Is Getting a Travel Credit Card Worth It?

Plenty of Canadians have wondered if getting a travel credit card is worth it, and unsurprisingly, the answer is usually "yes." However, it does depend on your travel habits, particularly how often you fly.

Finance bloggers and influencers alike often talk about the great deals they find, the perks included, and the latest promotions for their favourite travel cards, encouraging you to sign up immediately. But every travel credit card is different, and what's right for that blogger may not be right for you.

This article provides key points to consider when deciding whether a travel card is right for you, mentions a few of the top travel card choices to look at, and more.

When travel rewards cards are worth it

A travel credit card can be worth it if you're a regular traveller and know you'll use the included benefits. Before taking the plunge, though, consider precisely how often you travel, stay at hotels, rent cars, etc.

Different cards focus on different details, but here are some main points to consider when determining if a travel card is right for you:

You fly more than twice a year

If you fly frequently, a travel card can be a smart choice. Identifying what counts as "frequently" can be tricky, but it usually means more than twice per year. This lets you earn rewards faster and redeem them for more travel down the road.

With most travel cards, redeeming for flights gets you the best points value. Many offer higher points earn rates for booking flights as well – this is especially true for airline-branded cards, like the TD Aeroplan Visa Infinite Card.

You value airport lounge access

One of the most sought-after travel card perks is airport lounge access. Of course, this perk comes at a higher price point, but if you already value and prioritize lounge use, additional fees of a higher-end card are easily worth it.

Providing access to Plaza Premium lounges, Priority Pass lounges, and the Amex Global Lounge Collection, the best credit card for airport lounge access is The Platinum Card.

You stay at hotels more than 5 days per year

We often think of travel cards in terms of flight perks and benefits, but some travel cards are specifically designed for hotel stays. Just as with flying, determining what counts as "frequently" staying at hotels is debatable, but we think anything more than 5 nights per year makes having a travel card worthwhile.

The Marriott Bonvoy American Express Card is the only hotel-branded credit card in Canada, but there are plenty of hotel rewards programs that you can link to your travel card. If you're loyal to certain hotel chains, a card that earns the associated reward points can be a solid addition to your wallet.

You frequently rent cars

Most travel cards offer car rental theft and damage insurance, which can save you up to $30 per day when you rent a vehicle – some cards even offer discounts with partnering rental companies. If your chosen travel card has an annual fee of, say, $120, that means the rental insurance has offset the cost after just 4 days.

You'll need to decline the insurance offered by the rental agency, but as long as you pay for the entire rental with the card, you should be covered in the event of an accident. As always, be sure to read your card's fine print, as it may only offer a certain dollar amount of coverage.

You want the additional insurance coverage

While you shouldn't rely solely on credit card insurance, it can be a valuable addition, providing extra security and peace of mind. Things like trip cancellation, hotel burglary, and flight delay insurance can be major moneysavers if your travel plans go sideways.

With the right type of insurance package, you only need to take 1 trip to make a travel card worth it.

When travel rewards cards aren't worth it

If you prefer road trips or train travel to flying, a travel rewards credit card may not be the best choice. Similarly, if you prefer Airbnb-type properties or local boutique hotels, earning hotel rewards with a specific chain isn't likely to be a good fit for you.

Perhaps the most important factor to consider is the cost of the card. Premium travel cards have very hefty annual fees – the American Express Aeroplan Reserve Card is a whopping $599 per year. Of course, this cost can certainly be worth paying under the right circumstances, but definitely not for someone who only takes one or two flights per year.

Another thing to consider is work travel. You may be on the road – or in the sky – regularly, but if your company does all the bookings, then getting a travel credit card isn't helpful, as you aren't the one earning the points.

There's an entire category of business travel credit cards that your employer can use to earn rewards for your trips. The best of them is the RBC Avion Visa Infinite Business.

Pros and cons of travel cards

It's probably obvious that the biggest pro of travel credit cards is the perks – lounge access, concierge services, etc. But there's quite a bit more to consider, along with the (typically) high annual fees.

These are the top pros and cons of travel credit cards in Canada:

Pros

• High-value perks: This includes airport lounge access, priority security screening, hotel upgrades, discounted car rentals, and much more.
• Extensive insurance packages: Technically, this is another type of perk, but some of these packages are so incredibly valuable that they deserve their own mention. The best cards cover everything from flight cancellations to rental car burglary.
• Welcome bonuses: Travel cards tend to have some of the biggest, most valuable offers for new clients. It usually comes in the form of reward points, but some offer cash back and other sweet deals.
• Flexible redemption options: Travel rewards programs often have multiple redemption options, including the ability to transfer your points to other programs. This allows you to use them in ways that truly benefit you.
• High rewards value: Most of these multiple redemption options also offer impressively high value, too. Redeeming for merchandise is often the lowest-value choice, but even this can be worth more than any option from a non-travel rewards program.

Cons

• High annual fees: Unsurprisingly, the cards with the best perks are the ones with the steepest cost. Some of them cost several hundred dollars per year.
• Highest earn rates are travel-related: Yes, this makes sense for a travel card, but it's still not helpful for everyday spending. You may want an additional card in your wallet for grocery shopping, etc.
• Co-branded card limitations: These cards are limited to travel bookings within a certain network and its brand partners only. For instance, the Marriott Bonvoy American Express Card only rewards you for staying at Marriott properties, so if you need to stay somewhere else, you're missing out on value.
• Strict eligibility requirements: These higher-value cards typically require higher income levels and credit scores for approval.

Best travel credit cards and alternatives

The best travel credit card in Canada is the American Express Cobalt Card, – and it's also the best overall card in Canada, which means it has excellent value for travel buffs as well as everyone else.

If you don't want a travel card, the best choice is usually a cash back credit card. This is an overview of the top travel cards and their alternatives:

Card name	Welcome offer	Annual fee	Rewards	Best alternative
American Express Cobalt Card	Up to 15,000 bonus points (terms)	$191.88	American Express Membership Rewards	N/A
MBNA Rewards World Elite Mastercard	$40 GeniusCash + 30,000 bonus points (terms)	$120	MBNA Rewards	Neo World Elite Mastercard
RBC Avion Visa Infinite Privilege	Up to 70,000 bonus points (terms)	$399	Avion	SimplyCash Preferred Card from American Express
RBC Avion Visa Infinite Business	25,000 bonus points (terms)	$175	Avion	BMO Ascend World Elite Business Mastercard

FAQ

Is it worth using a travel card?

If you are a frequent traveller, then it is absolutely worth using a travel credit card. It's an easy way to earn points to use towards your next trip. If you frequently book with a particular airline or hotel chain, it might also be worth looking at those branded credit cards.

What are the downsides of using a travel card?

A few downsides of travel cards include their high annual fees and strict eligibility requirements. These features are both typically proportional to the type and value of perks included – cards with airport lounge access and companion vouchers require applicants to have higher incomes and credit scores, plus are more expensive to maintain.

Can I use travel cards for flights?

Yes, using travel credit cards for flights is one of the best ways to maximize their value. You can also redeem your credit card rewards for flights, and this is usually the highest-value redemption option available. You may even be able to transfer your points to another travel program and book flights there.

What is the absolute best travel credit card?

The best travel credit card in Canada is also the best overall card: the American Express Cobalt Card. It comes with 10 types of insurance, earns valuable American Express Membership Rewards, and has a sweet welcome bonus of 15,000 points. For businesses, the best travel card is the RBC Avion Visa Infinite Business.

What card does not charge international fees?

The Scotiabank Gold American Express^® Card and Scotiabank Passport Visa Infinite+ Card are the two top travel cards that don't charge international fees – often referred to as foreign exchange, or FX fees. The Home Trust Preferred Visa and EQ Bank Card also avoid these fees, but they're not travel-specific cards.