1. Free flight sign-up bonuses
If you’re looking for a free flight, there’s no easier, cheaper and faster way to do it than simply signing up for one of the top credit cards with a healthy welcome bonus. Why spend big money to earn thousands of miles, when you can simply earn 25,000 miles (or more!) by signing up for a new travel rewards card with a large sign-up bonus? To max out your sign-up bonus, follow these tips:
- Look for welcome bonuses that also waive the first year annual fee, making the bonus truly free
- Look for bonuses that don’t require a significant minimum spend within the first three months (otherwise it can be a real struggle to spend the required amount and you end up losing your bonus)
- See if you can apply for the card, get the points, keep the points and cancel the card before you’re charged the yearly fee, then rinse, wash, repeat!
2. Annual companion tickets
Did you know some Canadian travel cards offer an annual round-trip companion voucher? The WestJet RBC World Elite Mastercard lets you bring someone along to anywhere in Canada or the continental US.
- See if your voucher will allow your companion to sit in the same class of seat as you (i.e. you buy business class and your companion gets business class at no extra cost)
3. Free bags
Airlines have been charging for checked bags, regardless of whether or not your flight is short-haul, long-haul, domestic or international. At a minimum of $25 to $30 each way, the costs can easily add up, especially for large families. That’s why finding a credit card that offers free checked bags can be so compelling. Imagine a family of four saving $100 each way? Some cards even offer free checked bags for the primary cardholder and up to eight additional passengers on the same reservation.
- The WestJet RBC World Elite Mastercard waives the first checked baggage fee for the primary cardholder and up to eight travelling companions on the same reservation
- Watch out for free checked bag offers that only apply to flights in which you redeemed your rewards
4.0% interest rates
Credit cards sometimes get a bad wrap as a high interest source of debt. The truth is that, while they can lead to debt when improperly used, there are plenty of low interest promotional rate offers for balance transfers.
- If you have credit card debt, transfer it to a balance transfer card. If you still haven’t paid down your balance at the end of the promotional term, find another balance transfer offer to switch to. Called balance surfing, you can avoid some serious interest if you put together a good plan.
5. Foreign exchange savings
Whether you’re travelling abroad or purchasing items online in a non-Canadian currency, most credit cards in Canada add at least an additional 2.5% on purchases as a foreign exchange currency fee (often called an FX fee). While it’s a relatively rare perk, there are some no foreign transaction fee credit cards in Canada. This can save you a lot if you travel often outside of the country or shop online in a non-Canadian currency.
6. Avoid sky-high Aeroplan taxes and fees
Ever get completely floored by the taxes and fees charged by Air Canada when redeeming Aeroplan points? You’re not alone. However, did you know that if you book on a non-Air Canada flight in the Star alliance program, such as United Airlines, the taxes and fees will be dramatically lower? For example, we found one ticket flying to Paris where Air Canada charged $586 in taxes and fees, whereas United Airlines only charged $186!
- For even lower fees, you can usually save money by flying out of a US-based airport
7. Never make a late payment again
Late payments are undoubtedly a cardinal sin in the world of credit cards. Despite our best efforts, it's easy to forget a payment, put it off until later or even just decide not to pay. However, there's a simple solution that takes the decision-making process out of your hands: set up pre-authorized payments for your credit card. With this feature, you can select a specific day each month for your bank to automatically pay either the minimum amount due or the full balance on your credit card, depending on your preference. By automating your payments, you can avoid the pitfalls of late payments and stay on top of your credit card obligations and improve your financial health.
- The goal here isn’t to only avoid a late payment, which can destroy your credit score. It’s also to avoid debt, which can do a lot more damage than lower your score. As a result, we highly recommend you pre-authorize paying off your entire balance.
8. Stack your cash back
Many of the best cash back credit cards have bonus cash back categories. If you get multiple cash back credit cards with different bonus categories, you can maximize your overall cash back earned.
- The no-fee Tangerine Money-Back Credit Card is the only cash-back credit card in Canada that allows you to choose two 2% money-back categories from a selection of 10. You can even get a third category if you open a Tangerine Savings account and deposit your cash-back savings into the account. Tangerine can be your wildcard, to fill in the bonus categories the other cards don’t cover.
9. Multiply your cash back bonus categories
Let’s say your cash back credit card gets you 4% cash back at the grocery store. You’re about to make a purchase at Amazon, but how can you get more than the standard 1% cash back your card provides in non-bonus categories? Easy. Buy an Amazon gift card at the grocery store (or learn how to get it for free)! That means you’re essentially getting 4% off on the entire gift card! Another option? Use a credit card that gives you extra rewards for shopping on Amazon. Double win.
- Some credit cards won’t give cash back rewards on cash like transactions like reloadable gift cards or lottery tickets
10. Never miss a sale again
There's nothing more frustrating than buying an item at full price, only to discover that it's on sale elsewhere or goes on sale shortly after your purchase. Fortunately, some credit cards have a feature called price protection. With this benefit, if you buy something and then find the identical product advertised at a lower price in Canada within a 60-day window following your original purchase, you can be refunded the difference. Note that there is usually a maximum spending amount per account, per year.
11. Meeting minimum spend requirements
Many Canadian credit cards are starting to add or increase their minimum spend requirements to be eligible for their hefty welcome bonuses. IIf you're concerned about your ability to spend the required amount, such as $1,500 within a three-month period, one strategy to consider is "manufactured spending." This is when you buy gift cards now and use them later, to ensure you hit the minimum spend requirement.
- For example, if you're $250 short of earning a $300 welcome bonus, buy $250 worth of gift cards for retailers you frequently shop
12. Raise your credit limit
This may seem counterintuitive, but raising your credit limit may actually improve your credit score. This is because one of the biggest factors in determining whether your credit score is high (good) or low (bad) is your credit utilization. Credit utilization accounts for 30% of your score and is second only to payment history (which accounts for 35% of your score).
If you're using a significant portion of your available credit, you'll have a high credit utilization ratio, which can hurt your credit score. On the other hand, if you're only using a small percentage of your total credit limit, this will work in your favour and could potentially boost your score. Financial experts generally recommend keeping your credit utilization at or below 30% to maintain a healthy credit score and improve your chances of boosting your credit rating.
Therefore, if you find you’re using a lot of your available credit, consider asking your credit card company for a higher credit limit. Your percentage of utilized credit will then go down because suddenly there’s more credit available, overall. This decrease in utilization is a quick way to raise your credit score, but resist the urge to use more credit just because you suddenly have it as that could lead to snowballing high-interest debt.
13. Make the most of travel insurance
Many premium credit cards include an impressive array of travel insurance as part of their perks offerings. This can include things like trip cancellation, emergency medical, rental car and lost luggage insurance while travelling. Before purchasing separate travel insurance, check if your credit card already provides protection — it could save you hundreds of dollars.
14. Purchase protection and extended warranty
Did you know that, for the most part, even the most basic credit cards in Canada come with two kinds of protection that can save you tons of money? Purchase protection reimburses you after you’ve charged something (usually up to 90 days) to your card if it’s lost, stolen or damaged. Additionally, many cards also automatically extend the manufacturer's warranty on items charged to the card. So, if you buy a computer with a one-year warranty, your credit card provider will automatically extend the warranty an additional year.
15. Take advantage of concierge services
Concierge services aren’t just for the rich! Many premium credit cards offer complimentary concierge services, which will help with a variety of tasks, like making reservations, buying concert tickets or even finding hard-to-get items.
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