I have spent a lot of time looking for a travel credit card that fits my lifestyle. But unfortunately, many of the credit providers I came across were unavailable to me here in Canada.
So I narrowed my search down further to those available to me. And what I found was that in terms of travel credit cards, Canada has one of the widest selections in the world.
This article takes a deep dive into the four best travel credit cards Canada offers and analyzes how each selection is the optimal fit for your lifestyle. But first, let’s take a look at what distinguishes a credit plan as effective for travel.
| Travel Credit Card | Welcome Bonus | Annual Fee | Best Travel Card For | ||
|---|---|---|---|---|---|
|
|
|||||
|
|
|||||
|
|
|||||
|
|
Why a Travel Credit Card is Important
Travel credit cards hold many advantages over traditional credit visas. In fact, the benefits of these cards aren’t even limited to travellers alone. But their advantages are immediate and more apparent when exploring a foreign country.
But what exactly is included in the best travel credit card Canada provides?
No Foreign Transaction Fees
It wasn’t long into my first trip that I discovered I was spending more money to withdraw cash than I actually was spending on a night’s stay in my Nicaraguan hostel.
Traditional credit cards often charge an additional 2.5% transaction fee on top of their regular rates for non-Canadian Transactions.
An effective travel credit card removes this added expense from the equation. It keeps your budget targeted to the experiences that matter.
Travel Rewards
The most blatant perk of a travel credit card is the associated reward systems. Therefore, when comparing the best Canadian travel credit cards, it is essential to compare each provider’s available rewards and their point allocation system.
Certain travel credit cards offer bonus points for different services. Whether a partnership with a specific restaurant chain or premium bonus points for buying your gas from a particular oil provider, each travel credit card offers a unique way to receive maximum reward points.
Compare these reward schemes to ensure you get the best travel credit card Canada offers that suits your lifestyle.
Welcome Offers
Speaking of credit card travel rewards, one of the easiest ways to build up your point balance is by signing up for a card with a massive welcoming bonus. Many of these cards include these bonuses, but they are typically associated with a minimum amount spent.
When comparing the best travel credit cards in Canada, consider each welcoming bonus carefully to decide which offer provides the maximum value for your spending habits.
Travel Perks and Insurance
While travel rewards are great, what separates this list as the best travel credit cards for Canadians are the added travel perks.
While each card is associated with its own luxury perks, one of the greatest assets to look for is the travel insurance of each card. You may not think you will need it, but when you miss a flight or have an unexpected trip to the hospital, you will be happy that it is there.
Low Annual Fees
What could be better than having all of these perks? Having these perks at the lowest annual fee possible. Canada’s best travel credit cards on this list are all available at varying price points. But, there are several free travel credit cards on the market.
Now that we know what to look for let’s take a deeper dive into the five best travel credit cards Canada offers in 2022.
For a $155 annual fee, the American Express Cobalt is the overall best travel credit card Canada offers. Along with providing the best reward point value, the American Express Cobalt also features some added travel perks.
Point System
The American Express Cobalt’s standard reward rate is 1 point/$1 spent. But there are several opportunities to maximize your reward points.
Travellers with this credit card will receive 2 points/dollar spent on travel expenses that include gas purchases, public transport, and getaways within Canada. Additionally, the American Express Cobalt offers 3 points/$1 spent on all eligible streaming services in Canada.
However, the American Express Cobalt’s maximum value comes from the card’s eat and drinks bonus points. American Express Cobalt’s users will receive 5 points/ $1 spent for select grocery stores and restaurants.
Point Rewards
The American Express Cobalt offers several reward redemption methods. Points can be redeemed through Aeroplan for 2 cents/point for the maximum value. However, the American Express Cobalt only directly grants 1 cent/point for booking travel packages.
Welcome Bonus
The American Express Cobalt offers a signup bonus unique amongst the best travel credit cards Canada offers. Instead of having a one lump point sum once a target number spent has been reached, the American Express Cobalt awards its bonus based on monthly expenses.
In the first year of your card membership, the American Express Cobalt awards 2,500 points for each month you spend a minimum of $500 on your card.
This schematic offers a total potential welcoming bonus of 30,000 points in your first year.
Travel Perks
American Express Cobalt card members receive several perks from bonus points throughout the year to access exclusive events.
One of the top features included in your card membership is the Access Front Of The Line® Presale & Reserved Tickets program. The American Express Cobalt credit card provides members with preferential tickets for the best seats to all of their favourite concerts and shows.
Foreign Transaction Fee
In this blogger’s opinion, the only reason this card is challenged as the best travel credit card Canada offers is that it misses on the most crucial mark a travel credit card should hit. It fails to provide a no foreign transaction fee policy. Instead, members will be charged the standard 2.5% for foreign transactions.
The benefits of many of the cards featured on this list all come with reasonable yet apparent annual fees. However, not all travel credit cards in Canada require these upfront payments. The MBNA Rewards Platinum Plus® Mastercard® is perhaps Canada’s best free travel credit card. It offers the benefits of a premium credit card for no additional cost.
Point System
The MBNA Rewards Platinum Plus® Mastercard® point system offers a regular reward rate of 1 point/dollar spent. But, cardholders can maximize their rewards when shopping with eligible grocery stores, restaurants, and household utility providers where they will receive 4 points/dollar spent.
Additionally, the MBNA Rewards Platinum Plus® Mastercard® offers an annual birthday bonus to its members. Each year cardholders will receive 10% of the total number of points earned within the last 12-month span.
Point Rewards
MBNA Rewards Platinum Plus® Mastercard® points are worth approximately 0.5 cents/point and can be used to redeem travel opportunities, cashback, brand name merchandise, and gift cards to participating retailers
Welcome Bonus
MBNA Rewards Platinum Plus® Mastercard® memberships offer 10,000 in welcome bonuses.
The first 5,000 points are awarded once members spend $500 or more within the first 90 days of the account opening.
A second 5,000 points are awarded once members are enrolled in paperless e-statements within the first 90 days.
Travel Perks
While boasting fewer perks than the premium cards on this list, the MBNA Rewards Platinum Plus® Mastercard® does hold some of its own benefits.
Along with its annual birthday bonus points, this travel credit card also has excellent travel insurance. These include:
- Car rental insurance
- Extended warranty
- Mobile insurance
- Purchase assurance
Foreign Transaction Fee
Despite having no annual fees, MBNA Rewards Platinum Plus® Mastercard® cardholders will still have to cover the standard 2.5% foreign transaction fee. For full-time travellers, this fee expense may result in costs higher than if you had paid for a premium travel credit card with no Forex fee.
The Scotiabank Gold American Express Card provides the best no transaction fee travel credit card in Canada for only a $120 annual fee. But of course, with this relatively small expense comes some of the best features available to Canadians.
Point System
The Scotiabank Gold American Express Card’s standard reward rate of 1 point/dollar spent. Nevertheless, cardmembers can receive more points when using their cards with specific retailers.
Members will receive 3 points/dollars spent shopping with participating gas providers, public transport and ride shares, and streaming services.
However, cardholders will receive maximum point values when shopping with select grocery stores, restaurants, ticketing services, and theatres. When shopping with these entertainment services, members will receive 5 points/ dollar spent.
Point Rewards
All Scotiabank Gold American Express points can be redeemed for travel bookings at a 1 cent/point value. Furthermore, these points can be redeemed through Scotiabank’s full-service travel agency or third-party providers.
Welcome Bonus
New Gold American Express members will receive Scotiabank’s standard welcoming bonus of 25,000 points if a minimum of $1000 has been spent during the first 3-months of the membership.
However, an additional welcoming bonus is available for new members from now until the fall of 2022. This extra bonus will result in cardholders receiving an additional 20,000 points once cardholders spend $7,500 within the first year of the membership.
Overall, the Scotiabank Gold American Express card offers the highest welcoming bonus of all the best travel credit cards in Canada for 2022, with a total value of 45,000 points.
Travel Perks
Scotiabank Gold American Express card members receive several perks with their memberships. Along with American Express rewards, cardholders receive:
- Front Of The Line® services
- 24/7 complimentary concierge services
- Access to 1200 VIP lounges in airports around the world
- 8 types of travel insurance coverage
Foreign Transaction Fee
The best feature of the Scotiabank Gold American Express card is its no transaction fee policy. So while this card may not have all of the bells and whistles of the other cards on this list, it does offer some of the top money-saving value for full-time travellers.
So far, we’ve looked at some great value travel credit cards available in Canada. But none offer as great a value as the BMO World Elite™* MasterCard®*. At only $150/year (the first year waived), the BMO World Elite™* MasterCard®* comes with some of the most luxurious perks.
Point System
BMO World Elite™* MasterCard®* members receive a standard reward rate of 2 points/$1 spent. That’s the highest standard rate on this list of Canadians’ best travel credit cards.
Nevertheless, BMO World Elite™* MasterCard®* cardholders will receive maximum point values for their expenses at select entertainment, restaurant, and travel services. When shopping with these associated partners, BMO World Elite™* MasterCard®*members will receive 3 points/$1 spent.
Point Rewards
Depending on the reward, BMO points can be redeemed for a value between 0.33 cents/point and 0.67 cents/ point. These points can be redeemed to purchase flights, hotels, car rentals, cruises and vacation packages.
Welcome Bonus
The BMO World Elite™* MasterCard®* offers an impressive welcoming bonus structure worth a total of 70,000 points(worth $467 in travel rewards).
The first 30,000 become redeemable once members spend a minimum of $3,000 in the first 3 months. After that, members will receive an additional 2,500 points for each subsequent month, in which $2000 or more are spent for up to 12 months.
Travel Perks
Now, the myriad of travel perks that come with the membership sets the BMO World Elite™* MasterCard®* apart as the best travel credit card in Canada for luxury travel. BMO World Elite™* MasterCard®* card members will receive:
- VIP access and four annual passes to MasterCard Airport Experiences by LoungeKey.
- Access to various on-demand apps and services
- Access to over 1-million hotspots worldwide.
- Exclusive VIP travel insurance coverage.
- 24/7 concierge services.
Foreign Transaction Fee
The BMO World Elite™* MasterCard®* does come with the regular 2.5% foreign transaction fee. Along with the $150 annual fee, this card may not be the most conscientious option for full-time or budget travellers. Nevertheless, the added amenities and luxury that come with the card more than justifies the BMO World Elite™* MasterCard®* added expense for those who can afford it.
*Changes to the BMO World Elite™* MasterCard®* are coming. While this post will be updated to reflect current offers, the upcoming changes can be viewed here.
