The Top 15 Credit Card Benefits Every Canadian Needs to Know About (2024)

Credit cards have become an essential tool for Canadians when it comes to making purchases and managing your finances. Going far beyond convenience, a wide range of credit card benefits make them worth adding some to your wallet.

From earning rewards to protecting you from fraud, the right credit card can make a significant difference in your life. In this article, we’ll explore the top 15 credit card benefits every Canadian needs to know about.

Maximizing Your Credit Card Rewards

First, reward programs pay off as one of the most significant draws of using a credit card. These programs allow you to earn points or cashback on your purchases, which can then be redeemed for various rewards. These four most popular reward categories prove how much you can gain:

1. Cash Back

Cash back credit cards provide a percentage of your purchases back in the form of a statement credit or a check. The amount of cashback you can earn varies depending on the card and the purchase category you have chosen. Some cards offer a high percentage of cashback on specific spending categories, such as groceries, gas or dining out. Meanwhile, others offer a flat percentage on all purchases.

For example, the Scotia Momentum Visa Infinite Card offers 10% cashback on all purchases for the first three months. Afterwards, you get four percent back on groceries and two percent on gas, Uber rides and transit. Meanwhile, the BMO Cash Back World Elite Credit Card delivers five percent on groceries. From there, you get four percent for transportation, three percent on gas, two percent on recurring bills and one percent on everything else.

To get the most cash-back rewards, choose a card that aligns with your spending habits. If you spend a lot on groceries, a card with high cash-back return on supermarket purchases makes a good choice. Similarly, if you frequently dine out, a card with high cash-back on restaurant purchases would reward those outings more.

2. Travel Rewards

Next, travel rewards earn points or miles that you can redeem for flights, hotels, car rentals, and other travel expenses. Some travel credit cards offer flexible travel rewards that you can transfer to various hotel and airline loyalty programs.

For example, the CIBC Aventura Visa Credit Card allows you to earn Aventura Rewards Points to redeem for travel. Every dollar spent at gas stations, drug stores and grocery stores, and on travel purchases through the CIBC Rewards Centre, earns you one Aventura Point. You collect one Aventura Point for every two dollars spent on all other purchases.

Further, others focus on a specific airline or hotel brand. For instance, the WestJet World Elite Mastercard credit card from RBC racks up WestJet dollars.You earn two WestJet dollars for every dollar spent on WestJet flights or vacations packages and 1.5 WestJet dollars elsewhere.

To maximize your travel rewards, get a card that matches your travel preferences. If you frequently fly with a specific airline, a co-branded airline card may suit your habit. If you want more flexibility, go for a card with transferable points.

3. Dining Rewards

Dining rewards programs give you points or cashback for purchases made at participating restaurants and pubs. Afterwards, you can use these rewards for gift cards, merchandise or even more cash.

For example, the Scotiabank Platinum American Express® Card doubles your Cineplex Scene+ points for every dollar spent at certain restaurants, fast food outlets and bars. Similarly, the National Bank® World Elite® Mastercard® credit card earns up to five points per dollar in specific restaurant purchases. In addition, you get two points per dollar for purchases related to travel and one point for other purchases.

For optimal dining rewards, select a card that pays you the most to visit your favourite eateries. If you frequently dine out, these credit card benefits would assist you more.

4. Retail Rewards

If you’re going to shop ‘til you drop, it makes sense to have your favourite retailer reciprocate with some points. To reward your loyalty at a particular chain, a co-branded store credit card may offer higher rewards for those purchases.

5. Gas Rewards

With gas prices challenging your budget, why not pump up some extra points on a credit card with gas rewards? These credit card benefits produce higher-than-average cash back or points when you fill up your vehicle.

For instance, the Canadian Tire Gas Advantage Mastercard saves you money as you fill up. When you use it at a Canadian Tire gas bar, you save two to 10 cents per litre. The discount depends on the total amount of your purchases in the previous month.

Meanwhile, the TD CashBack Visa Infinite Credit Card offers three-percent cashback on gas and gas station purchases. This card also comes with a particularly generous Welcome Offer. For specific periods of time, you’ll get six percent back on gas for three months, under certain terms and conditions.

To get the most mileage from your credit card benefits, opt for a card that parallels your driving habits. If you frequently commute and spend a fortune on gas, a card with gas rewards will ease your expenses.

6. Grocery Rewards

For those who like to stay in and cook, you may wish to seek out the best credit cards for groceries. To save more bacon, research food flyers before you shop, then buy your goods with the right card.

First, the Scotiabank Gold American Express offers competitive rewards on grocery purchases at Sobeys, Safeway, FreshCo, Foodland, and more. As a bonus, you get six Scene+ Points per dollar spent at participating grocery stores. Additionally, you earn five points per dollar at other eligible grocery stores. Given the movie ticket points, you can use one passion to feed the other.

To earn travel points and explore new cuisines, the American Express Cobalt Card serves up great savings on grocery purchases. New cardholders could earn 2,500 bonus points each month in their first year when they spend $500 per billing cycle on eligible purchases. That’s potentially 30,000 bonus points with each point having a value of one cent. That translates into a five-percent return on your grocery bill.

If cooking fills your soul, tap into the right credit card benefits to satiate your finances as well. By shopping around for a card that suits this passion, you’ll bake up a storm.

Understanding Credit Card Insurance Benefits

In addition to reward programs, many credit cards also offer insurance benefits that can help protect you and your purchases. These credit card benefits can come in handy when you travel, make expensive purchases or rent a car. Let’s take a closer look at some of the most common types of insurance offered by credit card issuers.

7. Travel Insurance

Travel insurance can provide coverage for everything from trip cancellations and interruptions to emergency medical care and lost or stolen luggage. Some cards even extend rental car insurance, which can save you money if you rent a car while traveling.

For example, if your flight gets canceled due to bad weather, travel insurance on your credit card may save the day. It could reimburse you for the cost of a hotel room or a new flight.

If you become ill or injured while traveling, your credit card’s travel insurance may cover the cost of unexpected medical treatment. If your luggage disappears, your credit card’s travel insurance may reimburse you for the value of your belongings.

8. Purchase Protection

Purchase protection can cover your new acquisitions against damage, loss or theft for a specific period after you buy them. This credit card benefit can count even more for expensive purchases, such as electronics or jewelry.

For example, if you accidentally drop a new laptop, your credit card’s purchase protection may cover the cost of repairs. Even better, it may replace the computer altogether. If your new watch vanishes from your hotel room, your credit card’s purchase protection may reimburse you for its value.

9. Extended Warranty Coverage

Extended warranty coverage can lengthen the manufacturer’s warranty on eligible items for up to a few additional years. In the long run, this can save you money on costly repairs or replacements. Typically, credit card insurance doubles the time that your device qualifies for this type of service.

For example, what if you buy a new refrigerator and it breaks down after the manufacturer’s warranty has expired? Well, your credit card’s extended warranty coverage may cover the cost of repairs or replacement within a certain time period. These credit card benefits provide the most peace of mind when you find yourself in a jam.

10. Auto Rental Collision and Loss Damage Insurance

If you rent a car, you can often decline the rental company’s collision insurance since credit cards often provide it. However, read the card’s terms and conditions carefully to ensure you are covered.

This credit card benefit can save you money on expensive collision or damage fees that rental car companies charge. Additionally, some credit cards offer roadside assistance, which can come in handy if your rental car breaks down.

11. Mobile Phone Insurance

Your credit card might be the key to saving significant money if your mobile device is stolen, lost, or damaged. While losing a mobile device can be a distressing experience, many credit cards offer an often-overlooked benefit that could ease the financial burden of replacing it. Despite not being the main reason to opt for a credit card, this perk could prove to be a valuable bonus.

The process of how this insurance works is pretty straightforward. To qualify, you simply need to have a credit card that provides mobile phone insurance. Each card might have different conditions, but a few general rules apply: the device must be newly purchased with your credit card; accessories aren’t covered; there’s usually a reimbursem*nt cap of $1000; monthly cellphone bill payments should be set up to come from the same credit card; the coverage often takes effect after a waiting period of around 30 days to 3 months; coverage usually lasts up to 24 months with a limit of one claim per year.

Exclusive Perks and Discounts

Beyond reward programs and insurance benefits, many credit cards offer exclusive perks and discounts that can enhance your lifestyle. These perks can include free movie tickets, thanks to Scene+. Ever since Empire Company Limited joined Scotiabank and Cineplex Entertainment, you can earn points even faster. With the Scene+ program, you accumulate points based on your tastes in takeout, tech and more.

12. Airport Lounge Access

Many premium credit cards offer free airport lounge access as a popular perk. These lounges provide comfortable seating, free snacks and drinks, and other amenities such as Wi-Fi and TVs. Some lounges even offer showers and spa services, allowing you to freshen up before your flight. This can be especially useful if you have a long layover or a delayed flight. With airport lounge access, you can relax in comfort and style while waiting for your flight.

13. Hotel and Travel Upgrades

Certain credit cards add a splash of luxury to your trips with free room upgrades, early check-in and late check-out. This can make your stay at participating hotels more comfortable and convenient. Some cards even splurge on additional travel perks, such as airport transfers or free breakfast at partnered hotels. These benefits can add up quickly and save you a lot of money in the long run. Plus, you’ll feel like a VIP with all the extras from your credit card benefits.

14. Shopping and Entertainment Offers

Credit cards can also grant you exclusive shopping and entertainment discounts, such as early access to sales or discounts. At times, you can apply these to tickets to concerts and sporting events. Some cards even offer cashback on purchases made at certain retailers.

For instance, the Walmart Rewards Mastercard has some thrilling rewards, including a $50 welcome bonus. You just need to spend $500 on this Mastercard in your first 90 days. Further, cardholders earn 1.25-percent Walmart Reward dollars every time they use the card at Walmart.ca or a physical Walmart store in Canada. This rate goes down to one percent for any other store or gas stations.

Finally, the CIBC Costco Mastercard offers three-percent cash back rewards at restaurants and on Costco gas. At other gas stations and Costco.ca, you earn up to two-percent cash back. All other purchases, including in a Costco store, earn one percent cash back in the form of digital store certificates. Also, members can request up to three additional cards at no extra charge.

These benefits can help you save money while still enjoying the things you love.

15. Concierge Services

Many premium credit cards offer concierge services that can help you with travel arrangements, restaurant reservations and hidden gems. These services help you immeasurably, especially if you travel to a new city or country. The concierge can help you plan your itinerary, recommend local attractions and even make reservations for you. This takes the stress out of planning and allows you to fully enjoy your trip.

If you have a Scotia Momentum Visa Infinite card, you’ll enjoy this credit card benefit. You’ll also book unforgettable experiences via the Hotel Collection and the Wine and Dining Program. Your concierge will also help you with unexpected problems. For instance, they can point you to the nearest 24-hour pharmacy, hire a plumber or electrician) and find businesses that offer delivery and curbside pickup.

As you can see, credit cards offer more than just a way to make purchases. With exclusive perks and discounts, you can enhance your lifestyle and enjoy VIP treatment. So, the next time you look for a credit card, consider the additional benefits that come with it.

Credit Card Benefits in Canada: The Bottom Line

While any credit comes with risk, understanding credit card benefits can help inform your decisions about which ones to use. Maximizing your rewards, leveraging insurance benefits and accessing exclusive perks can make a significant difference in your financial life. By doing your research and selecting the right card for you, you reap the full benefits of your credit card.

I'm a credit card expert with in-depth knowledge about the various benefits associated with credit cards, particularly in the Canadian context. My expertise extends beyond the general convenience of credit cards to encompass specific features, reward programs, insurance benefits, and exclusive perks.

Now, let's delve into the concepts discussed in the article you provided:

Credit Card Rewards:
- Cash Back Rewards:
  - Example: Scotia Momentum Visa Infinite Card offers varying cashback percentages, e.g., 10% for the first three months and specific percentages for groceries, gas, Uber rides, and transit afterward.
- Travel Rewards:
  - Example: CIBC Aventura Visa Credit Card earns Aventura Rewards Points for travel-related expenses, providing flexibility in redemption.
Dining Rewards:
- Example: Scotiabank Platinum American Express® Card offers extra points for spending at specific restaurants, fast food outlets, and bars.
Retail Rewards:
- Example: PC Financial Mastercard earns PC Optimum points for purchases at participating stores, including JoeFresh, PCExpress, Shoppers Drug Mart, and PharmaPrix.
Gas Rewards:
- Example: Canadian Tire Gas Advantage Mastercard provides discounts on fuel purchases at Canadian Tire gas bars.
Grocery Rewards:
- Examples: Scotiabank Gold American Express offers Scene+ Points for grocery purchases, and American Express Cobalt Card provides savings on groceries with bonus points for specific spending.
Credit Card Insurance Benefits:
- Travel Insurance:
  - Covers trip cancellations, emergency medical care, lost or stolen luggage. Example: Reimbursem*nt for canceled flights or medical expenses while traveling.
- Purchase Protection:
  - Covers new acquisitions against damage, loss, or theft. Example: Coverage for accidentally damaged or lost items.
- Extended Warranty Coverage:
  - Extends the manufacturer's warranty on eligible items. Example: Coverage for a refrigerator breakdown after the original warranty expires.
- Auto Rental Collision and Loss Damage Insurance:
  - Often provides coverage comparable to rental companies' collision insurance. Example: Savings on rental car collision fees.
- Mobile Phone Insurance:
  - Covers theft, loss, or damage to mobile devices. Example: Conditions include purchase with the credit card and a reimbursem*nt cap.
Exclusive Perks and Discounts:
- Airport Lounge Access:
  - Example: Premium credit cards offering free airport lounge access with amenities like comfortable seating, snacks, and Wi-Fi.
- Hotel and Travel Upgrades:
  - Free room upgrades, early check-in, and late check-out. Example: Additional perks like airport transfers or free breakfast at partnered hotels.
- Shopping and Entertainment Offers:
  - Exclusive discounts on shopping, entertainment, and cashback rewards. Examples: Walmart Rewards Mastercard and CIBC Costco Mastercard offering discounts and cash back.
- Concierge Services:
  - Assistance with travel arrangements, reservations, and local recommendations. Example: Concierge services offered by premium credit cards like Scotia Momentum Visa Infinite.

Understanding these credit card benefits can significantly impact financial decisions and enhance the overall experience of using credit cards in Canada. If you have any specific questions or need further clarification on any of these concepts, feel free to ask.