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.
Best 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 accomodations, transit fees like cab fare, car rentals, baggage fees and more.
- Some cards even come with complimentary insurance policies: traveling 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.
Travel Rewards Credit Cards Canada
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 travelers, 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 traveling. 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.
How Can I Compare 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 doesn'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 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.
Who can have a Travel Rewards Credit Card?
A travel rewards credit card is suitable for anyone who is not just a regular credit card user but also a frequent traveler. Having a travel rewards card helps you to monetize your daily purchases and expenditure. One of the best things about a travel rewards card is that it allows for the transfer of the points earned to frequent flyer program accounts. That means you have more to enjoy if you’re one of those people who loves traveling.
It’s important to understand that rewards credit cards tend to attract high-interest fees when used to make impulse purchases. This happens when you fail to pay off your closing balance in full every month. The card is, therefore, not suited for individuals who love impulse spending. If managing a credit card seems like a struggle on your side, this card is not suited for you as well. You might end up in a huge debt that will affect your credit history.
High-income earners are also part of the group of individuals who are suited to have a travel rewards credit card. Note that these cards usually offer premium luxury perks like lounge access benefits and personal concierge services.
You can now tell if a travel rewards credit card is right for you or not. Remember, this card won’t allow you to buy much initially. However, the more you use the card, the more points you earn, and it will eventually add up.
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.
Compare Travel Credit Cards in Canada
If you like to travel more for less, apply for a travel credit card and start earning reward points. If you use a credit card, it makes sense to take advantage of ways you can get paid back. A lot of travel credit cards offer new customer sign up bonuses, travel, and medical insurance, rewards for everyday purchases. Each time you make a “qualified purchase” using your card, the bank issuing the credit card rewards you with points. When you earn enough points, you can redeem them for your next travel expense. Understanding your personal spending habits and what reward(s) you would receive from any credit card will help you choose the best credit card for you. The variety of benefits may vary, and you will want to look for surcharges that may be hidden in the fine print. We help you compare the best credit cards in Canada.
Travel Reward Credit Cards
For frequent travelers, choosing credit 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.
Best Travel rewards credit card Canada
It's very difficult to live nowadays without a credit card in a country like Canada as the modern service providers perform transactions with these cards. For example, if you try to book a hotel room or an airline seat, it's a tedious job unless you have a credit card. Rewards credit cards offer you extra rewards along with the convenience in this case. These rewards are calculated as points over the total usage of your credit accounts in a specific period of time. If you have Travel Rewards Credit Cards, you will have some bonus points to meet your travel needs. It will enable you to plan for your travels faster than ever.
If you are a frequent traveller, you must have known how much time you save by using a credit card. You can book your transports and facilities easily online with your credit card as it can be done by a simple click at your home computer. Wouldn't it be nice if you could use your credit card for general purchases and get some bonus points to maintain your travelling expenses? It could save you a lot of cash.
That's the main idea behind the travel rewards cards. Can you imagine how much time and effort could be saved by this? You wouldn't need to stand up in queues for tickets. For example, if you wish to visit Disney amusement parks, you would have to wait for the tickets in long queues. Rather if you have a credit card, you can reserve that ticket almost instantly upon the availability.
If you wonder how these cards can help you to manage your dream vacations, here are some hints. These cards are actually co-branded with some renowned companies. They have a business deal to offer you some bonuses and discounts against your card usage. The banks or other financial organizations will assign reward points and the famous brands will give you discounts if you carry that credit card to avail their services. All three of you are benefitted in return.
There are some instances when you will be treated as special customers if you own these travel cards. Maybe you never have bought a first-class ticket on an airline but you could win a first-class ticket by your travel credit card. There are some special discounts if you and your family members travel together. Traveling packages sometimes work in collaboration with these credit cards. Maybe you never won a lottery or got rewards, but these travel cards can bring you that fortune.