Best Rewards Credit Cards for Canadians in 2022

What are Rewards Credit Cards?

Rewards credit cards offer users a benefit for every dollar spent, up to certain limits. These rewards are typically counted as points, but could also be travel miles. Depending on the specific card, you will have the option to redeem these rewards for a variety of things, including entertainment, merchandise, gift cards, cash or travel discounts.

Rewards cards are one of the most popular types of credit cards as everyone likes to be rewarded for spending, and the more the better. Rewards credit cards can be subdivided into several different categories. The most popular ones include; travel rewards, store rewards, dining rewards and everyday rewards.

Due to the popularity of rewards cards there are a lot of choices available. You need to work out which card will bring you the most benefit and savings. Otherwise you will end up with a wallet full of cards that are just complicating your life instead of making it easier.

Good to Know
Make the most of your welcome bonus. Many credit card companies offer introductory bonus rewards to entice you to sign up. Those offers may involve hundreds of dollars in incentives once you reach a certain spending threshold as well as an introductory 0% APR for the first several months, and no fees for the first year. Look for the best welcome bonus on your new rewards card.

What are the Best Rewards Credit Cards for Canadians in 2022?

  1. TD First Class Travel Visa Infinite Card

    This is our Best Overall Rewards Card. If you are looking for the best overall rewards, especially on travel purchases, this card should be at the top of your list. Check their limited time offer good until May 29, 2022.
    For more information read our TD First Class Travel Visa Infinite Card Review.

Tiered vs Fixed Rewards

Many rewards credit cards have either tiered structures or have fixed structures. Tiered rewards cards offer different levels of rewards for different kinds of purchases. For example, a tiered card might offer 9 points for every dollar you spend on travel, but only 3 points per dollar spent on gasoline. Fixed rewards cards will pay the same level of rewards regardless of what you purchase. For example, a fixed card might offer 5 points per dollar on all purchases. There are advantages and disadvantages to each.

What We Like and Dislike about Rewards Credit Cards

  • Earning and redeeming rewards are straightforward
  • Rewards are usually higher if they are for specific category
  • Great sign up bonuses with low spending requirements
  • High APRs if you carry a balance
  • There is no perfect card that give you all the rewards in one place
  • Reward points often come with restrictions in terms of how they can be redeemed

Pro Tips to Maximize Your Rewards

There are simple rules that you can follow to make the most of your rewards card. Choose the ones that are applicable to your situation and you will be a better position to increase the rewards that you earn from your credit card.

  • Get a card that pays you for what you already buy – You don’t want to have to change your spending habits just because it will earn you more points. You really want to get a card that will give you the most points based on what you currently purchase.
  • Use more than one card – You will never find the perfect card that gives you all the rewards that you want. It is often advisable to carry more than one credit card to maximize your benefits. This could make a huge difference in the total returns that you receive.
  • Pay your full balance every month – Rewards credit cards make the most sense for consumers who pay their balance in full each month. Otherwise, the interest charges that you pay could easily exceed your rewards.
  • Take advantage of welcome bonuses – Many rewards credit cards offer a generous sign-up bonus. You can receive extra rewards if you spend a certain dollar amount in a given amount of time. Look for the best offer and make sure you take full advantage.
  • Research your rewards program – Make sure that you know what you earn on what you buy so that you know what you can do with your points or miles
The Canada Revenue Agency (CRA) classifies credit card rewards as discounts, not as forms of income. They are not taxable and you are not required to report them on your income tax return.

Rewards Cards Summary

Rewards credit cards are like a savings account. Every time you make a purchase you are making a deposit towards something that you want. Choose the right card for your spending habits and start earning rewards today.