Although credit card perks and rewards get most of the attention, benefits play a larger role in your everyday experience than you realize. The best credit card benefits make banking easier, travelling safer, and shopping more rewarding.
Key Takeaways
- Benefits make it easier, safer, and more rewarding to use your credit card.
- Some benefits are provided by your card’s payment network and others by your bank.
- The basic benefits of using a credit card include convenience, safety, and building your credit score.
- The most valuable credit card benefits are rental car theft and damage insurance, emergency medical coverage, and extended warranty insurance.
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3 basic credit card benefits
Today’s credit cards offer a staggering array of benefits – features that promise to make everyday spending easier, safer, and more rewarding. Credit card issuers and payment networks use benefits to reel in customers, but not all of them are worth your time.
For instance, every credit card in Canada provides the basic benefits of convenience, safety, and building your credit score. You’ll have to search harder for cards that add banking, insurance, and shopping benefits on top.
Remember: Your rights as a credit cardholder should never be presented as benefits. For example, you have the right to access your credit card statement at all times, regardless of which bank, credit card, or payment network you choose.
1. Convenience
There are 3 payment networks used by every credit card in Canada: Mastercard, American Express, and Visa. While Amex is still breaking into the Canadian market, Mastercard and Visa handled a combined total of nearly $7 trillion worth of transactions worldwide in 2024.
All of this gives credit cardholders several ways to pay for goods and services around the world, including:
- In-store using tap, a chip and PIN, or a digital wallet
- Online or by phone using their credit card number
- Online using pre-authorized transactions – you can even get rewarded by paying your bills with a credit card!
Credit cards can also be used like card cards to withdraw cash advances from ATMs. Just be sure to read the fine print surrounding withdrawal fees and interest charges.
2. Safety
Mastercard, Visa, and American Express employ sophisticated fraud detection and prevention measures and provide customers with a zero liability guarantee: as long as you take reasonable care of your information and report any lost or stolen cards immediately using the phone number in your cardholder agreement, you won’t be held responsible for any unauthorized charges.
If your information wasn’t stolen, but there was something fishy about your transaction, you can always dispute it and request a credit card chargeback. Unfair subscription charges, missing packages, and misrepresented merchandise are all fair game for a claim.
Remember: Zero liability guarantees don’t apply to every business credit card or business-related transaction.
3. Building your credit score
Using a credit card is one of the most reliable ways to build your credit score in Canada. With a ‘Good’ credit score between 660 and 724, you should qualify for most credit cards and more credit products, such as a car loan, mortgage, or line of credit.
Secured credit cards can still help you build credit, but prepaid credit cards don’t.
6 credit card banking benefits
Borrowing money is a standard feature of every credit card, but overall flexibility varies from bank to bank. At a minimum, you should expect a 21-day grace period to repay what you owe without any interest charges, which you can do by phone, mobile app, online, or using automatic credit card payments.
However, a few credit card issuers go above and beyond in providing banking convenience. You can manage debt more easily with balance transfers, installment plans, long grace periods, and low interest rates, or enjoy linked banking offers and priority customer service.
6. Balance transfers
With balance transfers, you can consolidate multiple debts on a single credit card with a low interest rate. The MBNA True Line Mastercard is the best balance transfer credit card in Canada thanks to its promotional offer of 0% interest for 12 months.
Learn more: Balance transfer credit cards 101
7. Installment plans
If you’d rather not reshuffle your debt, consider an installment plan instead. "Buy now pay later" plans split eligible transactions of $100 CAD or more into several payments for a low flat fee or interest fee.
The best card for carrying a balance without really carrying a balance is the CIBC Aventura Visa Infinite Card. Using "Pace It," you can pay for a purchase with up to 24 monthly installments for a one-time 1.5% fee, plus 7.99% interest.
8. Linked banking offers
Banks don’t just want to promote their credit cards – you can get a nice bonus for opening up a chequing or savings account, too.
For example, you’ll get one extra cash back category if you open a Tangerine Savings Account and deposit all the money you earn with the Tangerine Money-Back Credit Card. Or, you could get 25 bonus Air Miles deposited into your BMO Air Miles Chequing Account each month as long as you have an Air Miles credit card.
9. Long grace periods
The benefits of using a charge card vs. a credit card include longer-than-average grace periods. The The Business Platinum Card from American Express has a grace period of 55 days, giving you nearly 2 months to repay what you owe.
10. Low interest rates
While most cards penalize unpaid balances with 20% interest or more, trusted customers may qualify for a low interest credit card. You can pay as little as 0.1299% interest on purchases with the MBNA True Line Mastercard on those rare occasions you might need to carry a balance.
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2x Award winner 11. Priority customer service
Less common, but no less appreciated, is priority customer service. Big banks put premium credit cardholders at the head of the line; the American Express Platinum Card offers no less than 4 dedicated hotlines for customer service, travel assistance, concierge services, and international assistance.
4 credit card insurance benefits
If your credit card gets lost or stolen, you can expect your bank to offer a free replacement. But what about a new pair of headphones?
Credit card insurance offers an extra layer of security whether you’re shopping or travelling, not to mention a ton of value. According to our research, the 3 most valuable types of coverage are worth an extra $337 combined.
And then there’s the pricelessness of peace of mind. Premium credit cardholders are never stranded with emergency cash and card replacement services and emergency travel assistance. Using the right card to pay for your shopping or travel purchases can also pay off if things go wrong.
12. Emergency cash and card replacement services
Emergency cash and card replacement benefits give you spending options no matter where you are in the world. If you need help, contact the Amex Emergency Card Replacement, Visa Emergency Cash Disbursement, or Mastercard Global Service line. All three can lock a lost or stolen card, provide emergency cash or cards, or direct you to an ATM 24/7.
13. Emergency travel assistance
Emergency travel assistance is an added benefit of travel insurance. Like emergency cash and card services, it operates 24/7 for free. Unlike those services, it can provide referrals to doctors, hospitals, embassies, and lawyers, as well as visa and vaccination requirements.
To get help, check the insurance certificate included with your credit card. All big 5 banks in Canada have a dedicated travel assistance line. You can also get help through Amex Travel Emergency Assistance services or Visa Global Assistance Services. Mastercard does not provide travel assistance services.
14. Shopping insurance
There are 5 types of credit card shopping insurance available in Canada to protect what you paid for:
- Extended warranty coverage honours the original manufacturer’s warranty up to 2 years after expiry.
- Purchase protection insurance will replace or reimburse a new purchase if it’s lost, stolen, or damaged within 90–180 days of being charged to your card.
- Price protection coverage will refund you the difference between an item’s original purchase price and a later sale price.
- Mobile device insurance will reimburse you for up to $1,000 if your phone is lost, stolen, or damaged.
- Event ticket cancellation insurance will reimburse you the cost of your tickets if you can’t attend.
Brim Financial credit cards are the only cards in Canada to offer event ticket cancellation coverage, but it’s only worth an average of $8. Extended warranty coverage is worth an average of $78 per claim. The National Bank Platinum Mastercard offers a generous 2-year extension for less than $100 per year.
15. Travel insurance
Travel insurance is the most valuable type of credit card benefit. Rental car theft and damage insurance is worth an estimated $140, followed by emergency medical coverage at $119 and trip cancellation at $39.
Paying the annual fee for a premium travel credit card is usually much less expensive than buying travel insurance separately for each trip. The most comprehensive is the BMO AIR MILES World Elite Mastercard – which includes 14 types of coverage – but only the MBNA Rewards World Elite Mastercard includes all 3 types of rental car insurance.
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1x Award winner Remember: Only select credit cards offer travel insurance for seniors over the age of 65.
2 credit card shopping benefits
Not only can you use credit cards to spend money, but you can also use them to save money. Most cards provide partner offers, including deals, discounts, and shopping portals, while a select few can save you money overseas with zero foreign transaction fees.
14. Partner offers
Almost every rewards program in Canada offers a co-branded rewards credit card and extra points for shopping at certain stores. You can get Scene+ points for going to movies, PC Optimum points for getting groceries, and Aeroplan points at the LCBO – plus deals and discounts through flyers, apps, and online shopping portals.
15. No foreign transaction fees
The industry-standard currency exchange rate fee is 2.5% – but not if you use a foreign exchange travel credit card. Frequent flyers can skip the fees and get rewarded with the Scotiabank Gold American Express Card, but if you often shop in the States, you should check out the 3% cash back offer available from the Rogers Red World Elite Mastercard.
Which credit cards have the best benefits?
Every credit card provides fraud protection, a variety of payment options, a zero liability guarantee, and the means to build your credit score. Basic credit cards add the following:
- Balance transfers
- Basic purchase insurance
- Basic travel insurance
- Emergency cash and card replacement
- Linked banking offers
- Low interest fees
- Partner offers
Premium and super premium credit cards feature all of the above and more:
- Emergency travel assistance
- Installment plans
- Long grace periods
- No foreign transaction fees
- Priority customer service
- Purchase insurance
- Travel insurance
Unsurprisingly, premium and super-premium cards with rare benefits tend to have higher annual fees:
| Mastercard | American Express | Visa | |
|---|---|---|---|
| Basic cards | * Mastercard * Platinum Mastercard * Platinum Plus Mastercard | * Green * Essential | * Visa Classic * Visa Gold * Visa Platinum |
| Annual fees | $0 – $70 | $0 – $25 | $0 – $120 |
| Premium cards | * World Mastercard | * American Express * Gold Rewards | * Visa Infinite |
| Annual fees | $0 – $115 | $119.88 – $250 | $120 – $180 |
| Super-premium cards | * World Elite Mastercard | * Reserve * Platinum | * Visa Infinite Privilege |
| Annual fees | $0 – $150 | $599 – $799 | $399 – $599 |
The same goes for credit card perks, which include non-essentials like travel credits, travel companion vouchers, and airport lounge access.
While perks are flashy and exciting, don’t underestimate the value of the best credit card benefits. They have a huge impact on the day-to-day experience of using your credit card and can help you save money and stay out of debt.
FAQ
What benefits can you get from credit cards?
The best credit card benefits include increased payment flexibility, travel insurance, shopping insurance, and money-saving offers through partners and fee reductions.
How can you see your credit card benefits?
Log into your online or mobile banking account or check your credit card holder agreement to view your list of benefits.
How do I know if my credit card has insurance?
All credit cards with insurance include an insurance certificate detailing coverage inclusions, exclusions, and how to make a claim.
Do credit card benefits expire?
Except for free trial memberships, credit card benefits don’t usually expire.
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