Life on Credit

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Top 5 Canadian Travel Credit Cards

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Credit cards with travel perks are truly the best. You can benefit from these if you enjoy traveling, are a frequent flyer, love getting a bargain on something, bonus hunter, or all of the above. Subscribing to one of the best credit cards in Canada will save you a lot of money on airplane tickets, travel insurance, luggage claims, and many other similar things.

Consumers often evaluate credit cards rewards programs based on value offered per point. A good way to measure is to check how may air miles or associated perks each dollar you spend on the card gets you. While value points are important, it’s also important to consider other factors. For example, the annual fee should not cancel out the rewards you earn per point.

The cost per reward should also match the rewards on offer. Once all the fees have been considered, the credit card should offer a number of perks such as insurance coverage, low foreign transaction fees, travel opportunities, and so on. Travel credit cards that combine the best cost per reward with an increased number of perks are the best to subscribe to.

Here is a list of five of travel credit cards in Canada that offer the best value as described above:

1.     American Express® Gold Rewards Card    amex-goldrewards

Amex Gold is really the gold standard for travel credit cards in Canada. Points earned can be used for any travel-related purchase either online or offline. In some cases, you can convert points to frequent flyer programs. The welcome bonus is 25,000. For purchases made for $1,500 or above during the first three months, members get rewards points that can convert to close to $550. The annual fee for the first year is automatically waived, which will save you $150.

The biggest advantage with this card is that you can double your points easily by spending money at gas stations, grocery stores, and pharmacies. Plus, travel-related expenses incurred for road, air, rail, or water transport also counts. In some cases, lodging and tour operator charges paid with the card can earn you points.

An Amex point is equivalent to one cent. That makes the base rewards rate 1% and the bonus rate 2%. These rates can be increased by transferring points to Aeroplan. You will earn points for booking a flight, renting a hotel room, or hiring a rental car. Then, these earned points can be redeemed at full value to pay off any travel expense that shows up on the statement plus taxes and service charges. No extra charges incur when you transfer points for Aeroplan or British Airways AVIOS program.

2.     TD® Aeroplan® Visa Infinite Card

This is an excellent card to start collecting Air Miles with. You don’t have to pay any annual fees for the first year of use and you will receive a welcome bonus of 30,000 miles. You will earn 15,000 miles with the first purchase you make using the card. If you keep the card active for 90 days following approval, you receive 10,000 miles more. You can receive 5,000 miles per authorized card user you add. For the first year, the primary cardholder can get an annual rebate of $120. This is a lot of incentive just for signing up.

Stack up 25,000 points on the TD card and that will be enough to fly from Canada to any city in the United States or Mexico. Each air mile you receive using this card will amount to roughly 1.28 cents per mile for economy tickets. For business class, it would amount to about 2.2 cents per mile. This is definitely a bargain. Earning mile points is not that difficult. The card offers an extra 1.5 points per dollar spent buying gas, groceries, or pharmaceutical items. At this amount, your earn rate will be at about 3.3%.

There are many other cherries on top of this cake, including coverage for travel insurance, trip cancellations, baggage rental, car rental, and flight interruptions, among others.

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3.     MBNA Rewards World Elite MasterCard®mbna-elite_en

There are many incentives offered for signing up, including a sign in bonus of up to $100 and a waiver for first year annual fee. This card does not have a minimum spending requirement. Everything earns a 2% reward rate. This card allows users to redeem cash credit points for anything, which includes your travel-related expenses.

MBNA offers 2 points per dollar spend on all purchases, which is a solid advantage this card has over the others. There are no cap limits on how many points you can earn either. If you are a frequent flyer, you can redeem points for anything travel related. Keep in mind that points can be redeemed against any purchase regardless of whether it’s travel related. So, if you only fly periodically or once every two or three years, this is the best travel credit card to have.

4.     Rogers™ Platinum MasterCard®rogershome-credit-card

Most travel credit cards have a downside: hefty foreign transaction fees. Rogers is actually one of the few travel credit cards to subsidize transaction fees incurred overseas. You can earn a whopping 4% cash back on any foreign purchase. The rewards rate for all other purchases is 1.75%. Points can be redeemed regardless of the type of expense.

There’s no annual fee during the first year, and you will receive a $25 welcoming bonus. Cash rewards can be redeemed once annually, which will include travel expenses. It’s possible to not pay any annual fee at all by pre-authorizing payments. Also keep in mind that Rogers offers one of the best travel insurance policies in Canada with this card.

5.     Desjardins Visa Odyssey Golddesj-odyssee

The travel credit cards mentioned above on this list require hefty monthly income levels. Desjardins travel credit card is one of the most egalitarian offered in Canada. You can get approval without earning a six-figure salary.

This card comes with a solid travel medical insurance policy that will cover you and your family for 60 days straight when out of your province. This is a significantly longer coverage period than the industry average. Also, the policy covers up to $5 million in claims in comparison to others that offer only one or two million. In addition to insurance, there’s car rental, lost baggage, baggage rental, trip delay, flight cancellation, purchase protection, and accident coverage as well.

So, if you are on the hunt for a really good travel credit card, choose one from the above list for the best perks and consumer options.

Air Miles Reward Miles Guide

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Air Miles is the leading loyalty marketing program in Canada. This article will explain how the program works, its history, how customers can benefit, and possible disadvantages of the program.

Overview

Air Miles is one of the most popular rewards programs in Canada. Very basically speaking, consumers can sign up for the program with participating credit cards and merchants. When the cardholder makes a purchase at a qualifying store, the rewards program adds points to the cardholder’s account. Later, these points can be redeemed as air miles with a participating airline. Clients can receive lucrative discounts and cheaper prices on plane tickets with the rewards program. Cash back options are also available.

The current Air Miles Reward Program operating in Canada is similar to other programs operating in Spain, Netherlands, Middle East, and formerly in the United Kingdom. It is currently overseen and managed by LoyaltyOne, Inc., a private entity owned by Alliance Data Systems Corporation, which is a loyalty marketing specialist in retail, travel, hospitality, and other similar sectors.

LOC53History

The Air Miles Reward Program first launched in Canada in 1992. The program was based on a concept developed by three young Canadian entrepreneurs named Craig Underwood, Sam Duboc, and Rob Gierkink. They came up with the basic idea for Air Miles in a Toronto hotel room.

The founders of the concept designed Air Miles as essentially a marketing venture that would reward opportunities for consumers to travel in return for brand loyalty. Loyalty programs were not a new concept at the time. However, it was unique because it brought together a coalition of sponsors, instead of being tied to just one company. Air Miles is also one of the earliest ventures that sought to gather data with regards to consumer buying habits in order to make advertising more effective.

Upon launch, the program had only 13 sponsors, including Canada Safeway and Bank of Montreal. The program attracted nearly two million customers in the first six months of operation alone. Soon, the original group of sponsors expanded to include giants in retail, pharmacy, grocery and fuel industries. They also partnered with credit cards offered by American Express and Bank of Montreal.

Air Miles enjoyed tremendous growth during the first six years of operation. In 1998, the business was acquired by Texas-based financial services provider Alliance Data. Subsequently, several other companies, such as COLLOQUY and Epsilon, were aligned with Air Miles.

Air Miles is recognized as one of the leading businesses in Canada, and a venture that helped shape loyalty marketing across North America. Today, millions of Canadians have signed up for the rewards program, and it remains as popular as ever.

How It Works

Customers are offered miles on a point-based system depending on how much they spend at a participating store. How many miles a customer can earn will depend on the participating merchant or credit card. For example, a customer can earn a single air mile for $50 spent at ADI, or for $15 spent at Primus. In general, 1 air mile is rewarded per $20 spent at a sponsor.

There are three ways a customer can earn it: shopping with a sponsor either in store or online, using a participating credit card, obtaining an Air Miles bonus card as a gift, or directly purchasing from the official website. Customers can also benefit from various offers and promotions provided by sponsors, especially during special times like Christmas holidays.

Air miles are not offered indefinitely. The miles do expire after some time, usually a year. Therefore, once customers have stacked up a considerable amount of points, these points should be redeemed. The easiest way to redeem points is to go to the official Air Miles website and type in the Collector Number. Customers can also redeem miles by calling the toll-free 1-888-AIR-MILES (1-888-247-6453) number. However, this option is less preferred as it is time consuming and inconvenient.

Customers can also transfer miles from one account to another. For example, a customer can gift air miles to a friend or a family member by transferring points from his or her own account.

LOC52Pros

Customers can earn points for a number of airlines with the Air Miles loyalty program. Traditionally, customers had to sign up for the program with a single airline. With the Air Miles Reward Program however, customers can redeem points they earn with a number of different carriers.

The Reward Program offers access to hundreds of sponsors. Customers can earn miles by using a certain credit card, buying a blender, filling up the gas tank, or subscribing to a service. The options are nearly unlimited. Because the Reward Program spans a number of industries, customers have a higher chance of stacking up points simply by making everyday purchases.

On average, customers can earn an air mile per 20 cents spent with a participating sponsor. The rate of return is higher with bonus points. For example, a customer who purchases a $10 product with 20 Air Mile bonus points can receive close to a 20 percent discount on the product.

Cons

The rate of return can vary because different sponsors offer varying air mile points for products. For example, a customer can earn the same number of points for $20 or $60 spent at different sponsors. In this situation, the customer who spent less gets a bargain, while the customer that spent more is not enjoying a positive rate of return.

Customers could spend more than they should on products in order to earn points. For example, a customer could end up spending $50 at a participating store for a $10 product just to earn Air Miles points.

Is Air Miles Better than Other Similar Rewards Programs?

Air Miles is the largest loyalty rewards program currently operating in Canada. No other program comes close to the number of sponsors and offers they have for its customers.

Most loyalty programs in Canada are still confined to a single company. For example, customers can sign up for a loyalty program with United Airlines and shop at a limited number of retail outlets. With Air Miles, customers are offered a wider range of options, which makes this particular program truly outstanding among its peers.

Official Website and Companies Involved in the Program

The official website of the Air Miles Rewards Program is www.airmiles.ca. The official site has the complete rewards catalogue for the program. Customers can also access a gift guide, payment services, a flight calculator, and the latest offers and promotions.

Here is a list of prominent companies involved with the Air Miles Rewards Program as sponsors:

  • American Express
  • Bank of Montreal
  • Safeway Canada
  • Uber
  • Ace
  • McDonald’s
  • Overstock.com
  • Adidas
  • Alamo
  • United
  • Budget
  • Hilton Inn
  • Amazon.ca
  • Ann Taylor
  • Apple Store Canada
  • Macy’s
  • Mark’s