If you’re making a large purchase, using the right credit card – and having the right credit card insurance – is key for maximizing your rewards. The best credit cards for big-ticket purchases in Canada include the RBC Avion Visa Infinite Privilege, MBNA Rewards World Elite Mastercard, and Tangerine World Mastercard.
Key Takeaways
- Using the right credit card for a large purchase can provide extended warranty coverage and price protection.
- The RBC Avion Visa Infinite Privilege is the best credit card for getting an extended warranty.
- If you don’t plan to pay off the purchase by your statement due date, beware of high interest charges that will begin to add up.
- You can take advantage of installment plans to pay off large purchases over time with minimal interest and fees.
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Best credit cards for large purchases
If you’re making a major purchase, we’ve crowned the top 3 cards that you should consider using.
| Category | Credit card | Annual fee, income requirements | Special features | Apply now |
|---|---|---|---|---|
| Best for extended warranty and purchase protection | RBC Avion Visa Infinite Privilege | * $399 annual fee * $200,000 personal or household | * Extended warranty: 2 years * Purchase protection: 120 days * Price protection: No * Mobile device: Yes | Apply now |
| Best for price protection | MBNA Rewards World Elite Mastercard | * $120 annual fee * $80,000 personal or $150,000 household | * Extended warranty: 1 year * Purchase protection: 90 days * Price protection: Yes * Mobile device: Yes | Apply now |
| Best for buying your next smartphone | Tangerine World Mastercard | * $0 annual fee * $60,000 personal or $150,000 household | * Extended warranty: 1 year * Purchase protection: 90 days * Price protection: No * Mobile device: $1,000 | Apply now |
Best for extended warranty and purchase protection
Rewards:
- 1.25 points per $1 spent on all purchases
The RBC Avion Visa Infinite Privilege offers a 2-year extended warranty and 120 days of purchase protection, plus $1,500 of mobile device coverage. But you’ll also get a high rewards earn rate – 1.25 Avion points for every $1 you spend – and some of the best perks around, including lounge passes and concierge service. The package is sweetened with a solid welcome bonus and 12 types of insurance coverage. Here’s the full list:
RBC Avion Visa Infinite Privilege
| Extended Warranty | 2 years |
| Purchase Protection | 120 days |
| Mobile Device | $1,500 |
| Travel Accident | $500,000 |
| Emergency Medical Term | 31 days |
| Emergency Medical over 65 | 7 days |
| Trip Cancellation | $2,500 |
| Trip Interruption | $5,000 |
| Flight Delay | $1,000 |
| Baggage Delay | $750 |
| Lost or Stolen Baggage | $2,500 |
| Hotel Burglary | $3,000 |
| Rental Car Theft & Damage | Yes |
Please review your insurance certificate for details, exclusions and limitations of your coverage.
Best for price protection
×4 Award winner 
$150 GC Boost + Up to 30,000 bonus points + birthday bonus worth up to 15k points.*
GC: $125 + $25
4x Award winner Rewards:
- 5 points for every $1 spent on restaurants, groceries, and select recurring bills (up to $50,000 spent annually per category)
- 1 point per $1 spent on all other purchases
If you're looking for price protection insurance, the MBNA Rewards World Elite Mastercard is one of the few no fee credit cards that offer it. This coverage does have some limitations, though: purchases are only covered for 60 days, the maximum you can get per item is $500, and the annual maximum is $1,000 per calendar year.
But this card will also give you earnings of up to 5 points per $1 spent plus a welcome bonus of 30,000points. It includes 12 types of insurance:
MBNA Rewards World Elite® Mastercard®
| Extended Warranty | 1 year |
| Purchase Protection | 90 days |
| Price Protection | Yes |
| Mobile Device | $1,000 |
| Travel Accident | $1,000,000 |
| Trip Interruption | $2,000 |
| Flight Delay | $500 |
| Baggage Delay | $500 |
| Lost or Stolen Baggage | $500 |
| Rental Car Theft & Damage | Yes |
| Rental Car Accident | $200,000 |
| Rental Car Personal Effects | $1,000 |
Please review your insurance certificate for details, exclusions and limitations of your coverage.
Best for buying your next smartphone
GC: $125
For your next mobile purchase, you can’t beat the no fee Tangerine World Mastercard, which will cover the phone for theft, loss, damage, and failure for 2 years (up to $1,000 in value). Note that there’s value depreciation of 2% per month after the transaction and you'll have to pay a deductible between $25 and $100 depending on the original price of the device (before taxes).
On top of that, you can earn 2% cash back on up to 3 spending categories and 0.5% cash back on all of your other spending. Earn an extra 10% cash back for the first 2 months, up to $1,000 spent as a welcome bonus, plus get 4 types of insurance:
Tangerine World Mastercard®
| Extended Warranty | 1 year |
| Purchase Protection | 90 days |
| Mobile Device | $1,000 |
| Rental Car Theft & Damage | Yes |
Please review your insurance certificate for details, exclusions and limitations of your coverage.
What is a large credit card purchase?
Generally speaking, a "large" credit card purchase is one that requires at least 50% of your credit limit – but really, it depends on you, your income, your debt-to-credit ratio, and how long it will take you to pay off the purchase.
Here’s our definition: something that costs more than you’d spend on a typical transaction but not so large that it would take years to pay off.
For example, we’d consider a large flat-screen TV, new laptop, or even substantial vet or car repair bills to be large purchases.
Pros and cons of using a credit card for large purchases
Using the right credit card for your large purchases can give you peace of mind and earn you serious rewards. Here are some of the benefits:
- Extended warranty. For the extended warranty coverage to apply, you have to charge the full price of your order to your credit card. There may be other requirements as well, such as the original manufacturer's warranty being valid in Canada. You may need to register the product.
- Purchase protection. This covers an item for theft or damage for a certain period of time after the transaction, usually 90 to 180 days. You'll have to charge the full price of the purchase to your credit card and contact your credit card issuer to make a claim.
- Price protection. If you use your credit card to buy a new item in Canada and it goes on sale within a certain time (usually 60 to 90 days), price protection coverage can get you some money back. It typically has strict limits, such as a maximum of $100 per item with a cap of $500 per year.
- Mobile device protection. This applies to things like new smartphones for loss, theft, damage, or failure for a certain period after you buy the device. You must charge the full amount of the device to the credit card and reimbursement is subject to your card’s limit – often around $1,000.
- Rewards. Earn rewards on your everyday spending, including large purchases. An $11,000 Rolex purchase, for example, could earn you over 900 AIR MILES, $220 cash back, or 11,000 Amex Membership Rewards.
- Welcome bonus spending requirements. Many credit card welcome bonuses have steep spending requirements but a large purchase could cover much (if not all) of that requirement in one fell swoop.
- Dispute resolution. If you buy a faulty, flawed, broken, or otherwise not-as-advertised item and the merchant won’t correct the issue, you can initiate a credit card chargeback with your credit card company. You don’t have this option with a debit card purchase.
- Installment plans. These plans give you a way to spread large purchases out over the course of 3 – 12 months. You’ll pay a one-time installment set up fee and ongoing monthly processing fees – but it’s still a lot cheaper than the average 20% interest charges.
But putting large purchases on your credit card also has some drawbacks:
- High interest rates. Most cards have an interest rate of around 20% and balances should be paid off each month. If you’re going to carry a balance, you’d be better off considering a personal loan, home equity line of credit, or personal line of credit.
- Credit score impact. Carrying a balance on your credit card can have a negative impact on your credit score – and the longer you carry that debt, the more of an impact it may have. This can impact your ability to get a personal loan, secure a mortgage, or even get a new cell phone plan.
- Difficult to get out of credit card debt. High credit card interest and a declining credit score can make credit card debt increasingly difficult to escape. Avoid charging purchases that you won’t be able to pay off within a month or two.
Do you use your credit card for large purchases?
Do you have a large purchase coming up? Would you prefer to have price protection on your new mobile device, or mobile device insurance?
Have you made a successful credit card insurance claim? How much money did you save?
Tell us your story in the comments!
FAQ
Can I use a credit card for large purchases?
As long as the credit limit and available credit on your card are high enough, you can make many large purchases on your credit card. Not all large purchases can be made with your credit card, such as your mortgage, so you'll want to double check that it's actually possible first. You'll also want to avoid buying things with your credit card that will take a long time to pay off. Credit card interest rates are generally very high and there are usually better, lower-interest credit products available for things like that.
What is considered a large purchase on a credit card?
For the sake of this article we defined a large credit card purchase as something that cost more than you would generally spend on a single item or credit card transaction, but also wasn't so much that it would take years to pay off. These will likely be big ticket retail items like big screen TVs, high end kitchen gear, luxury watches, major appliances, and the like. Some define a large credit card purchase as being something that requires over 50% of your credit limit.
Which credit card is best for big purchases?
The best credit card for your large purchase depends entirely on the credit card benefits you're most interested in. Here we focused on 4 types of credit card insurance that can be useful for large purchases, since those can save you an enormous amount of money if something goes wrong. But you may be more interested in earning Air Miles, Scene+, cash back, or other credit card rewards.
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