It is a pretty commonly accepted fact that Canada doesn't have the same depth or breadth of options when it comes to travel rewards. We have fewer airports serviced by fewer airlines, and fewer card issuers to choose from. Even travel focused Amex has a fraction of the cards on offer some of them with far smaller sign up bonuses. In fact many Canadians actively seek out entry into the US market. But it's not all bad news, we have a few things to be happy about.
In this article we will be going over some of the benefits of the Canadian travel reward ecosystem. As always disclaimers and referrals are at the bottom.
Different Card Options
It's easy to focus on the cards that they have in the US that we don't have here, but the reverse is also true, ie. we have some great cards they don't have.
One of the best things about the Canadian credit card market is the availability of the Amex Cobalt. This is one of the strongest daily point earning cards out there, earning 5 points per dollar spent on grocery, restaurant and more. The closest Amex comparison in the US is the US Amex Gold (notably very different from the Canadian Gold) which earns 4 points per dollar. And if that wasn't enough, the cobalt has a monthly fee of $12.99 CAD while the US gold has an annual fee of $325 USD (although it does come with some credits that can help offset this cost).
Another example is the personal Amex Bonvoy card, known for its valuable annual free night stay certificate for Marriott properties (worth up to 35k bonvoy points or about $280 CAD) with an annual fee of $120 CAD. While there technically is a similar card in the US, you can only access it as a downgrade from one of two significantly more expensive cards, the Bonvoy Bevy or Bonvoy Brilliant. The Bonvoy Bevy card comes with an annual fee of $250 USD and only unlocks a free night certificate after a minimum spend of $15k USD, and the Bonvoy Brilliant has an annual fee of $650 USD! Of course these cards come with other perks to offset their cost, but the ability to get a simple $120/yr card that gives you reliable value is something to be happy about. One of the "perks" of the US Bonvoy cards may seem to be that they earn 6 points per dollar compared to the Canadian card's 5x, but is that really a perk?
Post Exchange Earn Rates
Since credit cards typically earn points based on a multiplier to their domestic currency, and given the currently weak Canadian dollar, we actually benefit from higher than expected point returns on our purchases.
Continuing with the Bonvoy cards, lets consider a hotel stay for $300 CAD. The US cards would earn 6x the price in USD (220 USD) or 1320 points. The Canadian card earns only 5x, but on the price in CAD, 300*5 =1500 points. To the US card's credit however, they don't levy foreign exchange fees which give them the edge when travelling abroad.
This same feature further amplifies the Cobalt's lead over the US Gold. $300 CAD of groceries on a cobalt would earn 1500 points, but only 880 on a US gold, thats a staggering difference! Although to be fair there is some distinction between Canadian MR points and US MR points, but this is a more nuanced topic for another article. For people planning to transfer to Aeroplan they are equivalent for the sake of discussion.
Post Exchange Annual Fees
While alluded to above, I want to expand more on the impact of exchange rate on our annual fees here in Canada. If we look at the most premium cards such as the Amex Personal Platinum, in Canada this card carries an eyewatering $799 annual fee, but this is actually almost $150 less than the $695USD annual fee for the US version of this card. If that wasn't good enough to feel happy for our options, the US version was recently downgraded significantly when it comes to bringing additional guests to their Centurious lounges. Previously US Platinum holders could bring two guests per visit with them, now they have to pay $30 per child or $50 per adult, unless they have an annual spend over $75k. Canadian cardholders as of writing still have the ability to bring their guests free of charge or spend requirement.
This change was made to help address crowding issues at some lounges due to the prevalence of this card in the US market and while it may one day come to the Canadian Platinum, we can enjoy the perk for now!
Conclusion
While the US credit card market has lots of appeal, Canadians can be happy to know that we have amazing cards with great features here to. In fact our Amex Cobalt card is perhaps the best everyday card around.
Now if you're already a bit if a Canadian points and miles pro and you're considering adding an American card to your wallet be sure to consider the impact of exchange rates on its earning and annual fees. If you need help or guidance in that process reach out for a consult, and keep your eyes out for an upcoming step by step article.
Referral links
With its best in market 5x multiplier Amex Cobalt is a powerful point earner that can get you on flying for free 5 times faster than much of the competition - sign up here.
To see the access the best offers for different Amex card such as the Business Gold, or Platinum click here.
You're going to need somewhere to stay after all of these free flights. The Amex Bonvoy or the Business Bonvoy card will earn you free hotel stays and can be combined with the Aeroplan eStore for some incredible double dipped rewards.
If you're on the fence, or wondering about other cards reach out to me for a free consult, and if you sign up for a card through my link, let me know and I will walk you through advanced tricks and personalized advice to help you get the maximum benefit both from earning and redeeming points - getting your travel journey going faster than you ever thought possible.
Disclaimer
These posts are all made in good intentions and are to the best of my ability accurate at the time of writing. That said, the official terms and conditions and current sign up bonuses should be verified and interpreted in the context of your personal financial situation.
