5 Best Rewards Credit Cards in Canada

Friday 28th, October 2011 / 09:51 Written by
5 Best Rewards Credit Cards in Canada

Many people have credit cards. Numerous institutions are encouraging people to use their cards. Some only charge a fee for using their products while others give incentives for the amount of money you spend with the card. There are many different credit card reward types that you stand to benefit from. The more you use your card the greater the benefits. In most cases, you will earn a certain percentage or number for a specific amount of money that is charged on your card.

Types of credit card rewards

The incentives given vary depending on several factors. Some reward more than others for spending money in particular areas while others reward you for certain purchases. There are multiple types of credit card rewards. They can be classified into three categories. These include cash, miles or points.

Cash rewards are easy to use. Out of all the options they are the most straightforward. Cash rewards cards do not always allow you to get cash. Depending on the program you can be allowed to redeem the rewards as credit to your account. One thing that you should keep in mind is that they do not typically count as payment to your account. In some cases a check will be sent or deposit made into your account when you want to redeem the reward. Alternatively, you may redeem cash rewards for gift cards.

Point rewards are issued based on every dollar you use. Points can be redeemed for goods in the online shopping mall reward program. There are cases that you may be allowed to redeem points for cash, card or travel.

Miles or travel rewards cards are ideal for people who travel regularly. They reward you with miles, which you can redeem for airline tickets. The number of miles that you will get depends on the credit card. The miles needed to purchase a flight varies by the frequent flier program.

Basically travel cards can be used for a variety of things. There are many companies that offer rewards credit cards in Canada. They have different terms, programs and incentives that you can enjoy and utilize.

Which is the best card?

Giving you a perfect answer to the question which is the best card? is hard. There are more than 75 travel rewards credit cards that Canadians can acquire. The choice of which card to choose depends on multiple factors but you should always go for the option that you will gain significantly from. Some of the things that you should always factor in are the cost of ownership, associated loyalty program, rate of return, card acceptance, ease of redemption, the issuing bank and benefits, and partnerships.

5 of the best rewards credit cards in Canada

The best travel points credit card with an annual fee is the Capital One Aspire Travel World MasterCard. It has been the choice of many people for a number of years. It is better than other cards because you will earn more reward miles for every purchase you make. 2 reward miles are earned for every $1 you spend on purchases. With your first purchase you are assured of getting 35,000 bonus reward miles. In addition, every year you will get 10,000 anniversary bonus reward miles. There is however, a requirement of getting the card. You have to have a minimum personal income of $60,000 or a household income of $100,000.

The best travel points credit card with no annual fee is the American Express Blue Sky Credit Card. It has numerous benefits that you can enjoy. You can redeem points against booked travel up to 12 months after the charge has been posted. Simply put, it allows you to book first then afterwards spend to pay it off. It offers a percentage of 1.25 return on purchases. The amount that you can redeem is small. You can even redeem 10,000 points. This means that you only have to spend $8,000 if the sign up bonus is excluded.

American Express Gold Rewards Card is the top hybrid credit card with an annual fee. You will earn 2 points for every dollar you spend on gas, at the drug store, grocery and travel purchases. 1 point per dollar is earned on other spending. 2 reward miles are earned for each $1 spent on all purchases. The annual reward fee is waived for the first year.

CIBC Aerogold Visa Infinite Card is one of the most popular airline credit cards. You earn 1.5 Aeroplan miles on grocery, gas station purchases and at the drug store. You can double dip on multiple partners with the CIBC Aerogold Visa Infinite and your Aeroplan card.

Starwood Preferred Guest Credit Card from American Express is the hotel credit card of choice for many individuals. You can redeem starpoints for staying in hotels worldwide, with a considerable rate of return of 5% depending on the season and hotel. There are a bunch of other reasons that have made it the top hotel credit card.

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