades in hotel status, qualifying nights for status, and more. Some hotel credit cards even offer a complimentary annual night stay as an added perk.
Some individuals may confuse credit cards offering access to premier travel rewards programs with general rewards cards. While both types allow redemption for travel, gift cards, merchandise, and other items, there are subtle distinctions. Travel rewards credit cards typically offer enhanced earning rates when redeeming points or miles for travel. Additionally, redeeming points for travel through their dedicated travel portal often yields higher value compared to other redemption options.
Store rewards credit cards are associated with a particular retailer, offering rewards tailored to their products or services. While some may overlook their value, these cards can be beneficial for frequent shoppers at the designated store. Additionally, certain store loyalty programs are exclusively linked to their co-branded credit cards, meaning rewards can only be earned with card usage. When contemplating a store rewards credit card, assess your shopping frequency at the retailer and familiarize yourself with the rewards program structure. For instance, a grocery store rewards credit card may prove advantageous, whereas one tied to a specific online retailer may
While Canada doesn’t offer credit cards specifically tied to a particular gas station, several credit cards collaborate with specific gas station chains. Using these partnered credit cards at the pump can either yield savings or extra points. Despite the absence of dedicated gas rewards credit cards in Canada, significant points can still be earned at gas stations with suitable credit cards. Explore further details in our comprehensive guide on the best gas credit cards.
With a plethora of credit card rewards programs available, it’s essential to discern which ones offer optimal benefits. While many individuals may gravitate towards the rewards program offered by their bank by default, familiarizing yourself with the most popular credit card rewards programs can unlock greater value and benefits.
Aeroplan is the loyalty program of Air Canada. Since Air Canada is the country’s largest airline, Aeroplan is incredibly popular. With Aeroplan, you can redeem your points on any available Air Canada seat with no blackout dates.
The number of points required for a redemption depends on where you’re flying from, where you’re flying to, and the distance flown. In addition, Aeroplan has dynamic pricing. That means the number of points required for a flight will differ depending on supply and demand.
American Express Membership Rewards stands out as one of the most versatile credit card rewards programs available. Whether you’re redeeming points for travel expenses or everyday purchases like groceries, the program offers flexibility, allowing you to exchange 1,000 points for a $10 statement credit directly through the app at any time.
Beyond traditional redemptions, American Express also features a fixed price travel program, potentially doubling the value of your points. Moreover, the program allows point transfers to various loyalty programs such as Aeroplan, British Airways, Hilton Honors, among others.
With over 10 million active collectors, Air Miles stands as one of Canada’s most renowned loyalty programs. The simplest method to accrue Air Miles is through a co-branded credit card. The number of points earned varies based on the specific credit card, your shopping locations, and expenditure.
Air Miles offers the flexibility of choosing between Dream or Cash Miles. Dream Rewards enable redemption for flights, hotels, and vacation packages, while Cash Rewards can be utilized for instant discounts or gift cards at select retailers.
For those looking to save on groceries, PC Optimum is a key program to consider, especially for customers of Loblaws-owned grocery chains like Loblaws, No Frills, and Superstore. Upon enrollment, members earn points through in-store purchases and targeted offers. However, by obtaining a PC Optimum credit card, points can be earned on all eligible transactions.
In addition to grocery stores, points can also be earned and redeemed at Esso/Mobil gas stations and Shoppers Drug Mart/Pharmaprix. Shoppers Drug Mart frequently hosts bonus earning and redemption events, offering opportunities to earn 20X the points or receive up to $150 in additional value.
Scene+ was established through the merger of Scotia Rewards and SCENE, resulting in a revamped loyalty program with expanded partnerships. Empire, the parent company of prominent grocery chains like Sobeys, IGA, and Foodland, further bolstered the brand by acquiring a stake in it.
Today, consumers can accrue and utilize Scene+ points at various locations, including Cineplex, Empire-owned grocery stores, Rakuten, select restaurants, and more. Additionally, points can be redeemed for travel bookings through the Scene+ travel portal.
If you consistently pay your bills in full and on time, rewards credit cards can be highly beneficial. Essentially, you earn rewards for your regular spending habits. Moreover, many rewards credit cards offer additional perks such as travel insurance, airport lounge access, and extended warranty, providing added value and potential savings.
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