How to Start Traveling With Points in Canada

In Canada, we have access to some great travel programs that allow you to travel the world on points, and in style. Traveling with points can unlock vacations you’d never thought possible.

Traveling has become increasingly popular in today’s interconnected world, offering individuals the opportunity to explore new cultures, broaden their horizons, and create lasting memories. However, it is no secret that travel can be an expensive endeavor (especially for Canadians).

Whether it’s airfare, car rentals, or hotels, getting from one place to another can significantly impact your travel budget. Many destinations are simply out of reach financially for the majority of Canadians.

Luckily, we can build travel points with a variety of travel programs that allow you to not only experience cheaper vacations, but also more luxurious ones.

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The Benefits of Traveling on Points

Collecting points for travel can offer several benefits and advantages. Here are some compelling reasons why you should consider using collect points for travel:

1. Free or discounted flights and hotel stays: Accumulating points through loyalty programs allows you to redeem them for free or heavily discounted flights, hotel stays, car rentals, or other travel-related expenses. This can significantly reduce your overall travel costs, making it more affordable to explore new destinations or indulge in luxury accommodations.
2. Upgrade opportunities: Loyalty programs often offer elite status tiers that provide access to various upgrades, such as room upgrades, priority check-in, airport lounge access, extra baggage allowance, and more. These perks can enhance your travel experience and make your journey more comfortable and enjoyable.
3. Flexibility and freedom: Collecting points gives you more flexibility in planning your trips. Unlike traditional travel bookings, which may be subject to availability and fixed rates, points-based bookings typically offer greater availability and can often be more easily modified or canceled. This flexibility allows you to adjust your travel plans without incurring significant fees or penalties.
4. Extra amenities and exclusive experiences: Some loyalty programs offer additional benefits beyond flights and hotels. These can include access to exclusive events, priority access to concert tickets, spa treatments, complimentary meals or drinks, and more. By using collected points, you can unlock these special experiences and enjoy a more memorable journey.
5. Combining points with other benefits: Many credit cards and travel loyalty programs provide the option to combine points with other benefits, such as discounts on travel-related purchases, or access to airport lounges. By leveraging these combined benefits, you can maximize your overall value and savings.

It’s important to note that maximizing the benefits of collecting points requires careful consideration of loyalty programs, credit cards, and other avenues for point accumulation. Researching and understanding the terms and conditions, redemption options, and associated fees will help you make informed decisions to optimize your travel rewards.

In this post we’ll walk you through how to start your points journey, setting yourself up for success.

What Should I do Before I Start Traveling with Points

Have Zero Credit Card Debt

Getting out of debt can help you grow your finances, get access to high-end travel credit cards, and travel the world without a sense of financial guilt.

On average, if you put money into the stock market, or have some sort of retirement vehicle, you should expect to see at least 6% return. “Good Debt” is debt that is less than 5% interest. Mortgages in Canada typically fall somewhere in the 4% range, so this would qualify under “good debt”. Credit card interest rates, which typically sit around 20%, would be considered “bad debt” 

Paying off “good debt” loans such as your mortgage can be beneficial in a number of different ways, but it’s important to understand that the difference in interest rates between your house and your credit card bill are drastically different, and should be dealt with in dramatically different ways.

Prior to focusing on credit card points, you should ensure that all your credit card debt is paid off. This is because the debt you’ll be incurring will outweigh any points you’re collecting.

Assessing Your Current Credit Card Portfolio

You’ll want to first asses your credit card portfolio, and assess whether or not your current cards make sense for you. This is where you can cancel a credit card or two if you feel they aren’t providing value. Most people are scared to cancel cards, but in actuality, your credit score will rebound from a cancelled card within a few months. The one exception to this would be to keep your oldest credit card open no matter what, as length of credit history is a factor in your credit score. Having your oldest card open can help keep your credit score high.

How to Start Traveling with Points

Step 1: Get a Credit Card with your Bank

The easiest way to start the “points” is to walk into your bank and pick up a travel credit card. Having a credit card with your bank provides a level of convenience as you can manage your banking and credit card accounts in one place. You can easily view your credit card transactions, make payments, and track your expenses alongside your other banking activities.

You can view a list of credit cards here

These are the programs you should be focusing on will be different depending on which bank you’re with, but this will be a good starting point:

CIBC – Aeroplan

TD – Aeroplan

RBC – Avion points

Scotiabank – Scene+ points

BMO – BMO Rewards

Step 2: Focus on Collecting either Aeroplan Points or Membership Rewards

The top 2 travel currencies in Canada are Aeroplan and American Express Membership Rewards

Aeroplan

Read: Your Complete Guide to Aeroplan

Aeroplan members can earn points by flying with Air Canada or its partner airlines, as well as through everyday activities such as shopping, dining, and staying at partner hotels. These points can then be redeemed for flights, hotel stays, car rentals, vacation packages, merchandise, and other rewards. You can pretty much fly anywhere in the world flying with Aeroplan.

Aeroplan points can be used on any of Aeroplan’s partner airlines, which include; Air Canada, United Airlines & Lufthansa, among others.

The CIBC Aeroplan Visa Infinite card is a great way for Canadians to earn Aeroplan points without having to pay a high annual fee.

Sign up here

The Cost for the Card is $0 for the first year, and then $139 annually, & comes with the following benefits:

• Sign-up Bonus:
  • 10,000 Aeroplan points at first purchase
  • 25,000 Aeroplan points upon spending $1,000 in the first 4 months
  • 10,000 Aeroplan points upon spending $10,000 in the first year
    • Total of 45,000 Aeroplan points
• Earn Rate: 
  • 1.5 Aeroplan points per dollar spent on food, beverage, gas & travel
  • 1 Aeroplan point everywhere else
• Insurance:
  • Emergency medical travel insurance – up to $5,000,000
  • Car rental damage insurance 
  • Trip cancellation insurance- up to $5,000
  • Hotel Burglary insurance – up to $1,000
  • Baggage delay insurance – up to $1,000
  • Lost or stolen baggage insurance – up to $1,000
• Perks:
  • First bag free on Air Canada flights
  • Preferred pricing when redeeming Aeroplan points on Air Canada flights
  • Earn 1,000 Status Qualifying Miles and 1 Status Qualifying Segment for every $10,000 you spend on the card

The CIBC Aeroplan Visa Infinite provides a great, FREE way to earn a large amount of Aeroplan points, and it can be a great backup to the high annual fee cards in the market.

American Express Membership Rewards

Read: Your Complete Guide to American Express Membership Rewards

American Express Membership Rewards is a loyalty program offered by American Express to its cardholders. The program allows cardholders to earn points for every dollar spent on eligible purchases with their American Express card. The points can be redeemed for a variety of rewards, including travel, merchandise, gift cards, and statement credits.

Cardholders can also earn additional points through special promotions and partnerships with other merchants. The program offers flexibility in terms of how and when cardholders can redeem their points, as well as the ability to transfer points to select airline and hotel loyalty programs.

American Express Membership Rewards is a popular loyalty program among frequent travelers and those who value flexibility and choice in their rewards program.

One of, if not the best reason for you to start collecting American Express Membership Rewards (MR) is that you can transfer your MR to multiple transfer partners including: 

• Air Canada/Aeroplan
• British Airways Executive Club 
• Air France/KLM
• Asia Miles 
• Delta Airways Sky Miles
• Marriott Bonvoy Points
• Hilton Honours Points

The best value for your Membership Rewards would be to transfer them to Aeroplan at a 1:1 ratio.

The American Express Cobalt Card is a great way to start earning Membership Rewards

Sign up here

The cost for the card is $12.99 monthly (which comes with a $100 rebate through GreatCanadianRebates), & comes with the following benefits:

• Sign-up Bonus:
  • 2,500 Membership Rewards each month you spend $500 (for the first 12 months)
    • Total of 30,000 points
• Earn Rate: 
  • 5 Membership Rewards per dollar spent on food & dining
  • 3 Membership Rewards per dollar spent on streaming services
  • 2 Membership Rewards per dollar spent on gas & travel
  • 1 Membership Reward for everywhere else
• Insurance:
  • Emergency Medical Travel Insurance – up to $5,000,000
  • Car rental damage insurance Baggage delay insurance – up to $500
  • Lost or stolen baggage insurance – up to $1,000
  • Hotel burglary – up to $500 
• Perks
  • Occasional discounts on select products

While this card doesn’t come with the best travel perks, the Cobalt is a great card to have in the wallet if you regularly shop at a grocery store that accepts American Express. The 5 Membership Rewards per dollar spent on food & beverage is the best earning rate for any card in the market, and the relatively manageable monthly fee of $12.99 could entice Canadians to keep this card in their wallet year after year. 

Step 3: Regular Applications

Once you have a baseline of 2-3 credit cards, you can then start the process of building out your travel credit card portfolio. The number of credit cards you can apply for can vary (some people are very aggressive), but a steady rate of one card every 4-6 months is a good pace.

You can use our points program page to direct you to the cards you need

Conclusion

Traveling with points offers a great opportunity for Canadians to see the world at a very low cost.

Remember, building up a substantial balance of points takes time, so be patient and consistent in your earning efforts. Regularly assess your goals, review your loyalty program’s terms and conditions, and stay updated on any program changes or promotions to maximize your travel rewards.