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Tag: Cash Back

  • “I’m interested in visiting Europe”: How this student can build a credit score while earning valuable travel rewards – MoneySense

    “I’m interested in visiting Europe”: How this student can build a credit score while earning valuable travel rewards – MoneySense

    Before heading to school, Kinsey acquired her first credit card, an Alterna Savings Cash Back Visa. Although she also banks with EQ Bank, her primary bank card was with Alterna Savings and Credit Union. “So it was kind of natural and the easiest way for me to get a credit card,” she explains.

    Still new to credit cards, Kinsey doesn’t have a credit score—a number between 300 and 900 that shows lenders how creditworthy you are (the higher the score, the better). She’s looking to build one while also earning rewards—be it cash back (to “make the most of my spending”) or travel points (she’s an Aeroplan member). 

    Kinsey is an avid traveller—she recently visited Greece and Japan, where she has family. “I’ve been down south to Cuba and Florida. I went to Halifax, because I have some friends out there. I’ll travel within Canada, but I’m definitely more interested in visiting places in Europe,” she says. 

    Photo courtesy of Aya Kinsey

    What credit card features does she need? 

    Like many university students, Kinsey’s ambitious, eager to travel and just wants to find her financial footing. Given her existing ties to Alterna, it’s no surprise she ended up with an Alterna Savings Cash Back Visa—most Canadians stick with the same financial institutions for a good part of their lives. But, Kinsey can find a credit card better suited to her needs by expanding her horizons. 

    With Alterna, she gets 1 Collabria reward point per $1 spent on groceries, gas, public transit, select recurring bills and digital streaming purchases, and 0.5 points on all other purchases. The value of those points maybe an issue. The value of a Collabria point fluctuates based on what you’re redeeming for: cash back offers the best value, at $0.01 per point, but you must redeem in increments of 3,000 points (for $30), 5,000 points ($50) and 10,000 points (for $100), depending on the Collabria card you have. And when redeeming for travel, merchandise or gift cards, a point can be worth anywhere from $0.002 and $0.008. This means cardholders earn a maximum return of 1% in rewards ($0.01) for every dollar they spend. Often, the return is less than that. 

    For Kinsdey, it’s clear travelling is a priority. She needs a credit card that can cheapen the costs of flying to visit family and friends. At the same time, she’s just getting familiar with paying for life on her own, tuition being her biggest expense, and her income this year will be modest at best—she hopes to freelance as a content marketer. 

    So, right now, Kinsey’s primary goals should be building a credit score and increasing her income potential by completing her studies. Later in life, she will likely have access to plenty of premium travel credit cards to match her desired lifestyle—for example, she’ll need a personal annual income of $60,000 for Visa Infinite cards and $80,000 for World Elite Mastercards. 

    Which credit card should she get?

    Credit card pick #1: CIBC Aeroplan Visa Card for Students

    For her current situation, the CIBC Aeroplan Visa Card for Students would tick a lot of boxes. It’s a no-fee, no-income-required card. Kinsey’s already an Aeroplan points collector, and the CIBC Aeroplan Visa would add 1 Aeroplan point to her account per $1 spent on Air Canada purchases (such as future flights) and on groceries—she has a campus meal plan but expects it won’t cover all her food expenses. That’s in addition to points already earned as an Aeroplan member, through the “earn points twice” feature of Aeroplan credit cards. 

    Justin Dallaire

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  • “I’m interested in visiting Europe”: How this student can build a credit score while earning valuable travel rewards – MoneySense

    “I’m interested in visiting Europe”: How this student can build a credit score while earning valuable travel rewards – MoneySense

    Before heading to school, Kinsey acquired her first credit card, an Alterna Savings Cash Back Visa. Although she also banks with EQ Bank, her primary bank card was with Alterna Savings and Credit Union. “So it was kind of natural and the easiest way for me to get a credit card,” she explains.

    Still new to credit cards, Kinsey doesn’t have a credit score—a number between 300 and 900 that shows lenders how creditworthy you are (the higher the score, the better). She’s looking to build one while also earning rewards—be it cash back (“to make the most of my spending”) or travel points (she’s an Aeroplan member). 

    Kinsey is an avid traveller—she recently visited Greece and Japan, where she has family. “I’ve been down south to Cuba and Florida. I went to Halifax, because I have some friends out there. I’ll travel within Canada, but I’m definitely more interested in visiting places in Europe,” she says. 

    Photo courtesy of Aya Kinsey

    What credit card features does she need? 

    Like many university students, Kinsey’s ambitious, eager to travel and just wants to find her financial footing. Given her existing ties to Alterna, it’s no surprise she ended up with an Alterna Savings Cash Back Visa—most Canadians stick with the same financial institutions for a good part of their lives. But, Kinsey can find a credit card better suited to her needs by expanding her horizons. 

    Her Alterna card is associated with Collabria rewards, a loyalty program that works with some Canadian credit unions. She gets 1 Collabria reward point per $1 spent on groceries, gas, public transit, select recurring bills and digital streaming purchases, and 0.5 points on all other purchases. The value of a Collabria point fluctuates based on what you’re redeeming for: cash back offers the best value, at $0.01 per point, but you must redeem in increments of 3,000 points (for $30), 5,000 points ($50) and 10,000 points (for $100), depending on the Collabria card you have. And when redeeming for travel, merchandise or gift cards, a point can be worth anywhere from $0.002 and $0.008. This means cardholders earn a maximum return of 1% in rewards ($0.01) for every dollar they spend. Often, the return is less than that. 

    For Kinsdey, it’s clear travelling is a priority. She needs a credit card that can cheapen the costs of flying to visit family and friends. At the same time, she’s just getting familiar with paying for life on her own, tuition being her biggest expense, and her income this year will be modest at best—she hopes to freelance as a content marketer. 

    So, right now, Kinsey’s primary goals should be building a credit score and increasing her income potential by completing her studies. Later in life, she will likely have access to plenty of premium travel credit cards to match her desired lifestyle—for example, she’ll need a personal annual income of $60,000 for Visa Infinite cards and $80,000 for World Elite Mastercards. 

    Which credit card should she get?

    Credit card pick #1: CIBC Aeroplan Visa Card for Students

    For her current situation, the CIBC Aeroplan Visa Card for Students would tick a lot of boxes. It’s a no-fee, no-income-required card. Kinsey’s already an Aeroplan points collector, and the CIBC Aeroplan Visa would add 1 Aeroplan point to her account per $1 spent on Air Canada purchases (such as future flights) and on groceries—she has a campus meal plan but expects it won’t cover all her food expenses. That’s in addition to points already earned as an Aeroplan member, through the “earn points twice” feature of Aeroplan credit cards. 

    Justin Dallaire

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  • CIBC Costco Mastercard review: Is it really the best credit card to use at Costco? – MoneySense

    CIBC Costco Mastercard review: Is it really the best credit card to use at Costco? – MoneySense

    So, is the new CIBC Costco Mastercard the best one to use in store and online? Read on to learn the details of the CIBC Costco Mastercard and of seven attractive alternatives.

    CIBC Costco Mastercard review

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    CIBC Costco Mastercard

    VISIT CIBC.CA FOR MORE DETAILS

    Annual fee: $0

    Welcome offer: This card does not have a welcome bonus at this time.

    VISIT CIBC.CA FOR MORE DETAILS

    Card details

    Interest rates 20.75% on purchases and 22.49% on cash advances
    Income required $15,000 per year
    Credit score 560 or higher

    The pros

    The CIBC Costco Mastercard is a no-fee cash back card (just like its predecessor, the Capital One Costco Mastercard). It offers 3% cash back at restaurants and Costco gas stations, 2% cash back at other gas stations—which is handy when you’re on the go—and 2% back when you shop at Costco.ca. For all your other purchase categories, you’ll earn 1% cash back (including at Costco).

    This card also comes with mobile device insurance, with up to $1,000 of repair or replacement coverage when you charge or finance the price of a mobile device on your card. With certain eligible purchases, you can also get security insurance and extended warranty insurance. If you meet certain requirements, like having a person income of over $50,000 per year, you may qualify for the CIBC Costco World Mastercard, which is essentially the same card, but includes World Mastercard benefits like car rental insurance, travel perks and more.

    The cons

    There are a few drawbacks to the CIBC Costco Mastercard. While there is technically no annual fee, to truly reap the benefits of this card, it’s worth noting that you (obviously) have to have a Costco membership, which is $60 or more per year. Another point: there’s no limit on how much you can earn throughout the year. But, the cash back earn rate you receive does come with a cap. When you reach your annual spend in a certain category, you’ll still earn cash back—it will just be at the 1% rate for the remainder of the calendar year in that category. For gas, you will receive the 3% cash back rate (and 2% cash back rate at other gas stations) only on the first $5,000. After that, you’ll earn the 1% cash back rate. For Costco.ca purchases, the cap is $8,000 before you return to the 1% base rate.

    The cash back redemption process might be considered a downside, too. While some cards pay out cash back earnings monthly, straight onto your statement or into your savings account, the CIBC Costco Mastercard gives them to you the form of gift certificates, issued in January, that you can redeem for anything in the Costco warehouse.

    While Costco’s official credit card benefits Costco members, there might be other Mastercard products, all of which can be used at Costco, that will better meet your needs. This no-annual-fee card doesn’t match the perks of some of the cards we’ll discuss below.  

    The best Costco compatible credit cards in Canada

    Best no-fee credit card for cash back

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    Rogers Red World Elite Mastercard

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    Annual fee: $0

    Welcome offer: This card does not have a welcome bonus at this time.

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    Card details

    Interest rates 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers
    Income required $80,000 per year
    Credit score 725 or higher

    Keph Senett

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  • Benefits, fees, hidden perks: Choosing the right credit card for your lifestyle – MoneySense

    Benefits, fees, hidden perks: Choosing the right credit card for your lifestyle – MoneySense

    “They will do all the comparisons for you, across all the different providers, and you can organize a list based on: I prioritize Air Miles, I prioritize cash back, I prioritize low interest rates,” Marques said. 

    “They’ll compare all the providers with best in class in those categories, and show you their current rates, their current signup offers, et cetera.”

    As for younger consumers, Marques said low interest rates aren’t typically a priority, assuming you aren’t already managing a lot of credit card debt and you’re not transferring a balance.

    Instead, travel rewards and cash back from your favourite retailers are likely the biggest returns on your spending, she said. Options with no annual fees are also valuable for someone just starting out, although there will be fewer rewards.

    Can you negotiate with credit card issuers?

    When getting a new card, there isn’t much room for negotiation, Terrell said—what you see is what you get. If you want different or better perks, the provider will just point you to another card that offers them.

    Negotiations come into play if you already have debt, Marques said, or are transferring debt between cards to take advantage of the lowest rate. 

    Using signup offers—such as zero interest for the first 12 months—with a balance transfer means you can get a break from interest and pay down your balance faster, she said. Or if you want to keep your current card, you can simply call your provider and move your balance to a lower-interest option.

    “There is an opportunity to negotiate their interest rates or even negotiate on your annual fees,” Marques said. “I think a lot of consumers don’t realize that if you just call and ask … in a lot of cases, they will.”

    The Canadian Press

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  • The best BMO credit cards in Canada 2024 – MoneySense

    The best BMO credit cards in Canada 2024 – MoneySense

    Why trust us

    MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.

    The best BMO credit cards in Canada by category

    By Sandra MacGregor on March 1, 2024
    Estimated reading time: 10 minutes

    The Bank of Montreal is one of Canada’s largest banks, and it offers one of the largest selections of personal credit cards in the country. Whether you’re a student looking for your first credit card or to establish a credit history, or a frequent flyer wanting a card packed full of travel perks, BMO has something for you. BMO is also the only Big 5 bank to offer co-branded credit cards with the popular Air Miles rewards program, making them a great fit for Air Miles collectors.

    Best BMO no-fee credit card

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    BMO CashBack Mastercard

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    • Annual fee: $0
    • Earn rates: 3% cash back on groceries (on the first $500 per month), 1% on recurring bills; 0.5% on everything else
    • Welcome bonus: earn up to 5% cash back in your first 3 months. Conditions apply.
    • Annual income requirement: None

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    At a glance: The BMO CashBack Mastercard stands out for offering 3% cash back on groceries, which is the best standard (i.e. non-promotional period) earn rate for this category among no-fee cards in Canada. It should be noted, however, that the earn rate is capped at a maximum of $500 per month in spending, so if you regularly spend more than that on groceries, you might want a card that doesn’t limit your earnings. Another attractive feature is that it offers very flexible redemption options, including redeeming your cash back into a BMO chequing or savings account.

    Pros 

    • Earn 3% cash back for groceries—the highest non-promotional earn rate for groceries for a no-fee card in Canada.
    • Redeem cash back for as little as $1 and you can even set up recurring redemptions starting at $25.
    • Impressively flexible cash back redemption options, including putting the money into your BMO chequing or savings account, putting it towards a statement credit or adding it to your InvestorLine account.

    Cons

    • The 3% earn rate for groceries is capped at $500 per month, which can be quite low if you’re shopping for a family.
    • A base rate of only 0.5% for all other spending outside of accelerated categories.
    • Not many additional perks, such as travel insurance.

    Best BMO cash back credit card

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    BMO CashBack World Elite Mastercard

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    • Annual fee: $120
    • Earn rate: 5% cash back on groceries, 4% back on transit, 3% back on gas and electric vehicle charging, 2% on recurring bill payments, and 1% back on everything else
    • Welcome bonus: You can earn up to 10% cash back in your first three months and have the $120 annual fee waived in the first year.
    • Annual income requirement: Personal income of $80,000 or household income of $150,000

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    At a glance: The BMO CashBack World Elite Mastercard has a solid variety of extra-earn categories that are targeted to where Canadians spend the most, like groceries, transit and gas. Unfortunately, some cardholders may find the monthly spending caps quite low for each category, which can significantly impact potential earnings. Nonetheless, the card can lead to good cash back amounts if you aren’t a big spender and don’t exceed the caps. It’s also one of the few cards that offers free roadside assistance.

    Pros 

    • A variety of accelerated cash back categories, with an especially high earn rate for groceries.
    • Free roadside assistance, which includes battery boosts, towing and flat-tire change.

    Cons

    • All of the accelerated earn categories have monthly caps, ranging from $500 to $300 per month, which is low for a premium card.
    • Membership in Mastercard Travel Pass provided by DragonPass does not include any free lounge visits. You must pay a fee of US$32 per visit.
    • The income requirement is high at minimum of $80,000 per year for individuals and $150,000 for households.

    Best BMO credit card for dining and transit

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    BMO eclipse Visa Infinite

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    • Annual fee: $120
    • Earn rates: Five times the BMO Rewards points for every $1 spent on dining in and out, groceries, and gas and transit for the first $50,000 in annual purchases; 1 BMO Rewards point for everything else; earn 10% more points when you add an authorized user
    • Welcome offer: You can earn up to 70,000 points worth $467 in travel rewards, a $50 lifestyle credit and the $120 annual fee waived in the first year.
    • Annual income requirement: Personal income of $60,000 or household income of $100,000

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    At a glance: The BMO Eclipse Visa Infinite is an impressive earner that gives you 5 BMO Rewards points per $1 spent on almost anything to do with food or transit. This means 5 points per $1 on groceries, restaurants and food delivery, as well gas, public transit, taxis and rideshares, including UberEats. Everything else will get you 1 BMO Rewards point per $1. In a unique move, this card also offers a $50 annual lifestyle credit, which you can spend however you wish. When you sign up an additional user ($50 per card), you’ll get 10% more points on all purchases.

    Pros 

    • Accelerated earn categories that reflect heavy spending areas for most Canadians, and while there is a cap (a cumulative total of $50,000) it will likely be hard to reach for most cardholders.
    • Comes with a $50 annual lifestyle credit that you can use at your own discretion.
    • Includes mobile device protection of up to $1,000.

    Cons

    • You generally get much less value for your BMO Rewards points if you redeem them for anything other than travel.
    • Because 1 BMO Rewards point is valued at 0.0067, you are essentially earning less than $0.01 per dollar when earning the base earn rate, which is on the low side for a premium card.
    • The travel insurance package is not comprehensive as it does not include things like flight delay insurance and lost/delayed baggage insurance.

    Best BMO travel credit card

    At a glance: While the BMO Ascend World Elite Mastercard does charge a slightly higher than normal annual fee, it makes up for it with a generous array of travel-friendly perks. Cardholders not only enjoy free membership in Mastercard Travel Pass provided by DragonPass (with four free annual airport lounge passes included), but they can also take advantage of comprehensive travel insurance. The card also features a very competitive earn rate of 5 BMO Rewards points per $1 spent on eligible travel, and 3 points per $1 spent on dining and entertainment purchases.

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    BMO Ascend World Elite Mastercard

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    • Annual fee: $150
    • Earn rates: 5 points per $1 spent on eligible travel purchases; 3 points per $1 on dining, entertainment, and recurring bill payments; 1 point per $1 on everything else
    • Welcome bonus: You can earn up to 70,000 points and the annual fee waived in the first year for both the primary cardholder and authorized users.
    • Annual income requirement: Personal income of $80,000 or household income of $150,000

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    Pros 

    • Complimentary membership to Mastercard Travel Pass by DragonPass, which includes four annual complimentary airport lounge passes.
    • Book travel-related purchases like flights, hotels, car rentals and more with the travel provider of your choice and then redeem your BMO Rewards points using Pay with Points. 
    • Very comprehensive travel insurance, including emergency medical protection, flight delay or cancellation, lost or delayed baggage and more.

    Cons

    • You’ll get quite a bit less value for your BMO Rewards points if you don’t redeem them for travel purchases.
    • Because each BMO Rewards point is valued at 0.0067, you’re actually earning less than $0.01 per dollar at the base rate.
    • The annual fee of $150 is slightly higher than the average for this category of card.

    Best BMO Air Miles credit card

    At a glance: Air Miles is one of Canada’s most popular travel rewards programs, allowing members to collect points (“Miles”) that can be redeemed for flights, merchandise, events and more. Many BMO cards already offer cardholders Air Miles when they spend; however, the best deal is the BMO Air Miles World Elite Mastercard. Cardholders enjoy a fantastic earn rate of 1 Mile per $12 in credit card purchases (and a whopping three times that amount at Air Miles partners). Frequent travellers will also enjoy this card’s full complement of travel-related perks like travel and medical protection and discounts on eligible flights.

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    BMO Air Miles World Elite Mastercard

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    • Annual fee: $120 (waived for the first year)
    • Earn rates: 1 Mile per $12 spent, 3 Miles per $12 spent at Air Miles partners and 2 Miles per $12 spent at eligible grocery stores
    • Welcome bonus: You can earn 25 ¢ per litre off on up to 8 fill ups, to a maximum of 50 L per transaction, from March 29 to July 29 2024, when you swipe your AIR MILES card and pay with your BMO AIR MILES credit card. Apply for a BMO AIR MILES credit card by February 29, 2024.
    • Annual income requirement: Personal income of $80,000 or household income of $150,000

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    Pros 

    • Collectors can double their Air Miles when they show their Air Miles Collector Card at Air Miles partners.
    • Exclusive 25% discount on one worldwide Air Miles flight redemption during the calendar year.
    • Comprehensive travel insurance, including trip cancellation, trip interruption and baggage delay.

    Cons

    • No free lounge visits with your complimentary Mastercard Travel Pass provided by DragonPass membership.
    • The annual income requirement is quite high.
    • The highest reward rate of 3 Miles per $12 at Air Miles partners may be become harder as some partners have recently left the program.

    Best BMO low interest credit card

    At a glance: With the interest rate on most credit cards hovering around 20%, it can be easy to accumulate credit card debt. While some consumers may find that a debt consolidation loan or a line of credit is useful in these situations, others may look into a card with a more manageable interest rate—this simple switch can save you hundreds of dollars. Within the BMO family, the best card for the job is the BMO Preferred Rate Mastercard. With a low $20 annual fee (which is refunded in the first year), an interest rate of 12.99% on purchases and a 0.99% introductory interest rate on balance transfers, this card can help you rein in your credit card debt.

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    BMO Preferred Rate Mastercard

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    • Annual fee: $29 (waived for the first year)
    • Interest rate: 13.99% on purchases
    • Welcome offer: You can earn a 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee and we’ll waive the $29 annual fee for the first year*.
    • Annual income requirement: $15,000 (personal or household)

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    Pros 

    • Standard low interest rate can help those who carry a balance get their credit card debt under control.
    • Get an annual rebate of $20 if you also have a BMO Performance chequing account.
    • Not only does the card have a low interest rate, it also has a much lower than usual standard cash advance rate of 15.99%.

    Cons

    • The card has no perks aside from purchase protection and extended warranty.
    • Each balance transfer you make is subject to a fee of 2%.
    • The low interest rate for the balance transfer is only valid for nine months.

    Best BMO premium rewards credit card 

    At a glance: The BMO Eclipse Visa Infinite Privilege card has a hefty $499 annual fee, but the perks and rewards may well warrant the price of entry. You’ll receive an annual $200 lifestyle credit that you can spend however you like, effectively cutting down the annual fee to $299. The card offers amazing airport perks like free airport lounge access, as well as airport parking and valet service discounts at eligible Canadian airports. It also includes a significant amount of travel insurance to boot. It’s definitely a card that’s designed to take the hassle out of travel.

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    BMO eclipse Visa Infinite Privilege

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    • Annual fee: $499
    • Earn rates: 5 BMO Rewards points per $1 spent on groceries, gas, travel, dining and drugstores, and 1 point per $1 on everything else
    • Welcome offer: earn up to 90,000 points.
    • Annual income requirement: Personal income of $150,000 or household income of $200,000

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    Pros 

    • Free Visa Airport Companion membership and six complimentary airport lounge visits annually.
    • Get Priority security lane, airport parking and valet service discounts at select Canadian airports.
    • Take advantage of five high-earning categories in typical big-spend categories: groceries, gas, travel, dining and drugstore purchases.

    Cons

    • At $499 a year, the card has one of Canada’s highest annual fees for a credit card.
    • A very high income requirement of $150,000 for individuals or $200,000 for households.
    • While it offers a good 22 days for travel medical coverage (there are cards with a lower fee that offer more days of coverage), those aged 65 and over are only covered for three days. 

    Best BMO student credit card

    At a glance: If you’re on a student budget and looking to build a credit history, this may be the right card for you. This variant of the BMO CashBack Mastercard earns substantial rewards for groceries, netting you 3% cash back in that category. You’ll also earn 1% on recurring bill payments and 0.5% on everything else. The one downside is that, as with many no-fee cards, this card is light on perks— but it does offer standard purchase protection and extended warranty.

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    BMO CashBack Mastercard for Students

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    • Annual fee: $0
    • Earn rates: 3% cash back on groceries (on the first $500 per month), 1% on recurring bills and 0.5% on everything else
    • Welcome offer: You can earn 5% cash back in your first 3 months. Conditions apply.
    • Annual income requirement: None

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    Pros 

    • Flexible cash back program that lets you put your earnings into a BMO account (chequing, savings or InvestorLine) or towards a statement credit.
    • The card comes with extended warranty and purchase protection.
    • Get 15% off admission to Cirque du Soleil shows in Canada, and 20% off shows in Las Vegas, as well as 25% off rentals at National and Alamo car rental locations.

    Cons

    • The grocery and recurring bill payment categories are capped at $500 a month respectively.
    • A low standard earn rate of 0.5% cash back.  
    • This no-frills card has few extras.

    About BMO Rewards

    What is the value of BMO Rewards Points?

    The BMO Rewards program follows a similar value structure as other bank-issued points programs, like TD Rewards and Scotia Rewards. The BMO Rewards program is ideal for its variety of redemption options, giving you access to high-value rewards, and more flexible payouts like cash back on your statement—great if you find your own travel deal or want to use your rewards to pay off an everyday bill. The value of each point varies based on the category of redemption, with travel offering greater value than gift cards, merchandise or cash back redemptions.

    • Travel: 150 BMO Points = $1 / 1 BMO Point = $0.0067 (0.67%)
    • Non-travel purchases (statement credits, gift cards, merchandise, BMO investments): 200 BMO Points = $1 / 1 BMO Point = 0.005 (0.5%)

    How to redeem BMO Rewards points

    You must redeem BMO Rewards points through the bank’s website, BMORewards.com. There, you’ll have access to its travel portal, where you can search directly for flights, vacation packages, hotels, cars, and cruises. You also have the ability to redeem points for travel over the phone using a BMO Rewards travel agent, but there’s an additional $39 booking fee (on top of the website’s listed redemption cost.)

    BMO Rewards’ best feature

    Using BMO Rewards points for travel remains one of your best redemptions because of the points’ value consistency. Unlike Aeroplan and Air Miles, where points required for booking are based on supply and demand, peak travel periods and seat availability, the BMO Rewards points per $1 value doesn’t fluctuate based on inventory. This makes it one of your best options for travel rewards and redemptions, as it makes it easier to calculate redemption values and comparison shop for airlines and trip itineraries.

    More of Canada’s best credit cards:

    Sandra MacGregor

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  • The best RBC credit cards in Canada for 2024 – MoneySense

    The best RBC credit cards in Canada for 2024 – MoneySense


    Why trust us

    MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.

    The best RBC credit cards in Canada by category

    By Sandra MacGregor on February 1, 2024
    Estimated reading time: 7 minutes

    Royal Bank of Canada offers an array of credit cards catering to various preferences and spending habits. Whether you prioritize travel rewards with Avion points, seek the flexibility of cash back, or prefer unique benefits like WestJet dollars, RBC has a card for you. With credit cards spanning the Visa and Mastercard networks, cardholders can tailor their shopping experience to suit their preferences. Let’s explore the standout features of the best RBC credit cards in Canada.

    Best credit card by category Why we love it
    Best RBC travel credit card
    RBC Avion Visa Infinite
    Annual fee: $120    		 At least 1 Avion point per $1 spent on all your purchases, and good redemption flexibility
    Best RBC airline travel credit card
    WestJet RBC World Elite Mastercard
    Annual fee: $119    		 1.5% earn rate paired with an annual round-trip companion voucher on WestJet
    Best RBC no-fee travel rewards credit card
    RBC ION Visa
    Annual fee: $0    		 1.5 Avion points per $1 spent across six spending categories, including streaming, subscriptions and digital gaming
    Best RBC cash back credit card
    RBC Cash Back Preferred World Elite Mastercard
    Annual fee: $99    		 1.5% cash back on your first $25,000 in purchases annually
    Best RBC no-fee cash back credit card
    RBC Cash Back Mastercard
    Annual fee: $99    		 Up to 2% cash back on groceries and up to 1% on all other purchases, with no annual fee
    Best RBC low-interest credit card
    RBC Visa Classic Low Rate Option
    Annual fee: $20    		 12.99% interest rate on both purchases and cash advances

    Best RBC travel credit card

    At a glance: The RBC Avion Visa Infinite is a premium travel credit card that has a flexible rewards program and exclusive benefits. Cardholders earn 1 Avion point per $1 spent, and a boosted 1.25 points on eligible travel expenses (like flights, cruises and car rentals).

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    RBC Avion Visa Infinite

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    • Annual fee: $120
    • Earn rate: 1.25 Avion points per $1 spent on travel (including flights, hotels, taxis and public transit) and 1 point per $1 on all other purchases.
    • Welcome bonus: You can earn 35,000 Welcome Points on approval and 20,000 bonus points when you spend $5,000 in your first 6 months*. Apply by April 30, 2024. Apply online and get a response in as little as 60 seconds.
    • Annual income requirement: Personal income of $60,000 or household income of $100,000

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    Pros

    • RBC Avion points can be worth as much as $0.023 each when redeemed for travel, which is a high value among travel rewards cards.
    • Avion has a lot of travel redemption flexibility. You can redeem your points for travel using RBC’s Air Travel Redemption chart, transfer points to select airlines (including WestJet), and redeem for travel purchases through RBC. 
    • There are no blackout periods or seat restrictions, even during periods of high demand. 
    • Exclusive access to concert tickets, including Taylor Swift. 
    • Impressive travel insurance coverage, including trip cancellation and interruption and emergency medical. It even features mobile device insurance of up to $1,500.

    Cons

    • You’ll pay a foreign transaction fee of 2.5% on all purchases not in Canadian dollars. 
    • The highest earn rate is 1.25%, which is not very high for a premium card; other premium cards feature significantly higher earn rates.
    • The personal annual income requirement of $60,000 (or household income of $100,000) may be too high for some applicants.

    Best RBC airline travel credit card

    At a glance: With perks like a yearly round-trip companion voucher, free checked bags and Boingo Wi-Fi access, the WestJet RBC World Elite Mastercard makes an attractive travel buddy. In fact, it’s the best credit card in Canada for frequent WestJet flyers—full stop. Cardholders earn 2% back in WestJet dollars on purchases of WestJet flights and vacation packages and get 1.5% back on all other spending. One WestJet dollar has a value of one Canadian dollar.

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    WestJet RBC World Elite Mastercard

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    • Annual fee: $119
    • Earn rate: 2% back in WestJet dollars on WestJet flights and vacations packages and 1.5% back on all other purchases
    • Welcome offer: You can earn up to 600 WestJet dollars with the WestJet RBC World Elite Mastercard. Plus a Round-Trip Companion Voucher Every Year.
    • Annual income requirements: Personal income of $80,000 or household income of $150,000

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    Pros

    • Travel perks include complimentary first checked bags for the primary cardholder and up to eight companions.
    • Get an annual round-trip companion voucher for any WestJet destination, starting at $119 (plus taxes, fees and other charges) or opt to exchange it for four lounge vouchers.
    • Extensive travel insurance, including emergency medical, trip interruption and flight delay coverage. 
    • Cardholders can save up to $0.03 on fuel at Petro-Canada and can also earn Rexall’s Be Well points.
    • The card grants access to over 1 million Boingo Wi-Fi hotspots worldwide.

    Cons

    • WestJet dollars can’t be used to pay for taxes and fees.
    • Unlike with Aeroplan, for example, rewards are not flexible as they can only be used for WestJet flights and WestJet vacations. 
    • A minimum personal income of $80,000 (or $150,000 household income) is required to apply.

    Best RBC no-fee travel rewards credit card

    At a glance: The RBC ION Visa is a no-annual-fee rewards credit card that gives you 1.5 Avion points per $1 spent on groceries, rides, gas (and EV charging), streaming, subscriptions and digital gaming. Get 1 point per $1 spent on all other purchases.

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    RBC ION Visa

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    • Annual fee: $0
    • Earn rate: 1.5 Avion points per $1 spent on groceries, rideshares, daily transit, gas, EV charging, streaming, digital gaming and subscriptions; and 1 point per $1 on all other purchases
    • Welcome bonus: You can earn 3,500 Avion points upon approval
    • Annual income requirement: None

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    Pros 

    • Some redemption flexibility. You can redeem your points for travel, statement credits, merchandise, gift cards and more. 
    • Enjoy fuel savings at Petro-Canada, a three-month free DashPass subscription, and Be Well points with purchases at Rexall pharmacies.
    • Good for gamers: The RBC ION Visa is one of the only cards in Canada that lets you earn rewards on gaming subscriptions, digital downloads and in-game purchases.
    • The card features purchase security and extended warranty insurance.

    Cons

    • The RBC Avion rewards program includes three different membership tiers: Avion Select, Avion Premium and Avion Elite. The RBC ION Visa is part of the Avion Premium tier, meaning you can’t redeem your points through RBC’s Air Travel Redemption Schedule—which offers the highest value for your points. That feature is part of Avion Elite, which requires having an RBC Avion card. 
    • The card has limited insurance coverage.

    Best RBC cash back credit card

    At a glance: With the RBC Cash Back Preferred World Elite Mastercard, you’ll earn cash back on all your purchases. You’ll get 1.5% on the first $25,000 charged to the card annually and 1% thereafter. Enjoy additional benefits like instant fuel savings at Petro-Canada, Be Well points at Rexall and $0 delivery fees for 12 months from DoorDash.

    RBC Cash Back Preferred World Elite Mastercard

    Visit rbc.com for more details

    • Annual fee: $99
    • Earn rate: 1.5% back on all your purchases
    • Welcome bonus: You can earn unlimited cash back, no limit to what you can get back
    • Annual income requirement: Personal income of $80,000 or household income of $150,000

    Visit rbc.com for more details

    Pros

    • The annual fee of $99 is lower than many other premium cards.
    • If you link your RBC card to your Petro-Points account, you’ll save $0.03 cents per litre on gas at Petro-Canada and also get a 20% bonus of Petro-Points.
    • You can earn 50 points per $1 spent at Rexall when you link your RBC card and your Rexall Be Well card.
    • Card comes with a 12-month free DashPass subscription.

    Cons

    • Weak insurance offering compared to other premium cards. It only includes rental theft and car damage, purchase protection and extended warranty.
    • The boosted rate of 1.5% is capped at your first $25,000 spent annually.

    Best RBC no-fee cash back credit card

    At a glance: Like some of the best cash back credit cards in Canada, the RBC Cash Back Mastercard offers cash back with no annual fee. Earn up to 2% on groceries and up to 1% on all other purchases. Benefit from instant fuel savings at Petro-Canada, enhanced Be Well points at Rexall and $0 delivery fees for three months from DoorDash.

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    RBC Cash Back Mastercard

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    • Annual fee: $0
    • Earn rate: 2% cash back on groceries and 1% back on all other purchases
    • Welcome bonus: You can
    • Annual income requirement: None

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    Pros 

    • The card comes with purchase security and extended warranty protection.
    • Save $0.03 per litre on fuel at participating Petro-Canada stations and earn 20% more Petro-Points.
    • Get 50 Be Well points per $1 spent at Rexall.
    • Enjoy a complimentary DashPass subscription for the first three months.

    Cons

    • The unusual rewards structure requires cardholders to read the fine print carefully to understand the spending limits at which their rewards will increase or decrease. You’ll get 2% cash back on groceries for the first $6,000 spent, which then drops to 1% per additional dollar spent in the category. For all other purchases, you’ll get 0.5% cash back on the first $6,000 spent—and 1% thereafter. 
    • Very limited insurance offering, with only purchase security and extended warranty.

    Best RBC low-interest credit card

    At a glance: For individuals trying to tackle credit card debt, the RBC Visa Classic Low Rate Option is a valuable card. It offers a consistent 12.99% interest rate for purchases and cash advances—that can’t be said of all low-interest credit cards in Canada. While it may lack extensive perks, it does provide advantages like discounts at Petro-Canada and complimentary delivery services through DoorDash.

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    RBC Visa Classic Low Rate Option

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    • Annual fee: $20
    • Welcome offer: None
    • Annual income requirement: None

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    Pros 

    • With its affordable $20 annual fee and no minimum income requirement, this card is within reach for the majority of Canadians.
    • Additional cards are available at no cost.
    • Enjoy RBC Offers, which gives cardholders access to deals and savings.
    • Earn more Petro-Points and get a discount on fuel at Petro-Canada.
    • The card comes with a three-month complimentary subscription to DashPass.

    Cons

    • This card doesn’t come with any travel insurance.
    • While the low interest rate is a boon to those with credit card debt, it doesn’t feature a balance transfer promotion, so you can’t move debt from a higher-interest card.

    More of Canada’s best credit cards:



    Sandra MacGregor

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  • SimplyCash from American Express review – MoneySense

    SimplyCash from American Express review – MoneySense

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    SimplyCash from American Express

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    • Annual fee: $0
    • Earn rate: 2% cash back on eligible gas and grocery purchases up to $300 annually; 1.25% cash back on everything else
    • Welcome offer: You can earn a $10 statement credit for each monthly billing period in which you make at least $300 in purchases (for a total value of up to $100).
    • Annual income requirement: None

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    Amex SimplyCash benefits: 9 things to know

    1. An impressive base earn rate

    With the SimplyCash, you earn rewards on every purchase. What’s even more impressive is the minimum earn rate of 1.25%. This means you’ll earn on purchases in categories that often don’t get much love with other cards, like online shopping, clothing and electronics. And by comparison, most no fee cards typically only earn you 0.5% cash back on those same purchases. The boosted earn rate of 4% on groceries and gas (on the first $15,000 spent annually) sweetens the pot, making this one of the best cash back and best no-fee cards in Canada.

    2. No limit on the cash back you can earn

    There’s no cap on your annual rewards—something that can’t be said for all no-fee credit cards. So, regardless of how much you spend per year, your earn rate will remain at 1.25% (assuming your account is in good standing). The boosted rates of 4% on groceries and gas apply to the first $15,000 spent annually. After that, you’ll earn an unlimited amount of cash back at 1.25%. .

    3. Cash back is rewarded once per year 

    The one small catch with the SimplyCash from Amex is that the cash rewards are granted once per year, on your September statement. This is a slight drawback compared to other cash-back cards, like the BMO CashBack Mastercard or TD CashBack Visa, that allow you to redeem rewards any time you like. 

    4. There’s no annual fee or income requirement

    One of the biggest draws of the SimplyCash from American Express is the fact that there’s no annual fee. That means it’s completely free to use (provided you pay off your balance in full every month, of course). So, all the rewards go right into your pocket instead of offsetting an annual fee. As well, there’s no strict income requirement to be eligible for the card, making SimplyCash from Amex accessible to the majority of Canadians.

    5. You’ll get access to American Express Experiences

    As you might expect with a no-fee card, SimplyCash from American Express doesn’t have the most impressive suite of benefits. But it does offer something you won’t get with other no-fee cards from Visa or Mastercard: American Express Experiences. This is a serious entertainment perk that gives you access to presale tickets to major events, shows and concerts, as well as early bookings to some of the country’s hottest restaurants and even specially curated private shopping experiences.

    5. It comes with insurance

    The SimplyCash offers up to $100,000 in travel accident insurance when you charge your plane, train, ship or bus tickets to your card. You’ll also get purchase protection and automatic extended warranties for up to one year (which is the norm for most credit cards).

    6. The SimplyCash is a credit card, not a charge card

    It’s commonly thought that all American Express cards are charge cards, meaning it must be paid off every month no matter what. But that’s not actually the case; SimplyCash from Amex is a conventional credit card, just like any Visa or Mastercard. Once you apply, you’ll be approved for a set credit limit, and as long as you pay off your balance in full every month, you won’t owe any interest. The card does allow you to carry a balance from month to month, but an interest rate of 20.99% will kick in if you do that. Again, that is just like any other credit card.

    7. More places are now accepting Amex

    While it’s true that American Express isn’t as widely accepted as Visa and Mastercard, the difference is not as significant as you might think—depending on your shopping habits. It’s accepted at more than 90,000 locations across Canada, including most major department stores and restaurant chains, many prominent grocery stores and virtually all online-delivery and ride-share apps. That said, it’s true Amex isn’t accepted at several places, such as Loblaws, discount grocers and many smaller local stores, restaurants and cafes. A common strategy among Amex cardholders is to carry a debit card or a second credit card from Visa or Mastercard in case a retailer doesn’t accept Amex. You can always check out American Express Maps to see if a business accepts Amex, too.

    Ciara Rickard

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  • 5 Types of Customer Loyalty Programs that Pay Off

    5 Types of Customer Loyalty Programs that Pay Off

    Opinions expressed by Entrepreneur contributors are their own.

    According to ProfitWell, 80% of future profits come from just 20% of existing customers. So clearly, any effort to keep yours engaged is a worthy investment, and loyalty programs are one of the oldest and most popular ways to do that.

    Put simply, such programs retain existing customers by rewarding them for interacting with your brand — typically via points, discounts, perks or free products. Research from Yotpo in 2019 found that 67.8% of buyers equate brand loyalty with repeat purchasing. It’s not surprising, then, that brands have created associated programs to encourage repeat purchases.

    Here are some proven program categories:

    1. Points

    If you have a credit card, you’re likely familiar with points programs, in which you spend a certain amount to get a number of points. These are usually convertible to cash, or store credit in the case of retail brands. Starbucks has one of the most popular in the world: You use an app or card to pay for orders and earn points. In the U.S., customers can start redeeming rewards once they hit 25 points (or “Stars,” as the company terms them). The brand also runs yearly sticker-based points programs during the holidays in select countries, which encourage customers to collect a number of stickers to get a limited-edition Starbucks planner.

    Related: How Brands Can Turn Short-Term Rewards Into Long-Term Loyalty

    2. Premium

    Paid or premium programs encourage customers to pay a membership or subscription fee in exchange for benefits. Perhaps the most recognizable example in this category is the Amazon Prime subscription, which rewards members with a free membership in its streaming app, free shipping within the U.S. and other added value.

    Some retail brands like Barnes & Noble have membership programs that grant members discounts on items and early access during sales. To get customers to sign up for a paid loyalty program, the key is to offer something that’s perceived as valuable and useful, and among the highest-performing examples of associated apps were recently listed by AVADA.

    3. Tiered

    Tiered loyalty programs follow the same concept as points-based examples — the difference being members are given different rewards as they reach each tier, rather than everyone getting the same. Such programs present members with a specific status name each time they climb up a level.

    For example, most airlines have tiered loyalty programs measured by miles. Qatar Airways, the flag carrier of Qatar, has a Privilege Club for its frequent fliers. New members start on the lowest tier, called “Burgundy,” followed by “Silver,” “Gold” and “Platinum.” As members progress, they earn more privileges and perks. For example, once members hit the Silver level, they get lounge access, while one benefit of the Platinum tier is a no-charge allowance of 55 pounds of baggage every time they fly.

    Member programs in other industries might offer good student, safe driver or good credit discounts, along with referral rewards, VIP status and other perks.

    Related: 7 Ways Leading Companies Boost Repeat Sales

    4. Action-driven

    Action-driven loyalty programs encourage customers to interact with your brand beyond purchasing. For example, they might receive specific points on a first purchase, but to progress as a member they need to like and share your social media pages. To drive members to action, it’s best to also include tiers in these examples.

    A winning example in this category is Adidas’s action-based loyalty program called the adiClub, wherein members are encouraged to shop and post reviews, complete a profile on the website and sign up for a run. Members climb tiers and unlock more privileges and rewards as they earn points. In time, they become brand ambassadors — supporting the company on a more holistic scale.

    5. Cash-back

    Cash-back programs are similar to points programs but with more instant gratification. Many credit card companies offer them and typically reward members between .25% and 5% per eligible transaction. Most companies have partner merchants and a minimum-spend amount before cash-back is granted.

    Related: 3 Ways to Build the Rewards Program Customers Want

    The key takeaway is that instead of competing for attention in a crowded marketplace, it might be better to focus efforts on the audience you already have. For hundreds of brands spanning dozens of industries, customer loyalty programs have proven to be an effective strategy for retaining customers, boosting relations with them and increasing brand affinity.

    Nick Brogden

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  • The First Connected Social Commerce Platform to Bring TikTok, Instagram and YouTube Feeds into a One-Stop Real-Time Social Shop

    The First Connected Social Commerce Platform to Bring TikTok, Instagram and YouTube Feeds into a One-Stop Real-Time Social Shop

    Motom, the app simplifying the social shopping experience for both creators and consumers is officially offering 15% cash back this holiday season.

    Press Release
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    Nov 30, 2022 07:42 EST


    NEW YORK, November 30, 2022 (Newswire.com)
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    The rapidly growing social commerce platform is backed by a team of retail innovators that allows creators and consumers to shop the direct feeds of thousands of creators across TikTok, Instagram, and YouTube. Pushing innovation forward in the category that includes veterans such as liketoknow.it and Rakuten, Motom (https://www.motom.me/) differentiates itself by fundamentally changing the way consumers can shop across the entire social media ecosystem and providing all creators and brands with an easy-to-use, scalable way to increase their revenue and grow their audiences.

    This holiday season, Motom is extending its affiliate fees and discounts to 15% for all consumers and creators. Whether creating LikeBoard gift guides, posting shopping lists, or your own curated lists directly to your storefront, Motom will give you cash back as you shop for your family, friends, colleagues, and even yourself. Whether you’re a creator with millions of followers or a consumer who wants all your favorite items in one place, Motom’s cash-back holiday program is for everyone. 

    “As an open social shopping platform, we’re excited to offer all creators the highest commission percentages while giving them access to thousands of brands and a robust social shopping community to boost both their sales and audience,” said Matt Diamond, CEO of Motom. “For the holidays this year, we’re giving back to our entire community by offering everyone the opportunity to earn 15% cash back when they do their holiday shopping directly on Motom.”

    To find out more about Motom’s holiday program, please check it out here. For inspiration, check out all of the holiday creator gift guides on Motom’s LikeBoard feed as you shop. There is everything from “Under $50,” “Gifts for Fashion Girlies,” “Best TikTok products for your BFF,” to “Coquette Looks for the Holiday,” “Gifts for Wellness Lifestyle,” “Stocking Stuffers,” and more.

    About Motom

    Motom is the first connected social shopping platform that empowers all creators to launch their own storefronts where all their content from TikTok, Instagram, and YouTube can be made shoppable in one place. Creators sell, connect, and share intimately with their audience while earning more from their content using Motom’s tools and gaining access to 250K+ monthly social shoppers. Motom’s platform neutrality and exclusive shopping focus will fundamentally change the way consumers can shop across the entire social ecosystem, expand opportunities for all creators, and enable brands and retailers to lower customer acquisition costs.

    Motom was founded by the team who successfully launched some of the largest youth properties in the past 20 years, including Alloy and Delia’s e-commerce and media businesses and entertainment properties, including Gossip Girl, Pretty Little Liars, and The Sisterhood of the Traveling Pants. For all media inquiries, please contact Collxab at Motom@CollXab.com.

    Source: Motom

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