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How To Maximize Rewards Points
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How to maximize rewards points

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Hannah Logan

By Hannah Logan

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Are you making good use of your credit card’s rewards points? For many of us, redeeming our points for travel may be on hold as we wait until vacations are safe and the world opens up again. However, that might take a while and those points can serve you a whole lot better used in other ways rather than just sitting in your account. That means it’s a good time to rethink your credit card points strategy to maximize credit card rewards. Here are some tips and tricks to get you started:

1. Switch up your cards

There is no real benefit to being loyal to a certain credit card. So, if your card isn’t getting you points in a category that can is useful to you right now, then it’s time to change things up. Obviously, you don’t want to lose what you have collected so don’t get rid of your travel card with all of those travel points. Instead, consider getting a cash back card to use in the meantime to access benefits you can use right now.

TD Cash Back Visa Infinite* Card

Apply now

4.0

10% back

Welcome offer

Excellent

Suggested credit score

to receive the latest news, tips and offers by email

Apply now

Pros

  • Solid welcome offer

  • High earn rate for 3 popular categories

  • Can use cash back right away

  • useful automotive benefits

Cons

  • Maximum spend limit for 3% cash back

  • High annual fee for a cash back card

Eligibility

Recommended Credit Score

Excellent

Required Annual Personal Income

$60,000

Required Annual Household Income

$100,000

Earn 10% cash back on all purchases for the first three months† up to a total spend of $2,000. After your first $2,000 in purchases, gas purchases, grocery purchases and pre-authorized payments will continue to earn 6% up to a total spend of $3,500 for the first three months. Plus, first year no annual fee for the primary and additional cardholders†. Conditions apply.

Pros

  • Solid welcome offer

  • High earn rate for 3 popular categories

  • Can use cash back right away

  • useful automotive benefits

Cons

  • Maximum spend limit for 3% cash back

  • High annual fee for a cash back card

Eligibility

Recommended Credit Score

Excellent

Required Annual Personal Income

$60,000

Required Annual Household Income

$100,000

Earn 3% cash back on groceries, gas, and recurring bill payments†

3%

Earn 1% cash back on all other purchases†

1%

Earn 50% more Starbucks Stars when you link your TD card to your Starbucks account.†

50%

Purchase APR

20.99%

Balance Transfer Rate

22.99%

Cash Advance APR

22.99%

Annual Fee

$139

The TD Cash Back Visa Infinite* Card is a solid option. Cardholders earn 3% in cash back dollars on eligible grocery and gas purchases†, and on regularly recurring bill payments† set up on your account. All other card purchases earn at 1% cash back†. It’s also very flexible, allowing you to redeem cash back dollars anytime, and apply a credit to your card’s balance whenever you like. The deal gets even sweeter for new cardholders:

Earn 10% in cash back dollars on all purchases for the first three months† up to a total spend of $2,000. Plus, no annual fee for the first year†. Conditions apply. 

  • After your first $2,000 in purchases, gas purchases, grocery purchases and pre-authorized payments will continue to earn 6% up to a total spend of $3,500 for the first three months.
  • Get an annual fee rebate for the first year†.

This offer is not available for residents of Quebec. For Quebec residents, please click here.

†Terms and conditions apply.

2. Choose a card with transferable points/flexible rewards options

Most credit cards limit you to their rewards programs, but some allow you to transfer points, which increases your rewards options. RBC, Marriott and American Express allow you to transfer points to other loyalty programs, which may be more advantageous to you in the long run.

TD® Aeroplan® Visa Infinite* Card

Apply now

4.0

up to 40K pts

Welcome offer

Excellent

Suggested credit score

Earn up to $1,000 in value† including up to 40,000 Aeroplan points†. Conditions Apply. Account must be approved by September 3, 2024.

Expires

Sep 3, 2024

Apply now

Pros

  • The card has a high earn rate for Aeroplan Points, generating 1.5 points† per $1 spent on eligible purchases.

  • Insurance offered includes coverage in the categories that travellers need, and is generally better than its Aeroplan peers at a similar annual fee level.

Cons

  • No airport lounge membership or free lounge access.

  • Aeroplan points can’t be redeemed for flights outside the Star Alliance network, nor can they be redeemed for cash credit. This makes them less flexible than some competing travel rewards programs.

Eligibility

Recommended Credit Score

Excellent

Required Annual Personal Income

$60,000

Required Annual Household Income

$100,000

Best offer yet for the TD® Aeroplan® Visa Infinite* Card: Earn up to $1,600 in value† including up to 70,000 Aeroplan points†. Conditions apply.

Pros

  • The card has a high earn rate for Aeroplan Points, generating 1.5 points† per $1 spent on eligible purchases.

  • Insurance offered includes coverage in the categories that travellers need, and is generally better than its Aeroplan peers at a similar annual fee level.

Cons

  • No airport lounge membership or free lounge access.

  • Aeroplan points can’t be redeemed for flights outside the Star Alliance network, nor can they be redeemed for cash credit. This makes them less flexible than some competing travel rewards programs.

Eligibility

Recommended Credit Score

Excellent

Required Annual Personal Income

$60,000

Required Annual Household Income

$100,000

for every $1 spent on eligible gas, grocery and direct through Air Canada® purchases (including Air Canada Vacations®)†

1.5 points

Earn 1 point for every $1 you spend on all other purchases†

1 point

Earn points twice with Aeroplan partner brands and on the Aeroplan eStore.†

2x

Earn 50% more Aeroplan points at Starbucks when you link your card to your account.†

50%

NEXUS application fee rebate every 48 months†

1

checked bag free for you and up to 8 travel companions†

1st

Purchase APR

20.99%

Balance Transfer Rate

22.99%

Cash Advance APR

22.99%

Annual Fee

$139

Foreign Transaction Fee

2.50%

Additionally, some cards allow you to use your points for a multitude of things. For example, the TD® Aeroplan® Visa Infinite* Card allows cardholders to collect Aeroplan points. Aeroplan points are transferrable and they can be redeemed for a variety of things – not only flights, but also merchandise, gift cards, hotel stays, tickets and events, and more. Credit cards like this offer a lot of flexibility when it comes to redeeming your rewards.

†Terms and conditions apply.

This offer is not available for residents of Quebec. For Quebec residents, please click here.

3. Wait for the big welcome bonuses

Some credit cards offer massive welcome offers. These are what you want to cash in on since the best value you will ever get from your credit card is with the welcome bonus. You want to look for deals that offer about double the value that is normally offered (i.e., 30,000 points instead of 15,000) and, ideally, the annual fee will be waived for the first year.

CIBC Dividend® Visa Infinite* Card

Apply now

4.0

10% back†

Welcome offer

Good

Suggested credit score

Get a first-year annual fee rebate and earn a 10% cash back welcome bonus of up to $300!†

Apply now

Pros

  • Very high cash back rates on eligible groceries and gas and electric vehicle charging

  • Lucrative welcome offer

  • Flexible cash back redemption policy

  • Premium Visa Infinite benefits†

  • No limit on the total cash back you can earn†

Cons

  • Maximum annual spending limits in accelerated cash back

  • High-ish annual fee

  • Mid-level income requirement

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$60,000†

Required Annual Household Income

$100,000†

After the welcome offer ends, get 4% cash back on eligible gas, EV charging, and grocery purchases†; 2% cash back on eligible transportation, dining purchases and recurring payments†; and 1% cash back on all other purchases†.

Pros

  • Very high cash back rates on eligible groceries and gas and electric vehicle charging

  • Lucrative welcome offer

  • Flexible cash back redemption policy

  • Premium Visa Infinite benefits†

  • No limit on the total cash back you can earn†

Cons

  • Maximum annual spending limits in accelerated cash back

  • High-ish annual fee

  • Mid-level income requirement

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$60,000†

Required Annual Household Income

$100,000†

cash back on eligible gas, EV charging, and grocery purchases.†

4%

cash back on eligible transportation, dining purchases and recurring payments†

2%

cash back on all other purchases†

1%

save up to 10 cents per litre† at participating Pioneer, Fas Gas, Ultramar and Chevron gas stations.†

10 cents

Purchase APR

20.99%†

Balance Transfer Rate

22.99%†

Cash Advance APR

22.99%†

Annual Fee

$120

The CIBC Dividend® Visa Infinite* Card for new cardholders is a good example: Get a first-year annual fee rebate and earn a 10% cash back welcome bonus of up to $300!†

  • Annual fee: $120 (first year annual fee rebate)†
  • Purchase annual interest rate: 20.99%†
  • Cash advance annual interest rate: 22.99%† (21.99% QC only)
  • Balance transfer annual interest rate: 22.99%† (21.99% QC only)

This offer is not available for residents of Quebec.  

†Terms and Conditions Apply

This is a digital-exclusive offer.†

To be eligible for this offer:  

1) this offer must have been directly communicated to you from CIBC or from a partner/affiliate; and 

2) you must apply for the eligible card through the link provided in the CIBC or partner/affiliate communication to you.†

This offer is reserved for you. Please do not forward it to anyone else. 

CIBC may approve your application, but you are not eligible to receive this Offer if you have opened, transferred or cancelled another Dividend card within the last 12 months.†

4. Cash in for gift cards

Some credit cards require you to make a maximum spend within a certain number of months in order to get those welcome points. For some, that spend threshold can seem pretty high and leave you wavering as to whether or not you actually can spend enough in that time to get that bonus. Well, there’s an easy way around that – gift cards.

If you aren’t sure you can spend that amount of money in the required amount of time, think about future spending and stock up on gift cards. Buy gift cards for grocery stores, restaurants, and the preferred coffee shop you frequent, plus birthday/wedding/anniversary gifts for friends/family, etc. Gift cards still count as purchases to get you those points, plus you will end up using them rather than stressing and buying random things you really don’t need to ensure you get your points. Remember, the points are the goal, but you shouldn’t be throwing money away to get them.

American Express Cobalt® Card

Apply now

5.0

15,000 pts

Welcome offer

Fair

Suggested credit score

Earn up to 15,000 Membership Rewards points

Apply now

Pros

  • High earn rates (up to 5% return on spending!)

  • Flexible month-by-month fee structure

  • Free supplementary cards

  • 1:1 points transfer with selected hotels, airlines and frequent flyer programs

Cons

  • Accelerated earn rates only apply to purchases in Canada (not to purchases made abroad)

  • Amex has a more limited merchant acceptance rate than Visa and Mastercard

  • Slightly higher than average annual fee

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

In your first year as a new Cobalt Cardmember, you can earn 1,250 Membership Rewards® points for each monthly billing period in which you spend $750 in net purchases on your Card. This could add up to 15,000 points in a year. That’s up to $150 towards a weekend getaway or concert tickets. Terms and conditions apply.

Pros

  • High earn rates (up to 5% return on spending!)

  • Flexible month-by-month fee structure

  • Free supplementary cards

  • 1:1 points transfer with selected hotels, airlines and frequent flyer programs

Cons

  • Accelerated earn rates only apply to purchases in Canada (not to purchases made abroad)

  • Amex has a more limited merchant acceptance rate than Visa and Mastercard

  • Slightly higher than average annual fee

Eligibility

Recommended Credit Score

Fair

Required Annual Personal Income

$0

Required Annual Household Income

$0

Earn 5 times the points on eligible eats and drinks in Canada, including groceries and food delivery. Spend cap applies.

5x

Earn 3 times the points on eligible streaming subscriptions in Canada.

3x

Get 2 times the points on eligible ride shares, transit & gas in Canada.

2x

Earn 1 additional point on eligible hotel and car rental bookings via American Express Travel Online

1x

Earn 1 point for every $1 in Card purchases everywhere else

1x

Get up to $100 USD hotel credit to use on amenities when charged to the room for a stay of 2 or more consecutive nights through The Hotel Collection from American Express Travel.

$100 USD

Purchase APR

21.99%

Cash Advance APR

21.99% - 2.75%

Annual Fee

$155.88

Foreign Transaction Fee

2.50%

An example is the American Express Cobalt® Card. You can earn Membership Rewards® points on everyday purchases charged to the card, which can then be redeemed for gift cards at popular retailers (think: The Keg, Sporting Life, Esso, Chapters, Hudson’s Bay, and Home Depot). Since there’s no expiry on gift cards, you can use them at your leisure, and ultimately, save money.

5. Double dip whenever possible

Double-dipping may not be a good practice at dinner parties, but when it comes to credit card points strategies, it’s a smart one. Loyalty programs such as AIR MILES, Aeroplan and SCENE often let you use this strategy. Here’s how it works.

Say you collect Aeroplan points. When you go to make a purchase with an Aeroplan partner, make your purchase with an Aeroplan credit card. Upon checkout, you will be asked for your Aeroplan loyalty card, which will also earn you points. So, essentially, you are getting points twice for one purchase. It’s an easy, fool-proof way to collect your points at a much faster rate.

BMO AIR MILES®† World Elite®* MasterCard®*

Apply now

4.5

2,000 miles

Welcome offer

Excellent

Suggested credit score

Get 2,000 AIR MILES Bonus Miles and BMO will waive the $120 annual fee for the first anniversary*.

Expires

Nov 30, 2024

Apply now

Pros

  • Offers the largest Air Miles sign-up bonus on the market with a waived annual fee for the first anniversary*

  • High earn rates of up to 3x the Miles on eligible purchases

  • Exclusive travel discounts like 25% off one worldwide AIR MILES flight redemption annually

  • Airport lounge access through complimentary Mastercard Travel Pass membership

  • Comprehensive insurance package which covers medical, trip, flight delay, lost luggage and more

  • Additional Perks include Boingo Wi-Fi, BMO Concierge, digital subscriptions, and cash back promotions

Cons

  • An $80,000 personal/$150,000 household income is needed to qualify

  • Ideal for AIR MILES loyalists, may not suit those with a casual approach

  • The fixed redemption value for flights may not appeal to everyone

  • Optimal value only when frequently shopping at AIR MILES partners

Eligibility

Recommended Credit Score

Excellent

Required Annual Personal Income

$80,000

Required Annual Household Income

$150,000

Sign up for the BMO AIR MILES®† World Elite®* Mastercard® and get 2,000 air miles as a welcome bonus when you charge a minimum of $3,000 to your card in the first three months of card membership*. Plus, the annual fee of $120 is waived for the first year*.

Pros

  • Offers the largest Air Miles sign-up bonus on the market with a waived annual fee for the first anniversary*

  • High earn rates of up to 3x the Miles on eligible purchases

  • Exclusive travel discounts like 25% off one worldwide AIR MILES flight redemption annually

  • Airport lounge access through complimentary Mastercard Travel Pass membership

  • Comprehensive insurance package which covers medical, trip, flight delay, lost luggage and more

  • Additional Perks include Boingo Wi-Fi, BMO Concierge, digital subscriptions, and cash back promotions

Cons

  • An $80,000 personal/$150,000 household income is needed to qualify

  • Ideal for AIR MILES loyalists, may not suit those with a casual approach

  • The fixed redemption value for flights may not appeal to everyone

  • Optimal value only when frequently shopping at AIR MILES partners

Eligibility

Recommended Credit Score

Excellent

Required Annual Personal Income

$80,000

Required Annual Household Income

$150,000

Cardholders earn an accelerated 3x the Miles per $12 spent at participating AIR MILES partners*,

3x

2x the Miles for every $12 spent at any eligible grocery store*

2x

Earn 1 Mile for every $12 in credit card purchases, everywhere you spend*

1x

Get a 25% discount on one worldwide AIR MILES flight redemption during the calendar year.*

25%

Purchase APR

20.99%

Balance Transfer Rate

23.99%

Cash Advance APR

23.99%

Annual Fee

$120

The same goes for the air miles program. The BMO AIR MILES®† World Elite®* Mastercard®* allows you to rapidly accumulate air miles. Get 3x the Miles for every $12 spent at participating air miles reward partners* and 2x the miles for every $12 spent at any eligible grocery store*. Earn one reward mile for every $12 in credit card purchases, everywhere you spend*. Simply scan your air miles membership card and use your BMO AIR MILES®† World Elite®* Mastercard®* to pay for the purchase*.

*Terms and conditions apply.

BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.

6. Make bonus categories work for you

When figuring out how to maximize rewards points, one of the things to consider is the spending categories. You want to focus on the bonus categories – the ones that give you the highest amount of points back per purchase and maximize credit card rewards as much as possible.

For example, many credit cards offer higher rewards for grocery-store purchases. You may think this is just for food-related purchases, but remember many grocery stores sell gift cards for your favourite businesses, from restaurants to Amazon. Use your credit card to buy gift cards at the grocery store for other purchases. It’s a better deal to earn, say, 3% back from purchasing a gift card at a grocery store than just 0.5% when you make the purchase directly at the store.

7. Use your credit card as much as possible

How do you earn rewards? We all know the answer – shopping with your credit card. The more you use your credit card, the faster you’ll earn points, so why not use it more? Use your credit card for every purchase you make (whenever possible): from gas to groceries, shopping, paying off bills, and even for a quick milk run to the corner store. Get into the habit of pulling out your credit card first, instead of your debit card or cash. Most credit cards have online apps so you can pay it off immediately after the purchase if that gives you peace of mind.

RBC Cash Back Preferred World Elite Mastercard

Apply now

4.0

Good

Suggested credit score

to receive the latest news, tips and offers by email

Apply now

Pros

  • High flat cash back rate

  • No annual fee for additional cardholders

  • No limit to cash back earned²

  • Access to Mastercard World Elite Benefits

  • Save 3₵ per litre on Gas at Petro-Canada and Earn 20% More Petro-Points⁷

  • Redeem Cash Back Anytime Once You Hit $25

  • Complimentary Access to Boingo‡ Public Wi-Fi

  • Auto Rental Collision/Loss Damage⁴, Purchase and Extended Warranty Insurance³

Cons

  • High minimum income requirements

  • $25,000 Cap on 1.5% Cash Back (but earn 1% Cash Back after $25,000)¹

  • No medical, travel or accidental death insurance

  • No welcome bonus or introductory rates

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$80,000

Required Annual Household Income

$150,000

Earn up to 1.5% unlimited cash back on all your purchases¹.

Pros

  • High flat cash back rate

  • No annual fee for additional cardholders

  • No limit to cash back earned²

  • Access to Mastercard World Elite Benefits

  • Save 3₵ per litre on Gas at Petro-Canada and Earn 20% More Petro-Points⁷

  • Redeem Cash Back Anytime Once You Hit $25

  • Complimentary Access to Boingo‡ Public Wi-Fi

  • Auto Rental Collision/Loss Damage⁴, Purchase and Extended Warranty Insurance³

Cons

  • High minimum income requirements

  • $25,000 Cap on 1.5% Cash Back (but earn 1% Cash Back after $25,000)¹

  • No medical, travel or accidental death insurance

  • No welcome bonus or introductory rates

Eligibility

Recommended Credit Score

Good

Required Annual Personal Income

$80,000

Required Annual Household Income

$150,000

Earn up to 1.5% cash back on your spending without limit.

1.5%

Link your card and instantly save 3¢/L on fuel and get 20% more Petro-Points

$0.03

Get 50 Be Well points for every $1 spent on eligible products at Rexall

50

Purchase APR

20.99%

Balance Transfer Rate

22.99%

Cash Advance APR

22.99%

Annual Fee

$99

For instance, get into the habit of using your RBC Cash Back Preferred World Elite Mastercard to pay for gas. With this card, you’ll get instant savings of 3¢ per litre on fuel at Petro Canada and 20% more Petro Points when you link your Petro Points with your RBC card⁷.

Refer to RBC page for up to data offer terms and conditions.

8. Get more than one card

You may be wondering, how many credit cards should you have? The idea of having more than one credit card is daunting to some people; but more than just a rewards strategy, it’s also a smart move. Some places don’t accept certain credit cards (like American Express) and stuff happens — you may lose your credit card or become a victim of credit card fraud. For these reasons, it’s a good idea to have two credit cards on hand.

When choosing your two cards, choose wisely. For example, one card may give you a high earn rate for groceries and dining out while the other may have a more generous earn rate for all spending. Then use these cards strategically to maximize your earnings.

9. Be mindful of spend limits and rules

Figuring out how to maximize rewards points is a great strategy to have that can end up getting you some amazing deals and saving you money. However, you still need to be mindful of the rules of the game. There’s a lot of small print involved that you need to be aware of. Beware of the following:

  • Earning caps: Many rewards cards have earning caps on their bonus categories. While they definitely aren’t ideal, as long as you are always earning something, they aren’t too bad. But if the earn rate drops to 0% after a certain threshold, well, that’s not in your best interest.
  • Changes in rules: Credit card companies can change the rules, terms, earn rates, etc., whenever they see fit. Take note of all of these changes so you can ensure that your card is still working for you. If it’s no longer beneficial, switch it up.
  • Spending tiers: Another thing to be cautious of is spending tiers. Credit cards will try to lure you with great earning rates, but sometimes those lucrative rates don’t kick in until after you have spent a set amount of money on your card.
  • Fees: Many credit cards have annual fees to be wary of. With some of the pricier fees, you’ll need to determine if the rewards you can earn are worth the cost. Additionally, there may be other types of fees involved. Sometimes, you’ll get charged a fee to redeem your rewards.
  • Penalties & Expiration: When you’ve worked so hard to earn your points, the last thing you want to do is lose them. Keep an eye on expiration dates as well as any penalties that may cause you to lose points (i.e., late payments, cancelled card, etc.).

Last words on maximizing credit card rewards

Coming up with a credit card points strategy is a great way to get the most out of your credit card and make your rewards work for you. From travel deals to cash back, great merchandise and more, taking the time to learn how to maximize your credit card rewards can be very lucrative.

However, as enticing as these rewards programs are, they aren’t for everyone. If you are someone who struggles with paying your credit card on time, always carries a balance, or goes over the credit limit, then rewards cards are not your best option. The interest and penalties you’ll be charged in these cases will wipe out any rewards value you may earn along the way.

American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information click the "Apply Now" link. Conditions apply.

Advertisers are not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their Web site.

Read more: 

What do you need to know about the Tim Hortons Rewards Program?

Hannah Logan Freelance Contributor

Hannah Logan is a Canadian freelancer writer and blogger who specializes in personal finance and travel. You can follow her adventures on her travel blog EatSleepBreatheTravel.com or find her on Instagram @hannahlogan21.

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