Best Rewards Credit Cards in Canada (2024)

Discover how to choose the ideal option and maximize and your spending

In Canada, the right rewards credit card can turn your everyday purchases into valuable rewards, whether you prefer cash back, travel points, or other perks. Choosing the best rewards credit card depends on your spending habits and lifestyle. This comprehensive guide will help you identify the top rewards credit cards available in Canada and how to select the one that suits you best.

Understanding Rewards Credit Cards

Rewards credit cards offer various incentives for cardholders, typically categorized into three main types:

1. Cash Back Rewards: Earn a percentage of your spending back in cash.
2. Travel Rewards: Accumulate points or miles that can be redeemed for flights, hotels, and other travel-related expenses.
3. Points Rewards: Collect points that can be used for a variety of rewards, including merchandise, gift cards, or statement credits.

Top Rewards Credit Cards in Canada

Here are some of the best rewards credit cards available in Canada, each offering unique benefits to match different spending patterns and preferences:

1. American Express Cobalt® Card

• Rewards: 5x points on dining and groceries, 2x points on travel and transit, 1x points on all other purchases.
• Annual Fee: $155.88 ($12.99 per month)
• Welcome Bonus: Earn up to 30,000 points in the first year.
• Other Benefits: Comprehensive travel insurance, access to Amex Offers, and Front Of The Line® presale tickets.

2. TD® Aeroplan® Visa Infinite Card

• Rewards: Earn 1.5 Aeroplan points per dollar spent on gas, groceries, and Air Canada purchases, 1 point on all other purchases.
• Annual Fee: $139 (first year rebated)
• Welcome Bonus: Up to 20,000 Aeroplan points.
• Other Benefits: Free first checked bag on Air Canada flights, comprehensive travel insurance, and priority boarding.

3. Scotiabank Gold American Express® Card

• Rewards: 5x points on dining, groceries, and entertainment, 3x points on gas, transit, and streaming services, 1x points on all other purchases.
• Annual Fee: $120
• Welcome Bonus: Earn up to 25,000 points in the first year.
• Other Benefits: No foreign transaction fees, comprehensive travel insurance, and access to Amex Offers.

4. CIBC Dividend® Visa Infinite Card

• Rewards: 4% cash back on gas and groceries, 2% on dining, transportation, and recurring bills, 1% on all other purchases.
• Annual Fee: $120 (first year rebated)
• Welcome Bonus: Up to 10% cash back in the first four months.
• Other Benefits: Comprehensive travel insurance, mobile device insurance, and access to Visa Infinite benefits.

5. BMO® World Elite™ Mastercard®

• Rewards: 3 BMO Rewards points per dollar spent on travel, dining, and entertainment, 2 points on all other purchases.
• Annual Fee: $150 (first year rebated)
• Welcome Bonus: Up to 35,000 BMO Rewards points.
• Other Benefits: Comprehensive travel insurance, airport lounge access with Mastercard Travel Pass, and no foreign transaction fees.

How to Choose the Best Rewards Credit Card

When selecting a rewards credit card, consider the following factors to ensure you pick the one that best matches your needs:

1. Spending Habits

Analyze your spending patterns to determine which card will maximize your rewards. If you spend a lot on dining and groceries, a card that offers high rewards in these categories, like the American Express Cobalt® Card, would be ideal.

2. Annual Fees

Evaluate whether the rewards and benefits outweigh the annual fee. Many cards offer first-year fee waivers or welcome bonuses that can offset the cost. For instance, the TD® Aeroplan® Visa Infinite Card offers a first-year annual fee rebate and a substantial welcome bonus.

3. Redemption Options

Consider how you want to redeem your rewards. If you prefer flexible redemption options, look for cards that offer points convertible to various rewards. Travel enthusiasts might benefit more from travel rewards cards like the TD® Aeroplan® Visa Infinite Card.

4. Additional Benefits

Look at the additional perks and benefits offered by the card, such as travel insurance, purchase protection, and access to exclusive events. These benefits can add significant value to your card.

5. Foreign Transaction Fees

If you frequently travel abroad or shop online from international retailers, choose a card with no foreign transaction fees, like the Scotiabank Gold American Express® Card.

Tips for Maximizing Your Rewards

1. Use Your Card for Everyday Purchases: Maximize your rewards by using your credit card for all eligible purchases, including groceries, dining, and utilities.
2. Pay Your Balance in Full: Avoid interest charges by paying off your balance in full each month. This practice ensures you reap the rewards without incurring debt.
3. Take Advantage of Bonus Categories: Focus your spending on categories that offer the highest rewards. For example, use a card with high rewards on dining and groceries for those specific purchases.
4. Utilize Sign-Up Bonuses: Make the most of welcome bonuses by meeting the spending requirements within the specified time frame.

Conclusion

Finding the best rewards credit card in Canada depends on your spending habits, lifestyle, and financial goals. By considering the top cards listed above and evaluating your personal needs, you can choose a card that maximizes your rewards and enhances your financial well-being. Remember to use your card responsibly, pay off your balance each month, and take full advantage of the benefits and rewards offered.