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Traveling is a great way to explore new places, experience different cultures, and create lasting memories. However, traveling can also be expensive, especially when it comes to flights and accommodations. That’s why many Canadians turn to credit cards that offer travel rewards, such as points or miles, to help offset these costs.
What to Look for in a Travel Credit Card
When choosing a travel credit card, there are several factors to consider. Here are some of the most important:
Rewards Program
The rewards program is the most important feature of a travel credit card. Look for a card that offers points or miles that can be redeemed for travel-related expenses, such as flights, hotels, and rental cars. Some cards also offer bonus points or miles for certain types of purchases, such as travel or dining.
Sign-Up Bonus
Many travel credit cards offer sign-up bonuses, which are extra points or miles that you can earn when you first sign up for the card and meet a minimum spending requirement. Look for a card with a generous sign-up bonus to maximize your rewards.
Annual Fee
Most travel credit cards charge an annual fee, which can range from $0 to several hundred dollars per year. Look for a card with a fee that is reasonable for the rewards and benefits that it offers. Some cards also waive the annual fee for the first year.
Foreign Transaction Fees
If you plan to use your travel credit card outside of Canada, look for a card that does not charge foreign transaction fees. These fees can add up quickly and negate the rewards that you earn.
Travel Insurance
Many travel credit cards offer travel insurance, such as trip cancellation and interruption insurance, baggage insurance, and emergency medical insurance. Look for a card with comprehensive travel insurance coverage to protect yourself and your belongings while traveling.
Best Travel Credit Cards in Canada
Based on the factors above, here are some of the best travel credit cards in Canada:
American Express Cobalt
The American Express Cobalt is a popular travel credit card that offers flexible rewards and a generous sign-up bonus. Cardholders can earn up to 5 points per dollar on eligible purchases, including groceries, dining, and travel. The card also offers comprehensive travel insurance and no foreign transaction fees. The annual fee is $120, but it can be offset by the rewards earned.
Tangerine World Mastercard
The Tangerine World Mastercard is a no-fee travel credit card that offers cashback rewards that can be redeemed for travel. Cardholders can choose two or three categories to earn 2% cashback on, such as groceries, gas, or restaurants. The card also offers rental car collision/loss damage insurance and no foreign transaction fees.
Scotiabank Gold American Express
The Scotiabank Gold American Express is a premium travel credit card that offers a high earning rate and comprehensive travel insurance. Cardholders can earn up to 5 points per dollar on eligible purchases, including gas, groceries, dining, and entertainment. The card also offers travel medical insurance, trip cancellation/interruption insurance, and rental car collision/loss damage insurance. The annual fee is $120, but it can be offset by the rewards earned.
BMO World Elite Mastercard
The BMO World Elite Mastercard is a premium travel credit card that offers a high earning rate and comprehensive travel benefits. Cardholders can earn up to 3 points per dollar on all purchases, and the points can be redeemed for travel, merchandise, or cashback. The card also offers travel medical insurance, trip cancellation/interruption insurance, and rental car collision/loss damage insurance. The annual fee is $150, but it can be offset by the rewards earned.
Frequently Asked Questions
What is the best travel credit card in Canada?
The best travel credit card in Canada depends on your spending habits and travel preferences. Some of the top options include the American Express Cobalt, Tangerine World Mastercard, Scotiabank Gold American Express, and BMO World Elite Mastercard.
What is a sign-up bonus for a credit card?
A sign-up bonus is a reward that you can earn when you first sign up for a credit card and meet a minimum spending requirement. Sign-up bonuses can be in the form of points, miles, or cashback.
What are foreign transaction fees?
Foreign transaction fees are charges that credit card companies add to purchases made in a foreign currency. These fees can range from 1-3% of the purchase price and can add up quickly for frequent travelers.
What is travel insurance?
Travel insurance is a type of insurance that covers unexpected expenses or emergencies while traveling, such as trip cancellation or interruption, baggage loss, and medical emergencies. Many travel credit cards offer travel insurance as a benefit.
Do travel credit cards have annual fees?
Many travel credit cards have annual fees, which can range from $0 to several hundred dollars per year. The annual fee is often offset by the rewards and benefits that the card offers.