How to Choose a Travel Credit Card
With so many cards, rewards programs and benefits available, choosing the right travel credit card can be overwhelming. But once you’ve got one in your wallet, you can reap the rewards on your next trip.
How to choose a travel credit card
Consider the following when you compare your travel card options:
Rewards. Do you want to earn points you can redeem against any travel expense, or rewards for a specific airline, hotel chain or loyalty program? Popular players in the travel rewards space include Aeroplan, American Express Membership Rewards and Marriott Bonvoy.
Sign-up bonus. Welcome bonuses frequently change, but when there’s a good offer, it’s worth considering. Just be sure you’re aware of any spending requirements needed to unlock the offer.
Additional benefits. Travel insurance, lounge access, free checked bags and no foreign transaction fees are just a few benefits that can make travelling more luxurious and affordable.
Earn rate. A card with earn rates that align with your spending habits will help you accumulate points quickly. For example, if you tend to spend a lot on ridesharing or at restaurants, choose a card that offers extra rewards on spending in these categories.
Annual fee. Most travel credit cards come with an annual fee, but card perks can help offset that cost. Some cards waive annual fees during the first year of card membership
Eligibility. Premium travel credit cards (like metal cards) often impose minimum personal or household income requirements. If you don’t meet the threshold, you won’t be approved.
Blackout dates and other restrictions. Read the card’s terms and conditions so you understand any restrictions or caveats that apply to reward redemptions. Some programs impose blackout dates or require travel vouchers to be used within a certain frame of time.
Check out the Points Pulse, our roundup of the latest in travel rewards and Canadian credit card news.
We keep tabs on shifting perks, fresh promos and loyalty news so you can stay in the know and make the most of your points.
It’s tough to get everything you want in a single travel credit card, so prioritize the perks and features that matter to you. Welcome bonuses can be enticing, but typically come with spending requirements. Ongoing benefits, like travel insurance, airport lounge access, waived foreign transaction fees and more, offer more consistent value over time so long as they’re utilized effectively.
We’ve done the work, so you don’t have to. Compare your card options on our best travel credit card page.
Comparing the value of travel rewards
Knowing what different rewards points are worth is another factor that may influence your travel card decision. Some reward points have a fixed value. For example, Scene+ points are worth 1 cent each.
Other programs are less transparent about the value of their rewards. If you aren’t sure what a point is worth, you can calculate its value by dividing the value of the redemption in CAD by the number of points needed for the redemption.
For example, let’s say you’re deciding between two redemption options:
Flight 1 costs $400 or 25,000 points
Flight 2 costs $300 or 21,000 points
For flight 1, divide 400 by 25,000 = 0.016, or 1.6 cents per point.
For flight 2, divide 300 by 21,000 = 0.014, or 1.4 cents per point.
Flight 1 costs more points, but offers a better return on the value of your rewards.
Best travel cards in Canada
Compare the best travel cards side-by-side to find one that meets your needs with special perks and benefits.
How to apply for a travel credit card
Once you’ve narrowed down your card options, it’s time to apply. You can apply for any travel credit card as long as you meet the card’s eligibility criteria, including minimum credit score and annual income requirements.
Card applications can typically be completed in person at a bank branch or online via the provider’s website or mobile app. You’ll typically need to provide some personal information, including your full name, date of birth and employment information. Some providers offer near-instant application decisions, while others may take a few weeks.
DIVE EVEN DEEPER
Shannon Terrell