Travel Rewards Credit Cards
Get your credit card to pay towards your next travel. A travel rewards credit card helps you earn rewards every time you use your card to make purchases. These rewards could be used to pay for your travel expenses such as flights, accommodation, and car rentals. Compare the best travel rewards credit cards in Canada and apply for the card that works best for you.
Filter Credit Cards
Benefits of Travel Rewards Credit Cards in Canada
- Every dollar you spend on everyday purchases translates into travel points that you can use later for travel expenses.
- These travel points can be used for flight costs, hotel accommodations, transit fees like cab fare, car rentals, baggage fees and more.
- Some cards even come with complimentary insurance policies: travelling health insurance, trip interruption or flight delay insurance, baggage coverage, and car rental insurance to name a few.
- Depending on the credit card provider, you could exchange your travel points for a certain dollar amount, or use the rewards to make a purchase directly.
When should you choose Travel Rewards Credit Card?
Ever thought of earning some tangible benefits for using a credit card? A rewards credit card earns you points every time you make purchases. The best thing about these cards is that you can redeem the earned points for different types of rewards including cash back, hotel rooms, gas, and flight. For travellers, a travel rewards credit card would be the best choice. As long as you’re committed to paying off your monthly credit card balance, a rewards credit card will give you an opportunity to get more from your purchases.
Everything you need to know about Travel Rewards Credit Cards
Travel rewards credit cards are one of the most common types of rewards credit cards used by Canadians today. With a travel rewards credit card, you earn travel points any time you make a purchase. As mentioned, having this type of card allows you to save up for vacation trips and even get other benefits while travelling The points accumulate over time, and you can redeem them for car rental, hotel stays, merchandise, plane tickets and other travel expenses.
Wondering how travel points accumulate? Well, it’s important first to understand that rewards credit cards have an annual fee which the cardholder is supposed to pay. So, there’s a cost incurred in having a rewards credit card. However, there’s nothing to worry about if you use your rewards credit card more often since the points you earn will outweigh the cost of having the card.
Just like many other rewards credit cards, the number of points you earn with your travel rewards credit card depends on the transaction made. For instance, using the American Express Gold Rewards Card earns you 2 points for every $1 spent on travel, gas, drug store, and grocery purchases.
Most people tend to purchase things with the intention of accumulating travel points not realizing they are accumulating their credit card debt. You might just lose all the earned travel points if you do this.
What features should you look for when Comparing Travel Rewards Credit Cards?
In addition to earning travel points, a travel rewards card also offer other benefits such as trip cancellation and trip interruption insurance, collision and damage insurance on can rentals, and travel medical insurance. The details of your insurance coverage will be in your agreement when the card is sent to you. Here are some of the things you should consider as you compare travel rewards credit cards.
Start by comparing the annual fees of holding the credit card and the rewards or benefits it offers. Choose a travel rewards credit card that align with your individual goals and spending habits. If you’re one of those Canadians, who don’t intend to redeem their travel points or rarely uses their credit card, consider having a no-fee credit card.
Rewards Expiry and Reward points earn rate
Some rewards credit cards offer reward points with no expiry at all while other have an expiry date. Also, compare the different earn rates for each credit card. While some offer higher reward points earn rates of 3 or 4 points for each $1 spent, others just offer 1 point for every $1 spent. Cards giving high earn rates may charge high-interest rates as well as high annual fees. It’s, therefore, important to choose a card that suits your goals and spending.
Blackout Periods and Bonus point offers
Blackout periods, in this case, means the specific times when the cardholder can’t redeem the reward points. Bonus point offers to include the promotions that come with holding the credit card. Some cards offer bonus rewards points for anyone who signs up and spends a given amount in the first month. While these bonus points might look attractive, it’s important that you carefully consider their value since they could be equal to a return air ticket.
Promotional and standard interest rates
In addition to bonus point offers, reward credit cards also offer attractive promotional interest rates. Some cards will offer you zero percent on interest rates on all the purchases you make for the first fifteen months when you sign up. Other cards might offer you zero percent interest rate on any balance transfer you make for a period of 12 months. Once your promotional period is over, the standard interest rates now start applying. It’s, therefore, important that you compare both the promotional and standard interest rates offered by different cards.
A travel credit card with a point cap could limit your ability to earn more travel points as you make more purchases with your card.
How to find the Best Travel Credit Card?
With all the choices available these days, it can be tricky to choose the right credit card for your needs. If you like to travel a lot, it would make sense to get a credit card that helps you pay towards your travel expenses. Some card issuers even have dedicated websites from where you can book flights directly using the points you have earned. While some card issuers are flexible with where the travel is booked from.
Each rewards credit card has different terms, point values and redeeming methods – so you should make sure you understand the card agreement for each card you’re considering to apply for. CompareMyRates.ca has your back, so take advantage of our comparison charts and find the best travel credit card in Canada.
For frequent travelers, cards focused on providing their customers the best deals on hotels, access to airline lounges, no blackout dates, no foreign transaction fees and other travel-related amenities is a must.
Travel Rewards Credit Cards usually provide the same perks to their members such as no annual fees – usually applied to the first year as an introductory rate upon signing up – and big bonus points for certain amounts of purchases made on their credit cards. Discounted rates and cash back rewards are oftentimes also included in the mix.
But for travelers, the biggest perks are the additional incentives thrown in by the Travel Rewards Credit Card providers which enable them to enjoy travel-related benefits. The most popular incentive is being able to earn mileage points. The members can take advantage of flying for free to their chosen destinations depending on a number of points earned and even earn free lodging accommodations in the hotels of their choice.
Popular Credit Card Searches
Most Popular Credit Card Issuers in Canada
Find the best credit cards for you.
Take a look at our list of this year's best credit cards.
Credit Card Guides and Info Corner
In 2017, a new Canadian mortgage law specified that every Canadian who was applying for an unsecured mortgage at a federally regulated financial institution had to pass a mortgage stress test. Even a hefty down payment was not a sufficient reason for waiving the test....