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This puts you in the driver’s seat when it comes to choosing a credit card that best suits your needs. But how to choose? The vast majority of credit cards offer either cash back rewards or travel benefits because that’s what most people want. Whether you want either of those or some combination of both will help you make an informed decision. Other major factors will be the annual fees and interest rates.
We know searching for that perfect card can be daunting, so we’re here to help with a list of our best rewards cards for different needs. We’ve compared cards against a range of criteria – annual fees, benefits, interest rates, etc. – to create a list of the Top Rewards Cards in Canada.
Best Travel Rewards Credit Card
RBC Avion Visa Infinite Card
Required credit score: 660+ (fair to good)
Interest rate: 20.99%
Annual fee: $120
The reason that the RBC Avion Visa Infinite Card is considered to be the best travel rewards credit card is because of how you can redeem the points. They can be used for flights, hotels, car rentals and more. Plus, these points can be used when you travel in Canada as well as abroad, and you can travel with no blackout dates. The conversion for points is simple, too, because every 100 points is equal to $1.
When it comes to earning points, you can get 1.25 points for every travel purchase and 1 point on all other eligible purchases. What’s also great is that these points never expire. These aren’t the only perks that you get, either. Some others are:
- Saving 3 cents per litre and earning 20% more points at the petro
- Earning 50 points for every $1 spent at Rexall
- Getting up to 20% off at Hertz and earning 3x the Avion points
- Getting a free DashPass Subscription for 12 months
- Access to Visa Infinite Perks
- Out-of-Province/Country Emergency Medical Insurance
- Travel Accident Insurance
- Auto Rental Collision/Loss Damage Waiver Insurance
- Trip Cancellation and Trip Interruption Insurance
- Delayed Baggage and Flight Delay Insurance
- Hotel/Motel Burglary Insurance
- Purchase Security and Extended Warranty Insurance
- Mobile Device Insurance up to $1,500
- Additional Optional Insurances
Best Cash Back Credit Card
Neo World Elite MasterCard
Required credit score: 660+ (fair to good)
Interest rate: 19.99$-29.99%
Annual fee: $0
While there is an income requirement for the Neo World Elite MasterCard, it’s still considered to be the best cash back card in Canada. In order to be eligible, you must have a personal income of $80,000 or a household income of $150,000. However, you do earn some of the best cash back rates out there, and you can increase those by opening a free Neo Money Account.
When it comes to cash back, you can earn 5% back on groceries, 4% on recurring payments, 3% on gas, and 1% on everything else. If you have a Neo money account, you can then get the boosted rates, which are 7% on groceries, 5% on recurring payments, 4% on gas, and 1% on everything else.
Some other great benefits included with this card are:
- Extended Warranty and Purchase Protection
- Auto Rental Collision Loss Damage
- An additional card
- Out-of-Province/Country Emergency Medical Insurance
- Delayed and Lost Baggage Insurance
- Flight Delay Insurance
- Trip Cancellation and Trip Interruption Insurance
- Hotel and Motel Burglary Insurance
- Car Rental Personal Effects Insurance
- Car Rental Accidental Death and Dismemberment Insurance
Best Credit Builder Credit Card
Canadian Tire Mastercard
Required credit score: 625 and higher
Interest rate: 21.99%
Annual fee: $0
With no annual fee, the Canadian Tire Mastercard is a basic card that is great for those looking to increase their credit score. With just a few months of increasing your score, you could move on to different credit cards that earn better rewards.
With this card, you can earn 4% Canadian Tire money on certain purchases, including qualifying purchases at:
- Canadian Tire
- Sport Check
- Mark’s
- L’Equipeur
- Atmosphere
- Party City
- Pro Hockey Life
- Sports Rousseau
- Hockey Experts
- L’Entrepot du Hockey
- Other participating sports expert stores
You can also earn 5 cents per litre in Canadian Tire money on gas and fuel purchases. There’s 1.5% at grocery stores (except Costco and Walmart) and 0.5% everywhere else. Other perks include no receipt returns, no fee and no interest financing as well as weekly personalized offers.
Best Student Credit Card
CIBC Dividend Visa Card for Students
Required credit score: 660+ (fair to good)
Interest rate: 20.99%
Annual fee: $0
The CIBC Dividend Visa Card for Students has been the number one student credit card for a while. There’s no minimum income requirement, and Canadian students can get up to a credit limit of $5,000. International students can get a credit limit of up to $2,000.
When it comes to rewards, you can earn 2% back on groceries and 1% back on:
- Gas
- Electric vehicle charging
- Transportation
- Dining
- Recurring Payments
On all other purchases, you earn 0.5% back.
Other perks included with this card are:
- A 12-month free Skip+ trial
- A free SPC membership
- Purchase Security Insurance
- Extended Warranty Coverage
- CIBC Pace It
Best Overall Rewards Credit Card
American Express Cobalt Card
Required credit score: 660+ (fair to good)
Interest rate: 21.99%
Annual fee: $155.88
With the American Express Cobalt Card, you can get additional cards for no annual fee, and your annual fee is broken down into a monthly fee of $12.99. There are no income requirements for this particular Amex card, and the points you earn are high. You can earn 5x the points on eats and drinks, 3x on streaming subscriptions and 2x on gas (including transit and ride share). On all other purchases, you earn 1x the points.
Some of the other perks included with this card are:
- Front of the Line sales
- The Hotel Collection
- Up to $60 in statement credits with Instacart
- The ability to pay for almost anything with points
- Cobalt Cardmember perks
- Mobile Device Insurance
- Out-of-Province/Country Emergency Medical Insurance
- Flight Delay Insurance
- Baggage Delay Insurance
- Hotel Burglary Insurance
- Lost or Stolen Baggage Insurance
- $250,000 Travel Accident Insurance
- Car Rental Theft and Damage Insurance
- Amex Experiences
- Buyer’s Assistance Protection Plan
- Purchase Protection Plan
- 24/7 Customer Service
- Fraud Protection Guarantee
- Emergency Card Replacement
- American Express SafeKey
- American Express Travel Online
- Plan It - Installment Program
Best Points Credit Card
Scotiabank Gold American Express Card
Required credit score: 660+ (fair to good)
Interest rate: 20.99%
Annual fee: $120
The Scotiabank Gold American Express Card is not only a great rewards card for points, but it’s also a great travel credit card. This is because there’s no foreign transaction fee on foreign currency purchases; it’s just the exchange rate that applies.
When it comes to points with this card, you can earn up to 6x the points for every $1 spent in Canada on eligible dining, grocery and entertainment purchases. You also get some other really great options because it’s an American Express Card. These offers include:
- Amex Offers
- Front of the Line Presale Tickets
- Front of the Line Reserved Tickets
- Special Offers and Experiences for all Cardmembers
- Booking and redeeming flights through Scene+ Travel
- Complimentary concierge services
- Airport Lounge Access
- Travel Emergency Medical Insurance
- Trip Cancellation/Trip Interruption Insurance
- Flight Delay Insurance
- Delayed and Lost Baggage Insurance
- Travel Accident Insurance
- Rental Car Collision Loss/Damage Insurance
- Hotel/Motel Burglary Insurance
- Mobile Device Insurance
- Purchase Security and Extended Warranty Protection
Best No Annual Fee Rewards Card
Tangerine World Mastercard
Required credit score: 660+ (fair to good)
Interest rate: 20.95%
Annual fee: $0
With the Tangerine World Mastercard, you can earn rewards points with no annual fee. With this card, you can also earn 2% cash back on two categories and 0.5% back on all other purchases. When you open a Tangerine Savings Account, you can unlock a 3rd category where you also earn 2% back. Other benefits included with this card are:
- Flexiroam (1GB global roaming data plan)
- 7% off at booking.com
- On-demand and subscription services
- Purchase Assurance and Warranty
- Mobile Device Insurance
- Rental Car Insurance
Other Great Rewards Credit Cards
MBNA Rewards World Elite Mastercard
Required credit score: 660+ (fair to good)
Interest rate: 19.99%
Annual fee: $120
The MBNA Rewards World Elite Mastercard allows you to earn lots of points on all of your purchases. You can earn 20,000 points after $2,000 or more in eligible purchases within the first 90 days of your account opening. You can also get a 10,000-point bonus after enrolling for paperless statements in the first 90 days.
When it comes to everyday points, you can earn 5 points for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases. The maximum limit on this is $50,000 spent annually. After that, it’s 1 point per dollar. However, you can also get a bonus of 10% of the total number of points in the 12 months before your birthday.
Rewarding points can be used for anything, such as travel, merchandise, and gift cards. You can also use the MBNA payment plan to break down your payments into affordable amounts. Other benefits you can get with this card include:
- Emergency Card Replacement
- Trip Assistance and Legal Services
- Rental Vehicle Benefits
- Collision Damage Waiver Benefits
- Travel Medical Insurance
- Delayed and Lost Baggage Insurance
- Flight/Trip Delay Insurance
- Mobile Device Insurance
- Price Protection Services
- Avis Rent a Car and Budget Rent a Car discounts
Scotiabank Momentum Visa Infinite Card
Required credit score: 660+ (fair to good)
Interest rate: 20.99%
Annual fee: $120
With this card, there’s a minimum credit limit of $5000, and you can get the first-year annual fee waived. When it comes to cash back, you can get 4% back on groceries and recurring payments, 2% on gas and daily transit, and 1% back on everything else.
Benefits included with this card are:
- Visa Infinite Concierge Services
- Visa Infinite Hotel Collection
- Visa Infinite Dining and Wine Country Program
- Car Rental Discounts
- New Mobile Device Insurance
- Trip Cancellation and Trip Interruption Insurance
- Travel Emergency Medical Insurance
- Flight Delay Insurance
- Delayed and Lost Baggage Insurance
- Travel Accident Insurance
- Rental Car Collision Loss/Damage Insurance
- Purchase Security and Extended Warranty Protection
National Bank World Elite Mastercard
Required credit score: 660+ (fair to good)
Interest rate: 20.99%
Annual fee: $150
The National Bank World Elite Mastercard is another great option for those looking to earn rewards. You can earn 5 points on grocery and restaurant purchases, and 2 points on gas and electric vehicle charging, recurring bill payments or a la carte travel. For all other purchases, you earn 1 point. Other benefits included with this card are:
- Out-of-Province Hospital Medical Insurance
- Flight Cancellation or Trip Interruption Insurance
- Delayed Flight and Stolen Luggage Insurance
- Stolen or Lost Luggage Insurance
- Vehicle Rental Insurance
- Medical, Legal or General Assistance
- Purchase Protection Insurance
- Extended Warranty Coverage
- Mobile Device Insurance
- Fraud Protection
BMO CashBack World Elite Mastercard
Required credit score: 660+ (fair to good)
Interest rate: 21.99%
Annual fee: $120
The BMO CashBack World Elite Mastercard allows you to earn 5% back on groceries, 4% on transit, 3% on gas and electric vehicle charging, and 2% on recurring bills. With all other purchases, you get 1% back. However, these aren’t the only perks that you can get with this card. You can also get:
- Car rental discounts with National, Alamo and Enterprise
- Complimentary Mastercard Travel Pass by DragonPass
- Mastercard Travel Rewards cash back offers
- Extended Warranty and Purchase Protection
- 7% off at Booking.com
- FlexiRoam
- BMO PaySmart
- Travel and Medical Protection
- Roadside Assistance
TD Aeroplan Visa Platinum Credit Card
Required credit score: 660+ (fair to good)
Interest rate: 21.99%
Annual fee: $89
The TD Aeroplan Visa Platinum Card allows you to continually earn points when you use your card. You can get 1 point for every $1 you spend on eligible gas, electric vehicle charging, grocery and Air Canada purchases. For all other purchases, you earn 1 point for every $1.50. If you shop with Aeroplan partners, then you get double the points when you provide your Aeroplan number.
Other benefits included with this card are:
- Delayed and Lost Baggage Insurance
- Flight/Trip Delay Insurance
- Common Carrier Travel Accident Insurance
- Auto Rental Collision/Loss Damage Insurance
- Emergency Travel Assistance Services
- Hotel/Motel Burglary Insurance
- TD Payment Plans
- Discounts with Budget Rent a Car and Avis Rent a Car
- Purchase Security and Extended Warranty Protection
- Mobile Device Insurance
TD Aeroplan Visa Infinite Card
Required credit score: 660+ (fair to good)
Interest rate: 21.99%
Annual fee: $139
In order to get the TD Aeroplan Visa Infinite Card, you either need to have a personal income of $60,000 or a household income of $100,000. You can earn 1.5 points for every $1 spent on eligible gas, grocery, and Air Canada purchases. You can earn 1 point for every dollar spent on all other purchases. Shopping with the Aeroplan estore can earn you double the points.
Another great thing about this card is that there are travel benefits for you and up to 8 companions on the same flight operated by Air Canada, Air Canada Rouge or Air Canada Express. You can get your first checked bag free, complimentary upgrades to Avis Preferred Plus, and you can reach Aeroplan Elite Status quicker.
Other benefits included with this card are:
- Complimentary Visa Infinite Concierge
- Visa Infinite Luxury Hotel Collection
- Visa Infinite Dining Series
- Visa Infinite Wine Country Program
- Visa Infinite Entertainment Access
- Visa Infinite Troon Golf
- TD Payment Plans
- Mobile Device Insurance
- Purchase Security and Extended Warranty Protection
- The ability to earn up to 50% more stars with Starbucks
SimplyCash Preferred Card from American Express
Required credit score: 660+ (fair to good)
Interest rate: 21.99%
Annual fee: $119.99
With the SimplyCash Preferred Card from American Express not only do you earn some great cash back, but your annual fee is broken up into monthly payments of $9.99. You can earn 4% back on eligible gas station purchases, 4% back on grocery purchases, and up to 2% back on everything else.
Other benefits included with this American Express card are:
- Out-of-Province/Country Emergency Medical Insurance
- Flight Delay Insurance
- Baggage Delay Insurance
- Hotel Burglary Insurance
- Lost or Stolen Baggage Insurance
- $100,000 Travel Accident Insurance
- Car Rental Theft and Damage Insurance
- Mobile Device Insurance
- Front of the Line Amex Presale and Reserved Tickets
- Onsite Benefits with Amex Experiences
- Buyers Assurance Protection Plan
- Purchase Protection Plan
- 24/7 Customer Service
- Fraud Protection Guarantee
- Emergency Card Replacement
- American Express SafeKey
- Amex Offers
- Instacard Benefit
- American Express Travel Online
- Member Extras
Reasons to Get a Rewards Credit Card
Honestly, there are many different reasons as to why you would want to get a rewards credit card. That said, they work best if you pay your balance off in full every month, that way you can benefit from the rewards without having to pay a lot interest on your purchases.
With rewards credit cards, you can choose which type works best for you. For those who travel, credit cards meant for travel include many different perks like no foreign transaction fees, the Visa airport companion program, savings on foreign currency purchases and airport lounge access. With many of these cards, there’s also an interest-free grace period.
When it comes to credit card rewards, you normally earn extra points on eligible purchases and then basic points on other eligible everyday purchases. These points are usually calculated at the end of the monthly billing period and are reflected on your monthly credit card statement. These points can then be used towards a statement credit, travel perks, or any other purchases that the credit card issuer allows.
For many of the loyalty programs that you’re already registered for, the credit card linked with that program helps you earn even more points. Depending on the card, you can earn extra points for account opening, at eligible grocery stores, on eligible entertainment purchases, or even for eligible streaming subscriptions. You may even be able to get an annual birthday bonus or even an annual fee rebate.
When it comes to credit cards, rewards credit cards are a great way to earn benefits on money you’re already spending. These cards can even be used to track your spending and manage your budget. If you’re unable to pay your credit cards in full every month, though, then it could be a good idea to search for a low-interest credit card. You may not get the same perks, but you’ll save money.
Using a Credit Card Properly to Increase Your Credit Score
No matter what type of credit card you have, how you use it can affect your credit score. This is because your credit card is a form of revolving credit. The more of your available credit balance that you use, the more your credit score will be affected. For this reason, it’s recommended that you keep your credit usage below 30% of your available limit.
On top of this, it’s also important that you pay your credit card bill on time every month. Late payments can put a huge hit on your credit score that can be difficult to come back from. On top of that, late payments are also considered part of your credit history. The more that you have, the more difficult it can be to recover from.
Credit Score Needed For a Rewards Credit Card
The credit score that you need to get a rewards credit card is based on the credit card issuer. That said, as you can see above in some of the best rewards credit cards, your credit score needs to be around 660 or higher. This is because these cards are considered to be premium credit cards. Unlike other types of credit cards, rewards cards include things like:
- Travel insurance coverage
- Birthday bonuses
- Cash back value
- Priority Pass membership
- Bonus reward offers
- Flexible rewards
- Discounts on car rental bookings
Plus, with most cards, you can redeem points for a variety of different things, including a statement credit to help reduce your balance.
If your credit score isn’t in the right place for a rewards credit card, that's okay, too. You can build up your credit score in order to improve your chances of approval.
Types of Credit Cards
In Canada, there are plenty of different types of credit cards out there besides rewards credit cards. You don’t need to have a good credit score in order to get one of these cards, and you can even have more than one card at a time. Here are some of the different types of credit cards that you can get.
Secured Credit Cards
Secured credit cards are a great option for those who have a low credit score. Most credit card issuers are also considered to be guaranteed approval credit cards. This is because you don’t need a good credit score in order to get approved. All you need is the ability to pay your security deposit. This deposit is usually the amount of your credit card limit.
How it works is, once you put your deposit down, you have your credit card limit. Then you use the credit card like normal. As you make your monthly on-time payment, your credit score will start to improve. Once you pay off and cancel the credit card, you’ll then get your security deposit back.
Balance Transfer Credit Cards
Balance transfer credit cards are a great way to reduce your credit card payments and pay your credit cards off faster. Many credit card issuers will advertise cards that offer 0% interest for the first so many months with a small balance transfer fee. Those who have high interest rates can transfer their balance to these cards and earn much less interest.
The thing with balance transfer cards, though, is that once the promotional period is over, you’re likely to have a much higher interest rate. This means that you want to pay off your credit card during the promotional period in order to get the best rate and avoid having higher interest payments.
Student Credit Cards
Student credit cards are great because they’re specifically designed for those in post-secondary education. They usually come with lower interest rates, student perks and reduced banking fees. However, it’s important to keep in mind that these rates are only valid while you’re in school. Once you graduate, you’ll be automatically transferred to a traditional credit card, or you can pick a new one that will work best for you.
Low Interest Credit Cards
Low-interest credit cards are a great option for those who keep a balance on their credit card and don’t just use it as a monetary payment method. When you compare credit cards, you’ll notice that low-interest cards don’t come with many additional credit card perks. This is due to the low rates that you get on net purchases.
Business Credit Cards
In Canada, business credit cards can also be considered rewards credit cards. This is because these credit cards are a great way for business owners to track all of their expenses while earning rewards related to their business. They may not receive rewards on household utility purchases, but they have great business cards for frequent flyers, as well as those that allow you to earn points at participating grocery stores, on bonus categories and other eligible purchases.
Depending on the card that you choose, you can give cards to your employees with almost no fees and have access to different insurances to help protect your business. Many business credit cards also have protection in place regarding your employees' purchases. This way, you don’t have to worry about your employees taking advantage of their company card.
No-Fee Credit Cards
In Canada, there are many different kinds of no-fee credit cards, including no-fee cashback cards, no-fee rewards cards, and more. The most common type of no-fee rewards cards are those already linked to other loyalty programs. A good example of this is the PC Financial Mastercard.
With this card, not only is there no annual fee, but you can earn pc optimum points with every purchase. You can also earn extra points by making purchases at Shoppers Drug Mart as well as other eligible grocery stores. However, this isn’t the only credit card like this, there are plenty of them out there.
The great thing about no-fee credit cards is that they don’t have as many rewards as other credit cards, so they’re a lot easier to get. You can often get approved for these cards with a lower credit score, but use them to increase your credit score and get a different credit card.
It’s also important to remember that no-fee credit cards are usually the lowest credit card an issuer will offer. Once you’ve had the credit card for a few months, you can increase your score and switch to a different card that offers more rewards.
Travel Rewards Credit Cards
Travel Rewards Credit Cards are an ideal option for those who like to travel. They offer points for travelling as well as other discounts and benefits. Many of them also offer different types of insurance that are related to travel. This can save you lots on plane tickets as well as hospital fees.
The great thing about travel rewards cards is the points that you earn can then be used to purchase more travel options. These cards can also get you travel discounts and exclusive access to options you might not have otherwise had.
Like many other rewards credit cards, travel rewards cards have annual fees and high interest rates. In order to make the most out of these types of cards, it’s recommended that you pay off your balance every month if you can, or keep your credit balance low.
Cash-Back Rewards Cards
Another type of popular credit card is the Cash Back Rewards Credit Card. These cards allow you to earn cash back on all of your purchases, with some categories earning you more than others. At the end of every month, the cash back is then put on your monthly statement. Depending on the credit card issuer you have, these cash back amounts can be used as a statement credit, used to pay your balance, or even added to a savings account.
The important thing to remember about cash-back credit cards is that these types of cards have high interest rates. They also usually have annual fees for the best cash-back credit cards. However, people who pay off their credit cards every month and use their cards for all of their purchases can earn a lot of cash back quite quickly.
In fact, cash-back credit cards are the most popular type of rewards credit cards out there. You can get cash back on just about anything you purchase, and then you can choose to use your rewards however you like. The fact that these rewards can be used as statement credits is helpful for a lot of people. However, you have to remember that statement credits don’t count towards your minimum payments. Those have to be done separately.
Do You Have to Pick Just One Credit Card?
The great thing about rewards credit cards is that you don’t just have to choose one. Many credit card holders have a variety of cards for different purchases. Some have specific cards just for their groceries, others are just for their bills, and there are even those who have specific cards for specific stores.
The reason that many people choose to do this is that they can earn more points while organizing their finances. The key to maintaining a good credit score while managing a few credit cards, though, is to pay your balance in full and keep your credit usage low. This allows your available credit limit to stay high and increases your credit score.
Final Thoughts
In Canada, there are a variety of credit cards that offer some great rewards options. That said, many of these great rewards credit cards also require a good credit score in order to get approved. However, the rewards you get can be huge, especially if you’re paying your credit card bill in full every month.
When it comes to rewards credit cards, it’s important to remember that you don’t just have to choose one. Many people have a few credit cards at a time, allowing them to disperse their expenses, earn more rewards, and keep their credit score high.
