I remember my first credit card I ever got... I didn't choose it... the credit card chose me. I would bet the same has happened with many of us that signed up to the first credit card that came our way! Now that we got that over with, we have now become wiser and have to ask the question: "What's in it for me?" With so many different credit card reward programs available, it can be hard to know which one is best. Do you want Cash-Back? Points? Flights? Hotel stays? If you're not sure, you're not alone. In this post, we will break down the different types of reward programs, provide a list of some of the best credit cards, and help you decide which one is best for you!
Types of Credit Card Rewards
There are four main types of credit card reward programs:
cash-back
points
miles
hotel stays
Cash-Back Rewards
A cash-back rewards program lets you earn a percentage of cash back on every purchase you make. For example, if your credit card offers a 2% cash-back rewards program, you'll earn $2 for every $100 you spend. These rewards can be redeemed for cash, and there's usually no minimum redemption amount. Cash-back rewards programs are a good choice if you don't want to keep track of points or miles and if you prefer to have the flexibility to redeem your rewards for either cash or merchandise.
Points Rewards
A points reward program lets you earn points for every purchase you make. These points can then be redeemed for merchandise, travel, gift cards, or sometimes cash-back. The value of each point varies depending on the program, but typically ranges from $0.01 to $0.05 per point. Points rewards programs are a good choice if you like to travel and want to use your points to book hotel stays or flights.
Miles Rewards
A miles reward program lets you earn miles for every purchase you make. These miles can then be redeemed for travel expenses such as flights, hotel stays, car rentals, and more. The value of each mile varies depending on the program, but typically ranges from $0.01 to $0.05 per mile. Miles rewards programs are a good choice if you like to travel and want to use your miles to cover the cost of your travel expenses
Hotel Stay Rewards
A hotel stays rewards program lets you rack up points that can be redeemed for free or discounted hotel stays around the world. These programs often have partnerships with specific hotel chains, so if you have a preferred brand that you like to stay with when you travel, this type of program may be right for you. They are also a good way to accumulate hotel stays to minimize the overall cost of vacationing, all while making purchases you would have otherwise made on a debit card with no kickback for you.
Best Credit Card Reward Programs
Cash-back
Tangerine Money-Back Credit Card
Earn 2% Money-Back Rewards on purchases in two 2% Money-Back Categories of your choice, and 0.50% Money-Back Rewards on all other purchases.
Have your Money-Back Rewards deposited into a Tangerine Savings Account, and get a 3rd 2% Money-Back Category.
No limit on the amount of Money-Back Rewards you can earn.
Change your 2% Money-Back Categories to suit your spending.
$0 No annual fee
Simplii Financial Cash Back Visa Card
Earn 4% cash back on eligible restaurant, bar and coffee shop purchases, up to $5,000 per year - after that 0.5% unlimited.
Earn 1.5% cash back on eligible gas, groceries, drugstore purchases and pre-authorized payments, up to $15,000 per year - after that 0.5% unlimited.
0.5% cash back on all other credit card purchases with no limit on how much you earn.
$0 No annual fee
Scotiabank Momentum Visa Card
Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases).
Earn 4% for every $1 you spend on grocery store purchases, recurring bill payments, and subscription purchases.
Earn 2% for every $1 you spend on gas purchases and daily transit purchases.
Earn 1% cash back on all other purchases with no cash back limit. $120 Annual Fee
National Bank ECHO Cashback MasterCard
Earn 1.5% cashback on most online purchases, in grocery stores and on gas
Get unlimited 1% cashback on all other purchases
Apply your cashback as soon as you accumulate $10. You can even access your cashback on the go from any tablet or mobile device!
$30 Annual Fee
CIBC Air Canada Conversion Visa Prepaid Card
The Air Canada Conversion Visa Prepaid Card is the only prepaid card currently available in the market that can load and hold 10 currencies onto one card as well as offer 1% Cash Back on all spend.
For avid travelers, the AC conversion Visa Prepaid card makes carrying multiple currencies.
Great companion on international trips but also a great go-to card for day-to-day purchases as it offers 1%
$0 No annual fee
Rewards
RBC Avion Visa Infinite Card
35,000 welcome points on approval and 20,000 bonus points when you spend $5,000 in your first 6 months.
Your Avion points don’t expire; so when it’s time to travel again, your points will still be waiting for you.
When it's okay to travel again choose any airline, any flight, any time. No blackouts. No seat restrictions. If there’s a seat available, you can fly–even during peak seasons. Plus, you can redeem your points to cover airline fees and taxes.
Over 50,000 options to redeem–travel the world, buy merchandise and gift cards from your favourite brands, pay down RBC balances, invest in your future and much more
RBC ION Visa
Enjoy 6,000 Avion points upon approval. Apply by January 31, 2023.
Earn 1.5X Avion points for every $1 spent on groceries, rides, gas, streaming, subscriptions, digital gaming and more.
Earn 1 Avion point for every $1 spent on all other qualifying purchases
Pay With PointsRedeem your Avion points to pay bills, your credit card balance or even send money to friends with Interac e-Transfer. Minimum redemption is only $10, so you can use your points where you need them most.
$0 No annual fee
BMO eclipse Visa Infinite Card
Get up to 60,000 points worth $400 in travel rewards, a $50 lifestyle credit and the $120 annual fee waived in your first year – that’s a $570 value in your first year.
Get 5% cash back in your first 3 months.
Earn 5x the BMO Rewards points on groceries, takeout, food delivery, rideshare, gas and transit. Then, get 1 BMO Reward for every $1 spent on everything else!
Get a 0.99% introductory interest rate on Balance Transfers for 9 months, 2% fee applies to balance amounts transferred.
$120 Annual Fee
National Bank World Elite MasterCard
Earn up to 5 points per dollar in eligible grocery and restaurant purchases
2 points per dollar in eligible gas and electric vehicle charging purchases, recurring bill payments and À la carte travel purchases
1 point per 1 dollar in other purchases
Up to $150 each year in refund for travel expenses on airport parking, seat selection, check-in fees, airline ticket upgrades and access to airport lounges worldwide
Reassuring protection. Travel with peace of mind thanks to our comprehensive insurance coverage up to 60 days
$150 Annual Fee
Conclusion
So which one is right for you? If you're not sure, consider what type of purchases you typically make with your credit card and what type of rewards would be most valuable to you. For example, if you travel frequently, a miles or hotel stays rewards program might be the best choice for you. On the other hand, if you don't travel often and prefer cash back or gift cards, a points or cash back rewards program might be a better fit. Whichever type of program you choose, be sure to compare several different options before deciding which one is right for your spending habits and lifestyle. In the end, getting something back for your regular purchases will always make sense! Turns out...there is something in it for me...Rewards!
And as always...Don't Gamble...Use Gramble!
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