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Choosing Miles Rewards Cards In Canada
It is important for consumers to know what they are getting into before they choose a miles rewards cards in Canada, or anywhere else for that matter. People must learn to read everything on the forms before making a decision.
Like other rewards credit cards, miles rewards cards in Canada make attractive offers. These rewards cards can save a lot of money on hotels, airplane tickets, car rentals, cruises, and other travel expenses. With these benefits, it can be very easy for people to overlook the fine print and immediately choose a card simply because it sounds like it has the best rewards. However, when choosing miles rewards cards in Canada, it is crucial that people understand exactly what is being offered to them.
Balance On Credit Cards
Miles rewards credit cards have a pricier interest rate than do non-rewards credit cards. Therefore, a person who owns a card with a balance could end up paying more money in interest rates than they are getting back as part of their rewards program. If a person's credit card has a balance, they should not get a rewards card.
Points to Rewards Ratio
People should avoid miles rewards cards that have a bad points to rewards ratio. People should check exactly what type of rewards they can receive for what amount of points, being sure that the exchange is beneficial. For example, most rewards cards for airline travel offer a free flight after reaching twenty-five thousand points, so if a card offers free flights for much more than that, it probably is not the greatest deal out there.
Full Rebates Versus "Up To…" Rebates
Some miles rewards cards pay a cash rebate, which may sound fantastic at first, but read the fine print and make sure the card proffers a full percentage rebate rather than a certain amount of money back. With full percentage rebates, a person can be sure of the amount of money they are getting back. With a miles rewards card that only offers up to a certain amount, a person only has a chance of getting that amount of money, and will usually only receive it after their purchases have reached a high amount of money.
Quick versus Long-Term Rewards
If a person does not charge their miles rewards cards often, it can take a long time before they can receive any rewards. In this case, a rewards card that offers prizes for small point amounts would be the best one to choose. However, if a person often uses their miles rewards cards and accumulates points quickly, a card that offers prizes at a large point amount is sufficient.
Know the Limit
Miles reward credit cards will typically have a limit on rewards, including cash rebates. These cards will allow you to spend up to a certain amount and still receive rewards for the purchases, but when their limit is reached, any purchase made after the time will not be worth any rewards. Rewards card users should learn if there is a limit on their card, and what that limit is if there is one. This way they do not end up inadvertently making large purchases over the limit and not getting any cash or rewards back.
Know the Expiration Date
Similar to having a purchase limit, miles rewards cards will also have a point expiration date. Points earned on a rewards card do not stay on the card forever, which means rewards card users could end up receiving points on a card and not being able to use them. It is important for users to know the expiration date on their points.
Cards with Annual Fees
Canadian miles rewards credit cards that require users to pay an annual fee when using the cards are not worth the price. Sometimes that fee can cost more than a person is receiving, which is counterproductive. People should avoid annual fees unless a card gives a person more for their money.
By obtaining the proper knowledge and reading all given information, any person can know how to choose Canadian miles rewards credit cards that are the most beneficial for them in terms of the card price, the offered rewards, and the user's lifestyle.
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