For many people, getting a credit card can be kind of daunting. The sheer number of options out there can be confusing, and all of them have different perks and rewards. Contrary to popular belief, not all credit cards are the same and it’s in your best interest to do your homework and research all your options before choosing one.
Credit cards provide a practical method of managing our financial lives. They offer convenience and security, and, when used responsibly, can help build a healthy credit history. However, they also come with a secret advantage: the potential to earn rewards. This article delves into the best credit cards with the top rewards in Canada, helping you make an informed decision.
Understanding Credit Card Rewards
Credit card rewards are incentives offered by card issuers to entice and retain customers. They range from cash back, travel points, discounts on shopping, to exclusive benefits such as insurance covers, concierge services, and priority check-ins. Reward points are typically accumulated when you use your card to pay for purchases.
Choosing the Best Reward Credit Cards
Several factors can determine the "best" credit card for you. It depends on your spending habits, reward preferences (e.g., travel vs. cash back), and willingness to pay annual fees. Let's dive into some of the top-rated credit cards in Canada that provide outstanding rewards.
Scotiabank Gold American Express Card
If you're a foodie who loves to travel, the Scotiabank Gold American Express Card may be the perfect match. It offers 5 points for every $1 spent on groceries, dining, and entertainment. Additionally, it awards 3 points per $1 for gas, public transportation, and eligible streaming services.
Travel benefits include no foreign transaction fees, comprehensive travel insurance, and access to VIP airport lounges. Despite an annual fee of $120, the benefits easily cover this cost for regular users.
BMO CashBack Mastercard
The BMO CashBack Mastercard is an excellent choice for those seeking straightforward cash rewards without an annual fee. You earn 3% cash back on groceries, 1% on recurring bill payments, and 0.5% on all other purchases. The card also provides a welcome offer of 5% cash back in the first three months.
Tangerine Money-Back Credit Card
Tangerine Money-Back Credit Card is another excellent no-annual-fee option. It offers 2% cash back in up to three categories of your choice (including groceries, gas, entertainment, home improvement, etc.) and 0.5% on everything else. The ability to choose the reward categories provides a level of flexibility rarely seen in other cards.
American Express Cobalt Card
For those seeking versatility in rewards, consider the American Express Cobalt Card. This card provides 5 points per dollar on food and drinks, 2 points on travel and transit, and 1 point on all other purchases. The monthly fee is $12.99, but with a 30,000 point welcome bonus (given you spend $500 per month in the first year), the benefits outweigh the costs for active card users.
TD Aeroplan Visa Infinite
If your goal is to earn travel rewards, the TD Aeroplan Visa Infinite card is a great option. With 1.5 points for every $1 spent on groceries, gas, and Air Canada purchases, plus 1 point per dollar on all other purchases, you can accumulate points quickly. It comes with a comprehensive suite of travel insurances and a $139 annual fee, often waived for the first year.
Choosing the best credit card with the best rewards depends on your individual needs and spending habits. The cards highlighted in this article represent some of the best options in the Canadian market. However, it's always advisable to read the terms and conditions before you apply. A reward credit card can be a powerful financial tool, but only when used responsibly.