Best Rewards Credit Cards in Canada 2022
There comes a time when each of us has to open a credit card. Widely known that all the customers pay fees to the chosen bank. Yet, there is one thing you should know – plenty of banks offer rewards in addition to the card you get.
They understand and support their customers, so the extra point system was created. Nowadays, everyone can receive points for every purchase they make. Moreover, the types of bonuses vary.
People might get cash and travel rewards, different exclusive deals, etc. All the rates count – grocery shopping and even car refueling will bring you points that you can use to your advantage later while running errands.
Rewards Credit Cards in Canada: Best Offers
Rewards Credit Cards are pretty prevalent in Canada. Customers like their system because it helps to save up. For instance, you can afford a couple of tickets to a movie or get comprehensive coverage of travel insurance.
Also, there are various types of those cards: certain ones you can use for high-rates cashback, or with the purpose of covering flight tickets. The others are good for online stores purchasing only, or for those who have bad credit scores, etc.
With these cards, customers can afford more than expected, and that’s one of the main reasons why they are useful. Learn more about each type to compare them and select the best option for yourself.
American Express Cobalt Card
American Express Cobalt proposes the best possible offers: travel credit insurance coverage, lucrative welcome bonuses, and high rewards. In addition, customers have flexible options for the redemption of these perks.
Rates: The annual fee equals $155.88 ($12.99 monthly). Yet, extra cardholders come with the 0%. Rewards rates are even more exciting. The interest rate is decent, varying between 20.99% and 21.99%.
Each member can receive up to 30,000 points during the first year of a 12-month deal. You can earn approximately 2,500 points every time you spend more than $500 on your purchases. Also, there is a default scheme when customers get 5 points for each dollar spent on gas, at the grocery store, or on a Canadian streaming subscription.
- American Express Cobalt has an extremely generous program and allows customers to win up to 150,000 points per year.
- If you like to travel, then you can easily redeem the reward for the value of air flight tickets.
- No travel card medical insurance coverage is provided for members over 65 years.
- There is no access to the Airport lounge.
Scotiabank Gold American Express Card
The Scotia Gold American Express Card provides the best deal in 6 prevalent categories, and it charges no foreign fees. Same to a couple of other cards, Scotia adds up your account with points each time you go shopping, to the restaurant, or order food delivery, etc. It is also an excellent choice for traveling. Besides, you might redeem your rewards for more pleasant events, such as tickets to the movie theatre.
Rates: the yearly subscription is $120, but it’s waived. The interest rate is approachable, from 19.99% to 22.99%. Special bonuses will help you to grow the account. For instance, customers receive 20,000 points if they spend $1000 in the first month of the deal.
However, this offer expires at the end of October, so you have to keep an eye on the updates. Also, people are eligible to get 5 or 3 points for each $1 spent in the specified departments.
- It doesn’t matter what currency you choose to pay because there is no foreign fee. Customers just have to cover the exchange rates.
- $50,000 is the annual spending cap – then you’ll hit the 1x flat rate.
- Points expire within 12 months
American Express Green Card
The American Express Green Card is the best deal for travelers. Earning points will be as easy as spending them on your preferences. Moreover, the rewards can be used for a wide range of aspects such as concerts or shopping coverage, high-class services, etc.
Rates: Green Card has no annual fee, which makes it especially unique. The interest equals 20.99% and sometimes goes up to 21.99%. In addition, the deal provides a generous welcome offer – every member has an opportunity to receive up to 10,000 points just for subscribing.
Yet, with the green reward card, you’ll earn 1 point for each dollar. While you’re sorting the points, you can decide whether you want to spend them on Amazon purchases, gift cards, or trips with AirCanada.
- 0% annual fee
- Partnership with 6 different airlines
- The slow accumulation of the bonus
SCENE Visa Card
The SCENE reward card is one of the most adored by users. It has a high rating according to the pole among customers. Moreover, it is a perfect option for movie-goers.
You are eligible to receive a 5x multiplier on the Cineplex purchases and a special Scene+ points for each $1. Besides, the bonuses might be spent on other things than movie tickets. For example, dining and baking, shopping or traveling as well.
Rates: The SCENE Visa Card has no annual fee, which gives it a huge benefit. Interest rates vary between 19.99% and 22.99% – average numbers similar to other options. Special deals are also included. Customers can get 5,000 points with the first $750 buy within the first 3 months.
- Flexible choice of points redemption. A wide range of departments where the bonus can be used
- No annual charges
- The cashback option is absent
- No insurance is included. If you want to add it to your kit, you have to opt for it
Tangerine Money-Back Mastercard
The Tangerine Money-Back Mastercard speaks for itself. Every customer has an opportunity to choose 3 categories with the 2% cashback, while all the other departments will return 0,50% of the sum paid. That’s a great deal because you’ll have an opportunity to change the selected categories and receive a larger cashback from different departments monthly.
Rates: The annual fee of the Tangerine reward card equals 0%. The interest rates won’t be an obstacle as well – they go up to 19.95%. However, the intro offer might seem not that generous in comparison to other card options. Customers can get about $150 as a welcome bonus. Still, Tangerine always offers extra deals, so keep checking on the updates.
- You’re eligible to get a 1.95% interest when you transfer balances within the first 30 days. At this rate, you’ll have the same interest for half a year (after or without this deal 19.95%)
- Customers have an opportunity to select 3 departments on which they want to put 2% cashback. The range of choices is wide.
- Tangerine is an online bank only – there are no physical points available
Blue Cash Preferred Card from American Express
This is another decent reward card for a large cashback. Blue Cash Preferred Card from American Express provides Disney Bundle, meaning you can return back credit of about $85 annually for spending $13.99 or more on Disney, Hulu, etc.
The same scheme works with the Equinox workout resources, where you can save up to $120 yearly. And all these customers get just for 2% deal.
Rates: The annual charges equal $95. Yet, there is a plan that works only for the first 12 months, allowing you to pay 0% APR. Then it varies from 16.24% to 27.24%, depending on the terms you agree on. The interest rates won’t scare you as well – they averagely vary from 19.99% to 21.99%.
Also, as a welcome offer, American Express provides the opportunity to earn $350 back. After the first purchase of $3,000 during the first 6 months of the subscription, customers will have an opportunity to receive a specified sum back.
- Welcome offer up to $350
- An unlimited 2% return rate
- Other cards provide double the cashback amount that is proposed by Blue Cash
Delta SkyMiles Gold American Express Card
The name of the card gives you an idea of what it is good for. Delta SkyMiles provides highly lucrative bonuses and makes your trip pleasant and convenient. Besides, you can earn 2x points by purchasing in the different departments, such as groceries or dining, and 1x in the others.
Rates: For the first year, American Express offers 0% annual fees. Yet, after a long subscription, it will constitute $99. The interest rate varies between 20.99% and 21.99%.
Also, each customer can receive a special offer while signing up. For instance, there is a 75,000 points bonus available when you spend $2000 in purchases during the first 3 months of the contract.
- Large rewards up to 75,000 points within the first 3 months
- Convenient terms for travelers
- A tiered bonus system, meaning the next year you’ll have to receive twice as many points as you received during the first year
Laurentian Bank Visa Infinite Card
The Laurentian Bank Visa Infinite Card offers a wide range of opportunities. Among all the perks, you can find travel insurance coverage, generous bonus programs, hefty cashback, flexible ways of getting rewards, and many more pleasant benefits.
Rates: The yearly charges equal $130, which is a bit higher than other cards’ offers. However, the interest rate is 19.99% and not that complex to cover. Multipliers are standard – 2x for pre-authorized debits, grocery, gas, travel, transportation, and 1x for all possible purchases. Customers can redeem their rewards for various things such as merchandise, cashback, gift cards, etc.
- Laurentian Infinite Card has no spending caps as well as no expiration policy
- Travel insurance is tailored to customers with an age gap between 66 and 75. They are eligible to receive up to 5 million in out-of-province insurance coverage.
- The intro offer and bonus points are absent
- Premium Airport perks are not included as well
MBNA Rewards Platinum Plus Mastercard
The MBNA Rewards Platinum Plus Mastercard is convenient in usage and provides generous programs. For instance, it covers common departments where customers shop daily and offers flexible options to redeem the reward.
Rates: The MBNA card has no annual fee, which helps to save up some money. Moreover, it provides plenty of bonus programs such as Birthday Points or cashback, etc. The interest varies between 19.99% and 24.99%, depending on what terms you’ve subscribed to.
As new members, customers have an opportunity to get up to 10,000 points. The first half of the bonus comes after you spend $500 or more during the first 90 days, and the second part comes when you enroll yourself in paperless e-statements within the same time period.
- Large bonuses and availability of the Birthday Offer
- Convenient ways of redemption tailored to the customers with the no-expiration policy
- Travel insurance isn’t included
- The multiplier rate decreases to 2x after the first 3 months, and it drops to 1x when you reach $10,000 in purchasing
Amazon.ca Rewards Mastercard
This card is eligible for all kinds of Amazon spending. Moreover, it provides 2,5% of cashback on various items and subscriptions. In addition, there is even a money return feature for foreign currency transactions.
Rates: Amazon rewards include a 0% annual fee with common interest rates of 19.99% to 22.99%. Customers can enjoy a wide range of other services, such as support while traveling or unexpected emergency medical coverage.
Also, after the registration, people are eligible to refund 5% of their first $3000 purchase. There is also a $150 reward that you can get for the 6 months after signing up.
- No yearly fees
- The card covers a wide range of Amazon features such as Amazon Prime and all the possible extras. Also, you can redeem your reward for Whole Foods
- You have to confirm that your income rate is high enough to be qualified for the Amazon card plan
CIBC Costco Mastercard
The Costco card is specified for its members. It provides a decent cashback system and other perks that can be used and redeemed at Costco. Yet, you can acquire these bonuses elsewhere. For instance, gas stations, grocery shopping, and common purchases.
Rates: The annual charges are 0%. The interest rates are approachable as well – 19.75% to 21.49%. However, the welcome bonus is a bit small. Costco gives a $20 reward to previous cardholders. It means only those who have been registered before and now want to receive a new card will get the bonus.
Costco is also known for its quality cashback system. Customers are eligible to get a 3% return on restaurants and Costco gas, 2% on other gas and costco.ca websites, and 1% on Costco and general purchases.
- Can be considered a coscto.ca membership card
- There are several spending plans that allow purchasing more than $100
- Gift certificates are issued once a year
- To get the reward, you need to have a Costco Wholesale membership
What is Reward Credit Card?
Reward Credit Cards are one of the cashback program formats. It offers a decent deal – customers can receive points or travel sales from each purchase they proceed with.
However, there are some limits that you should consider before getting the card. For instance, it might cover the flight insurance but only in the specified areas. People can use those for a variety of purposes, depending on the selected card type.
Reward cards work a bit differently from the common ones. Customers have to stick to the rules of redemption and consider whether particular things can be covered with the reward or not. Usually, it’s possible to receive the points in a form of a gift card, travel perks, checks, etc.
How to Find the Best Rewards Credit Card for You
When shopping for a rewards credit card, it’s important to know specific criteria. You might lose a better deal if you wouldn’t know the main features:
- Annual fees. As mentioned before, each bank charges fees for card utilization. Sometimes the rates go up to hundreds of dollars. It makes the whole reward card deal pointless because customers must overpay. Make sure you’re getting more points than you spend.
- Interest rates. The same thing works with interest. In some cases, the interest might cost you more than the actual positive outcome of having a reward card. It happens that people also have to pay extras for redemption, which adds up to the already large sum. Quality programs might have higher rates, but still, make sure you’ve learned all the details of the credit card deal beforehand.
- Tiered rewards. Some customers misunderstand this aspect of the credit agreement. Particular rewards require new circumstances each time. Besides, it’s better to stick to fixed promotions. At this rate, you won’t have to overpay or be anxious because of the unexpected change of terms.
- Spending Caps. Most of the deals have limits. For example, you may use the card at the specified place or spend no more than the cashback cap. Sometimes the limits are lower than you wish. To avoid disappointment and get exactly what you wanted for the received point, always go in-deep into reward credit card information and check conditions.
Pros and Cons of Rewards Cards
All the reward credit cards have positive and negative sides. Some of the aspects are easy to negotiate and accept, but others become an obstacle while using the deal. Let’s see what the main benefits and drawbacks of them to decide whether it’s worth it or not are.
|Doesn’t matter what the condition of your credit is – you’ll be eligible to get the reward card||The best deal requires fair or good credit|
|Certain cards have larger miles and points, which makes them more valuable||Some miles and points might not equal the expected outcome and can be devalued|
|Most credit cards best offer is a 0% annual fee||High-interest rates and APRs can negate the value of the received bonuses. They are common, and you can do nothing with them but choose the other deal|
|Some rewards include extras such as travel insurance coverage or annual travel points||Those cards that offer the best perks and benefits usually conduct high fees|
|Each customer receives a certain percentage of the purchase back in the form of cashback or credits||In many cases, promotions can be taken away due to a wide range of reasons: delay of payments, account inactivity, or a profile dissolution. All the rewards also have an expiration date|
In general, rewards cards are a decent deal. As long as you keep track of your recurring bill payments and don’t overuse the credit, you’ll receive points and miles to your advantage.
Which credit card is best for reward points?
It’s impossible to choose the best reward card. Customers can find a variety of beneficial deals out there. For instance, American Express and MBNA Rewards Platinum Mastercard are good to start. Both have a 0% annual fee and offer an average interest rate of up to 20-25%. Moreover, new participants have an opportunity to receive up to 10,000 points as an intro offer.
What are the 3 drawbacks of having a reward credit card?
All the cards are different, so it’s complicated to come up with overall drawbacks. Yet, people sometimes complain about annual fees, although most of the deals come with 0% of annual charges. The other negative aspect is high interest and APRs. They might be worth more than the actual reward. Also, bonuses can be devalued due to late payments or account inactivity.
Is it worth getting a reward credit card?
Yes, rewards cards make good use. The main rule is not to overuse them and not to go over the limits, sinking into debt. Plenty of the programs offer beneficial deals such as extra points and miles. Customers can use those for travel insurance, movie tickets, Amazon purchases, etc.
What is a reward on a credit card?
Rewards on credit cards appear in different forms. For example, it might be a cashback or travel miles, or bonus points. Customers receive those for every dollar they spend buying food at the grocery store or paying at the gas station. According to the cards’ terms, people can spend these rewards on specified things.