Travel credit cards allow you to save on travel expenses by earning special rewards or miles when you make purchases and redeem them for flights, accommodation, car rentals, vacation packages, and other eligible purchases as statement credits. In addition, travel credit cards usually provide travel benefits such as travel insurance coverage, airport lounge access, and free first-checked bag or booking services. They are designed for frequent travellers or those who plan a big trip.

Travel credit card features

1. Collecting bonus points. Co-branded travel credit cards such as Aeroplan or AIR MILES credit cards let you collect travel points according to their rewards program. For example, you may earn miles and redeem them for travel purchases. In addition, travel rewards credit cards such as Marriott Bonvoy American Express credit cards let you redeem points for hotel stays. They also help you to gain a premium status with a specific airline or hotel chain.
2. Redemption opportunities. According to the reward program, you may also redeem rewards in cash and spend it for traveling. Different credit cards offer to redeem travel points their way: from the opportunity to use the rewards for any eligible purchase to the limitation of travel purchases by the specific flights, dates, companies, hotels, vacation packages, etc. For example, American Express Membership Rewards points could be redeemed for many things, including flights or hotel stays, gift cards, a statement credit, or the Amex Fixed Points Travel Program. Rewards points also could be transferred to other loyalty programs.
3. Travel perks. With premium travel cards like Infinite, you could get extensive included travel insurance, no-fee airport lounge access, concierge service ready to assist with your trip planning, flying and booking, and other exclusive offers such as a complimentary membership, a Priority Pass, and priority boarding. In addition, travel insurance could cover flight or trip interruption, flight or trip cancellation, baggage loss/delay, medical emergency, travel accident, car rental theft, or car rental collision loss/damage.

Types of travel credit cards

1. Airline credit cards are travel credit cards operating in partnership with a specific airline, which let you earn points and miles and redeem them on eligible flights and dates. For example, you may earn Aeroplan points on eligible purchases made directly with Air Canada as the merchant and Air Canada Vacations directly from Air Canada. You may choose from Air Canada, British Airways, Alaska Airlines, Cathay Pacific, WestJet, and other airlines' miles and bonus points you prefer to collect for your next vacation. An airline co-branded credit card is your option if you decide to use this specific company for your flight and enjoy bonuses such as free checked bags, priority check-in, or even saving on qualifying car rentals at participating Avis and Budget locations.
2. Hotel credit cards are co-branded travel credit cards issued together with a hotel chain. They allow you to collect special rewards in eligible credit card purchases at hotels participating in the program and redeem points for hotel stays. Consider getting a Marriott Bonvoy American Express Credit card or an MBNA Best Western Rewards Mastercard if you want to save on a hotel or treat yourself to a luxury holiday. An annual free night's stay could be an excellent option for frequent travelers. With these cards, you could maximize your hotel loyalty program's perks. A hotel co-branded card may be your choice if you are a fan of one hotel chain and would like to spend your trip there. However, you will have to switch to American credit cards to get a Hilton or Hyatt credit card.
3. Travel rewards credit cards let you earn points, convert them into rewards, and redeem them according to the travel rewards program for a wider choice of options than co-branded cards could provide. Some focus on the rewards that could be spent on every eligible credit card purchase. They also usually provide travel perks such as MBNA Rewards World Elite Mastercard. Also, you may use the cash to spend on travel expenses from flights to car rental insurance or fancy hotel room and vacation packages.
4. Low or no annual travel credit cards provide lower fees per year or fees that could be waived for some time. But you should meet the promo offer's requirements like certain income, monthly spending limits, eligible card purchases, etc. Travel insurance coverage is usually limited, with no trip cancellation or emergency medical coverage for clients over 65; airport lounge access may not be provided, which could not be a match for frequent travelers. Be careful, as balance transfers, funds advance interest rates, and other fees may be charged.
5. Premium travel rewards credit cards with higher annual fees give exclusive private benefits, full travel insurance coverage, and services such as free airport lounge access with a Priority Pass membership, a complimentary membership in Mastercard Travel Pass provided by DragonPass, or concierge service, which could not be overestimated for frequent travelers. So be ready to prove income over a substantial amount.
6. Business travel credit cards are designed for small and medium businesses or corporations and offer features to minimize travel expenses for business trips and meetings. A business credit card usually goes with a higher credit limit than a personal credit card, which allows companies to buy more expensive items. A business travel credit card may include insurance, travel perks, and welcome bonus points, but also it could be managed at a particular corporate account online.

How does a travel credit card work?

You make everyday purchases with your travel rewards credit card and earn points for every dollar spent. To redeem points for travel, you should accumulate a certain number of bonus points. The collected amount of travel points could be used for flights counted in miles or cashed in for travel expenses: flights, hotels, airport lounge access, cruises, vacations, car rentals, parking, baggage fees, a free checked bag, and excursions, depending on your credit card type, conditions, and credit card provider.

Where to get a travel credit card

You may find a travel rewards credit card at all large Canadian banks. Some of them, like American Express, have various travel credit cards. Visit Scotiabank, Toronto-Dominion Bank (TD) and MBNA, Bank of Montreal (BMO), The Hongkong and Shanghai Banking Corporation Bank Canada (HSBC Bank), Royal Bank of Canada (RBC), Canadian Imperial Bank of Commerce (CIBC), National Bank of Canada or any other bank office or website, and find a credit card filter to select Travel.

How to choose and apply for a travel credit card?

To select the travel rewards credit card that will answer your needs and lifestyle, be ready to compare credit cards from different banks. Sometimes, interest and annual fees may outweigh what you earn in travel rewards. Review a few key features of travel rewards credit cards in Canada as a sign-up bonus, annual fee amount and whether it could be waived, income requirements, other fees, interest rates, travel insurance coverage, benefits, and included services. Sometimes additional bonuses are essential for your trip and goals. For example, a travel rewards credit card such as HSBC World Elite Mastercard offers no foreign transaction fee.

Ensure you know how you could redeem points and in what form they are collected: miles or rewards. If you plan a long flight, pay attention to credit cards allowing you to earn many miles. If you want to spend bonus points for hotels, car rentals, or baggage expenses, choose rewards that could be redeemed in cash. Some credit cards in Canada let you transfer points to other loyalty programs and airlines, like the Marriott Bonvoy American Express credit card, which allows you to transfer points to up to 40 airline loyalty program miles.

How soon you plan your trip affects how quickly you want to earn points. Premium credit cards usually let you collect more bonus points for each dollar spent but require a higher annual fee (which could be waived for a promo period).

A generous welcome bonus lets you gain substantial credit card rewards as a new cardholder. However, be sure to overview standard conditions applied after the promo period is over (annual fee, rewards amount). Also, it could be challenging to satisfy welcome bonus criteria like minimum spending amount. For example, to get the MBNA Rewards World Elite Mastercard credit card welcome bonus, you should make $2,000 or more in eligible purchases within the first 90 days of your account opening.

Comparing welcome bonus conditions and terms, you should be sure to use the credit card in the long run and consider if it suits your goals after the sign-up bonus expires. For example, BMO AIR MILES Mastercard credit card provides a 0.99% introductory interest rate on balance transfers within nine months with a 2% transfer fee, but to avoid accumulating debts, set a plan to pay back the amount you owe on the credit card before the promo term ends.

Evaluate your everyday spending habits to decide if it is reasonable to get a credit card with a flat earn rate that provides the same number of points for all types of purchases, or a bonus earn rate that offers different numbers of rewards for specific purchases like eligible dining, eligible grocery stores shopping or even household utility purchases.

Go to the bank's branch or official website to apply for a chosen credit card. Be ready to input your personal, contact, income, and employment information. Typically you are required to provide your SIN for identity verification and easy access to your credit history.

Requirements

The main requirements to be eligible to get a travel credit card in Canada are:

• Being a Canadian resident with a Canadian credit file

• Being the age of majority in your province or territory

• Being ready to provide information like address, postal code, name, income, SIN, driving license

According to the credit card provider, a necessary credit score varies from good to excellent (660 — 750+). In addition, a needed income depends on the minimum annual requirement ($60,000 — $80,000 if applied).

Pros and cons

The benefits of travel credit cards could be their drawbacks. Let's review the most common pros and cons you could face when choosing the best airline credit card or general travel credit card.

Pros

• Collect miles as rewards

• Save on traveling

• Special travel bonuses

• Included travel insurance coverage

• Could be free airport lounge access

• Generous welcome bonus

• Hotel and airline reward programs

Cons

• The annual fee may be high

• The interest rate may not be competitive

• The lower amount of rewards after the promo period

• Income requirements may be hard to meet

Best travel credit cards

There are some travel rewards credit cards that could be considered the best travel credit cards in Canada according to their rewards, bonuses, and requirements:

1. American Express Cobalt® Card is an everyday spending travel rewards credit card with no minimum income requirements, a reasonable annual fee, and great included travel insurance coverage. You may redeem points for any eligible travel purchase, transfer or get cash back. The card's main feature is a generous amount of reward points, allowing you to get up to 5 points per dollar for food and drinks, 3 points for streaming, and 2 points for travel and transit. In your first year with an American Express Cobalt card, you can earn 2,500 Membership Rewards points for each monthly billing period in which you spend $500 in purchases on your card. This could add up to 30,000 bonus points per year.
2. RBC Avion Visa Infinite® provides flexible flight rewards and the opportunity to raise reward value by transferring your travel points to miles in 3 airline rewards programs. The Point value varies depending on the flight destination. Also, you may book your travel through RBC, which gives you 100 travel points for $1. As an Infinite cardholder, you may have airport lounge access through a Priority Pass membership.
3. HSBC World Elite Mastercard® has no foreign transaction fees, so you can save on currency conversion charges. It also offers comprehensive travel insurance coverage. The travel rewards are 6 points for every dollar spent on eligible travel purchases and 3 points per dollar for other purchases. You could redeem points for a wide range of spending from traveling to financial needs like an HSBC mortgage or a statement credit. In addition, the special sign-up bonus lets you earn up to 80,000 bonus points and get a 1-year annual fee rebate.
4. TD® Aeroplan® Visa Infinite Privilege Card credit card is considered the best airline credit card with the 1st year annual fee rebate and generous welcome bonus. As a sign-on bonus, you get 10,000 Aeroplan points when you make your first purchase with your new card and 20,000 Aeroplan points when you spend $1,500 within 90 days of Account opening. In addition, the card allows one to redeem Aeroplan points through an Aeroplan account for eligible travel purchases. For example, you may earn 1.5 points per dollar spent on eligible gas purchases and shopping at eligible grocery stores and 1 point per dollar on other purchases. As a premium card TD, Aeroplan Visa Infinite offers full insurance with a mobile device, trip cancellation, emergency medical travel insurance (even with emergency medical insurance for customers over 65 for four days), and lounge access with a Priority Pass membership discount. You may also save on baggage fees: Primary and Additional Cardholders and up to 8 travel companions traveling under the same reservation. Primary Cardholders may use a free first-checked bag when their travel originates on an Air Canada flight. Minimum income requirements are applied.
5. Marriott Bonvoy® American Express® Card credit card lets you earn 5 points for $1 spent in eligible card purchases at hotels participating in Marriott Bonvoy and 2 points for $1 spent on all other eligible purchases. It is also flexible in the bonus points usage: Marriott Bonvoy points can be transferred to frequent flyer miles with some airlines, including Air Canada flights. Also, you may get an Annual Free Night Award for up to 35,000 bonus points at eligible hotels and resorts worldwide annually. In addition, the Marriott Bonvoy American Express credit card provides a wide range of insurance: travel emergency assistance, car rental theft and damage insurance, flight or baggage delay, and hotel theft insurance.
6. BMO AIR MILES® World Elite® Mastercard® credit card is listed as the best AIR MILES credit card. It provides a tremendous sign-up bonus which lets you waive the annual fee if you get 2,000 AIR MILES Bonus Miles. Also, you may get a 25% discount on one worldwide AIR MILES flight redemption per year and complimentary membership in Mastercard Travel Pass provided by Dragon Pass. Comprehensive travel insurance is included: travel medical protection, trip cancellation, car rental collision damage, and out-of-country medical insurance coverage up to $2 million. In addition, with the BMO AIR MILES World Elite Mastercard credit card, you will always get 3 Miles for every $12 spent on your everyday needs at participating AIR MILES Partners, 2 miles for $12 spent at any eligible grocery store, 1 Mile for every $12 you spend on your credit card providing the best earn rates on everyday purchases of any Air Miles credit card in Canada.
7. MBNA Rewards World Elite Mastercard® credit card could become your best travel rewards credit card. Mastercard is more widely accepted than American Express, which is essential when you want to earn points as fast as possible. MBNA Rewards World Elite Mastercard lets you earn 5 points per $1 spent on eligible grocery, dining, and bill purchases and 1 point per dollar spent for other eligible purchases. In addition, you may get 12 types of insurance, including travel insurance, car rental collision damage waiver benefits, mobile device insurance, and price protection, all for a $120 annual fee.
8. American Express® Aeroplan® Card charge card is your best airline credit card if you tend to travel with Air Canada flights. Like all American Express credit cards, it doesn't have minimum income requirements and gives access to events with Front Of The Line. Aeroplan points don't have a cash value. Still, you may earn Aeroplan points on eligible purchases made directly with Air Canada and Air Canada Vacations, suitable dining, and food delivery purchases. Redeem your points from Aeroplan for travel purchases like flight rewards, hotel, car rentals, and cabin upgrades. Enjoy the Air Canada flights perk of the first checked bag free for up to 9 people traveling on the same reservation. The welcome bonus may give you up to 70,000 Aeroplan points. You may also gain 1,000 Status Qualifying Miles and 1 Status Qualifying Segment for every $10,000 in eligible net purchases charged to the credit card.
9. Scotiabank Passport® Visa Infinite Card credit card is considered the best credit card for those who want to travel the world without worrying about foreign transaction fees. You may make any purchases in a foreign currency with no foreign transaction fees for an annual fee of $139. It allows you to earn 2 Scene+ points per $1 spent on eligible grocery stores, suitable dining, entertainment, and daily transit purchases, and 1 Scene+ point on all other eligible purchases. The Scene+ points can be redeemed towards statement credits, travel purchases, gift cards, etc. Welcome bonus lets you earn up to 35,000 Scene+ points.

You may use a complimentary membership of six free annual airport lounge passes with a Priority Pass. The travel insurance included travel emergency medical, trip cancellation and trip interruption, car rental collision or loss, and other insurance.