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Credit cards and loyalty programs have transformed consumer behaviour. With the right card and rewards combination, you can earn a significant return with minimal effort. The Globe’s Big Guide to Travel Credit Cards used weighted criteria to create its rankings, but a perfect formula is impossible to devise since every scenario is different.
Fortunately, finding a card for your specific rewards goals is easier than you think. Examine the ‘earn’ of credit cards When choosing a new credit card, it’s natural to first consider the welcome bonus , earning rate, benefits, and annual fee. For example, the American Express Gold Rewards Card is a good travel credit card because it earns you two points per dollar spent on travel, gas, groceries, and drugstore purchases.
The current welcome bonus is 5,000 points monthly when spending $1,000 for 12 months (60,000 points total – a $600 travel value). The annual fee is $250, but you get a $100 travel credit and four free airport lounge passes. There’s also the TD First Class Travel Visa Infinite Card.
You earn eight points per dollar spent on Expedia for TD purchases, six points on groceries and restaurants, four points on recurring bills and two points on everything else. The welcome bonus is currently 135,000 points ($675 value) when spending $5,000 in the first three months, and the annual fee of $139 is waived for the first year. Additionally, as of April 30, cardholders get four free annual airport lounge passes and will see an increased earning rate on public transportation, drinking places and streaming services.
You also still get the yearly $100 Expedia for TD credit. Admittedly, the TD offer is incredibly generous and an obvious choice for many people, but that’s only one side of the equation. When you look at the benefits of each specific loyalty program, some people may lean towards the American Express Card because of its abundant redemption options.
Understanding your ‘burn’ options You can redeem 200 TD Rewards points for $1 off Expedia for TD with TD Rewards. That means your points are worth 0.5 cents each.
While Expedia for TD has just about every purchase you can think of – such as flights, hotels, car rentals, and cruises – it may not have the lowest prices. Additionally, since Expedia is a third-party site, any status benefits you have through hotels may not be honoured. With American Express Membership Rewards, you can apply 1,000 points towards a $10 statement credit.
Essentially, you can make any purchase with your Amex card and then use your points toward it for instant savings. Additionally, American Express has many travel points transfer partners, including Aeroplan, Marriott Bonvoy, Avios, Hilton Honors, and more. American Express cardholders also get American Express Experiences, a perk that provides benefits such as presale tickets to some of the most popular concerts and theatre productions, special dining events, and more.
Casual travellers will likely be happy with TD Rewards, but they may find it restrictive sometimes. However, if you’re the type of person who wants flexibility, enjoys looking for the lowest price, and loves expanded benefits, then American Express may be a better choice. Mixing and matching programs can lead to greater rewards Mixing and matching cards and loyalty programs sometimes make sense.
For example, anyone living in Alberta may find WestJet’s network incredibly convenient. In this case, getting the WestJet RBC World Elite Mastercard would make sense because the primary cardholder and up to eight guests on the same reservation get their first checked bag free. While WestJet does fly internationally and has a few planes with business-class seats, the new WestJet Rewards still have a fixed value.
Aeroplan, Air Canada’s loyalty program, has a flight rewards chart that uses dynamic pricing, so getting good value on Air Canada or one of Aeroplan’s partner airlines is possible. A strategy for those in Alberta would be to keep the WestJet card for the flight benefits and get an Aeroplan card so you can charge your purchases and earn points. Yes, you’d be paying two credit card annual fees, but the value you get from the WestJet card’s benefits and Aeroplan’s overall advantages are likely worth it.
When selecting a credit card, it’s important to understand how the loyalty program functions and how you can redeem your points. Without looking into the details, you might end up making a choice that doesn’t suit you. Barry Choi is a personal finance and travel expert at moneywehave.
com ..
