--> --> Cash Back vs. Travel Rewards: How To Choose A Credit Card | creditcardGenius --> --> -->   App Exclusive: $150 GeniusCash on a card with unreal cash back! Download Now × 5 Hello! Sign In $150 Cash Back Compare Credit Cards Compare Credit Cards Compare Credit Cards Find Your Credit Card Quick Compare Top Credit Card Deals No Fee First Year Free Credit Card Quiz By Type Rewards Low Interest Balance Transfer Business Student Prepaid By Rewards Cash Back Travel Air Miles Aeroplan Store Grocery Reviews American Express Cobalt: Award-Winning. Limit-Pushing. Unmatched. BMO Ascend World Elite: Travel Rewards Reach New High American Express Gold Rewards: Your Ticket to Luxury TD® Aeroplan® Visa Infinite: Your Best Card for Air Canada Perks MBNA Rewards World Elite: Canada's Best Kept Secret BMO AIR MILES®† Mastercard: Groceries today. Getaways tomorrow. GeniusCash credit cards = more cash in your pocket! 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Choosing a new credit card can be overwhelming – and the first place you typically need to start is with whether you want a cash back or travel rewards card. While a cash back credit card earns you straight-up cash on your purchases, welcome bonuses are typically smaller and you may only receive your payout once per year. On the other hand, many travel rewards credit cards come with hefty welcome bonuses, travel-related perks, and a variety of ways to spend your points (though not always for high value). Key Takeaways Both cash back and travel rewards cards let you earn rewards on qualifying purchases and may provide different earn rates in different categories. With cash back cards, cash (or cash-like options) is usually your only redemption choice. Travel rewards credit cards may let you redeem points towards travel, merchandise, statement credits, donations, and more. Cash back cards typically have lower annual fees – and fewer valuable perks. Our top-ranked cash back card is the MBNA Rewards World Elite Mastercard while our top travel rewards card is the Amex Cobalt. In this article Show table of contents Points vs. cash back Pros and cons What to consider Best cash back card Best travel rewards card FAQ Never miss an amazing deal again + get our bonus 250+ page eBook for FREE . Join 50,000 other Canadians who receive our weekly newsletter – learn more . Credit card points vs. cash back rewards Cash back credit cards and travel rewards cards work in the same way: both reward you for making qualifying purchases on your card. Depending on the card, you may earn more rewards in certain spending categories than others. The key difference is how you can redeem your rewards. Cash back credit cards require you to redeem your rewards for cash, typically in the form of a statement credit. Some cards let you redeem on demand while others pay the accumulated cash out once per year. Travel rewards credit cards allow you to redeem your points in numerous ways, though the exact options depend on the card. Common redemption options include flights, car rentals, hotels, package vacations, merchandise, gift cards, statement credits, and charitable donations. Sometimes, you can transfer your rewards points to partner programs (like Amex Membership Points to Aeroplan) at varying ratios. Did you know? You can earn cash back even when you have a travel rewards credit card? GeniusCash is a cash back rewards app that sends real cash straight to your bank account. It also helps you get the most credit card rewards, find the best deals, and unlock exclusive offers to get you even more cash back on your everyday purchases. Pros and cons of cash back vs. travel rewards cards Cash back cards might not be for everyone, but sometimes – and for some people – they really do come out on top. On the other hand, frequent travelers will probably opt for travel rewards cards that offer multiple ways to redeem points and (usually) lots of perks. Cash back Easy to earn and redeem rewards: You can easily calculate how much a card will pay you based on how much you spend and requesting cash back is fairly straightforward. More flexibility: Cash can be used anywhere, for anything – you aren’t restricted to travel for high value redemptions. Maximize cash back with spending categories: Some cards give you the ability to earn extra cash back when you make purchases in specific spending categories. Lower annual fees: Cash back cards are competitive, so it’s possible to find a great card that has no fee (or a low annual fee that is sometimes waived). Fewer perks: Travel rewards cards tend to be premium cards , so they come with better perks. You might find the insurance package, welcome bonus, and earn rate are lower with a cash back card. Lower welcome bonuses: Cash back credit cards often have lower welcome bonuses than some of the best travel rewards cards. Travel rewards Rewards tailored to travelers: Travel rewards cards typically offer the highest redemption value for flights. While you have other redemption options, they’ll usually ring it at fewer cents per point. Amazing perks: Travel card perks may include lounge access, free checked bags, elite status, NEXUS rebates, exclusive experiences, preferred pricing, and more that help offset their higher fees. Enhanced reward rates with partners: Many rewards programs direct you to use their travel platform (like Expedia For TD) to book with partners. In doing so, you can sometimes earn points while redeeming them – or at least get more value. Higher annual fees: The best travel credit cards have annual fees starting around $120, though our top-ranked perks credit card, the American Express Platinum Card, comes in at a whopping $799. Redemption rules can be complicated: Depending on your rewards program, you may have to pay attention to intricate pricing plans to ensure you’re getting the most value for your miles. Plus, some programs have blackout dates and exclusions to be aware of. Lower value for non-travel redemption: Although your miles are usually worth a lot when you use them for travel, the value typically drops significantly if you redeem them for anything else. What to consider when choosing a rewards credit cards Before you begin your search for a new credit card, it may help to figure out what you want from it. Then, you can narrow down cards to find one that suits your needs. You might think about the following: How much do you want to spend on an annual fee? Are you willing to pay a modest fee? Are you hoping for a no-fee card? Are you ok with a higher fee if the perks are really great? What are your spending habits? Do you use your credit card for everyday purchases or mainly in one specific category, like groceries or gas? If you’re considering a cash back card, which categories would you earn the most in? What’s your travel style? Are you a homebody or do you love exploring the world? When you travel, is it important for you to do it luxuriously or in style? How much flexibility do you want with rewards? Do you want the ability to redeem rewards for things like merchandise, gift cards, or financial products? Are you saving up for a trip? Generally speaking, travel rewards cards are best if you tend to travel regularly. If you’re a homebody who goes on a trip every few years, you’ll likely find that the annual fee is higher than the value you get from your card. Accumulated cash back can be applied as a statement credit and used towards any purchase – including travel! If you’re a modest spender or don’t travel much, a cash back credit card might be a better choice for you. Best cash back credit card MBNA Rewards World Elite ® Mastercard ® 5.0 Genius Rating 3.3 (81) User reviews ×4 Award winner $100 GeniusCash + Up to 30,000 bonus points + birthday bonus worth up to 15k points. * Annual fee $120.00 Learn more Welcome bonus $249 ◊ 30,000 points Annual rewards $570 ◊ GC Ends: Dec 31, 2025 GC: $100 I Want This Deal Learn More Instant approval: Yes Credit estimate: MBNA Rewards World Elite ® Mastercard ® GC: $100 5.0 Genius Rating 3.3 (81) User reviews 4x Award winner $100 GeniusCash + Up to 30,000 bonus points + birthday bonus worth up to 15k points. * Annual fee $120.00 Learn more Welcome bonus $249 ◊ 30,000 points Annual rewards $570 ◊ GC Ends: Dec 31, 2025 Credit estimate:  (725 - 759) I Want This Deal Learn More Instant approval: Yes Rewards Details & Eligibility Genius Rating User Reviews Pros & Cons Show More Rewards Details & Eligibility Genius Rating User Reviews Pros & Cons If you’ve decided you want a cash back card, look no further than the MBNA Rewards World Elite Mastercard . You’ll earn up to 30,000 points after spending $2,000 in the first 90 days and signing up for paperless e-statements. Then, earn 5 points per $1 spent on restaurants, groceries, and select recurring bills, plus 1 point per $1 on everything else. When you’re ready to redeem, travel gives you one of the best rates of return with electronic gift cards following closely behind. If you’re on the fence about whether you’d use a travel rewards card enough to benefit, this cash back card might be a good option. You’ll get great earn rates and the flexibility to redeem your points however you like. Pros: Up to 30,000 bonus points World Elite Mastercard benefits Redeem for cash back, travel, merchandise, and charitable donations 10% bonus points every year on your birthday 12 types of insurance Cons: Income requirements of either $80,000 personal or $150,000 household Check out the full list of our best cash back credit cards Best travel rewards credit card American Express Cobalt ® Card 4.3 Genius Rating 4.1 (80) User reviews ×8 Award winner $100 GeniusCash + Transfer points to Aeroplan and 7 other travel partners with Canada's #1 credit card . * Annual fee See rates Learn more Welcome bonus $150 ◊ 15,000 points Annual rewards $540 ◊ GC Ends: Dec 31, 2025 GC: $100 I Want This Deal Learn More Instant approval: Yes Credit estimate: American Express Cobalt ® Card GC: $100 4.3 Genius Rating 4.1 (80) User reviews 8x Award winner $100 GeniusCash + Transfer points to Aeroplan and 7 other travel partners with Canada's #1 credit card . * Annual fee See rates Learn more Welcome bonus $150 ◊ 15,000 points Annual rewards $540 ◊ GC Ends: Dec 31, 2025 Credit estimate:  (660 - 724) I Want This Deal Learn More Instant approval: Yes Rewards Details & Eligibility Genius Rating User Reviews Pros & Cons Show More Rewards Details & Eligibility Genius Rating User Reviews Pros & Cons It’s probably no surprise that the best credit card in Canada is also your best choice for travel rewards. The American Express Cobalt Card is a great everyday card that starts you with a welcome bonus of up to 15,000 points and then earns you up to 5 points per $1 on many purchases. It’s also got travel-specific rewards. You can transfer your points to 6 different travel rewards programs (including Aeroplan at a 1:1 ratio) or use the fixed travel points program, which lets you book flights through the Amex platform for a high rate of return. You can also transfer points to hotel programs or even redeem them for statement credits. Pros: Up to 15,000 bonus points Earn up to 5 points per $1 spent on purchases 4 ways to redeem points for high value 10 types of insurance Cons: Lower acceptance as an American Express Check out the full list of our best travel rewards credit cards FAQ Is it better to get rewards or cash back? Whether rewards or cash back is better depends on how you use your credit card and whether you travel a lot. If you like to travel a lot – especially with a single airline – a rewards card can earn you lots of points and valuable perks, like lounge access. Infrequent travelers might be better off with the flexibility that comes from a cash back card. What are the disadvantages of cash back rewards? Depending on your credit card, you may only get a statement credit once per year. Cash back cards tend to offer fewer premium benefits like lounge access, exclusive dining opportunities, and free checked bags. Are cash back rewards taxable? In general, they aren’t taxed if you’re using the rewards for personal transactions. However, if you use your card for business purposes, the rewards may be taxed. creditcardGenius is the only tool that compares 126+ features of 227 Canadian credit cards using math-based ratings and rankings that respond to your needs, instantly. Take our quiz and see which of Canada's 227 cards is for you. Did you find this article helpful? Yes No Editorial Disclaimer : The content here reflects the author's opinion alone. No bank, credit card issuer, rewards program, or other entity has reviewed, approved, or endorsed this content. For complete and updated product information please visit the product issuer's website. Our credit card scores and rankings are based on our Rating Methodology that takes into account 126+ features for each of 227 Canadian credit cards. Hot Credit Card Deals This Month Hot Credit Card Deals This Month: Get even more cash back with exclusive offers only available on the GeniusCash app Explore bigger GeniusCash offers that you won't find anywhere else. Connect your credit cards and unlock bonus cash on your spending that you won't get anywhere else. Explore customized recommendations to help you find the best products to level up your rewards. Be the first to know about new, limited-time GeniusCash offers so that you never miss a deal. 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Post Comment Hot Credit Card Deals See details Get even more cash back with exclusive offers only available on the GeniusCash app Apply Now Up to 90,000 100,000 bonus points + 4 free lounge passes per year + $125 GeniusCash Ends Dec 31, 2025   GC:  $125 Apply Now Earn up to 165,000 bonus points + First year annual fee rebate + $20 GeniusCash Ends Nov 30, 2025   GC:  $20 Apply Now 0% interest for 12 months with Canada's #1 balance transfer promotion + $20 GeniusCash Ends Nov 30, 2025   GC:  $20 Apply Now Exclusive Offer: Up to $480 cash back in the first year + Roadside Assistance + $150 GeniusCash Ends Dec 31, 2025   GC:  $150 Apply Now Up to 50,000 bonus points + No foreign exchange fees + $100 GeniusCash Ends Dec 31, 2025   GC:  $100 Apply Now Get $120 bonus cash back + no annual fee + $120 GeniusCash Ends Dec 31, 2025   GC:  $120 See all November deals Our Original Research Study: How Much Is Your Credit Card Insurance Worth? Study: What Is A Good Credit Score in Canada ‒ And Is It Good Enough To Be Approved? Study: What Are Your Credit Card Benefits Worth? Study: Credit Card Trends In Canada During COVID-19 Must Read Best Credit Cards in Canada for 2025 Tangerine Money Back Credit Card Review – A Top No Annual Fee Mastercard Best Credit Cards For Bad Credit In Canada For November 2025 Your Guide To Expedia For TD Amex Cobalt Review: Why It’s Been #1 For 8 Years In A Row Best Instant Approval Credit Cards In Canada What's The Best Rewards Program In Canada? How To Maximize The TD Rewards Points Program How To Maximize The CIBC Aventura Rewards Program Most Recent Personal Loans vs. Credit Cards – What's the Difference Financing For Students – From Student Credit Cards To Student Loan Services Best credit cards for Christmas and holiday shopping Your Guide To DragonPass Lounges Check Amex Eligibility Without Impacting Credit Score What’s important to you? 1 Cash Travel+ 1 Low Fees Insurance 1 Low Interest Perks 46 / 227 best cards Genius Search What's this? You'll also get our hot credit card tips, news, reviews, and exclusive offers directly to your inbox. Free Instant Access It only takes one click to unsubscribe so give it a try. About creditcardGenius creditcardGenius is a smart credit card matchmaker that compares 126+ features of 227+ credit cards, with objective ratings, rankings and reviews. 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Resources Review Your Card Credit Card FAQ Sliders Credit Card Quiz Company About Careers Scholarship Disclosure Help Contact GeniusCash Report Bug   Privacy Policy | Terms | Security Province: Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Nunavut Northwest Territories Nova Scotia Ontario Prince Edward Island Quebec Saskatchewan Yukon Copyright © 2025 WeyMedia Inc. 200 Champlain St. Suite 210, Dieppe, NB E1A 1P1 ◊ The creditcardGenius algorithm, based on our Rating Methodology , calculates an estimated dollar value for all rewards and bonuses by combining typical monthly spending with well-researched reward point value estimates . "Annual Rewards" is calculated by combining our default $2,000 in monthly spending ($24,000 annually) spread across 8 different spending categories (gas, groceries, travel, etc) with our point value estimates. "Welcome Bonus" is calculated by combining all one-time bonuses available to new cardholders within the first year with our point value estimates. To qualify for the full bonus you may need to make purchases, meet minimum spending requirements, or complete special actions. "Annual Interest Savings" is based on a credit card balance of $8,000 and a standard credit card interest rate of 19.99%. Annual Rewards, Welcome Bonus, and Annual Interest Savings values will change if the person adjusts their monthly spending away from the $2,000 monthly default or changes their reward preferences. *, † Terms and conditions apply. Your feedback matters What do you think of creditcardGenius? Needs work It's ok It's great! Disclosure creditcardGenius receives a referral fee for some credit cards listed; however, our comprehensive and math-based algorithm solely dictates the results of our rating system. Our ratings and rankings are strictly independent of compensation. Read our detailed disclosure about how CCG makes money. Never miss a deal Unlock VIP-access to exclusive GeniusCash deals, credit card offers, and the biggest money news. Bonus : Get our 250+ page money-saving eBook for free. We promise to keep your email safe. We hate spam too. Unlock my deals Glad we could help you choose the right credit card for you. Never Miss A Deal Want to get hot credit card news and offers directly to your inbox? Bonus : Get our free 250+ page eBook that will save you $1000s per year Keep Me Updated No thanks, I don’t want credit card deals. Glad we could help you choose the right credit card for you. Before you continue your application ... Never Miss A Deal Want to get hot credit card news and offers directly to your inbox? Bonus : Get our free 250+ page eBook that will save you $1000s per year Keep Me Updated No thanks, I don’t want credit card deals. 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