How to Choose the Perfect Travel Credit Card

Plane Travel Credit Card

Choosing the right travel credit card in Canada can feel overwhelming, but with the right strategy, you can find one that maximizes your travel rewards and benefits. Here’s a step-by-step guide to help you make the best decision:


1. Understand Your Travel Habits

The first step is to understand your travel patterns and preferences. Ask yourself:

  • How often do you travel? If you only travel once or twice a year, you might not need a premium travel card. However, frequent travelers can benefit more from cards with high annual fees but extensive perks.
  • What type of travel do you prefer? If you travel internationally, a card with no foreign transaction fees is a must. If you mostly travel within Canada, a card with strong domestic rewards might be more appropriate.
  • Do you have a preferred airline or hotel chain? Some cards offer better rewards when booking through specific airlines or hotels.

2. Compare Reward Programs

Travel credit cards typically offer two main types of rewards:

  • Points or Miles Programs: These are often flexible, allowing you to redeem them for flights, hotels, car rentals, or even vacation packages. Examples include Aeroplan, Air Miles, or other card-specific programs like American Express Membership Rewards.
  • Cash Back Travel Programs: Some cards allow you to earn cash back that can be used toward travel expenses. While not as specific as points, these offer a lot of flexibility.

Tip: Look for cards that give bonus points on categories you spend most in (like gas, groceries, or restaurants).


3. Evaluate the Welcome Bonus

Many travel cards come with generous welcome bonuses, often offering thousands of points or miles after meeting a spending threshold within the first few months. These bonuses can be worth hundreds of dollars in travel value, but make sure the spending requirement is realistic for your budget.

Example: Some cards might require you to spend $1,500 in 3 months, while others might need $5,000 in 3 months—pick one that aligns with your spending habits.


4. Check for Annual Fees

Most top-tier travel credit cards charge an annual fee, but the benefits they offer can often outweigh the cost if you use the perks. Here’s what to look for:

  • No-fee cards: These typically have fewer rewards or perks but are good for occasional travelers.
  • Mid-tier cards ($120–$150/year): Offer solid rewards and some travel insurance.
  • Premium cards ($400+ annually): Often come with lounge access, enhanced rewards, comprehensive insurance, and other travel perks.

Tip: Some cards waive the first year’s fee, which gives you a chance to try out the card’s benefits before committing to the full cost.


5. Look for Travel Perks

Travel cards often come with a range of perks beyond earning points. These benefits can make your travel experience smoother and more affordable:

  • No foreign transaction fees: Avoid paying 2.5–3% extra when making purchases in a foreign currency.
  • Airport lounge access: Premium cards often include access to airport lounges, which can make long layovers more comfortable.
  • Priority boarding or free checked bags: These can save you both time and money, especially if you fly frequently.
  • Hotel benefits: Some cards offer room upgrades, free breakfasts, or late checkouts at participating hotels.
  • Rental car insurance: This can save you from having to pay extra for insurance when renting a car.

6. Assess Travel Insurance Coverage

One of the major benefits of travel credit cards is the insurance coverage they provide. Look for cards that include:

  • Travel medical insurance (for out-of-province or out-of-country trips)
  • Trip cancellation and interruption insurance
  • Flight delay or baggage delay insurance
  • Rental car collision insurance

These can save you hundreds or even thousands of dollars if something goes wrong during your trip.


7. Consider Transferable Points

Some credit cards allow you to transfer points to other loyalty programs, giving you flexibility. For example, American Express Membership Rewards points can be transferred to airlines like Aeroplan or Delta SkyMiles, or to hotel chains like Marriott Bonvoy. This flexibility can give you more options to maximize the value of your points.


8. Watch Out for Foreign Transaction Fees

If you travel internationally, choosing a card that doesn’t charge foreign transaction fees (typically around 2.5%) can save you a significant amount of money. Cards like the Scotiabank Passport Visa Infinite and Rogers World Elite Mastercard waive this fee.


9. Factor in Flexibility of Redemptions

Some travel cards have rigid rules about how you can use your points. For example, you may only be able to redeem points for flights, or only through certain travel portals. Others, like the TD First Class Travel Visa Infinite, allow you to book travel with any provider and redeem points to cover the cost.

Tip: The more flexible the redemption options, the easier it will be to use your points for the travel you want.


10. Read the Fine Print

Always read the terms and conditions to avoid surprises. Pay attention to:

  • Expiration dates on points (if applicable)
  • Blackout dates (some programs have restrictions on when you can redeem points for travel)
  • Minimum point redemptions (some programs require you to have a certain number of points to book a trip)

Conclusion

Choosing the perfect travel credit card in Canada involves balancing your travel habits, the rewards structure, and the additional perks that come with the card. By considering factors like reward programs, fees, travel perks, and insurance, you can find a card that fits your lifestyle and helps you travel smarter.

Tip: If you’re unsure about committing to a specific card, try a card that waives the first-year fee and evaluate the benefits for yourself. If the perks outweigh the cost, keep it; if not, you can always downgrade or cancel.

Happy travels! ✈️


Travel Credit Cards

Added to wishlistRemoved from wishlist 0
Add to compare
Added to wishlistRemoved from wishlist 0
Add to compare
RBC Avion Visa Platinum

RBC Avion Visa Platinum

Added to wishlistRemoved from wishlist 0
Add to compare
CIBC AEROPLAN VISA CARD

CIBC AEROPLAN VISA CARD

Added to wishlistRemoved from wishlist 0
Add to compare
Added to wishlistRemoved from wishlist 0
Add to compare
Added to wishlistRemoved from wishlist 0
Add to compare
WestJet RBC Mastercard

WestJet RBC Mastercard

Added to wishlistRemoved from wishlist 0
Add to compare
Added to wishlistRemoved from wishlist 0
Add to compare

Credit Assess
Logo
Compare items
  • Total (0)
Compare
0