A rewards credit card is a great way to earn reward points or travel miles you can put towards travel, gas or shopping at your favourite stores just by making your everyday purchases. If you use your card responsibly, a rewards card can be a great way to get discounts on your next flight, travel package or shopping spree. Keep reading to learn about how rewards credit cards work in Canada, how to compare the best rewards credit cards and how to find the right type of rewards card for your unique set of needs.
We’ve chosen the rewards credit cards on this page based on the providers available through Finder. These cards are not representative of the entire market. Our top rewards cards offer a high value of rewards points, miles or cash back, exclusive perks such as comprehensive travel insurance coverage, and a signup bonus. We’ve also considered annual fees.
No single rewards card will be the best choice for everyone, so compare your options before picking your new card.
Best overall rewards card: Scotiabank Gold American Express Card
The Scotiabank Gold American Express Card is a powerful everyday credit card as well as a strong travel companion. Earn 6 Scene+ points for every $1 you spend in Canada at Sobeys, Safeway, FreshCo, Foodland and more, 5 Scene+ points per $1 spent on eligible grocery, dining and entertainment purchases, 3 Scene+ points per $1 spent on eligible gas, transportation and select streaming services, and 1 Scene+ point per $1 spent on eligible purchases elsewhere. Book and redeem any flight for any time through Scotia Rewards Travel Service, a full-service travel agency. Plus, take advantage of the Best Price Guarantee on airfare. Plus, enjoy peace of mind with a broad array of travel insurance options.
Earn up to 45,000 bonus Scene+ points and get the first annual fee waived (that's up to $950 towards travel). Apply by January 2, 2025. To qualify for the 40,000 bonus Scene+ points offer, earn 25,000 bonus Scene+ points by making at least $1,000 in purchases in your first 3 months. Plus, earn a 20,000 Scene+ point bonus when you spend at least $7,500 in purchases in your first year.
Earn 6 Scene+ points for every $1 you spend in Canada at Sobeys, Safeway, FreshCo, Foodland and more, 5 Scene+ points per $1 spent on eligible grocery, dining and entertainment purchases, 3 Scene+ points per $1 spent on eligible gas, transportation and select streaming services, and 1 Scene+ point per $1 spent on eligible purchases elsewhere.
This card comes with a 2.5% foreign transaction fee.
Enjoy peace of mind with a broad array of travel insurance options including Emergency Medical, Travel Accident, Trip Cancellation and Interruption, Flight Delay, Delayed or Lost Baggage and Rental Car Collision Loss/Damage.
Book and redeem any flight for any time through Scotia Rewards Travel Service, a full-service travel agency. Plus, take advantage of the Best Price Guarantee on airfare.
American Express rewards including early ticket access, discounts and invites to exclusive events.
This card has an annual fee of $120.
You'll need to earn a minimum income of $12,000 a year to be eligible for this card.
Annual Fee
$0 intro annual fee for the first year ($120 thereafter)
Purchase APR
20.99%
Cash Advance Rate
22.99%
Balance transfer APR
22.99%
Welcome offer
Earn up to 45,000 bonus Scene+ points and get the first annual fee waived (that's up to $950 towards travel). Apply by January 2, 2025. To qualify for the 40,000 bonus Scene+ points offer, earn 25,000 bonus Scene+ points by making at least $1,000 in purchases in your first 3 months. Plus, earn a 20,000 Scene+ point bonus when you spend at least $7,500 in purchases in your first year.
Rewards
Earn 6 Scene+ points for every $1 you spend in Canada at Sobeys, Safeway, FreshCo, Foodland and more, 5 Scene+ points per $1 spent on eligible grocery, dining and entertainment purchases, 3 Scene+ points per $1 spent on eligible gas, transportation and select streaming services, and 1 Scene+ point per $1 spent on eligible purchases elsewhere.
Best rewards credit card for no annual fee: MBNA Rewards Platinum Plus Mastercard
The MBNA Rewards Platinum Plus Mastercard comes with no annual fee – but also offers a high earn rate. Earn 2 points for every $1 spent on eligible restaurant, grocery, digital media, membership, and household utility purchases (up to $10,000 spend annually in the applicable category), and earn 1 point for every $1 spent on other eligible purchases.
Earn 2 points for every $1 spent on eligible restaurant, grocery, digital media, membership, and household utility purchases (up to $10,000 spend annually in the applicable category), and earn 1 point for every $1 spent on other eligible purchases.
No annual fee.
This card comes with a 2.5% foreign transaction fee
No travel insurance perks.
Annual Fee
$0
Purchase APR
19.99%
Cash Advance Rate
24.99%
Balance transfer APR
22.99%
Welcome offer
Earn 4 points for every $1 spent on eligible restaurant, grocery, digital media, membership, and household utility purchases (up to $10,000 spend annually in the applicable category). Plus, get 5,000 bonus points ($25 in cash back value) after you make $500 or more in eligible purchases within the first 90 days of your account opening and 5,000 bonus points ($25 in cash back value) once enrolled for paperless e-statements within the first 90 days of account opening.
Rewards
Earn 2 points for every $1 spent on eligible restaurant, grocery, digital media, membership, and household utility purchases (up to $10,000 spend annually in the applicable category), and earn 1 point for every $1 spent on other eligible purchases.
Please note: All information about MBNA Rewards Platinum Plus Mastercard has been collected independently by Finder and this card is not available through this site.
Best everyday rewards card: BMO eclipse Visa Infinite
The BMO eclipse Visa Infinite let's you earn accelerated rewards on everyday purchases. Earn 5x the BMO Points for every $1 spent on groceries, dining in and out, gas and transit. Plus, earn 1 point for every $1 spent on everything else. Plus, you'll also get an annual lifestyle credit and a generous welcome offer. Get up to 60,000 points (worth $400 in travel rewards), a $50 lifestyle credit and the $120 annual fee waived by your first anniversary. That's a total value of $570 by your first anniversary.
Get up to 60,000 points (worth $400 in travel rewards), a $50 lifestyle credit and the $120 annual fee waived by your first anniversary. That's a total value of $570 by your first anniversary.
Earn 5x the BMO Points for every $1 spent on groceries, dining in and out, gas and transit. Plus, earn 1 point for every $1 spent on everything else.
Annual lifestyle credit
Travel worry-free with emergency medical insurance, common carrier insurance and car rental collision insurance.
This card comes with a 2.5% foreign transaction fee
You'll pay an annual fee of $120.
Annual Fee
$0 intro annual fee for the first year ($120 thereafter)
Purchase APR
20.99%
Cash Advance Rate
23.99% (21.99% for Quebec residents)
Balance transfer APR
23.99%
Welcome offer
Get up to 60,000 points (worth $400 in travel rewards), a $50 lifestyle credit and the $120 annual fee waived by your first anniversary. That's a total value of $570 by your first anniversary.
Rewards
Earn 5x the BMO Points for every $1 spent on groceries, dining in and out, gas and transit. Plus, earn 1 point for every $1 spent on everything else.
Best rewards credit card for earning flat-rate cash back: SimplyCash Preferred Card from American Express
The SimplyCash Preferred Card from American Express helps you earn rewards points fast. Earn a bonus 10% cash back on all purchases for your first 3 months (up to $2,000 in purchases). Plus, earn a $50 statement credit when you make a purchase in month 13. This could add up to $250 in bonus value in your first 13 months. The card also offers a suite of travel insurance benefits and exclusive offers on dining and entertainment. Just watch out for the annual fee of $119.88.
Earn a bonus 10% cash back on all purchases for your first 3 months (up to $2,000 in purchases). Plus, earn a $50 statement credit when you make a purchase in month 13. This could add up to $250 in bonus value in your first 13 months.
Earn 4% cash back on eligible gas station purchases in Canada, 4% cash back on eligible grocery store purchases in Canada (up to $1,200 cash back annually), and 2% cash back on all other purchases.
Get up to $100,000 travel insurance coverage for delayed flights, lost or stolen baggage, car rentals and accidents. Plus, enjoy up to up to $5,000,000 Out-of-Province/Country Emergency Medical Insurance in emergency medical coverage.
Complimentary Car Rental Theft and Damage Insurance (MSRP of up to $85,000).
Earn up to a maximum annual referral bonus of $750 cash back for approved referrals.
Charge the full purchase price of eligible items to your card, and get complimentary coverage against accidental physical damage and theft, plus double the original manufacturer's warranty for up to 1 additional year. Terms and conditions apply.
This card has an annual fee of $119.88.
When you spend overseas, you'll face a foreign transaction fee of 2.5%.
Annual Fee
$119.88
Purchase APR
21.99%
Cash Advance Rate
21.99%
Balance transfer APR
N/A
Welcome offer
Earn a bonus 10% cash back on all purchases for your first 3 months (up to $2,000 in purchases). Plus, earn a $50 statement credit when you make a purchase in month 13. This could add up to $250 in bonus value in your first 13 months.
Rewards
Earn 4% cash back on eligible gas station purchases in Canada, 4% cash back on eligible grocery store purchases in Canada (up to $1,200 cash back annually), and 2% cash back on all other purchases.
Best rewards credit card for earning accelerated cash back: Scotia Momentum Visa Infinite Card
Earn 10% cash back on all purchases for the first 3 months (up to $2,000 spend). Plus, pay no annual fee in the first year. Apply by October 31, 2025. The card also offers a great suite of travel insurance benefits, an introductory balance transfer rate and exclusive offers on dining and entertainment – just watch out for the annual fee of $120.
Earn 4% cash back for every $1 spent on eligible grocery purchases & recurring bill payments, 2% per $1 spent on eligible gas purchases & public transit, and 1% per $1 spent on all other eligible purchases.
Earn 10% cash back on all purchases for the first 3 months (up to $2,000 spend). Plus, pay no annual fee in the first year. Apply by October 31, 2025.
Pay for your flight with your card and get complimentary insurance for emergency medical situations up to $1,000,000, trip interruptions and cancellations, flight delays, lost and delayed baggage.
You won't be held liable for fraudulent charges on your account with Zero Liability coverage.
This card has an annual fee of $120.
When you spend overseas, you'll face a foreign transaction fee of 2.5%.
Annual Fee
$0 intro annual fee for the first year ($120 thereafter)
Purchase APR
20.99%
Cash Advance Rate
22.99%
Balance transfer APR
22.99%
Welcome offer
Earn 10% cash back on all purchases for the first 3 months (up to $2,000 spend). Plus, pay no annual fee in the first year. Apply by October 31, 2025.
Rewards
Earn 4% cash back for every $1 spent on eligible grocery purchases & recurring bill payments, 2% per $1 spent on eligible gas purchases & public transit, and 1% per $1 spent on all other eligible purchases.
Best rewards credit card for earning AIR MILES: BMO AIR MILES World Elite Mastercard
The BMO AIR MILES World Elite Mastercard lets you earn accelerated AIR MILES that can be redeemed for travel perks and merchandise. Get 3 Miles for every $12 spent at participating AIR MILES Reward Partners, 2 Miles for every $12 spent at any eligible grocery store and 1 AIR MILE for every $12 spent on eligible purchases. Get the annual fee of $120 waived in the first year. Cardholders also get a range of complimentary travel benefits.
Earn a bonus of up to 2,000 AIR MILES. Terms apply. Plus, get the annual fee of $120 waived by your first anniversary.
Get 3 Miles for every $12 spent at participating AIR MILES Reward Partners, 2 Miles for every $12 spent at any eligible grocery store and 1 AIR MILE for every $12 spent on eligible purchases.
Earn 3X the Miles when you pay with your credit card and show your AIR MILES Card at AIR MILES partners.
Get peace of mind with a wide range of travel insurance benefits including up to $2,000,000 Out-of-Province/Out-of-Country Emergency Medical Protection as well as coverage for delayed flights, trip cancellations, interruptions and delays, rental car collision damage and baggage loss, theft or damage.
Get up to a 20% discount at National Car Rental and Alamo Rent A Car locations with complimentary Collision Damage Waiver benefits (MSRP of up to $65,000). Plus, enjoy a 7¢/L discount on Shell V-Power premium fuel and 2¢/L on all other Shell fuel every time you fuel up.
This card has an annual fee of $120
You'll need to earn a personal income of at least $80,000, or a combined household income of at least $150,000 annually.
Annual Fee
$0 intro annual fee for the first year ($120 thereafter)
Purchase APR
20.99%
Cash Advance Rate
23.99% (21.99% for Quebec residents)
Balance transfer APR
23.99%
Welcome offer
Earn a bonus of up to 2,000 AIR MILES. Terms apply. Plus, get the annual fee of $120 waived by your first anniversary.
Rewards
Get 3 Miles for every $12 spent at participating AIR MILES Reward Partners, 2 Miles for every $12 spent at any eligible grocery store and 1 AIR MILE for every $12 spent on eligible purchases.
Best rewards card for earning Aeroplan Miles: American Express Aeroplan Reserve Card
The American Express Aeroplan Reserve Card offers a sizable welcome bonus along with a high return on Aeroplan points for $599 per year. Earn 3x the points on eligible purchases made directly with Air Canada and Air Canada Vacations, 2x the points on eligible dining and food delivery purchases in Canada, and 1.25x the points on everything else. This card also comes with a full suite of travel insurance, which includes travel medical, common carrier, trip interruption or cancellation, baggage or flight delay and car rental insurance. You'll also enjoy special travel perks such as NEXUS discounts and free checked baggage with Air Canada.
Earn 3x the points on eligible purchases made directly with Air Canada and Air Canada Vacations, 2x the points on eligible dining and food delivery purchases in Canada, and 1.25x the points on everything else.
Earn 1,000 Status Qualifying Miles and 1 Status Qualifying Segment for every $5,000 worth of eligible purchases you charge to your card. Plus, you could receive a Complimentary Hotel Room Category Upgrade, on the first and last night, and a Complimentary Upgrade from SilverLeaf to GoldLeaf class of service when you book directly with Rocky Mountaineer using your card.
Earn up to 85,000 welcome bonus Aeroplan points. That's a value of up to $2,600 or more when you combine your welcome bonus points and card benefits.
Get travel medical, trip cancellation and interruption, hotel burglary, car rental and common carrier coverage.
Protect the products you buy on your card with purchase insurance and extended warranty coverage.
Get free checked baggage for yourself and up to 8 companions, access to Maple Leaf Lounges in North America and Air Canada Cafés for you and a guest (with same day tickets on departing Air Canada or Star Alliance flights), Priority Airport Check-In, Priority Boarding, and Priority Baggage Handling with Air Canada and priority access to eUpgrades/standby list and worldwide airport lounge access with Priority Pass.
This card has an annual fee of $599.
Annual Fee
$599
Purchase APR
21.99%
Cash Advance Rate
21.99%
Balance transfer APR
N/A
Welcome offer
Earn up to 85,000 Aeroplan points. Earn 60,000 Aeroplan points after spending $7,500 in purchases within the first 3 months, plus earn an additional 25,000 Aeroplan points when you spend $2,500 in purchases in month 13. That's up to $2,600 or more in value when you combine your welcome bonus points and card benefits.
Rewards
Earn 3x the points on eligible purchases made directly with Air Canada and Air Canada Vacations, 2x the points on eligible dining and food delivery purchases in Canada, and 1.25x the points on everything else.
Best overall rewards credit card for travel: American Express Cobalt Card
The American Express Cobalt Card offers a generous return on points for everyday purchases. You can collect points for every dollar you spend on dining out plus 2 points for gas and transit purchases and 1 point for everything else. This card also comes with up to a 15,000 points welcome bonus if you spend a certain amount of money each month. You'll also get a full suite of travel insurance and purchase protection when you sign up.
Earn 5x the points on eligible groceries, dining, drinks and food delivery in Canada (spend cap applies), 3x the points on eligible streaming subscriptions, 2x points on eligible ride shares, transit & gas, 1 extra point per dollar spent on eligible hotel and car rental bookings via American Express Travel Online and 1 point for every other dollar spent.
Earn up to 15,000 Membership Rewards points in your first year. Earn 1,250 Membership Rewards points for each monthly billing period in which you spend $750 in purchases. That’s up to $150 towards a weekend getaway or concert tickets.
Collect a higher return on rewards when you make dining, gas and transit purchases.
Enjoy peace of mind with complimentary protection against fraudulent charges to your card. Additionally, items charged to your card will be covered against theft and accidental physical damage, plus the original manufacturer's warranty will be extended by up to one additional year. Terms and conditions apply.
Get up to $5,000,000 in emergency medical coverage plus coverage for travel accidents, lost or stolen baggage, car rental theft and damage, flight delays and hotelburglary.
Get complimentary Car Rental Theft and Damage Insurance (MSRP of up to $85,000). Terms apply.
You'll have to pay $155.88 per year to maintain this card.
You'll be charged a currency conversion rate of 2.5% when you spend overseas.
Missed payments will be charged a penalty interest rate of 25.99% - 28.99%.
Annual Fee
$155.88
Purchase APR
21.99%
Cash Advance Rate
21.99%
Balance transfer APR
N/A
Welcome offer
Earn up to 15,000 Membership Rewards points in your first year. Earn 1,250 Membership Rewards points for each monthly billing period in which you spend $750 in purchases. That’s up to $150 towards a weekend getaway or concert tickets.
Rewards
Earn 5x the points on eligible groceries, dining, drinks and food delivery in Canada (spend cap applies), 3x the points on eligible streaming subscriptions, 2x points on eligible ride shares, transit & gas, 1 extra point per dollar spent on eligible hotel and car rental bookings via American Express Travel Online and 1 point for every other dollar spent.
Best rewards card for hotel rewards: Marriott Bonvoy American Express Card
Experience discounts at a variety of luxurious hotel chains around the world with the Marriott Bonvoy American Express Card. Even though this card has an annual fee of $120, the rewards can quickly outpace the cost if you frequently visit Marriott Bonvoy™ hotels and their partners. The signup bonus alone is worth more than the annual fee of the card. Earn 50,000 Marriott Bonvoy points after you charge $1,500 in purchases to your card in the first three months. Subject to change at any time.
Earn 5 points per $1 spent at hotels participating in Marriott Bonvoy, and 2 points per $1 spent elsewhere..
Get more with the signup bonus. Earn 50,000 Marriott Bonvoy points after you charge $1,500 in purchases to your card in the first three months. Subject to change at any time.
Although this card has an annual fee, you can get up to 9 additional cards for $0.
Enjoy peace of mind with up to $500,000 Travel Accident Insurance. Plus, get coverage for travel accidents, lost/stolen/damaged baggage, car rental theft and damage, flight delays and hotel/motel burglaries.
Get complimentary Car Rental Theft and Damage Insurance (MSRP of up to $85,000). Terms apply.
This card comes with an annual fee of $120.
Any missed payments will incur a penalty interest rate of 25.99% - 28.99% Variable.
When you spend overseas, you'll face a foreign transaction fee of 2.5%.
Annual Fee
$120
Purchase APR
21.99%
Cash Advance Rate
21.99%
Balance transfer APR
N/A
Welcome offer
Earn 50,000 Marriott Bonvoy points after you charge $1,500 in purchases to your card in the first three months. Subject to change at any time.
Rewards
Earn 5 points per $1 spent at hotels participating in Marriott Bonvoy, and 2 points per $1 spent elsewhere.
How do rewards credit cards work?
A rewards credit card lets you earn reward points or travel miles for every purchase you make on your card. While cashback is most often returned directly into your bank account or sent to you as a cheque in the mail, rewards points can typically be used a variety of ways. You might be able to use your points for travel, merchandise, statement credit, gift cards and more. Miles, on the other hand, can usually only be redeemed for travel or travel-related experiences.
Most basic cards let you earn between 0.5 and 1 point for every dollar you spend, while premium cards tend to offer between 1 and 3 points or miles per dollar. You may also earn a different number of reward points depending on what you buy and where you buy it.
For example, a travel card might let you earn a higher return on travel rewards when you book flights or stay at a hotel. An everyday card might offer a higher return on points for gas than restaurants purchases. With frequent flyer cards, you may also be able to earn a higher return on points or miles when you shop with partner stores.
What happens when I want to redeem my points?
When you’ve collected enough points or miles, you can redeem them for rewards like travel, merchandise or gift cards. To do this, you usually just need to sign in to your online credit card account and follow the prompts browse their online store and redeem your points.
Just be aware that you may need to book your travel rewards on a third-party site. For example, you might be redirected to the booking site for a specific airline if you want to exchange frequent flyer miles. You could also be redirected to your provider’s rewards catalogue to exchange your points for merchandise or gift cards.
Find a card that rewards your spending habits
"In 2022, I applied for an American Express Cobalt Card after comparing hundreds of credit cards on Finder. I was drawn to this card because I can earn accelerated rewards points in the categories I actually spend a lot of money in including groceries, restaurants and travel. Although the card has a monthly membership fee of $12.99, I’ve found that I can easily offset this with the rewards points I earn.I previously had a no fee credit card from a Big Five bank and it took months to save up enough points to use toward statement credit or travel, but with my Amex I find I can use points on an almost monthly basis."
The type of reward credit card you pick will depend on factors like your eligibility and how you want to use your reward points. Rewards credit cards in Canada generally fall into one of the following five categories.
1. Cashback
You’ll receive your rewards in the form of cashback, which you can usually redeem for statement credit or a deposit into your bank account. Some providers let you redeem your cashback directly towards travel, gift cards and merchandise.
Here’s an example: TD Cash Back Visa Card. Earn 1% in cash back on eligible grocery and gas purchases, as well as on regularly recurring bill payments set up on your account, and earn 0.5% in cash back on all other eligible purchases. You can redeem points for statement credit and bank deposits. Gift cards, travel and experiences are also available through TD Rewards.
2. Travel
Travel credit cards are a popular type of reward credit card, allowing Canadians to reach their travel goals more quickly. Travel cards work the same as other rewards cards – points you earn on everyday purchases can be redeemed for things like flights, car rentals or merchandise. Travel credit cards often come with airline-specific perks like priority boarding and free checked baggage. Travel credit card rewards programs generally fall into one of three categories:
Standalone programs:The AIR MILES rewards program primarily partners with BMO and Amex to offer basic and premium travel rewards credit cards to fit any budget. It’s one of the biggest travel points programs in Canada.
Bank-affiliated programs: The two big bank-affiliated travel rewards programs in Canada are the CIBC Aventura Rewards and RBC Avion Rewards programs. Both offer a selection of basic and premium travel rewards credit cards.
Airline-affiliated programs: Probably the most well-known airline affiliated travel program in Canada is the Aeroplan Rewards program, which is owned by Air Canada. It currently partners with CIBC, TD and Amex to offer a wide range of Aeroplan credit cards.
Credit cards accepted at major gas stations
At all major gas station chains, you can use your credit card — whether it’s a Visa, Mastercard or American Express. A notable exception is Costco gas stations, where you’ll need to use a Mastercard, as this is the only credit card brand accepted at Costco.
Credit card type
Petro-Canada
Shell
Canadian Tire
Costco
Esso
Visa
✅
✅
✅
❌
✅
Mastercard
✅
✅
✅
✅
✅
American Express
✅
✅
✅
❌
✅
3. Retail
Retail credit cards offer benefits and rewards tied to a particular store. These retail cards allow you to earn rewards points when you pay for purchases, which you can use for in-store discounts or travel rewards. Keep in mind that sometimes you’ll only be able to use your card with the affiliated company.
Here’s an example: With the Hudson’s Bay Mastercard from Neo, you’ll earn 4 points on almost every dollar spent in-store and online at The Bay and 2 points everywhere else, which you can redeem for discounts at Hudson’s Bay. You can use this card wherever Mastercard is accepted.
4. Category-specific — Dining, entertainment, etc.
You’ll receive accelerated rewards when you use your card for a certain category, such as restaurants or streaming services. For example, you might receive 3% cash back for one category instead of 1%, which is the normal rewards rate for purchases. Some cards have spending caps for the highest rewards rates. Here are some examples:
A hotel credit card offers bonus points when you spend with a certain hotel chain. You can often redeem points through the chain’s rewards portal for hotel stays, travel packages, point transfers and more. Here are a few of our favorite hotel loyalty programs on the market. Usually, this card type also includes hotel-specific perks like loyalty-program upgrades and resort credits.
Here’s an example: The Marriott Bonvoy American Express Card allows you to earn points towards the Marriott Bonvoy rewards program. Earn 5 points per $1 spent at hotels participating in Marriott Bonvoy, and 2 points per $1 spent elsewhere..
6. Business
Get rewarded every time you spend money on business purchases such as office supplies, Internet costs or business trips. As a business owner, you may want to look for cards offering certain benefits like free additional cards for your employees, travel insurance and easy account monitoring.
Here’s an example: The American Express Business Gold Rewards Card helps you earn on your business expenses. Earn 40,000 Membership Rewards points. Earn a Welcome Bonus of 40,000 points after spending $7,500 in purchases within the first 3 months. Plus, earn 10,000 bonus points when you charge $20,000 in net purchases to your card each calendar quarter (that's up to $400 in value every year).
Types of loyalty programs
Points program. Whenever you shop at a particular store, you get a certain number of points depending on how much you spend. These can be redeemed for some combination of rewards or discounts.
Tiered rewards. The more you shop at a store, the higher the level of customer loyalty you reach and the more points you earn. For example, frequent flyer programs offer extra points and benefits for those who fly frequently.
VIP membership. You can get special access to a company’s discounted goods or services when you pay a small annual fee; for example, having a membership at a wholesale box store like Costco.
Special perks. This loyalty program gives you fee-free perks for being a member. This could include freebies on your birthday or special coupons for discounts sent to your email.
Compare more rewards credit cards in Canada for 2024
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Who should consider getting a rewards credit card?
Consider getting a rewards card if you’re…
Frequent spenders. If you plan on using your credit card frequently, you can benefit with strong rewards.
Loyal customers. If you do most of your shopping through a particular store, a retail card can reward you especially well versus a generic rewards card.
Cardholders who make regular payments. Making timely payments is crucial if you wish to make the most of your rewards credit card. If you keep a balance on your card, you’ll accrue interest that will eat into your rewards.
Consider NOT getting a rewards card if you’re…
Someone in debt. If you’re in debt, consider a balance transfer card rather than a rewards card. It may be wise to avoid the temptation of earning rewards through additional spending.
Irregular spenders. If you don’t use your credit card regularly, it may not be worth paying the fees for a rewards card. This product type is only beneficial if the monetary value of your rewards exceeds the costs of the card.
What are the pros and cons of credit card rewards?
What are the benefits of rewards credit cards? Are there any drawbacks? Check out the pros and cons before deciding if a rewards credit card is right for you.
Pros
Rewards for spending. You’ll be able to earn rewards that you can redeem for travel, merchandise, gift cards and more.
Additional benefits. Many cards offer a number of benefits, such as travel insurance, roadside assistance and mobile device protection if you pay an annual fee.
Welcome bonus for signing up. You’ll usually receive a large amount of reward points or miles just for signing up for a rewards card.
Cards that suit your lifestyle. You can choose a card that will give you more points for the purchases you make the most, which means you’ll earn more in the long run.
Cons
Spending more than usual. With the incentive of a reward to look forward to, some cardholders are tempted to make purchases for the sake of earning rewards. Remember that you’ll need to repay the balance. Otherwise, the accumulated interest could outweigh the value you’ve received from your rewards.
Annual fees. Many rewards cards charge an annual fee for membership, so you’ll need to make sure your rewards and benefits outweigh the costs.
Rewards caps. Some providers put a cap on how many reward points you can earn at an accelerated rate, which means you’ll miss out on getting the maximum return.
Points can expire. In some cases, your reward points or miles may expire unexpectedly before you’ve had a chance to redeem them.
Low points value. Some cards offer a lower value for points than others, so you should look up the average return for the program you’re interested in before signing up.
How to choose the best rewards credit card in Canada
If you’ve decided that a rewards credit card is the best fit for you, you should consider these factors while deciding which specific card you want.
Return on rewards. The first step is to work out which credit card points are worth the most. Think about how many reward points or miles you’ll earn for every purchase and multiply this number by how much your points are worth on average. Choose the card that gives you the highest return and the highest value for your points.
Welcome offers.Look for a card that offers a large welcome bonus since this can often give you enough points to get hundreds of dollars worth of rewards.
Benefits. Search for a card that offers a solid mix of benefits and perks that you’ll actually use for a price you can afford. Benefits can include travel insurance, mobile device insurance, rental car insurance, roadside assistance and more.
Annual fee. Find a low-fee card if you don’t need many benefits, or search for a premium card that waives your first annual fee if you want extra perks and a higher return on points.
Interest rates. Try to pick a card with a maximum interest rate of 19.99% for purchases and 21.99% for cash advances. If possible, aim for a lower interest rate to save money if you intend to keep an outstanding balance on your card.
Other fees. Make sure to read your contract fully and pay attention to fees for services like cash advances, foreign transactions, and others. Look for a card that doesn’t charge for the services you use regularly.
Provider. When deciding on a rewards credit card, you can choose from many providers. These include big banks, digital banks and private companies. Look for a card from an establishment you trust, and make sure the rewards are tailored to your lifestyle.
How to calculate how much rewards points are worth
If you’re wondering how much your points or travel miles are worth for certain redemption options like merchandise or gift cards, you can follow these three simple steps to calculate the value of your points. Let’s use a gift card as an example:
Check how much the redemption option is worth. For this example, we’ll use a gift card worth $25.
Check how many points or miles you must trade for it. Let’s say you’ll have to redeem 3,000 points to get the gift card.
Divide the redemption’s monetary value by the number of points you must redeem. In this case, you would divide the $25 gift card value by the 3,000 points needed to get it: $25 / 3,000 = 0.008.
That means your points would be worth 0.8 cents apiece if you redeemed them for this gift card. That’s less than the industry standard of 1 point = 1 cent, so redeeming your points for a gift card in this example is not such a great deal.
How to maximize your points with credit card rewards
Once you decide to sign up for a rewards credit card, you can maximize the number of reward points or miles you earn by using these tricks:
Pay an annual fee for a premium card. You’ll get a higher return on rewards and a better mix of benefits when you pay an annual fee for a premium card.
Spend more in your bonus-reward categories. Your card might offer accelerated rewards for certain purchase categories. If you have the option to choose those categories, make sure to choose ones for purchases you tend to make the most. For example, if your card pays 5% cash back on groceries, it’s a no-brainer to use your card at the grocery store as much as you can.
Avoid rewards caps. Avoid rewards caps on your monthly or annual spending limits to earn more reward points or miles if you intend to spend a lot of money on your card.
Sign up for targeted rewards. Find rewards programs targeted towards the types of purchases you make the most (e.g. travel rewards for frequent flyers).
Look for a welcome bonus. Search for a card with a generous welcome bonus or a special promotional offer to load up the points in your account right from the start.
Keep an eye on expiration dates. Your points may expire if you don’t use them within a certain time period, so make sure you know how long they’ll be good for.
Be mindful of excluded purchases. Some purchases aren’t eligible for rewards, so you should look into your rewards program to find out where you stand to earn the most.
Is it worth using rewards points to pay off credit card debt?
If you’ve been steadily racking up credit card debt and have vowed to get back on track, you can likely redeem your rewards points for a statement credit and pay down some – or all – of your card balance. Credit card rewards, which include cashback, points and miles, can often be turned into statement credit that you can use to start hacking away at your debt.
How can I use reward points to pay off credit card debt? Most rewards card providers allow you to redeem points for statement credit to your account. How this is done depends on your card but generally involves the following steps:
Log on to your credit card account or your rewards account if they’re separate.
Search for payback with points or rewards.
Select the number of points that you’d like to redeem for statement credit.
Follow the prompts to complete your redemption.
Once your redemption is processed, allow several business days for the credit to be added to your card account. The cash amount you redeemed should then lower your credit card balance.
What other factors should I consider?
Before using rewards points to pay off your credit card balance, make sure you consider the following details:
Point value. Depending on your rewards program, redeeming for statement credit may not give you the best value for your points. Compare the value of statement credit against other reward options and find out which type of redemption gives you the best value.
Other cash redemption options. Compare the value of statement credit redemption with other options like gift cards. In some cases, you could get a $100 gift card for fewer points than a $100 statement credit would cost you.
Miles credit cards. If you have a credit card that earns miles, you may not be able to redeem them directly for statement credit.
Minimum payments. Statement credit is usually applied to your minimum monthly payment. This means you’ll still need to pay at least the minimum amount listed on your statement to avoid penalties.
Reward processing. Allow 2 to 30 days for your rewards or statement credit to appear in your account. Continue making payments to avoid interest and potential late penalties.
Consider your long-term expenses. If you have an upcoming trip, use your points for travel to save money on airfare.
Who can qualify for a rewards credit card in Canada?
You should be able to qualify for a rewards credit card if you have a decent credit score. Just be aware that you may need to meet certain income amounts to be eligible for premium cards. Other criteria you may need to meet include the following:
Be 18 years old or the age of majority in your province or territory.
Be a Canadian citizen or a permanent resident with a valid Canadian address and, in some cases, a SIN card.
Have a working bank account (this is sometimes not a requirement – it varies between providers).
Have an average credit score and not be struggling with bankruptcy or a consumer proposal.
You’ll also need to be willing to meet additional requirements put forth by your credit card provider to qualify in some cases. Learn more about choosing a card on the Government of Canada website.
How to apply for a rewards credit card
You can follow these steps to apply for a rewards credit card in Canada:
Apply for the card of your choice. Visit the main site of the provider you’re interested in to apply for the credit card of your choice.
Fill out application details. Fill out personal details such as your full name, address, email and phone number to start your application.
Submit to a credit check. Submit a personal credit check to get approved for the rewards credit card of your choice.
Review final details. Look at the details of your contract and make sure you understand what type of reward points and benefits you’ll get with your card.
Click submit. Once you’re ready to apply, click submit on your application or call your credit card provider directly to apply over the phone.
Wait for your card to arrive. When your application is approved, your provider should send your card out in the mail or allow you to pick it up at a branch location.
What are charity credit cards?
One of the easiest ways to deploy your spending for good is to get a charity credit card. There are different ways charity credit cards work, and it will usually depend on the type of credit card you have and the provider you choose.
Affinity credit card providers will donate a percentage of your spending to the charity.
Some providers, such as BMO, allow you to donate reward points to a charity you select from their list.
Seasonal programs, such as the Give A Mile program, allow you to donate your Air Miles Rewards Miles. For a program like this, you typically don’t need to be associated with any specific bank or card provider—as long as you collect Air Miles, you can usually participate.
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Bottom line
There are plenty of rewards credit cards on the market for you to choose from. The best rewards credit cards can be particularly useful if you travel often or you would prefer to earn points that you can redeem for merchandise or gift cards. Learn more about how rewards credit cards work and compare providers to find the best deal.
A rewards credit card lets you earn rewards when you spend with your card. These rewards could be in the form of points you can redeem for things like travel and gift cards, cash back, air miles or in-store discounts.
If the card you want to switch to offers a higher rate of points, miles or cash back, as well as more useful benefits, then it can be worth it to switch, depending on how much you spend each month. Remember that you'll want to consider other factors of the card, including the annual fee, APR and any additional fees. But if you are in the market for a new card, then it can pay to look around for a card with the best rewards program. Just make sure that you don't switch to a card that offers more points per $1 spent but a lower return when it comes to redeeming your points.
All credit cards let you pay for purchases using credit. A rewards credit card is a type of credit card that lets you earn rewards when you pay for purchases using your card. Those rewards may be in the form of points that can be redeemed for other purchases, cash back or air miles.
Cashback cards will let you earn a certain percentage of cashback for every purchase you make. This can then be applied to your credit card statement to cut down on your upfront repayment costs. Rewards cards let you earn points that you can exchange for rewards such as travel, merchandise and gift cards.
Accelerated rewards are cash back, points or miles that you earn at a higher rate than the base rate.
You can use a rewards credit card to earn cash back on purchases, to earn air miles you can redeem to pay for flights, or to earn reward points you can redeem on travel, dining, entertainment and more.
It depends on which card you have. Some will let you move reward points from one program to another while others lock your points in. You should contact your provider directly to find out whether you can move your points between programs or exchange them for cashback.
The fine print for your credit card tells you important details about your card. You may want to keep an eye out for information such as your annual fee, interest rates, how many rewards you can earn and when your points expire in the fine print to make sure you get the most out of your card.
Credit card applications are denied for a variety of reasons, including recent late payments and short employment history. You won't know the specific reason or reasons you've been denied until you contact your credit card provider directly.
Yes, some rewards cards offer 0% intro APR period, travel insurance, luggage insurance, car rental collision damage waiver, travel credit and more.
To find the best travel rewards card, you will need to compare factors such as eligible purchases, points earning rate, points caps, and card annual fees.
It depends on how often you use your card and whether you like to travel regularly. If you're a frequent credit card user and you choose a card with a high points earning rate, you'll build a points balance quickly and be able to access a wide range of travel-related rewards. However, you'll also need to factor in the card's annual fee, plus make sure to pay your card off during the interest-free grace period to decide whether a travel rewards credit card is worth it.
It depends on your spending. As a rule of thumb, get a tiered-rewards card only if you spend a lot in its bonus-reward categories. If your spending is dispersed throughout many categories, consider a flat-rate-rewards card instead.
The value of rewards can be deceptive, especially if you earn points or miles.
Here's an example: Card A has a welcome offer of 150,000 points, and Card B has a welcome offer of 75,000 points.
It may seem like Card A has a more valuable welcome offer, but its points are worth only 0.5 cents apiece. Meanwhile, Card B's points are worth 1 cent each. When you do the math, both card's welcome offers are worth the same.
Some cards will allow you to use your travel rewards points to purchase merchandise, gift cards or other goods and services, as well as trade in your points for statement credit or cash back. Most AIR MILES or Aeroplan cards won't allow you to exchange points for anything other than travel.
It depends on your card. Some credit card providers cap your earnings at a maximum amount of cashback or points earned per year. Read the fine print for any card you're interested in to see if there are points caps on your card.
A lot of the best rewards credit cards in Canada come with annual fees so the card provider can offset the cost of the benefits you receive. You should make sure that you'll use your card on an ongoing basis to earn enough rewards to at least make up for the annual fee you're spending on your card.
The other option is to look for a no-annual-fee rewards credit card. One of the best $0 fee rewards card in Canada is the Tangerine Money-Back Credit Card, which offers up to 2% cashback on category-specific purchases.
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To make sure you get accurate and helpful information, this guide has been edited by Romana King as part of our fact-checking process.
Claire Horwood was a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee. See full bio
Chelsey Hurst is a publisher at Finder, specializing in banking and investments. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature. See full bio
Learn a simple math equation to figure out how to determine the value of your credit card rewards program.
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