Overview
The discussion evaluates several Canadian travel and cashback credit cards, highlighting which are overrated or underrated based on their actual value, earning rates, and perks, offering recommendations for maximizing travel rewards and cashback returns.
Overrated Travel Credit Cards
- WestJet RBC World Elite Mastercard's perks are outweighed by a low point valuation and poor earning rates, making direct spending on the card less rewarding.
- American Express Gold Rewards Card has decent earning rates and a travel credit, but charges foreign transaction fees and provides limited value for its high annual fee.
- BMO Eclipse Visa Infinite’s 5x points offering is misleading due to low points value and restrictive category spending caps.
- Neo World Elite Mastercard’s high cashback rates are limited by complex requirements and low category spending caps, making it cumbersome and less rewarding.
Underrated Travel Credit Cards
- RBC ION Plus Visa offers 3x Avion points in many daily categories, with strong transfer options to airlines, making point accumulation faster than WestJet’s own card.
- Scotiabank Gold American Express Card provides high earning rates at accessible income requirements, flexible point redemptions, and no foreign transaction fees.
- BMO AIR MILES World Elite Mastercard (VIPorter) offers fast point accumulation, valuable travel redemptions, automatic elite status, and strong airline partnerships.
- Scotia Momentum Visa Infinite Card delivers 4% cashback on groceries and recurring bills up to high annual caps, maximizing returns especially when paired with Chexi for bill payments.
Recommendations for Maximizing Value
- Keep the WestJet card for perks but shift most spending to higher-earning cards.
- Use RBC ION Plus Visa and Scotiabank Gold American Express for faster, more valuable travel point accumulation, especially at merchants that don't accept Amex.
- Leverage the Scotia Momentum Visa Infinite in combination with bill payment platforms like Chexi to maximize cashback on regular expenses.
- Avoid cards with high annual fees and mediocre earning rates or those with overly complex reward structures.
Decisions
- Prioritize spending on high-earning flexible cards over co-branded cards with low points valuations.
- Pair cashback cards with bill payment services to extract maximum value from recurring expenses.