Best Rewards Credit Cards in Canada for May 2025
The majority of Canadians (86%) say their primary credit card offers some type of reward, according to the 2024 Canadian Payment Methods and Trends Report from Payments Canada . Plus, more than half of credit card users listed rewards as their main reason for using a credit card frequently.
Compare our picks for the best rewards credit cards in Canada, offering travel rewards, cash back, gift cards and more so that you can find the optimal card for your goals and spending habits.
Best rewards credit cards in Canada
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Card detailsIn your first year as a new Cobalt Cardmember, you can earn 1,250 Membership Rewards® points for each monthly billing period in which you spend $750 in net purchases on your Card. This could add up to 15,000 points in a year, or up to $150 towards a weekend getaway or concert tickets. Click "Apply Now" for details.
Methodology
BACK TO TOPNerdWallet Canada selects the best credit cards based on unique attributes, overall consumer value and suitability for specific kinds of consumers. Factors in our evaluation methodologies may include annual fees, rewards rates, interest rates and other noteworthy features specific to the card type. To learn more about how we evaluate and select financial products, you can review our credit card methodology.
How to choose the best rewards credit card in Canada
With so many choices out there, selecting a rewards credit card can quickly become overwhelming. Learn how to narrow down your choices and get the best rewards credit card for your lifestyle.
MORE: How do rewards credit cards works?
6 steps to picking the right rewards credit card
Every rewards credit card is different, so here are a few key areas to consider when deciding which card is best for you.
Step 1: Choose your adventure: Cash-back, points or miles
Think about your spending habits and financial goals when choosing between the three options. For example, if you’re planning a honeymoon and want the rewards to pay for the flights, getting a card that earns miles on your favourite airline might be worthwhile.
Alternatively, if you spend big at the grocery store each month and want to save some money at the checkout, getting a credit card that earns cash back on food purchases (or a co-branded store credit card that earns discounts) might be a better choice.
Step 2: Consider the welcome bonus
If you’re trying to decide between several cards with similar rewards, the tiebreaker can often be the sign-up bonus. Some credit cards offer a generous intro offer that jumpstarts your reward-earning journey with thousands of free points or miles.
Here are a few things to look out for when you’re comparing welcome offers:
Minimum spend requirements. Some welcome offers come with requirements, like a minimum spend in the first few months.
Ongoing rewards rates and fees. If the earn rates are low and the annual fee is high, the welcome offer may not be worth the long-term commitment of the card.
Offer release dates. You don’t always get the welcome offer when you get the card. For example, you may have to hold the card for a year before receiving the full offer.
Step 3: Pay close attention to the interest rates
When comparing rewards cards, be sure to take a look at the interest rate — and there may be more than one:
Promotional interest rate. Some cards offer promotional or introductory interest rates that stay in effect for a set period of time — such as 0% on balance transfer for 12 months. These rates tend to be lower than the regular rate (which applies once the introductory period is over).
Purchase interest rate. This rate determines how much interest you’ll owe on outstanding balances on purchases, which is especially important if you don’t always pay off your credit card in full.
Cash advance interest rate. If you withdraw cash from an ATM using your credit card, the transaction is typically subject to the cash advance rate. This interest rate is often higher than the purchase interest rate, may come with a flat-rate transaction fee, and starts accumulating interest immediately.
Balance transfer interest rate. Transferring an existing balance from one credit card to another is subject to the card’s balance transfer rate, which only applies to the funds relocated from another credit card.
Step 4: Make sure the annual fee is worth it
If you’re firmly against the idea of paying an annual fee, you’ll instantly narrow down your choices by solely looking at no-fee credit cards. That said, rewards credit cards that have an annual fee typically come with more benefits that could ‘cover’ the cost of the card. For example, if the annual fee is $150, but the card potentially earns $2,000 in cash back each year, the fee may be worth it.
Step 5: Compare the reward categories with your spending habits
The base earn rate is the lowest amount of cashback, points or miles you can earn on the card, and typically applies to everyday spending. But most rewards credit cards have an increased earn rate for specific categories.
With a store rewards cards, you’ll usually get an increased earn rate on purchases from that particular store. General rewards credit cards, however, often have accelerated earn rates on categories like groceries, gas or pharmaciesChoosing a card with a bonus earn rate that lines up with your spending habits can help you boost the amount of rewards you earn.
Note: Most rewards cards come with spending caps on bonus earn rates. For example, an earn rate of 5% on groceries may be capped at $500 per month.
Step 6: Ask yourself if flexibility is key
Having a lot of points is meaningless if it’s hard to redeem them. Look for a loyalty program that fits your needs and lifestyle. For example, if you fly on various airlines, look for a card that lets you transfer points from one loyalty program to another. Or, if you want to redeem points for statement credits, travel and merchandise, look for a card with a variety of redemption options.
5 types of rewards credit cards
There are dozens of rewards cards out there, but generally speaking, you can break them down into five different categories.
- 1. General points credit cards
General rewards cards earn points through everyday spending, like gas or grocery purchases, which can then be redeemed for a variety of products and services, such as entertainment, merchandise, gift cards, cashback or travel bookings.
Nerdy tip: Are you a student or newcomer? Some credit card issuers offer rewards cards specifically to students, as well as those new to Canada.
- 2. Airline rewards credit cards
Airline credit cards allow you to earn points or miles for a specific frequent flyer program like Aeroplan.
Depending on the tier of your airline rewards credit card, you may get additional perks like free checked bags, priority boarding or increased status.
- 3. Travel rewards credit cards
If you’re not loyal to one specific airline or hotel chain, then a general travel rewards program is something that may interest you. The points you earn can typically be used for any type of travel redemption. For example, loyalty programs like Air Miles work with over 20 airline partners, and points can be redeemed for flights, packages, cruises, car rentals, accommodation and more.
Hotel rewards credit cards are typically tied to a specific hotel chain and include benefits to make your stay more comfortable, like upgrades, free breakfasts and late check-outs.
- 4. Store or co-branded rewards credit cards
Many major retailers have their own loyalty programs and some even have co-branded credit cards, like the CIBC Costco Mastercard or the PC Insiders World Elite Mastercard. You can earn accelerated points when you use these types of cards at the stores they’re attached to, and can get access to unique deals and discounts in the process.
- 5. Cashback rewards cards
Cash-back cards earn (you guessed it) cash back on purchases you make. Rewards vary depending on the card you have, but you can expect to earn between 1% and 5% back on eligible purchases.
Popular credit card rewards programs in Canada
Here’s a breakdown of some of the most popular rewards and loyalty programs in Canada to help you choose the right one for you:
- Air Miles rewards
With nearly 10 million active Air Miles accounts in Canada, there’s a decent chance you’re already familiar with the Air Miles rewards program. Members collect Air Miles rewards — also called Rewards Miles — which can be redeemed for free flight tickets, cruise tickets, hotel stays, merchandise and more.
- Aeroplan rewards
Aeroplan is the loyalty program run by Air Canada, Canada’s largest airline. Aeroplan points can be earned by signing up for an Aeroplan credit card; flying with Air Canada or any of its partner airlines, including Air India, Lufthansa and United; or booking qualifying hotel stays, car rentals and in-store purchases with Aeroplan’s brand partners, like Avis, Home Hardware and Sephora.
Aeroplan points can be redeemed for flight tickets, hotel stays, gift cards and more.
- PC Optimum rewards
The PC Optimum loyalty rewards program is owned and operated by Loblaws, a Canadian retail conglomerate. Members earn points each time they make qualifying purchases at eligible stores, including Loblaws, Real Canadian Superstore, No Frills and Shoppers Drug Mart. Members can also earn points when purchasing fuel at Mobil and Esso gas stations.
Every 10,000 points equals $10, which can be applied to in-store purchases at partner stores.
- American Express Membership rewards
The American Express Membership rewards program is exclusive to American Express cardholders. The program offers points every time you swipe your card on an eligible purchase. Points can be redeemed for travel experiences, merchandise and gift cards, as well as transferred to the Aeroplan points. .
- SCENE+ Rewards
This points system is the offspring of the Cineplex SCENE program and Scotia Rewards, Scotiabank’s credit card rewards program.
You can earn Scene+ points when you visit a Cineplex theatre or Playdium, eat at partnered restaurants, shop with partnered retailers, and even book travel through Scene+ Travel portal.
Frequently asked questions
How much are credit card reward points worth?
How much are credit card reward points worth?
The value of your rewards credit card points or miles will vary depending on the rewards program you join and what you redeem them for. If you can, go with the reward that has the highest value.
By calculating a baseline value for your points, you can decide if specific redemptions are worth it — even if you’re not getting the maximum value.
The formula used to determine the value of one point is as follows: Cash value of the redemption X 100 / number of points required = Cost per point.
Are credit card rewards taxable?
Are credit card rewards taxable?
Credit card rewards are considered a rebate/discount by the Canada Revenue Agency, so you won’t be taxed. Rewards are really no different from a coupon, which isn’t taxable. That said, if you earn cash-back rewards as part of your employment or business, it may be taxable.
Do rewards points ever expire?
Do rewards points ever expire?
Generally speaking, rewards like points or miles only expire if there’s been no account activity in your account for a set period of time, or the account is no longer in good standing. However, some issuers have stricter expiration rules. Always check the card’s terms and conditions so you know exactly how and when rewards expire.
Should you have multiple rewards credit cards?
Should you have multiple rewards credit cards?
The number of credit cards you should have depends on your spending habits and financial health.
In some cases, it can make sense to have two rewards cards that capitalise on your biggest areas of spending. For example, if you’re a frequent flyer who spends big on groceries, you might have one card that earns miles and another that earns cashback at supermarkets.
But keep in mind, multiple credit cards represent multiple opportunities for accumulating high-interest debt. Make sure you’re confident in your ability to pay off the balances in full, regularly.
What is a rewards credit card?
What is a rewards credit card?
A rewards credit card is typically one that earns points, cash back or miles on eligible purchases. The type of rewards you get and how you can redeem them, depends on the credit card you have and the loyalty program it’s attached to.
Note: When you apply for a rewards credit card, there’s no guarantee you’ll be approved. The credit card provider needs to assess your financial profile to determine your eligibility. Cards with lower interest rates, multiple perks and accelerated reward rates, typically require higher credit scores.
How much are credit card points worth?
How much are credit card points worth?
Knowing how to calculate the value of your points or miles can help you better compare your options
Here are estimated point values for some of the top reward programs in Canada, according to NerdWallet’s analysis:
AIR MILES: $0.16 per mile
American Express Membership Rewards: $0.03 per point
Aeroplan: $0.02 per point
Aventura: $0.02 per point
Scene+ points: $0.01 per point
Avion Premium (RBC Rewards): $0.01 per point
BMO Rewards: $0.01 per point
Marriott Bonvoy: $0.01 per point
TD Points: $0.003 per point
PC Optimum: $0.001 per point
The formula used to determine the value of one point is as follows: Cash value of the redemption / number of points required = Cost per point.
For example, if you need 70,000 points for a flight that costs $500, the formula would be: $500 / 70,000 = $0.01 per point.
Is a rewards credit card worth it?
Is a rewards credit card worth it?
Generally speaking, a rewards credit card is often worth it in the following scenarios:
You want a card with perks but have a tight budget. Some rewards cards do not have an annual fee, so all of the rewards you earn go to you, rather than covering the cost of the card.
You spend big in one or two categories. If you shop at a specific store, or most of your expenses go on groceries, a card that rewards you for those behaviours can be worthwhile.
You already participate in a loyalty program and you want to boost your rewards. If you’re a frequent Air Canada flier, for example, and are looking for a new credit card, an Areoplan rewards card may be a good fit.
Reasons a rewards credit card might not be worth it
Reasons a rewards credit card might not be worth it
It may not be worth getting a rewards credit card if:
You typically carry a balance. No amount of rewards is worth it if you’re paying interest on unpaid balances and falling further into debt. If you find yourself carrying a balance, try a low-rate card instead.
You’re worried about overspending. It’s important not to spend more than you usually would just to get rewards. For example, if your card offers 5x points on groceries, you don’t want to spend $100 more than you would that month just to get the points.
You don’t meet the eligibility requirements. If you don’t meet the income, age or credit requirements, your application may be denied. If you aren’t eligible due to a low credit score, consider a more suitable option.
The rewards don’t outweigh the annual fee. You may want to get a no-fee card if you’re not using any of your included benefits and the rewards don’t cancel-out the annual fee.
What are the perks included with reward credit cards?
What are the perks included with reward credit cards?
Alongside earning points, miles or cashback, some rewards credit cards offer additional perks for cardholders, including:
Travel insurance, such as emergency medical, delayed flights, lost luggage, hotel burglary, trip cancellations and car rental coverage.
Deals and discounts when you use your card with partner companies, such as Hertz, Starbucks, DoorDash and Petro-Points.
Security features like fraud monitoring and identity theft protection, as well as purchase protection and extended warranty.
Specialty insurances and services like mobile phone coverage, roadside assistance and 24/7 concierge.
Travel perks like airport lounge access, priority boarding and no foreign transaction fees.
Always prioritize the perks that are important to you — and that you’ll actually use — when applying for a card. For example, if you use airport lounges regularly, pick a card that can save you money with free passes. But, if you don’t need a NEXUS pass, don’t get caught up in the promise of a waived application fee.
Sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- Payments Canada. CANADIAN PAYMENT METHODS AND TRENDS REPORT 2024. Accessed May 11, 2025.
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