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Finding the best credit card in Canada for travel can be a game-changer for avid travellers, offering many benefits beyond just earning travel points. With a wide array of options available, each boasting unique perks like travel insurance, airport lounge access, free first-checked bags, and no foreign exchange fees, select a credit card that aligns with your travel habits and financial goals.
Choosing the right travel credit card involves more than just comparing rewards programs. It's about understanding how the credit card fits your travel plans and lifestyle. Whether you're a frequent flyer or an occasional vacationer, the right travel credit card can provide significant savings and added conveniences, making your journeys smoother and more enjoyable.
This guide walks you through the essential factors to consider, helping you make an informed decision to maximize your travel rewards and enhance your overall travel experience.
Best Credit Cards in Canada for Travel
KOHO Premium Prepaid Visa
Interest Rate: N/A (Prepaid)
Rewards: 2% cash back on travel, groceries, and transportation, 0.5% on everything else.
Benefits: No foreign transaction fees, no interest charges, budgeting tools.
American Express Cobalt™ Card
Interest Rate: 20.99%
Rewards: 5 points per $1 spent on dining and groceries, 2 points per $1 on travel and transit, 1 point per $1 on everything else.
Benefits: Comprehensive travel insurance, flexible points redemption, monthly fee structure, hotel and car rental discounts.
Scotiabank Gold American Express® Card
Interest Rate: 20.99%
Rewards: 5 points per $1 spent on dining, groceries, and entertainment, 3 points on gas, transit, and select streaming services, 1 point on all other purchases.
Benefits: No foreign transaction fees, extensive travel insurance, concierge service, and purchase protection.
RBC Avion Visa Infinite
Interest Rate: 19.99%
Rewards: 1.25 RBC Rewards points per $1 spent on all purchases.
Benefits: Comprehensive travel insurance, flight redemption flexibility, purchase protection, extended warranty.
TD® Aeroplan® Visa Infinite Card*
Interest Rate: 20.99%
Rewards: 1.5 Aeroplan points per $1 spent on gas, groceries, and Air Canada purchases, 1 point on all other purchases.
Benefits: Comprehensive travel insurance, priority boarding and check-in with Air Canada, annual worldwide companion pass.
BMO® World Elite™ Mastercard®
Interest Rate: 20.99%
Rewards: 3 points per $1 spent on travel, 2 points on dining and entertainment, 1 point on all other purchases.
Benefits: Comprehensive travel insurance, airport lounge access, concierge service.
HSBC World Elite® Mastercard®
Interest Rate: 19.99%
Rewards: 3 points per $1 spent on travel and entertainment, 1 point on all other purchases.
Benefits: No foreign transaction fees, comprehensive travel insurance, airport lounge access, concierge services.
CIBC Aventura® Visa Infinite Card*
Interest Rate: 20.99%
Rewards: 2 points per $1 spent on travel through the CIBC Rewards Centre, 1.5 points on gas, groceries, and drugstore purchases, 1 point on all other purchases.
Benefits: Comprehensive travel insurance, concierge service, travel rebates.
American Express® Gold Rewards Card
Interest Rate: 20.99%
Rewards: 2 points per $1 spent on travel, gas, groceries, and drugstore purchases, 1 point on all other purchases.
Benefits: Comprehensive travel insurance, flexible points redemption, access to American Express Invites.
Scotiabank Passport™ Visa Infinite Card*
Interest Rate: 20.99%
Rewards: 2 points per $1 spent on groceries, dining, entertainment, and transit, 1 point on all other purchases.
Benefits: No foreign transaction fees, comprehensive travel insurance, six complimentary airport lounge visits per year.
MBNA Rewards World Elite® Mastercard®
Interest Rate: 19.99%
Rewards: 2 points per $1 spent on travel, groceries, and gas, 1 point per $1 on everything else.
Benefits: Comprehensive travel insurance, travel protection, concierge services.
National Bank® World Elite® Mastercard®
Interest Rate: 20.99%
Rewards: 3 points per $1 spent on travel, 2 points on groceries, and 1 point on all other purchases.
Benefits: Comprehensive travel insurance, airport lounge access, concierge services.
Tangerine World Mastercard®
Interest Rate: 19.95%
Rewards: 2% cash back on up to three categories of your choice (including travel), 0.5% on everything else.
Benefits: No annual fee, customizable rewards categories, no limits on cash back earned.
Rogers World Elite Mastercard®
Interest Rate: 19.99%
Rewards: 1.5% cash back on all purchases, 3% on U.S. dollar purchases.
Benefits: No annual fee, comprehensive insurance coverage, access to World Elite Mastercard benefits.
WestJet RBC World Elite Mastercard®
Interest Rate: 19.99%
Rewards: 1.5% back in WestJet dollars on everyday purchases, 2% on WestJet flights and vacations.
Benefits: Companion voucher, first checked bag free on WestJet flights, comprehensive travel insurance.
Marriott Bonvoy® American Express® Card
Interest Rate: 19.99%
Rewards: 5 points per $1 spent at Marriott properties, 2 points per $1 on all other purchases.
Benefits: Complimentary Silver Elite status, comprehensive travel insurance, no foreign transaction fees.
RBC British Airways Visa Infinite
Interest Rate: 19.99%
Rewards: 2 Avios per $1 spent on British Airways purchases, 1 Avios per $1 on all other purchases.
Benefits: Comprehensive travel insurance, companion award eVoucher, priority boarding.
American Express Aeroplan® Reserve Card
Interest Rate: 20.99%
Rewards: 3 points per $1 spent on Air Canada purchases, 2 points on dining and food delivery, 1 point on all other purchases.
Benefits: Priority airport services, Maple Leaf Lounge access, comprehensive travel insurance.
TD® First Class Travel® Visa Infinite Card*
Interest Rate: 20.99%
Rewards: 3 TD Rewards points per $1 spent on travel purchases through ExpediaForTD, 2 points on dining and recurring bill payments, 1 point on all other purchases.
Benefits: Comprehensive travel insurance, travel booking flexibility, concierge service.
HSBC Travel Rewards Mastercard®
Interest Rate: 19.99%
Rewards: 1.5 points per $1 spent on travel, 1 point on all other purchases.
Benefits: No foreign transaction fees, travel insurance, rewards flexibility.
National Bank Platinum Mastercard®
Interest Rate: 20.99%
Rewards: 2 points per $1 spent on travel, 1 point on all other purchases.
Benefits: Travel insurance, extended warranty, purchase protection.
BMO® AIR MILES® World Elite® Mastercard®
Interest Rate: 20.99%
Rewards: 1 mile per $10 spent, 3 miles per $10 spent at AIR MILES partners.
Benefits: Comprehensive travel insurance, airport lounge access, exclusive travel offers.
RBC Cathay Pacific Visa Platinum
Interest Rate: 19.99%
Rewards: 1 Asia Mile per $1 spent on all purchases.
Benefits: Travel insurance, Asia Miles accumulation, exclusive travel benefits with Cathay Pacific.
Scotiabank Platinum American Express® Card
Interest Rate: 20.99%
Rewards: 4 points per $1 spent on travel, 1 point per $1 on all other purchases.
Benefits: Comprehensive travel insurance, concierge service, airport lounge access.
PC Financial® World Elite Mastercard®
Interest Rate: 19.97%
Rewards: 30 PC Optimum points per $1 at Shoppers Drug Mart, 45 PC Optimum points per $1 at Loblaws stores, 10 PC Optimum points per $1 everywhere else.
Benefits: No annual fee, comprehensive travel insurance, price protection, and extended warranty.
Tangerine Money-Back Credit Card
Interest Rate: 19.95%
Rewards: 2% cash back on up to three categories of your choice (including travel), 0.5% on everything else.
Benefits: No annual fee, customizable rewards categories, no limits on cash back earned.
BMO® CashBack® World Elite® Mastercard®
Interest Rate: 20.99%
Rewards: 5% cash back on travel, 4% on transit, 3% on gas, 2% on recurring bills, 1% on everything else.
Benefits: Comprehensive insurance coverage, free roadside assistance, travel and medical protection.
Triangle™ World Elite Mastercard®
Interest Rate: 19.99%
Rewards: 3% cash back on travel, 1.5% on groceries, and 1% on all other purchases.
Benefits: No annual fee, roadside assistance, concierge service.
Capital One® Aspire Travel™ Platinum Mastercard®
Interest Rate: 19.8%
Rewards: 1.25 miles per $1 spent on all purchases.
Benefits: Travel insurance, price protection, extended warranty.
Capital One® Aspire Cash World Elite Mastercard®
Interest Rate: 19.99%
Rewards: 2 miles per $1 spent on travel, 1.25 miles on all other purchases.
Benefits: Comprehensive travel insurance, extended warranty, concierge services.
Canadian Tire Triangle™ Mastercard®
Interest Rate: 19.99%
Rewards: 3% cash back in Canadian Tire Money on travel, 1.5% on groceries, and 1% on all other purchases.
Benefits: No annual fee, exclusive member events, personalized offers.
Walmart Rewards™ World Mastercard®
Interest Rate: 19.89%
Rewards: 3% cash back in Walmart Rewards on travel, 1.25% at Walmart stores, 1% on all other purchases.
Benefits: No annual fee, extended warranty, purchase protection.
Peoples Trust Secured Visa
Interest Rate: 19.99%
Rewards: 1% cash back on all purchases.
Benefits: Ideal for building credit, purchase protection, extended warranty.
Capital One® Guaranteed Secured Mastercard®
Interest Rate: 19.8%
Rewards: 1% cash back on all purchases.
Benefits: Guaranteed approval, ideal for building credit, purchase protection, extended warranty.
Canadian Tire Gas Advantage Mastercard®
Interest Rate: 19.99%
Rewards: Up to 10 cents off per litre at Canadian Tire gas bars.
Benefits: No annual fee, extended warranty, purchase protection.
Brim Financial Mastercard®
Interest Rate: 19.99%
Rewards: Up to 1% cash back on all purchases, additional rewards with Brim partners.
Benefits: No foreign transaction fees, mobile device insurance, extended warranty.
Capital One® Walmart Rewards™ Mastercard®
Interest Rate: 19.99%
Rewards: 1.25% cash back on Walmart purchases, 1% on all other purchases.
Benefits: No annual fee, purchase protection, extended warranty.
RBC Cash Back Preferred World Elite Mastercard®
Interest Rate: 19.99%
Rewards: 1.5% cash back on all purchases.
Benefits: No annual fee, purchase protection, extended warranty.
CIBC Dividend Platinum® Visa Card
Interest Rate: 19.99%
Rewards: 2% cash back on travel, groceries, gas, and transportation, 1% on all other purchases.
Benefits: Purchase protection, extended warranty, travel insurance.
Desjardins Cash Back Platinum Mastercard®
Interest Rate: 19.99%
Rewards: 2% cash back on travel and grocery purchases, 1% on all other purchases.
Benefits: Purchase protection, extended warranty, travel insurance.
What are the benefits of a travel rewards credit card?
Travel rewards credit cards in Canada offer many benefits that greatly enhance travel experiences and provide significant financial advantages. Here are some of the most common credit card perks for travelling.
Earning travel points or miles
Travel rewards credit cards allow you to earn points or miles for every dollar you spend. You can redeem points or miles for travel-related expenses such as flights, eligible hotel bookings, car rentals, and vacation packages. Many cards offer accelerated earnings for specific spending categories like travel, dining, or groceries.
For instance, you might earn double or triple the travel points on travel purchases, allowing you to accumulate rewards faster. This feature helps you save money on future travel and adds value to everyday purchases.
Welcome bonus
Many travel credit cards come with a substantial welcome bonus, often worth hundreds of dollars in travel rewards, after you meet a minimum spending requirement within the first few months of opening the account. These bonuses can boost your rewards balance from the start.
For example, a credit card might offer 50,000 welcome bonus travel points if you spend $3,000 within the first three months. These bonus points can often cover the cost of a round-trip flight or several nights at a hotel, providing immediate value and incentivizing new credit card account holders.
Travel insurance
Travel credit cards often include comprehensive travel insurance coverage, such as trip cancellation/interruption insurance, lost luggage reimbursement, travel accident insurance, and rental car insurance, providing peace of mind and financial protection during your trips.
If your trip is unexpectedly cancelled or interrupted for covered reasons, you can be reimbursed for non-refundable expenses. Lost or delayed baggage coverage ensures you're compensated for essential items, and rental car insurance can save you from purchasing additional coverage at the rental counter.
Complimentary airport lounge access
A premium travel credit card may offer complimentary airport lounge access worldwide, where you can enjoy comfortable seating, complimentary refreshments, Wi-Fi, and other amenities. Lounges provide a serene environment away from the bustling airport terminals, allowing you to relax or work comfortably before your flight. Some cards also offer access to networks of lounges, such as Priority Pass, which includes hundreds of lounges globally.
No foreign transaction fees
Travel rewards credit cards may waive foreign exchange fees, saving you around 2-3% on foreign currency purchases. The savings can add up significantly throughout a trip, especially if you're not a frequent flyer or make large purchases. Eliminating these fees ensures you get the most value out of your spending without incurring extra costs.
Global assistance and concierge services
Some cards provide 24/7 global assistance for emergencies, such as medical referrals, lost passport assistance, and emergency cash transfers. Concierge services can help with travel planning, dining reservations, event tickets, and more. This level of support can be invaluable in unfamiliar locations or during urgent situations, providing a sense of security and convenience.
Priority boarding and baggage perks
Certain travel cards offer priority boarding, free checked bags, seat upgrades, and other travel perks, enhancing travel comfort and convenience. These benefits can save you time and money, allowing you to board earlier, avoid baggage fees, and enjoy a more pleasant travel experience.
Hotel benefits
Travel rewards cards may include benefits like free nights, room upgrades, late check-outs, and special amenities at participating hotels. These travel perks can enhance your hotel stays, providing added luxury and value. Some cards partner with specific hotel chains to offer loyalty status, which can include even more exclusive benefits.
Companion tickets
Some cards offer annual companion tickets, such as the Visa airport companion program provided by the CIBC Aventura Visa Infinite credit card, allowing you to bring a travel partner along for a reduced fare or even free after meeting certain spending requirements. You can use the round-trip companion voucher to travel with a partner and save significantly on airfare.
Flexible redemption options
Travel rewards can often be redeemed through the credit card's travel portal, transferred to airline or hotel loyalty programs, or used for statement credits against travel purchases. You can choose the best way to use your travel points or miles based on your travel plans and preferences, ensuring maximum value and convenience.
Are there disadvantages of a travel rewards credit card?
Annual fees
Many travel rewards credit cards charge high annual fees ranging from $95 to $550, or more. While the benefits and rewards can offset these fees, they might not be worth it if you aren't a frequent flyer or take full advantage of the travel perks.
High interest rates
Travel rewards credit cards often have higher interest rates than other credit cards. Carrying a balance month-to-month can lead to significant interest charges, which can quickly outweigh the value of any rewards earned. These credit cards are best suited for individuals who can pay their balance in full each month.
Complex reward structures
The reward system for a travel credit card can be complicated, with varying point values, bonus reward offers, and redemption options. Understanding how to maximize your rewards can be challenging and time-consuming, and mistakes can reduce the overall value of the rewards.
Redemption restrictions
There may be restrictions when you redeem points or miles for travel, such as blackout dates, limited availability, and specific booking requirements. These limitations can make it difficult to use your rewards for your desired travel plans, potentially diminishing their value.
Foreign transaction fees
While many travel rewards cards waive foreign transaction fees, not all do. If your credit card charges these fees, using it for foreign currency purchases can become costly, adding an extra 2-3% to each transaction.
Spending requirements for the welcome bonus
A welcome bonus often comes with spending requirements that must be met within a short period, typically three months. If you can't meet these spending thresholds without overspending or going into debt, you may not qualify for the welcome bonus, reducing the credit card's initial value.
Limited benefits for infrequent travelers
If you don't travel often, many travel-specific perks such as lounge access, hotel benefits, and priority boarding may go unused, making the credit card less valuable. A cash back or general rewards credit card may be a better fit.
Currency devaluation
The value of points or miles on your credit card can decrease if the issuing company devalues its rewards program. It may take more points or miles to book the same travel services in the future with your credit card rewards system, reducing the long-term value of your accumulated rewards.
Types of travel credit cards in Canada
Several types of travel rewards credit cards in Canada cater to different travelers. When choosing a travel credit card, consider factors, such as your travel habits, preferred airlines or hotel bookings, the card’s fees, and the value of its rewards and travel perks to ensure you select the best credit card for your needs.
General travel rewards credit cards
A general rewards travel credit card allows you to earn points or miles on everyday purchases, such as grocery purchases, entertainment purchases, and other eligible purchases. You can redeem points or miles for flights, car rental bookings, hotel stays, and vacation packages. Many general credit cards have extended warranties on purchases, points on food delivery, loyalty programs, and other purchases.
Airline credit cards
Airline credit cards are co-branded with specific airlines and offer rewards and travel perks directly related to that airline, such as accelerated miles earning on airline purchases, priority boarding, free checked bags, and access to the airline’s lounges. For example, the TD Aeroplan Visa Infinite card, TD Aeroplan Visa Infinite Privilege card, and CIBC Aeroplan Visa Infinite card are co-branded with Air Canada and have deals when booking Air Canada vacations.
Hotel credit cards
These cards are co-branded with hotel chains and provide rewards and benefits for stays at those hotels, including points for hotel stays, free nights, room upgrades, and late check-out.
No foreign transaction fee credit cards
A credit card with no foreign transaction fees doesn't charge the typical 2-3% foreign transaction fee on purchases made outside of Canada, making them ideal for international travellers. The Scotiabank Passport Visa Infinite credit card is an example of a travel credit card with no foreign transaction fees.
Premium travel credit cards
Premium travel credit cards come with high annual fees but offer extensive travel benefits such as airport lounge access, comprehensive travel insurance, concierge services, and a welcome bonus. It may also have rental car insurance, luggage protection, and trip cancellation insurance to offer credit card users a comfortable experience.
Cash back travel credit cards
While primarily cash back cards, some offer the flexibility to redeem cash back rewards for travel expenses, providing a straightforward way to save on travel without the complexity of travel points and miles. Some of these credit cards offer perks like mobile device insurance, purchase protection, and extended warranties. Whether you want a reward or cash back credit card depends on your everyday purchases, spending habits, and preferences.
Travel credit cards for business owners
These cards are tailored for business owners and provide travel rewards on business expenses. They also offer travel perks like expense management tools and employee credit card options.
Student travel credit cards
A student travel credit card is designed for students and offers travel rewards and benefits without requiring a strong credit history or high income, often with no annual fee.
Do travel credit cards come with fees?
Yes, travel credit cards often come with various fees, varying significantly depending on the credit card. While travel credit cards can offer valuable rewards and benefits, it's essential to carefully review the fee structure and assess whether the travel perks provided outweigh the costs.
If you maximize the rewards and benefits, the value can often justify the fees. However, if you don't use the card's features extensively, a lower-fee or no-fee card might be a better fit.
Here are some common fees associated with travel credit cards in Canada.
Annual fees
Many travel credit cards charge an annual fee. Higher annual fees are typically associated with premium cards that offer extensive benefits such as lounge access, comprehensive travel insurance, and generous rewards programs. Some credit cards waive the first-year annual fee.
Interest rates
Travel credit cards generally come with higher interest rates than regular credit cards. If you carry a balance from month to month, the interest charges can add up quickly, negating the value of the rewards earned. Typical APRs for travel credit cards in Canada can range from 19.99% to 22.99% or higher.
Foreign transaction fees
Some travel credit cards charge foreign transaction fees, typically around 2-3% of the transaction amount, on foreign purchases. However, many travel cards, especially those designed for international travel, waive these fees.
If you're bringing home gifts for friends and family from your travels, you pay only the exchange rate when using your credit card. Check out our Gift Guide: The Jet-Setter if you're looking for ideas.
Balance transfer fees
If you transfer a balance from another credit card to your travel card, you may be charged a balance transfer fee, usually a percentage of the amount transferred.
Cash advance fees
Using your travel credit card for cash advances, withdrawing cash from an ATM, usually incurs a cash advance fee, along with a higher interest rate on the cash advance amount from the transaction date. The fee is typically a percentage of the cash advance amount or a minimum fixed fee.
Late payment fees
If you miss a credit card payment or fail to pay at least the minimum amount by the due date, you may be charged a late payment fee.
Additional card fees
Some travel credit cards in Canada may charge for additional cards issued to authorized users. These fees can vary, with some cards offering free additional cards and others charging a fee.
What are the different types of travel insurance?
Travel insurance can provide a range of protections to help mitigate the risks and unexpected costs associated with travel. When deciding whether travel insurance is worth it, it’s important to consider your specific needs, the nature of your trip, and any existing coverage you may have through credit cards or other insurance plans. This ensures you get adequate protection without unnecessary duplication of coverage.
Here are the different types of travel insurance commonly available.
Trip cancellation and interruption insurance
Trip cancellation insurance covers non-refundable expenses if you cancel your trip for covered reasons like illness, injury, death of a family member, natural disasters, or other unforeseen events. Trip interruption covers the cost of unused portions of your trip and additional expenses if your trip is interrupted for similar covered reasons.
Travel medical insurance
Medical insurance provides coverage for medical emergencies that occur while you are travelling, including hospital stays, doctor visits, and medical treatments. It is particularly important when travelling abroad where your regular health insurance may not provide coverage.
Emergency evacuation and repatriation insurance
This covers the cost of emergency medical evacuation to the nearest appropriate medical facility, and, if necessary, repatriation to your home country for further treatment. It can also cover the return of remains in the event of death.
Baggage and personal belongings insurance
You get reimbursed for lost, stolen, or damaged luggage and personal items during the trip. It can include coverage for delayed baggage, which reimburses you for essential items you purchase while waiting for your baggage to arrive.
Travel day insurance
Travel day insurance provides reimbursement for additional expenses incurred due to travel delays, such as accommodation, meals, and transportation, if your trip is delayed for a covered reason.
Rental car insurance
Rental car insurance covers damage or theft of a rental car, often including collision damage waiver (CDW) and loss damage waiver (LDW). This can save you from purchasing similar coverage directly from the rental car company.
24-hour assistance services
Many travel insurance plans offer access to 24-hour assistance services, which can help with medical referrals, legal assistance, lost luggage tracking, and other emergency services while you are travelling.
Understanding travel credit card earn rates
The base earn rate refers to the standard rate at which you earn points or miles for every dollar spent using your travel credit card. It's often a flat rate applied to all purchases. For example, a credit card may offer 1 point for every dollar spent on everyday purchases.
Many travel credit cards offer higher earning rates for spending in specific categories. These categories may include travel, such as car rental bookings or flights, dining, gas purchases, grocery purchases, and entertainment purchases. You may earn bonus points when shopping in these categories, accelerating your points accumulation.
Some cards have accelerated earn rates for an introductory period or on specific types of purchases. These rates can be significantly higher but are usually limited by time or spending limits. For example, your travel credit card may offer 5x the points on all purchases for the first three months as a welcome bonus.
Temporary promotions give you extra points for shopping with specific retailers or during particular events. You may also get bonus points as a one-time anniversary bonus.
How to choose the best travel credit card
Choosing the best travel credit card involves evaluating your travel habits, spending patterns, and the specific benefits offered by various cards.
Determine your travel needs and preferences
Understanding your travel needs and preferences is the first step in choosing the best travel credit card. Consider how often you travel and whether you do so frequently or occasionally.
As a frequent flyer, you may benefit more from premium cards that offer extensive perks such as lounge access, comprehensive travel insurance, and higher reward rates. Occasional travellers may find more value in cards with no annual fee, but still provide solid rewards for their infrequent trips.
Additionally, think about whether you prefer flights, hotel stays, or rental cars. Selecting a credit card that offers the best rewards and benefits tailored to your travel style can significantly enhance your overall experience.
It's also important to consider your travel destinations. If you travel internationally, look for cards that waive foreign transaction fees and are widely accepted globally, such as those on the Visa or Mastercard networks.
Evaluate rewards programs
Evaluating the rewards programs of different travel credit cards is crucial in determining which credit card offers the most value for your spending habits. Compare the earning rates on travel-related purchases, such as flights, hotels, dining, and everyday spending categories. A credit card that offers higher rates in categories where you spend the most will help you accumulate rewards faster.
Consider the value of welcome bonuses and the spending requirement to earn them. A generous sign-up bonus can significantly boost your rewards balance early on. Additionally, check the redemption options available. The best travel credit cards provide flexible redemption options, allowing you to use points or miles for flights, hotels, car rentals, and even cash back or gift cards.
Flexibility in redemption ensures you can maximize the value of your rewards according to your travel plans and preferences.
Assess travel benefits and perks
When choosing a travel credit card, assessing the travel benefits and perks it offers is essential. Comprehensive travel insurance coverage is a significant perk, including trip cancellation/interruption insurance, travel medical insurance, baggage insurance, and emergency evacuation. These coverages provide peace of mind and financial protection during your travels.
Airport lounge access is another valuable perk offered by many premium cards. Lounges provide a comfortable and relaxing environment with amenities such as Wi-Fi, refreshments, and more, enhancing your travel experience. Additionally, look for cards that waive foreign transaction fees, saving you money on international purchases.
Other perks to consider include credits for Global Entry or NEXUS application fees, hotel benefits like free nights or room upgrades, rental car insurance, and concierge services. These added benefits can significantly enhance your travel experience and provide additional value.
Consider fees and interest rates
Considering the fees and interest rates associated with travel credit cards is crucial to ensure you choose a credit card that offers good value. Compare the annual fees of different cards, keeping in mind that while premium cards often have higher fees, the benefits they provide can outweigh these costs if you're a frequent flyer. It’s also important to look at the card’s interest rates for purchases, balance transfers, and cash advances.
High interest rates can negate the value of the rewards earned if you carry a balance from month to month, so aim to pay off your balance in full each month to avoid interest charges. Additionally, be aware of other potential fees, such as late payment fees, balance transfer fees, and cash advance fees, which can add up and reduce the overall value of the credit card.
Check for sign-up and spending requirements
Before applying for a travel credit card, it’s important to check the sign-up and spending requirements. Ensure you can meet the minimum spending requirement to earn the sign-up bonus without overspending or straining your budget. Sign-up bonuses can significantly boost your rewards balance, making them a key factor in the credit card’s value proposition.
Consider the spending categories that align with your habits. Choose a credit card that offers higher rewards rates in categories where you spend the most, such as travel, dining, or groceries. This ensures that you maximize the rewards earned from your regular spending and get the most value from the credit card.
Compare cards
Reading reviews and comparing travel credit cards can provide valuable insights into the benefits and potential drawbacks of each credit card. Customer reviews can offer a real-world perspective on the card’s features, customer service quality, and overall satisfaction. Additionally, using online comparison tools allows you to evaluate different cards side by side based on rewards, benefits, fees, and other factors. This comprehensive comparison helps you identify the credit card that best matches your needs and preferences, ensuring you make an informed decision.
Additional considerations
Consider additional factors such as credit score requirements and flexibility. Ensure your credit score meets the requirements for the credit card you are applying for, as premium travel cards typically require good to excellent credit.
Look for cards that offer the flexibility to transfer points or miles to various travel partners, giving you more options for redemption. It can be particularly valuable if you have loyalty to specific airlines or hotel chains, as it allows you to maximize the value of your rewards by transferring them to programs where they can be used most effectively.
How to apply for a travel rewards credit card in Canada
Research
Determine what you want from a travel rewards credit card, such as high reward points on travel-related purchases, comprehensive travel insurance, no foreign transaction fees, or specific perks like lounge access. Use comparison tools and read reviews to evaluate different travel rewards credit cards available in Canada. Look at factors like annual fees, interest rates, reward rates, sign-up bonuses, and additional benefits.
Check eligibility requirements
Most travel rewards credit cards require a good to excellent credit score. Check your credit score to ensure you meet the minimum requirement for the card you’re interested in. You can request your credit report from any major credit bureau or get a free credit score report from your credit card provider. Some cards have minimum personal income or household income requirements. Make sure your income meets the threshold specified by the credit card issuer.
Gather documents
Be ready to provide personal details such as your full name, date of birth, and address. The credit card provider may also ask for employment and income information, such as your employment status, employer, and annual income, and identification, such as a driver’s license or passport, and Social Insurance Number (SIN).
Apply
Most banks and credit card issuers allow you to apply online. Visit the issuer’s website, find the travel rewards credit card you want, and click the apply button. Complete the application form with accurate information. Double-check for any errors or missing information to avoid delays in processing. Ensure you understand the terms and conditions, including interest rates, fees, and reward program details before applying.
Wait for approval
Some applications may get approved instantly, especially if you have a strong credit score and meet all the requirements. In some cases, your application may require additional review. The credit card issuer may contact you for more information or documentation. This process can take a few days to a couple of weeks.
Activate your card
If approved, you will receive your travel rewards credit card in the mail. Follow the instructions provided to activate your credit card. This usually involves calling a toll-free number or activating it online through your account with the issuer.
Start using your card
If your card comes with a sign-up bonus, make sure to meet the minimum spending requirement within the specified timeframe to earn the bonus points or miles. Keep track of your spending, payments, and reward points through the issuer’s online banking portal or mobile app. Pay off your balance in full each month to avoid interest charges and maximize the value of your rewards.
Alternatives to a travel rewards credit card
Debit cards
Whether you carry a debit or credit card for international travel is entirely up to your preferences. Using a debit card instead of a credit card for travel can be a viable option, especially for those who prefer not to accumulate credit card debt or have concerns about overspending. However, similar to a credit card, you may also incur foreign transaction fees when using your debit card for foreign currency purchases. A credit card can provide rewards and security for travellers who want to capitalize on their perks on eligible purchases and have added peace of mind when shopping abroad.
Prepaid cards
You can use a prepaid MasterCard for travel purchases, or a prepaid card that works on any of the major credit card networks, as a convenient and secure way to manage your travel expenses without the risks associated with credit cards. The KOHO Prepaid MasterCard is a good option to consider.
By carefully selecting a prepaid travel card that fits your needs, you can enjoy the benefits of global acceptance, spending control, and security while avoiding debt and overspending. Be sure to compare the fees, usability, reload options, and security features to choose the best prepaid card for your travels.
Traveller's checks
Traveller’s checks provide a secure and reliable alternative to travel rewards credit cards, especially for those who prefer not to use a debit or credit card or are travelling to areas with limited card acceptance. You can exchange traveller's checks for local currency at banks, exchange offices, and sometimes hotels.
Traveller's checks offer robust security features, global acceptance, and ease of use without a bank account. However, the declining acceptance and potential fees make it essential to weigh the pros and cons carefully.
Best travel credit cards
KOHO Premium Prepaid Visa
Interest Rate: N/A (Prepaid)
Rewards: 2% cash back on dining, groceries, and transportation, 0.5% on everything else.
Benefits: No foreign transaction fees, no interest charges, and budgeting tools.
American Express Cobalt™ Card
Interest Rate: 20.99%
Rewards: 5 points per $1 spent on dining and groceries, 2 points per $1 on travel and transit, and 1 point per $1 on everything else.
Benefits: Comprehensive travel insurance, flexible points redemption, monthly fee structure.
Scotiabank Gold American Express® Card
Interest Rate: 20.99%
Rewards: 5 points per $1 spent on dining, groceries, and entertainment, 3 points on gas, transit, and select streaming services, and 1 point on all other purchases.
Benefits: No foreign transaction fees, extensive travel insurance, concierge service, and purchase protection.
Rogers World Elite Mastercard®
Interest Rate: 19.99%
Rewards: 3% cash back on dining and 1.5% cash back on all other purchases.
Benefits: No annual fee, comprehensive insurance coverage, and access to World Elite Mastercard benefits.
TD® Cash Back Visa Infinite Card*
Interest Rate: 20.99%
Rewards: 3% cash back on dining, groceries, and recurring bill payments, 1% on all other purchases.
Benefits: Travel insurance, purchase security, extended warranty, concierge service.
National Bank® World Elite® Mastercard®
Interest Rate: 20.99%
Rewards: 3% cash back on dining, 2% on groceries, and 1% on all other purchases.
Benefits: Comprehensive travel insurance, airport lounge access, concierge services.
BMO® CashBack® World Elite® Mastercard®
Interest Rate: 20.99%
Rewards: 5% cash back on dining, 4% on transit, 3% on gas, 2% on recurring bills, 1% on everything else.
Benefits: Comprehensive insurance coverage, free roadside assistance, and travel and medical protection.
CIBC Aventura® Visa Infinite Card*
Interest Rate: 20.99%
Rewards: 2 points per $1 spent on dining, groceries, gas, and travel, 1 point per $1 on everything else.
Benefits: Comprehensive travel insurance, concierge service, purchase protection, and extended warranty.
HSBC World Elite® Mastercard®
Interest Rate: 19.99%
Rewards: 3 points per $1 spent on dining and entertainment, 1 point on all other purchases.
Benefits: Comprehensive travel insurance, airport lounge access, concierge services.
MBNA Rewards World Elite® Mastercard®
Interest Rate: 19.99%
Rewards: 2 points per $1 spent on dining, groceries, and gas, 1 point per $1 on everything else.
Benefits: Comprehensive insurance coverage, travel protection, and concierge services.
RBC Avion Visa Infinite
Interest Rate: 19.99%
Rewards: 1.25 RBC Rewards points per $1 spent on dining and all other purchases.
Benefits: Comprehensive travel insurance, purchase protection, extended warranty.
Tangerine World Mastercard®
Interest Rate: 19.95%
Rewards: 2% cash back on up to three categories of your choice (including dining), 0.5% on everything else.
Benefits: No annual fee, customizable rewards categories, no limits on cash back earned.
BMO® World Elite™ Mastercard®
Interest Rate: 20.99%
Rewards: 3 points per $1 spent on dining, travel, and entertainment, 1 point on all other purchases.
Benefits: Comprehensive travel insurance, airport lounge access, concierge service.
American Express SimplyCash™ Preferred Card
Interest Rate: 19.99%
Rewards: 4% cash back on dining and groceries, 2% on all other purchases.
Benefits: Comprehensive insurance coverage, access to American Express Invites, extended warranty, and purchase protection.
Scotiabank Momentum® Visa Infinite Card*
Interest Rate: 20.99%
Rewards: 4% cash back on dining and groceries, 2% on gas and transit, 1% on all other purchases.
Benefits: Travel insurance, concierge service, purchase protection, and extended warranty.
PC Financial® World Elite Mastercard®
Interest Rate: 19.97%
Rewards: 30 PC Optimum points per $1 at Shoppers Drug Mart, 45 PC Optimum points per $1 at Loblaws stores, 10 PC Optimum points per $1 everywhere else.
Benefits: No annual fee, comprehensive travel insurance, price protection, and extended warranty.
Tangerine Money-Back Credit Card
Interest Rate: 19.95%
Rewards: 2% cash back on up to three categories of your choice (including dining), 0.5% on everything else.
Benefits: No annual fee, customizable rewards categories, no limits on cash back earned.
BMO® CashBack® Mastercard®
Interest Rate: 19.99%
Rewards: 3% cash back on dining, 1% on recurring bill payments, 0.5% on all other purchases.
Benefits: No annual fee, extended warranty, and purchase protection.
HSBC Cash Rewards Mastercard®
Interest Rate: 19.99%
Rewards: 1.5% cash back on all purchases, 3% on the first $10,000 spent annually on dining, groceries, and drugstore purchases.
Benefits: No annual fee, no foreign transaction fees, and travel and medical insurance.
Meridian Visa Infinite Cash Back Card
Interest Rate: 19.50%
Rewards: 4% cash back on dining and groceries, 2% on drugstores and recurring bills, 1% on all other purchases.
Benefits: Comprehensive travel insurance, mobile device insurance, and price protection.
Triangle™ World Elite Mastercard®
Interest Rate: 19.99%
Rewards: 3% cash back on dining, 1.5% on groceries, and 1% on all other purchases.
Benefits: No annual fee, roadside assistance, concierge service.
SimplyCash™ Card from American Express
Interest Rate: 19.99%
Rewards: 2% cash back on all purchases.
Benefits: No annual fee, purchase protection, extended warranty.
PC Financial® Mastercard®
Interest Rate: 19.97%
Rewards: 10 PC Optimum points per $1 spent on all purchases.
Benefits: No annual fee, exclusive PC Optimum offers.
Scotiabank Value® Visa
Interest Rate: 12.99%
Rewards: 1% cash back on all purchases.
Benefits: Low interest rate, no annual fee for the first year, extended warranty, and purchase protection.
BMO® Preferred Rate Mastercard®
Interest Rate: 12.99%
Rewards: 0.5% cash back on all purchases.
Benefits: Low interest rate, extended warranty, and purchase protection.
National Bank ECHO® Cashback Mastercard®
Interest Rate: 20.99%
Rewards: 1.5% cash back on dining, gas, groceries, and online purchases, 1% on all other purchases.
Benefits: No annual fee, extended warranty, and purchase protection.
Neo Financial Mastercard®
Interest Rate: 19.99%
Rewards: Up to 5% cash back at Neo partners, 1% on everything else.
Benefits: No annual fee, flexible credit limits, mobile app for tracking rewards.
Canadian Tire Triangle™ Mastercard®
Interest Rate: 19.99%
Rewards: 3% cash back in Canadian Tire Money on dining, 1.5% on groceries, and 1% on all other purchases.
Benefits: No annual fee, exclusive member events, personalized offers.
Walmart Rewards™ World Mastercard®
Interest Rate: 19.89%
Rewards: 3% cash back in Walmart Rewards on Walmart.ca, 1.25% at Walmart stores, 1% on all other purchases.
Benefits: No annual fee, extended warranty, and purchase protection.
Peoples Trust Secured Visa
Interest Rate: 19.99%
Rewards: 1% cash back on all purchases.
Benefits: Ideal for building credit, purchase protection, and extended warranty.
Capital One® Guaranteed Secured Mastercard®
Interest Rate: 19.8%
Rewards: 1% cash back on all purchases.
Benefits: Guaranteed approval, ideal for building credit, purchase protection, extended warranty.
Capital One® Aspire Cash Platinum Mastercard®
Interest Rate: 19.8%
Rewards: 1% cash back on all purchases.
Benefits: No annual fee, purchase protection, extended warranty.
Canadian Tire Gas Advantage Mastercard®
Interest Rate: 19.99%
Rewards: Up to 10 cents off per litre at Canadian Tire gas bars.
Benefits: No annual fee, extended warranty, and purchase protection.
Brim Financial Mastercard®
Interest Rate: 19.99%
Rewards: Up to 1% cash back on all purchases, and additional rewards with Brim partners.
Benefits: No foreign transaction fees, mobile device insurance, extended warranty.
Capital One® Walmart Rewards™ Mastercard®
Interest Rate: 19.99%
Rewards: 1.25% cash back on Walmart purchases, and 1% on all other purchases.
Benefits: No annual fee, purchase protection, extended warranty.
RBC Cash Back Preferred World Elite Mastercard®
Interest Rate: 19.99%
Rewards: 1.5% cash back on all purchases.
Benefits: No annual fee, purchase protection, extended warranty.
CIBC Dividend Platinum® Visa Card
Interest Rate: 19.99%
Rewards: 2% cash back on dining, groceries, gas, and transportation, 1% on all other purchases.
Benefits: Purchase protection, extended warranty, travel insurance.
Desjardins Cash Back Platinum Mastercard®
Interest Rate: 19.99%
Rewards: 2% cash back on dining and grocery purchases, 1% on all other purchases.
Benefits: Purchase protection, extended warranty, travel insurance.
National Bank® Platinum Mastercard®
Interest Rate: 20.99%
Rewards: 2% cash back on dining and groceries, 1% on all other purchases.
Benefits: Purchase protection, extended warranty, travel insurance.
Capital One® Aspire Cash World Elite Mastercard®
Interest Rate: 19.99%
Rewards: 2% cash back on all purchases.
Benefits: Comprehensive travel insurance, extended warranty, concierge services.
Get a prepaid travel card with KOHO
From local trips to flying across the globe, get a prepaid travel card with KOHO to explore, shop, and experience the world without worry. The prepaid travel card provides up to 2% cash back on groceries, transportation, and dining out wherever you are, and you can get bonus rewards for shopping with our brand partners.
Leverage our expert guidance and resources to track spending against your budget and develop healthy financial habits that set you up for success in the future. For example, you can request a free credit score report to ensure you're building a good credit score and get valuable insights into what you can improve on. Whether you're interested in KOHO for businesses, a high-interest savings account, or a virtual credit card, our tools and products can suit various needs to help you plan for spending and saving.
Build your credit with KOHO today to strengthen your credit profile and qualify for the travel rewards credit card you need to travel comfortably.
About the author
Grace is a communications expert with a passion for storytelling. This hobby eventually turned into a career in various roles for banks, marketing agencies, and start-ups. With expertise in the finance industry, Grace has written extensively for many financial services and fintech companies.
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