Why 2017 is the Year of the Rewards Credit Card in Canada

There is a war going on. It is a war for your loyalty and spending dollars. Credit card providers want your business and they are going to extremes to get you to become loyal to them.

Did you know that credit cards are the most common form of payment in Canada? Over 42% of Canadians turn to a credit card first. Kind of scary right? But with that simple fact, every time a consumer like you or me turns to our credit card, the credit card provider is earning money, and that’s why they want you to use their brand.

Credit card providers are working overtime to get our loyalty. Competing amongst themselves to offer lower interests rates is one arena for battle, but another is rewards programs. This year, more than ever before, credit card companies are offering bigger and better sign up bonuses with more generous rewards programs.

Incentives and perks are getting better and better for Canadians. Points are becoming easier and easier to collect, with payouts becoming more substantial. Cashback cards, for example, are starting to offer higher dividends, while travel options are also on the rise.

Lovers of travel can quickly earn points by regularly using a rewards card. Weekly groceries alone go a long way to building up your tally, but there are many ways to get clever to maximize your point payout.

When selecting a card, look for one with a sign up bonus. Some cards, for example, will come stocked with points valued at $150 or more. It’s also worth looking into the social profiles associated with each card because certain options offer bonus point events connected to retailers. These events earn bonus points when you use your card with an associated retailer, helping you eclipse the cost of a flight even faster.

But while it may seem obvious, don’t let the points blind you. Sometimes when you see your points building up to the point where you can get a free trip you will become inclined to spend more just for the points. As with any credit card, avoid carrying a balance and paying interest charges. A good points system does not equal low interest.

So where can you find the best cards right now? You can check in with your bank, but it’s easier to find a place to compare options from across the board. Check out the LowestRates.ca Find the Right Card comparison page. It’s a good place to see all the different options available.

As we look at the remainder of 2017, and into the years ahead, sit back and enjoy the credit card points wars unfold, as the ultimate spoils will fall to you.