The Globe and Mail’s Big Guide to Credit Cards is compiled strictly according to the math – that is, it assesses cards according to the value of the rewards they provide, taking into account any fees the cards come with. The guide has not received sponsorship or financial compensation from any card companies.
As someone who’s been writing about credit cards and loyalty programs for more than a decade and having fact-checked the list, I can say the ranking is comprehensive and unbiased. It’s also the result of plenty of trial-and-error. The Globe earlier experimented with generating a list with the help of AI. That approach – which proved prone to errors – was quickly abandoned.
Keep in mind the list is meant to be only a guide. Choosing a credit card that’s right for you should be based on your personal needs, and not just the numbers.
Cash-back credit cards
Cash-back credit cards are relatively easy to rank as the rate of return is straightforward. That said, there are a few things to be aware of.
Even though both Rogers credit cards rank high because you can earn 2-per-cent cash back if you have a qualifying service with Rogers, Fido, Shaw, it doesn’t factor in the increased earning rate of 3-per-cent cash back when redeeming Rogers, Fido or Shaw purchases – including your monthly bills. If you don’t use any of their services, the value proposition drops considerably.
The Tangerine credit cards rank quite low owing to the base-earning rate of 0.5-per-cent cash back, but you can choose up to three categories where you earn 2-per-cent cash back. Depending on your spending habits, this could be a good choice. Plus, the card has no annual fee, and the cash back earned is paid out monthly.
You could also argue that the American Express Cobalt Card should be on this list. Even though the card earns you American Express Membership Rewards points, you can redeem 1,000 points for $10 off one of your eligible purchases. It’s essentially a hybrid cash back/travel card, but for this guide it’s a travel card. If it was included, it would likely rank high on the list.
Balance transfer cards
Owing to the methodology, credit cards with a lower balance-transfer fee rank higher. However, the promotional period for those cards is ten months. If you don’t think you can pay off your entire debt in that period, you’re likely better off with a card with a longer promotional period of 12 months, even if you have to pay a higher fee upfront as the overall savings will be greater.
Travel credit cards
Ask any frequent traveller what their go-to travel credit cards are, and they’ll likely say the American Express Aeroplan Reserve Card. The card gets you your first-checked bag free on Air Canada flights, unlimited access to Maple Leaf Lounges in North America, and early-boarding privileges. While priority boarding has no monetary value, many travellers will tell you it’s an invaluable perk to have.
Despite all of these features, the card is ranked lower than you would expect. That’s because the annual fee is high at $599, the earning rate isn’t as high as other cards, and the perks have a lower weighting in the rankings.
It’s also worth noting that the BMO AIR MILES World Elite Mastercard falls in the rankings considerably because the methodology focuses on flight redemptions. The reality is that AIR MILES is more of a general-rewards program now and still provides good value overall. The rankings also don’t account for additional ways to earn AIR MILES, such as through receipt scanning or card-linked offers.
It may also seem odd that the WestJet RBC World Elite Mastercard ranks higher than the CIBC Aeroplan Visa Infinite Card. That doesn’t mean that WestJet Rewards is better than Aeroplan; it’s just that the base-earning rate of 1.5 WestJet dollars per dollar spent and the generous welcome bonus skew the card higher in the rankings.
Aeroplan is a much stronger loyalty program, as the value of your points can be lucrative depending on your chosen route. Plus, since Air Canada flies to more destinations, you can get more out of your Aeroplan points. With WestJet, the program is cash-back based, so the value is limited to the WestJet Dollars you’ve earned. The airline also has a limited number of international flights. Aeroplan is better for the vast majority of Canadians, but a quick glance at the rankings may have you thinking otherwise.
Choosing a travel credit card can be complicated. Your travel goals, how often you travel, where you live, and how much you spend all factor into your decision.
The Big Guide to Credit Cards is a starting point. Think about your goals and spending, and then interact with the tools and information to help you find a card that’s a good fit for you.
Barry Choi is a personal finance and travel expert at moneywehave.com. He was previously affiliated with American Express, Aeroplan, WestJet, Rogers and Fido, but currently has no relationship.
