Shop Canada's Best Rewards Credit Cards

Rewards Credit Cards

Rewards credit cards culminate in an array of benefits many other credit cards cannot guarantee. If you feel that your spending doesn’t have an end-game, a rewards card allows you to spend with a purpose. Through collecting AIR MILES or points after expenditures, you can redeem them for travel, access to your favourite events, or earn cash back and use it for anything. If you don't have one, you're missing out on the fun, and here's why.

What Are Rewards Credit Cards and Their Benefits?  

As mentioned, rewards cards allow you to collect AIR MILES, earn points and receive other benefits after making a certain amount of credit card purchases. They prompt you to use your credit card more by earning a number or percentage of rewards for every dollar you spend. There are various rewards cards out there for your choosing, depending on what you need most. Rewards cards types range from AIR MILES rewards cards to rewards cards for business and travel. They each come with minimum income eligibility in order to use them. But no matter if you are working a nine-to-five or in school, there's a quality rewards card out there just for you.  

Rewards credit cards benefits are endless. These benefits fit the "bang for your buck" concept as you can control your everyday purchases and even earn discounts along the way. The points are an incentive that motivates you to spend money with intelligence. Months from account opening, whether it’s with BMO or Scotiabank, you can snag introductory points once you sign up. As a sign-up bonus, you can get welcome points (in some cases, up to 20,000) or cash back. Those points can score you a free flight or flight upgrade, get you free airport lounge access as well as travel insurance. You can make your next trip a comfortable one knowing all your accommodations and security are settled. Plus, you can get a discount on your car rental when using your rewards card, with up to 25% off at National and Alamo car rental locations.

Just as important, if not more so, is that rewards cards feature many insurance coverages to protect every dollar you spend. You can secure an extended warranty, price protection, and security against unauthorized transactions. You get perks, coverage left and right while boosting credit scores all in one. It’s a very enticing packaged deal, but take that deal with caution.

How Do Rewards Credit Cards Work?

Even though these cards are in abundance and you’re eager to use them if you haven’t already, they can’t be used everywhere.  Or, at least you won’t get the same benefits if you use them everywhere.

You can rack up points if you make credit card purchases at participating outlets such as supermarkets, gas stations, car rental locations, and others. You can earn twice the points at those specific outlets as you would by making rewards card purchases at other locations. It helps to read your card's terms and conditions in case you're not sure where and how to use them.

With some cards, your bank will send a cheque or deposit money to your bank account once you want to redeem your rewards. If you’re using a cashback rewards card, it’s important to note that these cards don’t always pay you back in cash. Some banks will allow you to redeem your cash rewards as a credit to your account. However, that credit doesn’t necessarily count as a payment on your account, covering the spending you just did. As an alternative, you can redeem cash rewards for gift cards from your card issuer’s partners.

Should you be using a rewards card where you collect points, you can redeem your points for travel, cash, or gifts cards. Those gift cards could come with a 10% or 20% discount off their price. With AIR MILES cards, the amount of miles you earn depends on the Frequent Flyer Program. You can even convert points between programs, though you may lose some points in the process. Because many AIR MILES cards require that you spend $20 for one mile, it takes a while to accumulate the points you need for travel.

How Do You Decide What Type of Rewards Card to Get?

The rewards card you get depends on your taste. However, the biggest thing you need to check is whether or not the card has an annual fee. Many cards come with an annual fee, which doesn’t give you the freedom to enjoy full rewards benefits. There are good no annual fee cards (either in the first year or in general) that offer bonus points and other welcome offers. You want to maximize the rewards or cash you get, so start there.

Also, watch out for the interest rates on purchases and balance transfers, with most year-round purchase rates valued at 19.99% and 22.99% on balance transfers. Some cards will waive the interest rate for a particular period to encourage usage.

Land a rewards card that suits your needs and not just your wants. If you are a frequent traveller, not only is an AIR MILES rewards card useful, but a hotel rewards card makes sense too. They earn you rewards during your stay at a hotel and add points to your credit. If you make close to six figures a year in your job and have to leave the country, a world MasterCard may be a worthwhile option. You can make a travel purchase without the hassle and do online shopping without worrying about extra charges.

There are also gas credit cards that stations, such as Shell, offer, giving you cashback rebates. Choose a card for convenience that you or your business benefits from. There are business rewards cards that provide incentives for employers as well as protection against reckless employee spending.

Rewards cards are ample and can be hard to choose from. At shoptherate.ca, you can compare rewards credit cards and apply right away if you like what you see. Start your search now!