What is Canada's Best Rewards Credit Card? Our Picks for 2024
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Discover the methodologyCredit cards are our favourite way to pay. They are a convenient tool to help build credit, make large purchases and travel. You can even get rewards just for spending money. These rewards can vary from cash back, to miles, to points programs and more.
How do you know which rewards credit card is right for you?
With dozens of credit cards offered by a range of companies, it can be hard to pick. This article will look at the different types of rewards credit cards and Canada’s best rewards credit cards to help you pick the best card for you.
What is a rewards credit card?
Rewards credit cards are credit cards that offer an incentive for signing up and using that specific card. Rewards credit cards work by providing an incentive for using the card either directly through purchases or a sign-up bonus. These rewards can vary depending on the issuer and type of card.
Consider how you plan to use it, what you want to save money on and how much you can spend on fees. For example, if you fly frequently you should look for an air mileage or travel card. Keep in mind that some mileage cards have no fees while others may cost you hundreds in annual fees. The best rewards card for you is one that matches your spending patterns.
Good to know
For example, let's consider the American Express Gold Rewards Card. You get 2 points for every $1 on travel purchases like flights, hotels, rental cars and cruises, as well as 2 points for each $1 spent at grocery stores, gas stations and drugstores. For other purchases, you earn 1 point for every $1 spent.
At the time of writing, you can get a 50,000-point welcome bonus for spending $3,000 and another 10 points for every $1 on food and drinks (up to 20,000 points) within the first three months of having that card. Those 70,000 points bonus points are worth $700 in rewards.
Many rewards cards offer strong signup incentives that can be worth many hundreds of dollars per year.
What types of credit card awards are available?
The most important factor when picking a rewards card is to figure out what type of card you need. This will depend on how you plan to use the card and what you spend the most money on. Below we have the main types of reward cards:
- Travel reward cards are rewards cards that provide either points or miles toward flights, rental cars and other travel accommodations.
- Business rewards cards provide services beneficial to both small and large businesses such as higher spending limits, longer payback periods and secondary cards for employees.
- Cash back rewards cards are rewards cards that provide a percentage back of purchases in the form of cash.
- Retail/store rewards cards are rewards cards that offer rewards for shopping at retail establishments eligible with the card you choose.
- Hotel rewards cards are rewards cards that offer rewards for booking hotels and may offer reduced rates and even free nights.
These are the most common types of rewards cards offered but there are many unique cards suited for different needs and different income brackets. Many of these types will also overlap. For example, a travel card may offer hotel rewards and a business card can also act as a travel card.
What is the best rewards credit card for Air Miles in Canada?
Air Miles is a reward program owned and operated by LoyaltyOne. They are located in Canada, the Netherlands and the Middle East but fly internationally to most locations.
For Air Miles, we like the BMO Air Miles World Elite Mastercard. This travel card offers 3,000 bonus miles and waives the first year's annual fee. You get 3 times the miles for every $25 spent at Air Miles partners, 2 times the miles for every $12 spent at eligible grocery stores and 1 mile for every $12 on all other purchases. With a $120 annual fee, this is an affordable travel card for a frequent flyer.
It includes some of the best and most comprehensive credit card travel insurance coverage and is accepted at Costco.
What is the best rewards credit card for Aeroplan in Canada?
Aeroplan Canada is one of the best travel loyalty programs in Canada. As a loyalty rewards program owned and operated by Air Canada its points can be used to buy flights with Air Canada as well as any other airline in the Star Alliance network.
For Aeroplan Rewards card we like the American Express Aeroplan Reserve Card. This travel card has an introductory offer of 110,000 Aeroplan points when requirements are met. You also earn 3 Aeroplan points for every $1 spent on Air Canada, 2 points for dining and entertainment purchases and 1.25 points on all other purchases. This card comes with a $599 annual fee so should only be used by frequent flyers. Aeroplan also offers a range of rewards cards with lower fees.
It features some great perks too. Enjoy the following:
- Air Canada Priority Check-In, Air Canada Priority Boarding and Air Canada Priority Baggage Handling
- Access to select Air Canada Maple Leaf Lounges and Air Canada Café
- Free first checked bag
- 1,200 Priority Pass airport lounges
- Travel insurance
- And more
What is the best rewards credit card for everyday spending in Canada?
For everyday spending, we have the American Express Gold Rewards Card. This everyday card has a $250 annual fee and offers 70,000 reward points when requirements are met. You also earn 2 points for every $1 spent on travel, gas, groceries and drugstore purchases and 1 point for every $1 spent on all other purchases. These points can be used for travel, point transfer to partners, gift cards, statement credits, shopping and donations. Making it a well-rounded card for everyday needs.
You'll enjoy access to great credit card travel insurance, complimentary membership in Priority Pass airport louges and more.
What is the best rewards credit card for cash-back in Canada?
For our cash back rewards care we have the CIBC Dividend Visa Infinite Card. This card's introductory offer gives 10% cash back on the first 4 statements up to $2,500 and a first-year annual fee rebate. After that, you’ll earn 4% back on eligible gas and grocery purchases, 2% back on eligible transportation, dining and recurring purchases and 1% back on all other purchases. With a $120 annual fee, this is a great cash-back card to earn back money on everyday purchases throughout the year.
What is the best rewards credit card for store rewards in Canada?
For the best store rewards card, we like two cards. First, we have Walmart Rewards World Mastercard. This card has no annual fee and offers 3% cash back online at Walmart.ca, 1.25 cash back at any Walmart store and on gas purchases and 1% cash back on all other purchases. This no-fee cash-back card ensures savings with every purchase at no cost to you.
For our second store rewards card, we have Triangle World Elite Mastercard. This Triangle Mastercard has no annual fee and offers a rewards program with Canadian Tire. Every $1 spent on groceries earns 3 CT money and all other spending earns 0.8 CT Money. This card has no fees and is a great card for any Canadian Tire customer.
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What is the best rewards credit card for dining rewards in Canada?
We like the Scotiabank Gold American Express Card for our dining rewards card.
This card has a $120 annual fee and offers 40,000 reward points when requirements are met. You also earn 5 points for every $1 spent on eligible groceries, restaurants, fast food, entertainment and drinking establishment purchases, 3 points for every $1 on eligible gas, daily transit and streaming services and 1 point for every $1 spent on all other purchases. For people that like to eat out this card is a great way to quickly earn points for future purchases.
What is the best rewards credit card for travel rewards in Canada?
The HSBC World Elite Mastercard is our pick for a travel rewards card.
This card has a $149 annual fee and offers 110,000 reward points when requirements are met. You earn 3% travel rewards on all eligible travel purchases and 1.5% on all other eligible purchases. This card also offers no foreign transaction fees and no conversion fees. This card is great for travel as it also provides travel, rental and medical insurance coverage for the duration of your trip.
What is the best rewards credit card for hotels in Canada?
Spend a lot of nights on the road? Our pick for best hotel rewards card is Marriott Bonvoy American Express Card. This card has a $120 annual fee and offers 75,000 reward points when requirements are met. You earn 2 points on all eligible purchases with your Marriot rewards card. After your first year, you’ll receive an annual frozen night as well as 15 elite night credits each calendar year. This rewards card takes our best hotel card spot because of the Marriots Bonvoy program which offers benefits at over 7,000 locations.
What is the best no-fee rewards credit card in Canada?
For our no-fee rewards card, we have the American Express Green Card. This card has no annual fee and offers 10,000 reward points after spending $1,000 in the first 3 months. You get 1 point per dollar spent on all purchases. This card is part of the American express rewards program connecting you to the same frequent flyer and loyalty programs as the more expensive cards without the high annual fees.
Compare dozens of Canada's top credit cards now
