Credit cards designed for travel in Canada provide rewards and money-saving perks like airport lounge access, welcome bonus offers, travel insurance coverage and more. To find the right card for you, consider your income, spending and any card-specific perks before applying.
A travel rewards card earns points or miles that can be redeemed on all types of travel expenses, such as air, hotel and cruise reservations. Many also waive foreign transaction fees.
Rewards
For airline or hotel rewards, travel credit cards offer many great opportunities. For instance, the TD Aeroplan Visa Infinite card features Air Canada-specific benefits like Maple Leaf lounge access and Nexus application fee reimbursement.
Other cards provide premium perks, like free hotel stays or airport VIP access. In addition, some offer no foreign transaction fees at all–such as Rogers World Elite Mastercard’s offering of 3% cash back on U.S. dollar purchases — more than enough to offset the 2.5% fee most credit cards charge when transacting internationally.
An effective travel credit card in Canada should have a high earn rate and allow you to redeem points quickly. Furthermore, it should offer low fees with no annual fee, saving money. Finally, ensure the rewards match up with your goals and preferences; many travel cards feature brand partnerships which increase redemption rates with Air Mile bonus points or hotel discounts.
Travel insurance
Travel credit cards typically provide travel insurance that can help protect against unexpected incidents while on your journey. Each card may offer specific coverages for such things as trip cancellation/interruption insurance and lost luggage protection+, so check before purchasing one to learn what coverages may apply to your card.
Some cards also provide travel accident insurance that pays out a lump sum if an accident occurs during travel, providing extra peace of mind and security while away. This coverage adds another layer of peace-of-mind while traveling.
The Rogers World Elite Mastercard provides travelers with valuable travel insurance as well as lounge access and other perks, all without an annual fee or premiums. This card’s travel insurance covers $2M of emergency medical coverage for cardholders, spouses and dependant children – provided airfare and accommodations are charged onto it – though to qualify fully, airfare must also be purchased with it first. In addition, 3 days lost baggage coverage+ and flight/trip delay protection+ are also offered on top.
Convenience
Be armed with the right travel credit card that offers premium perks and benefits when traveling can save both time and money. Many cards provide travel insurance as well as complimentary checked bags for you and your companions, while some come equipped with premium airline lounge access, Nexus fee rebates and elite status with hotel and rental car loyalty programs.
American Express Aeroplan Reserve Card provides travelers with an array of travel benefits, such as airport lounge access, a $100 statement credit towards NEXUS fees and up to eight complimentary first checked bags on Air Canada flights for you and up to seven of your travel companions. In addition, this card offers strong reward point rates as well as additional value such as complimentary Wi-Fi access and hotel benefits.
Scotiabank Gold American Express Card is another excellent choice, as it does not charge foreign transaction fees, saving travellers 1.5% to 3% in fees typically charged by providers when making overseas purchases. This makes the Scotiabank card especially appealing for frequent travellers making frequent purchases abroad.
Security
If your credit card offers travel insurance coverage, it is essential that you understand its terms and conditions. Policies differ depending on which card is being used and may include coverage for lost luggage, trip cancellation/interruption fees and rental car damage.
Travel cards should also consider annual fees when considering your costs and benefits such as free lounge access or reduced baggage fees. Also take note of any minimum credit score requirements to qualify for certain cards as this will differ based on card type.
Although travel credit cards offer many advantages, it is essential to remember that carrying a balance can harm both your credit score and cost you extra money in interest charges. Therefore, to maximize the value of your travel credit card it’s wise to pay your balance off in full every month as this will protect its value as well as providing options in case your wallet gets stolen or lost abroad.
