Summary of the best travel credit cards

Find the right type of points program for you

Not all travel reward programs are created equal. So how do you choose the right one for you? 

First, it’s important to understand that travel rewards programs can be broken down into two basic types: Consistent and chart-based. 

With consistent points programs, the value of the points is always the same. With BMO Rewards, for example, 140 points equals $1 in travel rewards, and that’s always the case.

But with chart-based programs, the value of your points depends on different variables for redeeming, such as your destination, price of the ticket, when you plan to travel and more. This type of travel reward program operates according to a reward chart to help you calculate how many points you need when redeeming. It’s worthwhile to note that in some rare cases, like the American Express Membership Rewards Program, you might get to choose to redeem points for travel either as a consistent system or as a chart-based system.

Many of the big banks offer consistent points travel reward programs. They’re aimed at people who want to operate within a simple program that has an easy-to-understand redemption process; people who dislike complicated programs will appreciate these. Chart-based programs can be considerably more complicated—but also potentially more valuable. Since the number of points needed to redeem for a flight isn’t consistent, using the rewards chart strategically can help you stretch the value of your points and net a higher return when flying on certain routes, or even when booking premium seats or business class. These programs are more popular with personal finance enthusiasts and left-brain thinkers.

Consistent points programs

• MBNA Rewards: 1 point = $0.01 in travel rewards
• American Express Flexible Points Program: 1 point = $0.01 in travel rewards
• Scotia Rewards: 1 point = $0.01 in travel rewards
• TD Rewards: 1 point = 0.5 of a cent in travel rewards booked via Expedia For TD
• BMO Rewards: 1 point = 0.7 of a cent in travel rewards
• WestJet Dollars: 1% in WestJet Dollars = $0.01 in travel rewards
• National Bank: 1 point = $0.01 in travel rewards
• RBC Rewards: 1 point = $0.01 in travel rewards

Chart-based programs

• American Express Fixed Points Program
• Aeroplan
• Marriott Bonvoy
• RBC Avion – Air Travel Redemption Schedule

Understanding reward redemption values

Every travel rewards program makes its own rules about the earn rate, value and redemption process for your points. No wonder it’s confusing to even try to compare them. There are a few things to keep in mind.

In almost all programs, travel rewards offer a better value when you redeem points for flights or hotel stays rather than, say, for merchandise or a statement credit (the latter tend to give you an average of 20% to 40% less for each point). You can also use points toward gift cards, but do your homework and go for the options with the highest returns. For example, if you can redeem 5,000 points for a $10 gift card from a retailer or $8 in statement credits, you may want to opt for gift cards since they offer more value.

While travel might not be the top imperative in your life right now, in most programs, points don’t expire, so you can save them for future travel.

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