Canada’s best travel credit cards at a glance
Best travel credit cards in Canada for 2023 - by category
- Best overall travel credit card and best travel credit card with no foreign exchange fees: Scotiabank Passport Visa Infinite
- Honourable mention for best overall travel credit card: American Express Cobalt
- Best no fee travel credit card:American Express Green Card
- Best travel credit card for travel insurance: Scotiabank Gold American Express Card
- Best Visa travel credit card:TD First Class Travel Visa Infinite
- Best Mastercard travel credit card:BMO Ascend World Elite Mastercard
- Best airline travel credit card:TD Aeroplan Visa Infinite Card
- Best hotel travel credit card:Marriott Bonvoy American Express
Best overall travel credit card and best travel credit card with no foreign exchange fees
featured
4.0 Ratehub rated
Best for Travel perks
First year reward
based on spending $2,200/mo after $150 annual fee
- Earn rewards
1pt – 3pts / dollar earn rate
- Welcome bonus
30,000 bonus points (a $300 value)
- Perks
Perks
- Ratehub.ca’s 2024 Credit Card Award Winner
- Earn up to $1,300* in value in the first 12 months, including up to 40,000 bonus Scene+ points and first year annual fee waived¹
- Earn 3x Scene+ points¹ on every $1 you spend at Sobeys, Safeway, IGA, Foodland and participating
Co-ops and more - Earn 2x Scene+ points¹ for every $1 you spend on other eligible grocery stores, dining, eligble entertainment puchases and eligible daily trasit options(including rideshares, buses, subways taxis and more)
- Plus earn 1 Scene+ point for every $1 spent on all other eligible everyday purchases
- No Foreign Transaction Fee
- 6 Complimentary Airport Lounge Access
- Comprehensive Travel Insurance coverage
- Visa Infinite* Concierge Services
- Visa Infinite* Hotel Collection
- Visa Infinite* Dining and Wine Country program
Rates, fees and other information are effective as of Jan.4, 2024. Subject to change
Features
Ratehub’s take
The Scotiabank Passport Visa Infinite card makes a great vacation companion, designed for Canadians who travel abroad and explore the world. It is one of the few cards that covers foreign transaction fees, and also includes valuable travel benefits like airport lounge access.
Pros
- No foreign transaction fee: Save 2.5% on all non-Canadian currency purchases
- Scene+ points: Earn three Scene+ points per $1 spent at participating grocery stores (e.g., Sobey’s, IGA, and FreshCo) and two Scene+ points per $1 spent on eligible grocery, dining, entertainment, and daily transit purchases
- Flexible redemption: Enjoy flexible point redemption options including for travel, groceries, statement credits, gift cards, and movie tickets
- Airport lounge access: Access airport lounges with six free visits per year to over 1,200 lounges worldwide
- Visa Infinite benefits: Benefit from the Visa Infinite Luxury Hotel Collection, Visa Infinite Dining series, and complimentary Avis Preferred Plus membership
- Comprehensive travel insurance: Enjoy coverage for emergency medical, trip cancellation/interruption, flight delays, and more
Cons
- Annual fee: The annual fee of $150 is higher than some comparable cards
- Low point return: The earn rate for certain spending categories like dining and entertainment is lower compared to other cards
- Consistent point values: Travel points are always worth one cent per point and you can’t transfer your points to other airline rewards programs like you can with some Amex cards
Honourable mention for best overall travel credit card
featured
5.0 Ratehub rated
Best for Groceries & dining
First year reward
based on spending $2,200/mo after $156 annual fee
- Earn rewards
1pt – 5pts / dollar earn rate
- Welcome bonus
15,000 bonus points (a $150 value)
- Perks
Perks
- Ratehub.ca’s 2023 Award Winner – Best Rewards Credit Card
- In your first year as a new Cobalt Cardmember, you can earn 1,250 Membership Rewards® points for each monthly billing period in which you spend $750 in net purchases on your Card. This could add up to 15,000 points in a year. That’s up to $150 towards a weekend getaway or concert tickets
- Earn 5x the points on eligible eats and drinks in Canada, including groceries and food delivery. Spend cap applies.
- Earn 3X the points on eligible streaming subscriptions in Canada
- Earn 2X the points on eligible ride shares, transit & gas in Canada
- Earn 1 additional point on eligible hotel and car rental bookings via American Express Travel Online
- Earn 1X point for every $1 in Card purchases everywhere else
- Enjoy access to hotel bookings, and up to $100 USD hotel credit to use on amenities when charged to the room for a stay of 2 or more consecutive nights through The Hotel Collection from American Express Travel
- Transfer points 1:1 to several frequent flyer and other loyalty programs
- Cobalt Cardmembers receive regular Perks such as bonus reward offers and access to great events
- Access Front Of The Line® Presale & Reserved Tickets to some of your favourite concerts and theatre performances and special offers and events curated for Cardmembers with American Express® Experiences
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment
Features
Ratehub’s take
The American Express Cobalt is one of Canada’s best travel credit cards. If you’re looking for a versatile credit card that rewards both everyday spending and travel, the American Express Cobalt is an ideal choice. Cardholders can enjoy strong travel insurance, a generous welcome offer, and flexible point redemption options.
Pros
- Exceptional point earning: 5x the points on eligible restaurant and food delivery, 3x the points on eligible streaming services, 2x the points on travel and daily transit. The earning potential for restaurants and takeout is significantly higher than most other cards
- Flexible point redemption:Travelers can choose from three ways to use their points: points 1:1 to several valuable loyalty programs including Aeroplan, use the Fixed Points Program to simplify redemptions regardless of travel dates, or use points for statement credits at a rate of 1 point = 1 cent. Or, redeem Membership Rewards for travel, gift cards, merchandise, or purchases
- Exclusive access: Enjoy privileges such as Front of the Line Presale and Reserved tickets to concerts, theatre performances, movie screenings, culinary events, and other special offers
- Comprehensive travel insurance: Benefit from a strong travel insurance package, including up to $5,000,000 in travel emergency medical
- No additional fee for authorized users: Add authorized users for no extra cost (an average fee of $30 – 50 on other comparable cards)
Cons
- Monthly fee: A monthly fee of $12.99 (totalling an annual fee of $156, which is higher than most other rewards cards)
- Limited acceptance: American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
- Travel insurance age limitations: The travel insurance package does not cover trip cancellation or medical coverage for cardholders over the age of 65
- Lack of airport lounge access: Frequent travellers may be disappointed as this card does not offer access to airport lounges
Best no fee travel credit card
featured
First year reward
based on spending $2,200/mo after $0 annual fee
- Earn rewards
1pt / dollar earn rate
- Welcome bonus
10,000 bonus points (a $100 value)
- Perks
Perks
- Get the Card that lets you live in the moment while getting ready for the future. The American Express® Green Card lets you go for it with every swipe or tap of your Card.
- As a new American Express® Green Cardmember, you can earn a Welcome Bonus of 10,000 Membership Rewards® points when you charge $1,000 in purchases to your Card in the first 3 months of Cardmembership. That’s $100 towards groceries or concert tickets.
- Earn 1x the points on Card purchases.
- Charge an eligible purchase to your Card and redeem your Membership Rewards points for a statement credit (All eligible purchases: 1,000 points = $10 statement credit).
- With American Express Experiences and Front Of The Line®, American Express Cardmembers get access to amazing events in Canada.
- Transfer points 1:1 to several frequent flyer and other loyalty programs.
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information click the Apply now link. Conditions apply
Ratehub’s take
The American Express Green Card takes the crown for best no-fee travel credit card due to its attractive welcome bonus, quickly-earned points on travel purchases, easy redemption, and other travel-related perks.
Pros
- No annual fee: Enjoy the card’s travel benefits without an annual fee
- Double points on travel: Effectively double your points when booking travel through American Express Travel
- Flexible redemption options: Redeem points for travel, gift cards, merchandise, everyday purchases, or eligible purchases at Amazon.ca
- Transferable points: Transfer your points 1:1 to several frequent flyer and loyalty programs like Aeroplan and Marriott Bonvoy, making it easier to save on flights and accommodations while abroad
Cons
- Low standard earn rate: The standard earn rate of one point per $1 may not be as competitive as other no-fee rewards cards
- Limited insurance coverage: The insurance package includes extended warranty and purchase protection only, lacking some travel coverage offered by other no-fee credit cards
advertisem*nt
Best travel credit card for travel insurance
featured
4.5 Ratehub rated
Best for Groceries & dining
First year reward
based on spending $2,200/mo after $120 annual fee
- Earn rewards
1pt – 5pts / dollar earn rate
- Welcome bonus
40,000 bonus points (a $400 value)
- Perks
Perks
- Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points.
- You will not pay 2.5% foreign transaction fees on any foreign currency purchases, including online shopping and when travelling abroad. Only the exchange rate applies
- Earn 5X Scene+ points for every $1 CAD spent on eligible grocery stores, restaurants, fast food, and drinking establishments. Includes popular food delivery and food subscriptions
- Earn 3X Scene+ points for every $1 CAD spent on eligible gas and daily transit. Includes rideshare, buses, taxis, subway, and more
- Earn 1X Scene+ point for every $1 spent on every other purchase
Features
Ratehub’s take
Ratehub.ca’s take
The Scotiabank Gold American Express Card earns anhonourable mention as one of the best overall travel credit cards for the outstanding benefits it offers to cardholders. This card stands out as a top choice, thanks to its exceptional return on spending and a variety of travel-related perks. This card is particularly useful for those who dine out often, travel, and enjoy entertainment.
Pros
- No foreign exchange fee: Save on foreign currency purchases while travelling abroad or shopping online, as this card doesn’t charge the typical 2.5% foreign transaction fee
- Extensive insurance coverage: Enjoy comprehensive travel insurance, including the $1 million travel medical insurance, which lasts for 25 days and is one of the longer coverage periods available on the market
- High return on spending: Earn five points per $1 spent on groceries, restaurants, food delivery, and entertainment – one of the best in class multipliers in the market. Earn three points per $1 spent on gas and transit expenses
Cons
- Limited acceptance: American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
- Annual Fee: This card carries an annual fee of $120
- Fixed point values: Although earn rates are high, travel points are always worth one cent per point and you can’t transfer your points to other airline rewards programs like you can with other cards
- Airport lounge access is not free:Although you’ll get a discount on a Priority Pass membership for airport lounge access, lounge visits aren’t included with the card
Best Visa travel credit card
featured
4.0 Ratehub rated
Best for Travel
First year reward
based on spending $2,200/mo after $139 annual fee
- Earn rewards
2pts – 8pts / dollar earn rate
- Welcome bonus
100,000 bonus points (a $500 value)
- Perks
Perks
- Earn up to $800 in value†, including up to 100,000 TD Rewards Points, no Annual Fee for the first year† and additional travel benefits. Conditions Apply. Account must be approved by June 3, 2024.
- Earn a welcome Bonus of 20,000 TD Rewards Points when you make your first Purchase with your Card†.
- Earn 80,000 TD Rewards Points when you spend $5,000 within 180 days of Account opening†.
- Earn a Birthday Bonus of up to 10,000 TD Rewards Points†.
- Get an annual TD Travel Credit† of $100 when you book at Expedia® For TD.
- Get an Annual Fee Rebate for the first year†.
- To receive the first-year annual fee rebate for the Primary Cardholder, you must activate your Card and make your first Purchase on the Account within the first 3 months after Account opening. To receive the first Additional Cardholder first-year annual fee rebate, you must add your first Additional Cardholder by June 4, 2024.
- Earn TD Reward Points on all the things you normally do, whether you use your card for groceries, dining, paying bills or booking travel. The rewards will add up quickly so you can enhance your travel experience or enjoy a wide variety of rewards.
- Your Card also allows you to enjoy:
- An extensive suite of travel insurance coverages which helps you travel prepared
- No travel blackouts†, no seat restrictions† and no expiry† for your TD Rewards Points as long as your account is open and in good standing.
- Redeem your TD Rewards Points towards making purchases at Amazon.ca with Amazon Shop with Points. Conditions apply.
- Earn 8 TD Rewards Points† for every $1 you spend when you book travel through Expedia® For TD†
- Earn 6 TD Rewards Points† for every $1 you spend on Groceries and Restaurants†.
- Earn 4 TD Rewards Points† for every $1 you spend on regularly recurring bill payments set up on your Account†
- Earn 2 TD Rewards Points For every $1 you spend on other Purchases made using your Card† plus earn an annual Birthday Bonus† of up to 10,000 TD Rewards Points
- †Terms and conditions apply.
- Financial institutions pay us for connecting them with customers, including by paying for advertisem*nts, clicks, or when someone applies for/is approved for a product. Terms and conditions apply between you and the provider of the product – please be sure to review them. Product information and details vary for Quebec. The content provided on our site is for information only; it is not meant to be relied on or used in lieu of advice from a professional. Partners/Advertisers are not responsible for the accuracy of information on our site. However, not all products we list are tied to compensation for us. Our industry-leading education centres and calculators are available 24/7, free of charge, and with no obligation to purchase. To learn more, visit our About us page.
Features
Ratehub’s take
The TD First Class Travel Visa Infinite is your passport to travel rewards, offering flexible redemption options and value for frequent travellers looking for a Visa credit card with travel points.
Pros
- Flexible redemption: Redeem points on flights, hotels, car rentals and more through Expedia for TD, with points redeemable in increments as low as one dollar
- Exclusive offers: Enjoy 10% off car rentals from select Avis and Budget locations, an annual discount to Priority Pass Memberships and a free 12-month Uber One membership
- Extensive travel package: Enjoy comprehensive travel insurance, including emergency travel medical (up to $2 million), trip cancellation/interruption, and more
- TD Travel Credit: Receive an annual TD Travel Credit of $100 when you book at Expedia for TD
Cons
- Income requirement: A minimum personal income of $60,000 and $139 annual fee may limit eligibility for some users
- Low point value: The average dollar value of one TD Reward point is $0.005, which is low compared to other travel credit cards
- Low earn rate for specific categories: Other cards offer high point values for specific spending categories like dining and entertainment
- No complimentary airport lounge access: While there’s no complimentary airport lounge access, users can benefit from a 20% discount on Priority Pass membership
- No waived foreign transaction fees: Foreign transaction fees are not waived, so consider this if you plan to use the card for shopping abroad
Best Mastercard travel credit card
Get a $50 Cash Bonus upon approval
featured
Best for Travel perks
First year reward
based on spending $2,200/mo after $150 annual fee
- Earn rewards
1pt – 5pts / dollar earn rate
- Welcome bonus
100,000 bonus points (a $667 value)
- Perks
Perks
- Welcome offer: Get up to 100,000 points and the annual fee waived in the first year for both the primary cardholder and authorized users.*
- 5x the points for every $1 spent on eligible travel purchases,* 3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments,* 1 point for every $1 spent everywhere else.*
- Now get the highest rewards points for travel of any premium flexible travel card in Canada!†
- Complimentary membership in Mastercard Travel Pass provided by DragonPass,* with four annual complimentary passes.
- Access over 1 million Wi-Fi hotspots around the world – all at no added cost, and no added fees or roaming charges*
- Get valuable benefits and offers for digital everyday services from a variety of on-demand apps and subscription services
- Points you can use to cover all flight charges & taxes*
- Fly on any airline, with no blackout dates*
- Best-in-class travel and medical insurance (unlimited trips per year)*
- BMO Concierge Service*
- Unlock Mastercard Travel Rewards cashback offers when you travel and shop outside of Canada
- BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information
- *Terms and conditions apply
- †Statement based on a comparison of the redeemable value of the non-promotional travel rewards points earned on premium flexible Canadian credit cards as of May 3, 2022. “Flexible” is defined as points earned when you purchase travel anywhere and “premium” refers to cards with an annual fee of ≤ $150 or has an income requirement of ≤ $150,000 annual individual income.
Features
Ratehub’s take
The BMO Ascend World Elite Mastercardis a top choice among seasoned travellers, particularly those who prefer a Mastercard, and who like to frequently fly and dine out. This card offers a suite of perks that cater to travel enthusiasts.
Pros
- Earn points: Earn three points per $1 spent on restaurant, entertainment purchases, and recurring bills, and one point per $1 spent on everything else
- Comprehensive insurance package: Recognized for one of the best insurance packages in the market, including $5 million in out-of-country insurance, exceeding the standard $1 million in coverage offered by most other cards
- 24/7 concierge services: Enjoy around-the-clock concierge services for your travel needs
- Airport lounge access: Receive complimentary membership in Mastercard Travel Pass, including four annual complimentary passes
- Redemption flexibility: Enhanced flexibility to redeem points for flights on virtually any airline with no blackout dates (points can be used to cover taxes and fees as well)
Cons
- Income requirements: The card’s minimum personal income of $80,000 may limit accessibility for some users
- Lower point value: While BMO points are flexible, they are worth less than other travel rewards programs (usually around 1 cent per point) at 67 cents per point
advertisem*nt
Best airline travel credit card
featured
3.5 Ratehub rated
Best for Aeroplan Points
First year reward
based on spending $2,200/mo after $139 annual fee
- Earn rewards
1pt – 1.5pts / dollar earn rate
- Welcome bonus
30,000 bonus points (a $600 value)
- Anniversary bonus
20,000 pts (a $400 value)
- Perks
Perks
- Earn up to $1,200 in value†, including up to 50,000 Aeroplan points† (enough for a round trip to New York City†) and additional travel benefits. Account must be approved by June 3, 2024.
- Earn a welcome bonus of 10,000 Aeroplan points when you make your first purchase with your new card†
- Earn 20,000 Aeroplan points when you spend $6,000 within 180 days of Account opening†
- Plus, earn a one-time anniversary bonus of 20,000 Aeroplan points when you spend $10,000 within 12 months of Account opening†
- Enroll for NEXUS and once every 48 months get an application fee rebate†
- Plus, share free first checked bags with up to 8 travel companions†
- Earn Aeroplan Points on your everyday purchases
- Travel with confidence with Travel Medical Insurance†
- Complimentary Visa Infinite* Concierge service† available 24/7
- Earn 1.5 points† for every $1 spent on eligible gas, grocery and direct through Air Canada® purchases (including Air Canada Vacations®) made with your card
- Earn 1 point† for every $1 spent on all other Purchases made with your Card
- Earn points twice when you pay with your Card and provide your Aeroplan number at over 150 Aeroplan partner brands and at 170+ online retailers via the Aeroplan eStore (www.aeroplan.com/estore).
- Your Aeroplan Points do not expire as long as you are a TD® Aeroplan® Visa Infinite* Cardholder in good standing.
- Earn big rewards on the little things: Earn 50% more Aeroplan Points and 50% more Stars at participating Starbucks® stores. Simply link your TD Aeroplan Visa Infinite Card to your Starbucks® Rewards account. Conditions apply.
- †Terms and conditions apply.
- Financial institutions pay us for connecting them with customers, including by paying for advertisem*nts, clicks, or when someone applies for/is approved for a product. Terms and conditions apply between you and the provider of the product – please be sure to review them. Product information and details vary for Quebec. The content provided on our site is for information only; it is not meant to be relied on or used in lieu of advice from a professional. Partners/Advertisers are not responsible for the accuracy of information on our site. However, not all products we list are tied to compensation for us. Our industry-leading education centres and calculators are available 24/7, free of charge, and with no obligation to purchase. To learn more, visit our About us page.
Features
Ratehub’s take
For Aeroplan clients and frequent Air Canada fliers, the TD Aeroplan Visa Infinite card offers exceptional benefits for earning more points to redeem on airline travel.
Pros
- Aeroplan redemption: Redeem Aeroplan points for flights on Air Canada or over 27 Star Alliance member airlines, including United Airlines and Lufthansa, to name a few
- Air Canada perks: Access Air Canada perks, including the first bag checked free for the primary cardholder and up to eight travel companions, potentially saving up to $30 per traveller on flights across Canada and the US. Plus, earn credits towards achieving elite airline status
- Nexus Membership reimbursem*nt: Receive up to $100 in Nexus Membership reimbursem*nts every 48 months, making for smoother cross-border travel within Canada or to the US
- Comprehensive travel insurance: Enjoy a strong travel insurance package, including up to 21 days of out-of-province/country medical emergency coverage, flight delay insurance, lost/delayed baggage insurance, and even hotel/motel burglary insurance for stays within the US and Canada
- Double Aeroplan points: Get double the Aeroplan points when using this card along with your Aeroplan card at participating retailers
Cons
- Annual fee: The card’s annual fee is $139, which is slightly higher than the $120 typically found on comparable rewards cards
- Complex points program: The Aeroplan points program isn’t the most straightforward, and it can take some effort to understand how to best maximize points. Note that Aeroplan points can only be redeemed on Air Canada and Star Alliance Members
Best hotel travel credit card
featured
Best for Hotel stays
First year reward
based on spending $2,200/mo after $120 annual fee
- Earn rewards
2pts – 5pts / dollar earn rate
- Welcome bonus
80,000 bonus points (a $936 value)
- Perks
Perks
- Travel to new heights with the Marriott Bonvoy® American Express®* Card
- Earn up to 80,000 Points:
- New Marriott Bonvoy® American Express®* Cardmembers, earn 65,000 Welcome Bonus points after you spend $3,000 on your Card in your first 3 months of Cardmembership
- Plus, earn an additional 3 points for a total of 5 points on every $1 spent on eligible travel and gas purchases in your first 6 months (up to 15,000 points)
- Offer ends May 6, 2024
- Earn 5 points for every dollar in eligible Card purchases at hotels participating in Marriott Bonvoy®
- Earn 2 points for every $1 in all other Card purchases
- Receive an Annual Free Night Award for up to 35,000 points at eligible hotels and resorts worldwide every year after your first anniversary
- No annual fee on Additional Cards
- Redeem points for free nights with no blackout dates at over 7,000 of the world’s most desired hotels
- Automatic Marriott Bonvoy Silver Elite status membership
- Receive 15 Elite Night Credits each calendar year with your Marriott Bonvoy® American Express®* Card. These can be used towards attaining the next level of Elite status in the Marriott Bonvoy program
- Enjoy an automatic upgrade to Marriott Bonvoy Gold Elite status when you reach $30,000 in purchases on the Card each year or when you combine 10 qualifying paid nights within one calendar year with the 15 Elite Night Credits from your card
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information click the Apply now link. Conditions apply
Ratehub’s take
The Marriott Bonvoy American Express Card is tailor-made for hotel rewards, making it an excellent choice for frequent travellers seeking hotel-related benefits and one of the best travel credit cards in Canada.
Pros
- Extensive hotel network: Access more than 7,000 hotels worldwide under the Marriott Bonvoy loyalty program
- Annual free night: Enjoy an annual free night’s accommodation at any Marriott Bonvoy hotel
- Silver Elite status: Receive complimentary Marriott Bonvoy Silver Elite status
- Points earning: Earn five Bonvoy points for every $1 spent on eligible card purchases at hotels participating in the Marriott Bonvoy® program, and two Bonvoy points per dollar on all other card purchases
- Versatile redemption: Redeem points for free nights at more than two dozen hotel brands, including Marriott, Starwood Hotels and Resorts, W Hotels, St. Regis, Ritz Carlton, Sheraton and Delta
Cons
- Travel insurance limitations: The card does not include travel emergency medical insurance within its insurance package
How to choose the best travel credit card - frequently asked questions
What is the best credit card for travel points?
When it comes to the best credit card for travel points, our pick would be either the American Express Cobalt or the Scotiabank Passport Visa Infinitecard.
The American Express Cobalt is the perfect choice for a rewards card that delivers for both everyday spending and travel. The card offers a flexible point redemption system, strong travel insurance policy, and a generous welcome bonus. With its top-notch rewards system, cardholders earn 5 times the points on eligible restaurants and food delivery purchases, 3 times the points on eligible streaming services, and 2 times the points on travel and daily transit.
The Scotiabank Passport Visa Infinite card is the ultimate travel credit card, with valuable benefits that set it apart from others. With no foreign transaction fees, its one of the few Canadian credit cards that save you 2.5% on all your foreign purchases. Plus, it comes packed with perks!
Do travel credit card rewards expire?
Travel credit card rewards can expire with most airline or hotel loyalty programs having a defined 12 to 24 month expiry date. The good news is that this only applies if there has been no account activity during that time. It can be wise to consider getting a credit card that will continue to earn you points for your preferred airline or hotel, preventing your account from being inactive.
How do I maximize my travel credit card's rewards?
There’s more to making the most of your travel credit card than just charging all of your purchases on it. To maximize your travel credit card benefits, follow these steps:
- Pay off your balance in full each and every month to avoid interest charges. The perks and bonuses of a travel credit card won’t make up for the potential interest charges. If you consistently carry a balance, a low interest credit card or one with a generous balance transfer option would likely be a better fit.
- Use your points for travel redemptions to get the most value. Though you can often use points for statement credits, merchandise or gift cards, these options typically offer less value for your points than they would if redeemed for flight or hotel redemptions.
- Take advantage of double-dipping by earning additional rewards from airline or hotel loyalty programs when you use your travel credit card. For example, if you carry an Aeroplan credit card, you’ll earn bonus miles when shopping on the Aeroplan Estore, super-charging your point accumulation.
advertisem*nt
Everything you need to know about travel credit cards
How do travel cards work?
Fundamentally, all travel credit cards in Canada work the same way: for each dollar you spend on the card, you earn points or miles that can be redeemed to partially or fully cover travel expenses. The more you spend, the more points or miles you earn, allowing you to maximize your travel savings.
However, outside of these fundamental aspects, the details around reward redemption and the value of each point or mile can differ depending on the specific credit card and its rewards program. We touch on some of the major differences between credit card travel programs below.
Why get a travel card?
Travel credit cards can save you money on travel expenses through the collection and redemption of points or miles. The points or miles you collect by using these cards for everyday purchases can be exchanged for discounts on flights, accommodations, and car rentals (just to name a few). Not only that, but some travel credit cards also come with added perks such as VIP airport lounge access, complimentary checked baggage, and priority boarding.
In addition, travel credit cards often carry extensive insurance benefits, including (but not limited to) flight interruption/cancellation, baggage loss/delay, emergency medical, and car rental collision loss/damage.
How to choose a travel credit card?
With Canadians enjoying more choice thanks to an ever-growing array of travel credit cards, it can be overwhelming to figure out how to pick the one that works best for you. Luckily, by educating yourself about a few key features, it can be easier to select the card that matches your needs and spending habits the most. Here are some important things to consider:
Sign-up bonus
- While bigger is generally better when it comes to sign-up bonuses, consider whether the card is the right fit for you in the long run. Simply put, don’t let an offer alone sway you into picking a particular card since you’ll likely keep it even after the offer ends.
- You’ll also want to get familiar with the terms of the sign-up offer, as you may need to hit a minimum spend within a specific time frame in order to qualify for the bonus (i.e. making at least $1,000 in purchases on the card within the first three months of opening your account)
Earn rate
There are two kinds of earn rates:
- Flat earn ratethat offers the same number of points across the board for all types of spending – ideal for those who prefer simplicity and whose spending doesn’t skew to particular categories.
- Bonus earn ratethat offers a higher return on specific categories like gas, groceries, or dining. To maximize rewards, you should ensure that any revved-up bonus categories match your spending patterns.
Flexibility
- General travel cardsoffer great flexibility by letting you redeem miles or points for a range of items, including flights on any airline — an ideal option if you don’t favour a particular carrier.
- Co-branded cardsonly let you redeem points with select partners, however, they often feature airline or hotel-specific benefits and perks typically not available on cards that aren’t affiliated with a specific loyalty program (i.e. free checked bags and discounts on companion flights).
- Collecting points or miles can save you money on travel expenses (flights, hotels, car rentals, etc.)
- Comprehensive travel insurance packages
- Extra benefits such as VIP airport lounge access, priority boarding, complimentary checked baggage, etc.
- Generous welcome offers that allow you to earn introductory points
- Some cards will let you transfer your points to airline and hotel loyalty programs
Perks and benefits
- While not as eye-catching as a big welcome bonus, perks can save you lots of money and make flying or hotel stays more enjoyable.
- Important benefits to look out for include insurance (like medical, lost baggage, and hotel theft), rental car discounts, and airport lounge access.
- Evaluate the relevance and value of a card’s perks by anticipating how often you’ll actually use them.
Annual fee
- The majority of premium travel cards come with an annual fee averaging $120.
- You’ll want to assess whether the card’s rewards and money-saving perks (like travel insurance) will help you come out ahead and offer more value than the annual fee.
Eligibility requirements
- The top travel cards tend to have specific income and credit score requirements (typically around $60,000 and 650 respectively).
- Ensure you fit the requirements rather than applying blind because a hard check on your credit rating could decrease your score by up to 10 points. The best course of action is to research if a card has an income requirement and check your credit score before you apply (note: unlike when a card issuer or bank inquires about your score, checking your own credit score won’t impact it in any way).
What are the pros and cons of travel credit cards?
Pros
Cons
- Travel cards typically come with annual fees
- Point redemption flexibility may be affected by blackout periods
- You may have to spend a certain amount on the card to take advantage of welcome offers
- In some cases, you can lose your travel points/miles if your account is inactive for too long
How to apply for a travel credit card?
Check your eligibility
The first thing you'll want to do before applying for any new credit card is make sure you meet it's criteria for eligibility. While each card and provider may differ, in general you'll need:
- Canadian residency or citizenship
- A Canadian credit file
- Age of majority status in your home province or territory
- Annual income (this will depend on the card’s minimum income requirement)
Apply online
Once you're ready to apply online, simply click through the application portal on your provider's website and follow these steps:
- Read and confirm the details, terms, and conditions of your chosen card.
- Provide the personal information required (this usually includes your full name, date of birth, residential address, phone number, and email)
- Provide your Social Insurance Number
- Provide financial information such as your annual income and any recurring monthly expenses.
- Confirm your identity by providing photos of an original government-issued ID such as a passport or driver’s license
- Take an extra moment to look over the information you’ve supplied, then submit your application.
One important thing to note is that credit card applications almost always involve a hard credit check. While these will take a temporary bite out of your credit score, the damage is easy to bounce back from after a few months of responsible credit usage. Too many applications and credit checks at once, however, can cause serious damage to your credit and reduce your chances of being approved for credit cards, mortgages, or other loans in the future.
Redeeming travel credit card rewards
There are three main redemption models by which travel credit cards operate, with each having its own level of difficulty in terms of ease of use. Some rewards programs, like American Express Rewards, even let you access multiple models.
Consistent points programs
Consistent points programs live up to their name by offering unwavering point values. Regardless of the airline, hotel, destination, or time of the year, the value of each point remains the same.
The significant advantage of consistent points programs is their simplicity, making it easy to calculate the value of your rewards. However, it is worth highlighting that point values can fluctuate when redeemed for merchandise, gift cards, or statement credits.
Variable or flexible points programs
With variable or flexible points programs, points don't have a consistent value and change depending on various factors, such as travel destination and seasonality. These models are usually based on charts and tables that cardholders must consult to know the value of their points.
While these programs may introduce a degree of complexity into the redemption process, they offer a significant advantage: the potential to extract greater value out of each point. If you’re willing to invest time in research, they can offer unique and more generous redemption opportunities, like discounted business-class tickets or stays at ultra-premium hotels that might otherwise be out of reach. Additionally, you can maximize the value of your rewards by strategically planning your trips to specific destinations and during particular times of the year - a benefit not available when point values are consistent.
Point transfers
Point transfers allow you to transfer points from one rewards program to another and can be useful when trying to take advantage of multiple rewards programs. Not all point transfers are 1:1, so you will need to figure out the transfer ratio before moving ahead with the transfer.
General travel cards versus co-branded travel cards
General travel cards
General travel cards are not tied to any specific airline or frequent flyer program. Points earned on these cards can be redeemed for travel with a wide range of flight carriers and hotel chains. The major appeal of general travel cards lies in their flexibility, allowing you to use your points for flights from literally hundreds of carriers of your choice. If you don’t frequently fly on a particular airline and prioritize flexibility over the benefits associated airline loyalty status, such as like priority check-in, then general travel cards are a better fit for you.
It’s worth noting that when redeeming points on a general travel card, in some cases, you will need to use the credit card’s proprietary travel agency (i.e. BMO Points must be redeemed on BMORewards.com or with a BMO travel agent).
Best general travel credit cards in Canada
American Express Cobalt
Scotiabank Gold American Express
Scotiabank Passport Visa Infinite
TD First Class Visa Infinite
Co-branded travel cards
Co-branded credit cards are connected to a specific frequent flyer or loyalty program (e.g., Aeroplan, Air Miles, or Marriott Bonvoy), and are a testament to the old adage “loyalty pays.”
These cards can offer excellent value by allowing you to earn bonus rewards or discounts when you use the card at retailers, airlines, or hotels partnered with the co-branded credit card. In many cases, these cards also provide benefits like priority check-in, complimentary hotel stays, or free checked bags.
While these cards may lack flexibility since the points you earn can only be redeemed from one of the co-branded card’s partners, they can be the right choice for you if the card is associated with your favourite airline, hotel program, or retail network.
Best co-branded credit cards in Canada:
TD Aeroplan Visa Infinite
Marriott Bonvoy Card from American Express
WestJet RBC World Elite Mastercard
Travel credit cards versus cash back credit cards
Unlike travel cards, which use a point-based reward system, cash back cards offer a percentage of cash back, especially when you use them to make specific types of purchases. Depending on the provider and card, you'll be free to redeem your cash back as a statement credit, use it to buy gift cards or merchandise, or put it into a savings account.
If you're wondering whether a travel rewards card or a cash back card is the better choice, consider your current lifestyle and what you like to spend money on. If you're currently travelling a lot and would only like to use your rewards on expenses like flights, accommodations, and car rentals, a travel rewards card will give you the most bang for your buck as these cards typically offer higher point values in that category.
If, however, you're going to be using the card for a wider variety of purchases, a solidly earning cash back card may be the better bet. These cards usually offer higher points in a wider variety of categories, giving you the flexibility to earn and redeem in different areas like groceries, gas, recurring bills, and more.
Common perks found on travel cards
When choosing a travel credit card, don't just focus on the welcome bonus and points/miles. Most travel cards also come with extra perks and benefits, which could sway your decision between two equally valuable cards. Some common perks to look out for include:
Airport perks
Many travel credit cards offer a range of perks to enhance your air travel experience. These perks can include access to VIP lounges, complimentary checked baggage, priority boarding, and higher priority for seat upgrades. Additional benefits may encompass access to expedited security lanes (helping you get to your gate faster), ane even complimentary valet service.
No foreign transaction fees
One of the significant advantages of some travel credit cards is their elimination of foreign transaction fees. These fees can quickly add up when you're using your credit card abroad, but with the right travel credit card, you can avoid them altogether. This means you can make international purchases and travel with peace of mind, knowing that you won't incur additional charges for currency conversion. Whether you are shopping, dining, or booking accommodations overseas, a travel card without foreign transaction fees can save you money.
Hotel perks
Your travel credit card continues to provide benefits when you reach your hotel destination. For example, the Marriott Bonvoy American Express card allows users to attain Gold Elite Status after using the card for ten stays at any of their hotels. At this level, cardholders can enjoy extra bonus points, late check-out, enhanced in-room internet service, and room upgrades (subject to availability). In addition, members gain access to exclusive room rates and a reservation guarantee.
Travel insurance
While many of us will happily devote endless hours to deciding what attractions and restaurants to hit on an upcoming vacation, few of us give as much attention to another crucial element of a successful trip: travel insurance.
Luckily, there are many travel credit cards (especially premium cards that carry an annual fee) that offertravel insuranceas a key perk. While the variety, monetary amounts, and eligibility qualifications (like age) tend to vary, overall a travel credit card’s insurance offerings can be one of its most attractive benefits. That’s because buying travel insurance on your own could otherwise cost you around 4% to 10% of your total trip, meaning that a comprehensive insurance package could save you hundreds of dollars. Of course, those savings can exponentially increase if you need to make a claim.
Many of the best travel credit cards in Canada offer more than a dozen types of insurance, ranging from hotel burglary to trip interruption and delayed baggage coverage. The card and coverage that works best for you will depend on your travel needs.
Here’s a look at some of the main types of insurance:
Out-of-Province travel emergency medical
Travel accident coverage
Travel interruption coverage
Flight delay insurance
Lost / delayed baggage
Rental car collision loss / damage
Hotel / motel burglary
Important things to know about travel insurance
To get the most out of your credit card travel insurance, it’s vital to read the fine print. There’s an array of exclusions, eligibility requirements, and compensation amounts. Here are some key points:
- For the insurance to kick in, requirements vary. You’ll usually need to charge anywhere from 75% to 100% of the cost of your trip to your card.
- As noted above, coverage only lasts for a specific number of days depending on your age. Those 65 and older are usually only offered very limited (if any) coverage. You’ll need to pay out of pocket for extra travel days.
- Most credit card insurance plans will cover not only the policyholder but also eligible travel companions like a spouse and dependent children. Check with your provider who is covered and for what specific monetary amounts.
- Time can be crucial when making a claim. For example, many companies insist on being alerted beforehand (unless in extremely urgent circ*mstances) of any medical procedures like major surgeries. Many also have a set period in which a claim must be made, such as within three months of the event, or coverage will be forfeited.
The knowledge bank
A wealth of knowledge delivered right to your inbox.
By submitting your email address, you acknowledge and agree to Ratehub.ca’s Terms of Use and Privacy Policy. Contact us for more information. You can unsubscribe at any time.
advertisem*nt
