Best Rewards Credit Cards in Canada 2020
You deserve a credit card that gives back. Some cards offer a bonus return of cash or reward points, and we're here to help you find the best fit for your needs. Compare and find the best rewards credit cards in Canada.
Rate, annual rewards estimate and other product information are subject to change at any time and does not constitute financial advice. Please contact supplier for complete details.
Best Rewards Credit Cards Canada
Rewarding customers for their purchases in North America is an idea that predates credit cards by over two hundred years. In fact, the first known North American loyalty program began in 1793, when a U.S. shop owner gave copper tokens to customers that could be redeemed with merchandise in his store.1
In Canada, over the years, several retailers have established programs that reward customers for their loyalty using a variety of methods. Some have designed programs that feature printed ìmoneyî to use on future purchases, and others, discount coupons that were originally mailed and are now emailed. Loyalty programs that involve multiple retailer require non-credit membership cards that award points for purchases (think Air Miles, for example, which has been around since the 1990s.)
Today most rewards programs are tied to credit cards that benefits you for their use. With over 50 cards to choose from, comparing and selecting the best rewards credit card can seem overwhelming. At Ratesupermarket.ca, we simplify the rewards credit card comparison process. Compare and read reviews on rewards credit cards available in Canada, so you can easily find the one that is best suited to your unique needs.
How do I choose the best credit card for rewards in Canada?
According to the Financial Consumer Agency of Canada, if you donít carry a balance and pay off your credit card every month you might get more value from a rewards credit card. This is due to the fact that fees and restrictions on the actual rewards or points earned with rewards credit cards can reduce the overall return or value of the benefits you receive.
They also advise that you look closely at both the benefits and costs and make sure you are getting more than you are giving. Hereís an example provided by their website, ìEric pays an annual fee of $85 for his credit card. He pays his balance in full each month, and he gets one percent cash back on purchases. If he purchases a total of $4,800 using the card in one year, he will receive $48 (one percent of $4,800) at the end of the year. Compared with the $85 annual fee, the reward is not worth the cost.î
Other tips from the Financial Consumer Agency of Canada include:
- Forecast your use of a rewards credit card and the time it will take to accumulate a reward.
- Donít forget that some rewards expire and you might not get any benefit at all.
- Try to find the benefit offered by the rewards credit card another way. Car insurance policies, for instance, may provide coverage for rental vehicles eliminating the need for it from a rewards credit card.
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How do rewards credit cards work in Canada?
A rewards credit card opens the door to discounts on products and services. This includes a cash back based on the transactions you make with your card.
Some rewards credit cards award points for transactions that can be redeemed on merchandise and services, entertainment and travel. In addition, rewards credit cards often have additional benefits like travel insurance or car rental insurance.
All rewards credit cards compensate you for frequency of use and provide incentives and offers to increase your use.
While many cards require a fee, there are no-fee rewards credit cards available too. When there is no fee, higher interest rates are usually charged on unpaid balances.
Since shoppers prefer to receive something rather than nothing back for the money they spend, rewards credit cards remain popular, even if they may cost the cardholder more than they receive.
What are the different types of rewards credit cards in Canada?
Here are the many different types of rewards credit cards:
- No annual fee
- Travel, medical and car rental insurance
- Air miles
- Discounts on groceries or merchandise
- Charity affinity cards (Quebec residents only at this time)
Try RateSupermarket.caís rewards calculator to find a card quickly and easily that meets your needs.
What is the best rewards credit card in Canada?
The best credit card for you may depend on your lifestyle and circumstances. For example, having a low or bad credit score may limit your rewards credit card choice. Apart from your credit score, everyone is unique. A student will have vastly different rewards credit card needs than a working father of three children.
The best rewards credit card for you might be the one that gives back the most cash, the card with the highest number of points earned per transaction, or the card with the highest number of travel points awarded or comprehensive travel benefits and medical insurance. Find the rewards credit card thatís right for you by comparing rewards credit cards at RateSupermarket.ca
Which rewards credit card gives me the most points in Canada?
The following cards offer the most points per dollar spent and give you a rewards return of five per cent. Thatís the highest rate of return you can get on a rewards credit card.
Which is the best cash back rewards credit card in Canada?
With a cash back rewards credit card, for every purchase you make, you will receive a percentage back.
These three rewards credit cards offer the highest percentage of rewards return at five per cent.
- SimplyCashô Preferred Card from American Express
- MBNA Smart Cash Platinum PlusÆ MastercardÆ
- MBNA Smart CashÆ World MastercardÆ
These four rewards credit cards have a rewards return rate of four per cent.
What is the best travel rewards card?
These rewards credit cards will give you five and four percent of your transactions back, respectively:
The rewards percentage is lower, but these rewards credit cards offer great travel benefits:
What are the most popular rewards credit cards?
In every category, there are favorites. Hereís some of the most popular:
Annually, RateSupermarket.ca reviews the Best of Finance and awards the winners in credit card, bank account and investment product categories.Read about this years Best of Finance winners.
What are the best retail/specialty cards?
What is the best rewards credit card for earning points to redeem on merchandise?
RateSupermarket.ca is your easiest way to find and choose the best rewards credit card in Canada.
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