When comparing travel credit cards, it’s essential to consider the features that best suit your lifestyle and spending habits. For frequent global travelers, a card offering complimentary airport lounge access can enhance comfort during long layovers. Alternatively, if you prefer traveling with a partner, prioritizing cards that provide a free annual companion fare may be beneficial.
Various credit card features cater to different lifestyles. The benefits listed below are common among many of the most competitive travel cards in Canada, making it important to review them before applying for a new card.
A substantial lump-sum bonus of miles or rewards points serves as a compelling incentive to apply for a new credit rewards card.
However, it’s important to note that many sign-up bonuses are tied to the cardholder spending a specific amount within the initial months of card membership. Despite this requirement, striving to meet the minimum spending threshold is typically worthwhile, as it can yield enough points for a short or long-haul flight.
Additionally, some sign-up bonuses may include waiving the card’s first-year annual fee, making it an attractive option for those seeking immediate value.
One of the most enduring and pivotal features of any travel credit card is its earn rate. Opt for a card that accumulates miles or rewards points quickly, particularly in the categories where you frequently spend, such as groceries or gas.
Additionally, consider seeking a card with a high flat earn rate, meaning it accrues rewards rapidly on all types of spending, rather than being limited to specific categories.
When considering a travel credit card, take into account not only how quickly you can earn miles and rewards points but also the ease and flexibility of redeeming them. Some cards may restrict redemption options within a single rewards program or impose limitations on flight selection. Additionally, be aware of any restrictions on redeeming rewards for additional flight taxes and fees.
Understanding the flexibility and real-world value of points or miles when redeeming them is crucial in selecting the right credit rewards card.
When considering a travel credit card, weigh the annual fee against the perks and benefits offered by the card. Some cards have no annual fee but still offer valuable rewards, while others may have higher fees but come with substantial built-in value. It’s essential to choose a card where the benefits outweigh or at least justify the annual fee.
In our recommendations, we prioritize cards that offer significant value relative to their annual fee. If an issuer raises a card’s annual fee without enhancing its value package, we highlight this discrepancy to ensure transparency for consumers.
Frequent travelers and online shoppers who transact in currencies other than CAD find foreign transaction fee waivers particularly valuable. These fees, usually around 2.50% of the purchase amount in a non-CAD currency, are standard across most Canadian credit cards. Opting for a card that waives these fees can lead to significant savings, making it a favored choice for those who frequently make international transactions.
Access to airport lounges can transform your travel experience, offering a serene retreat from the chaos of terminals. With lounges equipped with comfortable seating, reliable Wi-Fi, and complimentary refreshments, you can relax and recharge before your flight. Many travel cards offer access to global lounge networks like Priority Pass and LoungeKey, providing free entry to over 1,000 lounges worldwide. Some cards even include annual free lounge passes, making them an excellent choice for frequent travelers or those seeking respite from bustling airport crowds.
When traveling overseas, your Canadian health insurance won’t provide coverage, and even within Canada, it may not apply outside your home province. That’s why it’s crucial to have special insurance to protect against illness or injury while traveling.
You can purchase an individual policy from an insurer (check our guide to the Best Travel Insurance in Canada for options), or consider a credit card that offers comprehensive travel insurance coverage. These cards often include benefits such as coverage for medical emergencies abroad, flight cancellations, interruptions, delays, baggage loss, rental cars, and more.
For travelers who frequently fly with a companion, companion fares or vouchers can significantly reduce the cost of the second ticket. This benefit is often offered annually, adding substantial value to the credit card over time.
Companion fares are typically featured as secondary perks on premium travel cards that also offer other attractive features such as a competitive earn rate, generous introductory bonuses, and comprehensive insurance coverage.
A credit card’s payment processor, whether Visa, Mastercard, or American Express, can significantly impact its acceptance and utility.
For example, American Express (Amex) cards often offer exceptional travel rewards and benefits. However, some merchants may only accept Visa or Mastercard. Additionally, the best Amex cards are often classified as ‘charge cards,’ requiring the cardholder to pay the balance in full each month to avoid high penalties.
We recommend obtaining an Amex card for its superior rewards and features. However, it’s prudent to also carry a Visa or Mastercard to ensure payment flexibility at merchants that do not accept Amex.
A hotel credit card is designed to maximize rewards specifically for your preferred hotel chain. This means you’ll earn points towards free hotel stays, dining benefits at on-site restaurants, and perks like complimentary late checkouts.
Some hotel credit cards offer additional perks similar to those of travel credit cards. For example, you may have the option to transfer your points to various airline rewards programs. While travel credit cards often provide better conversion rates for points to travel rewards, hotel cards still offer many travel benefits.
One of our top picks for a hotel credit card is The Marriott Bonvoy® American Express® Card. With this card, Marriott Bonvoy® reward points can be redeemed at over 7,000 hotels worldwide within the Marriott, Ritz-Carlton, and Delta families, with no blackout dates. Additionally, you have the flexibility to transfer your points to more than 40 participating airline rewards programs.
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