Rewards Credit Cards work on a pretty simple principle – spend more to earn more. Offering a variety of perks such as cash back rewards, points and sign-up bonus - rewards credit cards let you earn money each time you spend money. This is a win-win situation for consumers and a great way to save while you spend. With so many options to choose from, we are here to help Canadians choose the best rewards credit card.
We have picked out the Best Rewards Credit Cards based on features
Best Cash Rewards Credit Card with no annual fee
Tangerine Money-Back Credit Card with no annual fee
Best Travel Reward Credit Card with Low annual fee
MBNA Rewards World Elite® MasterCard®
Compare all Rewards Credit Cards Below
Best Rewards Credit Cards Canada
With so many credit card providers in the Canadian market, card issuers are constantly finding ways to offer consumers with greater rewards and points.
While some rewards credit cards focus their offer around certain retailers or services, others decide to attract frequent travelers by exchanging the money spent on flights and hotels in points. Basically, customers can choose their rewards credit cards considering their spending habits, preferences, and lifestyle.
Rewards credit cards let consumers earn points at a certain interval of times or each time the consumers use their cards. Consumers can then redeem the rewards either online or by phone. If you opt for a cash back rewards credit card, you will receive your award either as cheque or credit to your account. Rewards credit cards work on a pretty simple principle – spend more to earn more.
Compare Rewards Credit Cards
The number one criteria you should take into consideration when choosing a rewards credit card is the number of points or amount of cash you are going to receive for every dollar spent.
Rewards Credit Cards generally offer anywhere between 1% to 4% back in rewards. This applies to points, cash back or any other type of benefits. Many rewards cards charge an annual fee. Sometimes the annual fee is waived off for the 1st year but is exorbitant thereafter. Assess your spending habits before applying for a credit card with rewards, and see if it’s worth paying an annual fee.
Is a Credit Card with Rewards the right choice for you?
Apart from having a good credit score, most rewards cards require an average gross income of $40,000 per year.
Also rewards credit cards usually charge annual fees and interest rates, so you need to make sure you can repay your credit card balance monthly and, at the same time, spend enough money to justify paying the annual fee.
Here is a great example for your understanding:
To make things easier to understand and assimilate, we decided to explain everything you need to know about Scotia Momentum Visa Infinite, one of our most popular rewards credit card.
At a glance: Scotia Momentum Visa Infinite offers:
- Earn 5% cash back on grocery & gas purchases for the first 3 months
- Continue to earn 4% cash back on grocery & gas purchases after 3 months
- 2% cash back on drugstore purchases & recurring payments
- 1% cash back on everything else charged to the card
- Introductory 1.99% Balance Transfers for the first 6 months
- $99 Annual Fee
How to choose the best rewards credit card?
As with any credit card, start by checking the terms and conditions before applying. Some rewards credit cards only work to your advantage if you spend substantially because only then they return substantial rewards. So it is important to choose a reward credit card according to your spending power and make sure it is worthwhile.
Many rewards credit cards lure customers with an impressive number of rewards, but only for a limited time, and then significantly decrease the rewards rate. Also, don’t forget to look for caps that set a limit beyond which you will not receive any rewards, regardless of the amount of money you are going to spend.
Also, choose the rewards credit cards considering your spending habits and preferences. Basically, if you are a person who travels a lot, you should choose a rewards credit card that encourages you to travel by offering rewards, according to the money invested in plane tickets, hotels, car rentals. Check and see the categories and products that return rewards with various rewards credit cards, and choose the one that represents your interests and lifestyle.
Best Rewards Credit Cards
To attract more customers, banks offer their customers bonuses or rewards for transactions made using their credit cards. Usually called membership rewards, these perks for new and existing customers come in many forms including cash backs, mileage accumulation points, travel rewards, discount incentives, free groceries, free meals in restaurants, free gas, and much more.
Chase Bank offers a long list of rewards for its members including an introductory APR of 0% for more than a year and automatic cash back for every transaction made using their Freedom Card. Capital One Venture, on the other hand, focuses on giving their members mileage and travel incentives including earning points for access to airlines and hotels of their choice, waived foreign transaction fees, no travel date blackouts, and much more.
There are many ways to obtain rewards from credit card providers. The customers just have to make sure they review their benefits so they don't pass up on the opportunities to get these fabulous extras for their credit card transactions.
Rewards credit cards Canada
Credit card offers instant cash to the card holders. It also provides the security by allowing them to do purchases without carrying money. There are some rewards programs associated with credit cards. Different banks provide rewards credit cards for the account holders to make their rewarding features available.
If you are a credit card holder, you already know how these cards charge too much interest on the loans that they provide. These interests are calculated by the total usage of the card per month. If you use your cards too often, the interests might be decreased. But do you feel that it's not enough? Especially when you are using your card for such a long time and the same bank is making a profit by your usage ever since. Reward cards are offered just to give you some outstanding privileges and benefits that will reward you for your excessive usage. You can earn travel rewards, merchandise, gift cards/certificates and some more standard rewards that can be very useful for your business purpose or even your personal interests.
The rewards cards vary as they provide 'earn rewards per day' or 'earn rewards per month' services. The default form of these rewards is the cash back offers that range from 1% to 5% cash back on an average depending on the total monthly usage. The eligible purchases and limits are defined by the respective banks or credit unions. The amount of cash back is also fixed by the type of purchase. Usually, gas and grocery purchases are on top of others to generate cash backs. The associative partners of the banks providing reward cards offer discounts based on the points gained by a credit card. The reward programs include these points along with cash backs. These points can be obtained from the purchase of products of some limited brands only. In some cases, you will get some additional points for your charitable donations also. There are usually no limits on the points you can earn in a year. More importantly, these points carry great redemption values and they don't expire. There are some variations in reward cards. Some of them don't apply annual fees.
Before choosing a rewards credit card, you should always match your needs and criteria with the options available. If you travel a lot, there are specific cards that are only eligible for rewards if you use them for traveling purposes. Choose what's best for you and enjoy the rewards along with the credit service.