Loyalty is costing you: why switching credit cards could save you hundreds — and give you more freedom

• New cardholders may be offered 0% interest for up to 12 months, a cash bonus of $300 or more, or even a waived annual fee for the first year.
• But long-time cardholders? They're usually left with standard rewards and fewer perks unless they call and negotiate.

That’s why it pays to shop around. Just make sure you ask these three key questions before making the switch.

What’s the benefit of switching?

Before you jump to a new card, ask: What will I gain?

Some common reasons to switch include:

• More relevant rewards: If you no longer travel, it may make sense to move from travel points to cash back cards.
• Better bonus offers: A card offering a welcome bonus of $400 or more (in points or cash) may be worth switching to.
• Lower interest rates: Some cards offer 0% balance transfer promos or low fixed rates for 6–12 months.
• Improved perks: Think airport lounge access, extended warranties, or stronger travel insurance.
• Simpler redemptions: Some rewards programs are easier to use than others—especially if you're tired of blackout dates and complex rules.

Example: According to the Money.ca credit card comparison tool, some of the best welcome bonuses in 2025 are worth up to $600, far more than what most earn through regular spending.

What’s the cost of leaving?

While opening a new card can offer perks, closing your old one can cost you more than you think.

Here’s what to watch for:

• Losing points: While Aeroplan and Air Miles points stay with your loyalty account, RBC Avion and CIBC Aventura points typically expire within 60–90 days of closing your card.
• Hurting your credit score: Closing a card may reduce your overall available credit, which can raise your credit utilization ratio. If you carry a balance, this can impact your score. A good tip is to keep your old account open with a $0 balance if possible.
• Annual fees already charged: Some cards charge the annual fee immediately and won’t refund it after cancellation—always check your card’s terms.

Tip: If you’re switching for better travel perks, make sure you use up your travel credits or lounge passes first—they often don’t transfer and may be lost after closing.

Are there hidden fees or terms?

Even with Canada’s Cost of Borrowing Regulations, some fees are easy to overlook. Always scan the credit card’s disclosure box (also known as a Schumer Box) before applying.