Credit card rewards can be a great thing if you use them properly – but if you’ve ever found yourself wondering how you still only have 357 AIR MILES, or why you haven’t earned more cash back?
You’re probably not optimizing your rewards. So to get more out of your credit cards and rewards, a list of 10 credit card Genius rules to live by.
It’s a list of things you have to do to get the most out of any reward program you’re a part of, and sticking to it will have you on a free flight or watching a free movie in no time.
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10 credit card rules to live by
First, here are the 10 creditcardGenius rules to live by.
1. Pick a rewards program you actually want to use.
There are so many reward programs out there, ranging from travel points to pure cash back…
There’s really no reason any credit card user needs to be stuck earning rewards they don’t want.
If you don’t go to the movies often, a Scene Visa isn’t for you!
If you’re flexible on travel dates and flight itineraries, Aeroplan might be a great program for you!
But if you find that you’re not excited to use your rewards, and they’re piling up with no plan for how you want to redeem them?
Get yourself a new rewards program. Or a cash back card.
2. Know the terms of redeeming your rewards.
Even if you’re dealing with cash back, the terms of each rewards card might vary a little bit – or a lot.
- When do your rewards hit your account?
- When can you redeem them?
- Are there any conditions you need to meet monthly, annually or during an introductory period?
- Is there anything tricky you need to watch out for when you go to redeem them?
For example, many cash back cards only allow you to redeem once a year as a statement credit to your card. Some cards even require you to call in at a specific time to get your statement credit.
These are all questions you need to be able to answer about your rewards program before you go to redeem them for a flight or a new vacuum (Hint: redeeming rewards for merchandise is typically a terrible value).
3. Don’t let rewards expire.
As we all saw with AIR MILES and Aeroplan over the past few years, often, rewards can expire.
If you’re part of a rewards program that relies on points, you need to stay in the know about how long those points are valid for, and when they lose their value.
Maybe it’s never, but you need to be sure it’s never before you leave them in your account for ten years, only to come back and find out they’ve vanished in a puff of smoke.
The most common restriction of rewards programs is that they will all expire if you don’t keep your account active. That usually means earning or redeeming at least 1 point within a 12 month period.
Other programs have hard expiry dates where each point has a set shelf life and will expire after a set period of time no matter how active your account is. Keep an eye out for both.
4. Use your rewards on the highest-value option available.
Some programs, especially ones that reward you with points, will give you multiple different options of how to redeem your rewards, and on what.
Before you dive in and choose a reward, you need to understand that a point redeemed on a gift card may not be the same as a point redeemed on a flight.
Different types of rewards within the same program can “cost” you more points when you compare the sticker price of both items.
Make sure that you’re optimizing your rewards by using them on the highest value redemption options whenever possible.
Here at creditcardGenius we always show you the highest possible reward value that you can realistically expect to achieve without having to bend over completely backwards. We adjust that value depending on if you have a preference for cash, flexible points, or true (less flexible) travel/rewards points or miles.
5. Never carry a balance on your rewards card.
Any credit card that offers reward points or cash back isn’t also going to offer you a low interest rate on any balance that you carry.
Since that puts most interest rates at or around 20%, if not higher, carrying a balance on a rewards card even for a few months can entirely wipe out the value of your rewards.
It’s not a free flight if you paid the credit card company the equivalent amount in interest charges, after all.
6. Shop around for new cards routinely.
If there’s one thing that’s true in the rewards card world, it’s that programs and cards themselves can change any time.
From Tangerine lowering the cash back percentage on their popular cash back card, to Air Canada pulling out of Aeroplan, things change often and you need to be both informed about the changes, and ready to react.
The easiest way to do that is to make an annual habit of shopping around for credit cards based on your current spending and your current preferred rewards.
That way, you’ll always be checking to make sure you really do have the right card in your wallet – not just the card you’re used to using.
7. Churn if needed.
Sometimes, a card can make perfect sense, and come with an amazing rewards bonus…until the annual fee hits.
If you can hit the required spending amount in the introductory period, and if the card’s rewards fit your life and your spending, don’t be afraid to love it and leave it before your first year is up – also known as churning a card.
As long as you keep your oldest credit card around to maintain your credit history, and you always make your payments on time, the most that will happen to your credit score is a small, temporary dip when you get the new card.
How small? Most of the time, a hard pull only lowers your score about 10 points.
8. Always pay your balances on time.
Speaking of your credit score, if you’re a multiple-rewards-card user, you always need to make sure every card in your wallet gets paid on time.
Your payment history is a whopping 35% of your credit score, and since you’ve got multiple cards on the go, you need to remember multiple payments every month.
Miss a few, and your score could feel the impact for a while – so get yourself a system, and stick with it.
The simplest way to go is to set a calendar reminder to log into all your accounts twice a month, review transactions, and pay your balance in full. If you equally space those two dates apart – you’re guaranteed to never be late.
Haven’t been paying your balances on time? Your credit score may be suffering, but there’s an easy way to get it improved.
KOHO Credit Building is an easy solution. For $7 per month, KOHO will report that you’ve been paying your bill with them on time, and your credit score will start to improve. And to stay on top of your progress, you’ll be able to check both your score and your report and see how things are looking.
KOHO Credit Building
9. Carefully consider any annual fees.
If you don’t spend enough to pay for the annual fee and then some in equivalent rewards, you need to take a long, hard look at the value you’re getting out of your credit card.
For example, if you pay $100 for a card that earns you $200 worth of rewards every year, but you could earn $125 using the free version of a different card, you’re better off not paying the annual fee.
You’ll need to understand how much you spend, and keep an eye on how many rewards you earn, to evaluate this every year. Things change, and you might realize your annual fee doesn’t make sense any more.
10. Pay by credit card by default.
If you can pay for something with a credit card, then YES pay for that thing with a credit card to earn those points!
Instead of using debit or cash, try to route as many of your purchases and bills through your credit card as possible. That way, you’re earning points on the spending you’d be doing anyways.
To really maximize your rewards, make a point of asking every time you buy something if you can pay with your credit card – especially when it’s not obvious.
Down payment on a car? “Can I pay by credit card?“
Deposit on a venue for your wedding? “Can I pay by credit card?“
Direct bill to insurance at the dentist? “Can I pay by credit card and submit my claim manually?”
You get the idea.
Make all of your purchases, big or small, on your rewards card whenever you can.
Best rewards credit cards
So what are some of the best rewards credit cards around?
Here are some credit cards from various programs to consider.
| Credit Card | Welcome Bonus | Earn Rates | Annual Fee, Income Requirements | Apply Now |
|---|---|---|---|---|
| American Express Cobalt | Up to 15,000 points (terms) | * 5 points per $1 spent on eligible groceries and restaurants * 3 points per $1 spent on eligible streaming services * 2 points per $1 spent on eligible gas, transit, and ride share purchases * 1 point per $1 spent on foreign currency purchases * 1 point per $1 spent on all other purchases |
* $155.88 * No income requirements |
Apply Now |
| BMO CashBack World Elite Mastercard |
 $150 GeniusCash + Up to $480 cash back in the first year, first year free (terms)
|
* 5% cash back on groceries, up to $500 in monthly spend * 4% cash back on transit, up to $300 in monthly spend * 3% cash back on gas, up to $300 in monthly spend * 2% cash back on recurring bills, up to $500 in monthly spend * 1% cash back on all other purchases |
* $120 * $80K personal/$150K household |
Apply Now |
| BMO Air Miles Mastercard | 1,200 2,500 miles (terms) | * 1 Mile per $25 spent on all purchases * 3x the Miles for every $25 at participating Air Miles partners * 2x the Miles for every $25 spent at any eligible grocery, liquor, and wholesale stores |
* $0 * $15K personal |
Apply Now |
| Brim Mastercard | Up to $200 on the first purchases with various partners (terms) | * 0.5% cash back on all purchases |
* $0 * $15K personal |
Apply Now |
| MBNA Rewards Platinum Plus Mastercard | 10,000 points (terms) | * 2 points for every $1 spent on restaurants, groceries, and select recurring bills (up to $10,000 spent annually per category) * 1 point per $1 spent on all other purchases |
* $0 * No income requirements |
Apply Now |
Best rewards credit card
Transfer points to Aeroplan and 7 other travel partners with Canada's #1 credit card.* Transfer points to Aeroplan and 7 other travel partners with Canada's #1 credit card.*
×8 Award winner 
8x Award winner
Without question, the best rewards credit card in Canada is the
You’ll earn up to 5 points per $1 spent on purchases, coupled with a high value of 2 cents per point courtesy of the Amex Membership Rewards program.
And it’s for an annual fee of $155.88, that gets charged out as $12.99
Other top rewards credit cards
Marriott Bonvoy® American Express®* Card. CIBC Aventura® Visa Infinite* Card. RBC Visa Platinum Avion.
Best cash back credit card
GC: $150
If you want to keep things simple, and just earn some cash back instead, we suggest looking at the
You’ll earn up to 5% cash back on purchases, get 13 types of insurance coverage, plus free roadside assistance.
Other top cash back credit cards
Scotia Momentum® Visa Infinite* Card. Brim World Elite Mastercard. SimplyCash® Preferred Card from American Express.
Best no fee Air Miles credit card
Want to collect Air Miles? We’ll highlight the best no fee card in the program – the
Earn 1 mile for every $25 spent, which gets tripled when shopping at participating Air Miles partners.
Other top Air Miles credit cards
Best no fee cash back credit card
Want to earn cash back for no annual fee? You’ll want to consider the
You’ll earn unlimited 1% cash back on all purchases. Plus you can enjoy no foreign exchange fees and 4 types of insurance coverage.
Other top no fee cash back credit cards
Tangerine Money-Back Credit Card. BMO CashBack® Mastercard®*. SimplyCash® Card from American Express.
Best no fee travel credit card
Finally, to enjoy travel rewards for no annual fee, you can take a look at the
You’ll earn up to 2 points per $1 spent, a return of up to 2% when redeemed for travel through MBNA Rewards.
Other top no fee travel credit cards
FAQ
What is the best way to redeem rewards points?
For the most part, when it comes to redeeming rewards, you’ll want to redeem them for travel. Travel rewards offer the best value for your points. In some cases, like Aeroplan, there’s a specific travel redemption for the best value (in this case it’s flights).
How can I easily compare rewards credit cards?
Our compare cards page lets you compare
What is the best rewards credit card?
The best rewards credit card in Canada is the Amex Cobalt card. It earns 5 points per $1 spent on purchases, which is coupled with a high point value of 2 cents.
creditcardGenius is the only tool that compares 126+ features of 229 Canadian credit cards using math-based ratings and rankings that respond to your needs, instantly. Take our quiz and see which of Canada's 229 cards is for you.
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