Key Takeaway: Air Miles is a popular loyalty program in Canada that lets you earn miles on your everyday purchases and redeem them for various rewards. If you want to boost your Air Miles balance, you should consider getting an Air Miles credit card that offers bonus miles, discounts, and other perks. In this article, we will compare the features, benefits, and drawbacks of the best Air Miles credit cards in Canada and help you find the one that suits your spending habits and travel goals the best.
Air Miles is one of the oldest and most widely used loyalty programs in Canada. With more than 300 partners, including airlines, grocery stores, gas stations, and online retailers, you can earn Air Miles on almost everything you buy. You can then use your Air Miles for cash rewards, merchandise, travel opportunities, and more.
But if you want to get the most out of your Air Miles, you should also consider getting an Air Miles credit card. An Air Miles credit card is a co-branded card that lets you earn Air Miles on every purchase you make with the card, in addition to the miles you earn with your Air Miles collector card. Plus, some Air Miles credit cards offer extra benefits, such as welcome bonuses, discounts, insurance, and more.
However, not all Air Miles credit cards are created equal. Some cards have higher earn rates, lower fees, or better perks than others. So how do you choose the best Air Miles credit card for your needs? Here are some factors to consider:
Earn rate
The earn rate is the number of Air Miles you get for every dollar you spend with your credit card. The higher the earn rate, the faster you can accumulate Air Miles. However, the earn rate may vary depending on where you shop, what category of purchase you make, and whether you use your Air Miles collector card as well.
For example, the BMO AIR MILES World Elite Mastercard offers 3 miles per $12 spent at participating Air Miles partners, 2 miles per $12 spent at any eligible grocery store, and 1 mile per $12 spent everywhere else. Meanwhile, the American Express Air Miles Reserve Credit Card offers 1 mile per $10 spent at partner grocery stores, gas stations, and drugstores, and 1 mile per $15 spent everywhere else.
To compare the earn rates of different Air Miles credit cards, you can use a tool like creditcardGenius, which calculates the average annual rewards you can get from each card based on your spending profile.
Welcome bonus
A welcome bonus is a one-time offer of extra Air Miles that you can get when you sign up for a new Air Miles credit card and meet certain spending requirements within a specified period. A welcome bonus can give you a significant boost to your Air Miles balance and help you reach your reward goals faster.
For example, the BMO AIR MILES World Elite Mastercard offers up to 3,000 bonus miles when you spend $3,000 in the first three months, plus the first year annual fee waived. That’s enough for $310 towards purchases with Air Miles Cash. The American Express Air Miles Reserve Credit Card offers 2,400 bonus miles when you spend $3,000 in the first three months, but it has a $299 annual fee that is not waived.
To compare the welcome bonuses of different Air Miles credit cards, you can use a tool like Prince of Travel, which shows the first-year value of each card based on the bonus miles, annual fee, and other factors.
Benefits and perks
Besides the earn rate and the welcome bonus, some Air Miles credit cards also offer other benefits and perks that can enhance your travel experience and save you money. These may include:
- Discounts: Some Air Miles credit cards offer discounts on the number of miles required for certain rewards, such as flights, car rentals, or merchandise. For example, the BMO AIR MILES World Elite Mastercard offers a 25% discount on one worldwide Air Miles flight redemption per calendar year, up to 750 miles saved. The American Express Air Miles Reserve Credit Card offers a Companion Flight benefit that lets you book a second flight for free when you book one flight for 1,700 miles or less, once per year.
- Insurance: Some Air Miles credit cards offer comprehensive travel insurance that covers you for trip cancellations and interruptions, lost or stolen baggage, car rental damage, emergency medical care, and more. For example, the BMO AIR MILES World Elite Mastercard offers 14 types of insurance, including travel medical insurance for up to 15 days per trip. The American Express Air Miles Reserve Credit Card offers 9 types of insurance, including travel medical insurance for up to 31 days per trip.
- Status: Some Air Miles credit cards offer automatic status upgrades in the Air Miles program, which give you access to exclusive benefits, such as using fewer miles for certain rewards, getting VIP access to events, and more. For example, the BMO AIR MILES World Elite Mastercard gives you Onyx status, the highest level in the Air Miles program. The American Express Air Miles Reserve Credit Card gives you Gold status, the second-highest level in the Air Miles program.
- Other perks: Some Air Miles credit cards offer other perks, such as access to airport lounges, concierge service, purchase protection, extended warranty, and more. For example, the BMO AIR MILES World Elite Mastercard gives you access to over 1,300 airport lounges worldwide for just $32 USD per person, per visit, and a free membership to Mastercard Airport Experiences. The American Express Air Miles Reserve Credit Card gives you access to the American Express Lounge at Pearson International Airport, and a FlexFly benefit that lets you book any seat on any airline with your miles.
To compare the benefits and perks of different Air Miles credit cards, you can use a tool like Lonely Planet, which shows the features, pros, and cons of each card.
IMPORTANT LINKS:
- Aeroplan vs AIR MILES: Which Travel Rewards Program Offers More Value and Flexibility?
- Unlocking Maximum Value: A Guide to Optimizing Your Spending and Earning with Aeroplan, Air Miles, and Avion
- How to Calculate Point Value: Aeroplan, Air Miles, and Avion
- How to Choose and Use the Best Travel Rewards Program in Canada: Aeroplan, Air Miles, or Avion?
Fees and interest rates
Another factor to consider when choosing an Air Miles credit card is the fees and interest rates that you may have to pay. These may include:
- Annual fee: This is the fee that you have to pay every year to keep your credit card active. Some Air Miles credit cards have no annual fee, while others have annual fees ranging from $29 to $299. Generally, the higher the annual fee, the more rewards and benefits you can get from the card. However, you should weigh the value of the rewards and benefits against the cost of the annual fee and see if it is worth it for you. Some Air Miles credit cards may waive the annual fee for the first year as part of the welcome bonus, which can help you save money and try out the card before committing to it.
- Interest rate: This is the rate that you have to pay on any unpaid balance on your credit card. Most Air Miles credit cards have interest rates of around 20% or higher, which can quickly add up if you carry a balance from month to month. Therefore, you should always try to pay off your credit card balance in full and on time every month to avoid paying interest and hurting your credit score. Some Air Miles credit cards may offer a low introductory interest rate on balance transfers for a limited time, which can help you pay off your existing debt faster and save money on interest.
- Other fees: These are the fees that you may have to pay for certain transactions or services, such as cash advances, foreign currency conversion, late payments, over-limit, or card replacement. You should avoid these fees as much as possible by using your credit card responsibly and reading the fine print of your card agreement.
To compare the fees and interest rates of different Air Miles credit cards, you can use a tool like NerdWallet, which shows the annual fee, regular APR, and balance transfer offer of each card.
Extended Warranty
Another perk that some Air Miles credit cards offer is an extended warranty, which adds an extra year of coverage to the manufacturer’s warranty on eligible purchases made with the card. This can save you money and hassle if your product breaks down or malfunctions after the original warranty expires.
For example, the [BMO AIR MILES World Elite Mastercard] and the [American Express Air Miles Reserve Credit Card] both offer extended warranty on purchases that have a manufacturer’s warranty of up to five years. The [BMO AIR MILES Mastercard], which has no annual fee, also offers extended warranty on purchases that have a manufacturer’s warranty of up to one year.
To compare the extended warranty of different Air Miles credit cards, you can use a tool like [Ratehub], which shows the warranty length and the maximum coverage amount of each card.
How to redeem your Air Miles
Once you have earned enough Air Miles with your credit card, you can redeem them for various rewards through the Air Miles website or app. You can choose from two types of rewards: Air Miles Cash and Air Miles Dream.
- Air Miles Cash: This option lets you use your Air Miles as cash towards your purchases at participating partners, such as Shell, Sobeys, Staples, and more. You can redeem 95 Air Miles for $10 off your purchase, which means each mile is worth about 10.5 cents. You can also use your Air Miles Cash to donate to charities, such as the Red Cross, SickKids, or WWF.
- Air Miles Dream: This option lets you use your Air Miles for travel and merchandise rewards, such as flights, hotels, car rentals, gift cards, electronics, and more. The value of each mile depends on the reward you choose, but it is usually lower than the Air Miles Cash option. For example, a round-trip flight from Toronto to Vancouver can cost anywhere from 2,000 to 5,000 Air Miles, depending on the availability and the season. That means each mile is worth between 4 and 10 cents.
You can decide how to split your Air Miles between the Cash and Dream options, and you can change your preference at any time. However, once you redeem your Air Miles for a reward, you cannot switch them back.
To compare the value of different Air Miles rewards, you can use a tool like [Rewards Canada], which shows the best and worst Air Miles redemptions for flights, hotels, car rentals, and merchandise.
Conclusion
An Air Miles credit card is a great way to earn more Air Miles on your everyday purchases and enjoy various benefits and perks. However, you should compare the features, fees, and rewards of different Air Miles credit cards and find the one that matches your spending habits and travel goals the best.
To help you with your decision, here is a table that compares the main features of the best Air Miles credit cards in Canada:
| Credit Card | Annual Fee | Welcome Bonus | Earn Rate | Benefits and Perks |
|---|---|---|---|---|
| BMO AIR MILES World Elite Mastercard | $120 (waived for the first year) | Up to 3,000 bonus miles | 3 miles per $12 at Air Miles partners, 2 miles per $12 at grocery stores, 1 mile per $12 everywhere else | 25% discount on one flight per year, 14 types of insurance, airport lounge access, concierge service, purchase protection, extended warranty, car rental discount, Onyx status |
| American Express Air Miles Reserve Credit Card | $299 | 2,400 bonus miles | 1 mile per $10 at partner grocery stores, gas stations, and drugstores, 1 mile per $15 everywhere else | Companion Flight benefit, 9 types of insurance, airport lounge access, FlexFly benefit, purchase protection, extended warranty, car rental discount, Gold status |
| BMO AIR MILES Mastercard | $0 | Up to 800 bonus miles | 2 miles per $20 at Air Miles partners, 1 mile per $20 everywhere else | 15% discount on Air Miles flights in North America, 9 types of insurance, purchase protection, extended warranty, car rental discount |
| American Express Air Miles Platinum Credit Card | $65 | 2,000 bonus miles | 1 mile per $5 at partner grocery stores, gas stations, and drugstores, 1 mile per $10 everywhere else | 7 types of insurance, purchase protection, extended warranty, car rental discount |
We hope this article has helped you choose the best Air Miles credit card for your needs. If you have any questions or feedback, please let us know in the comments below. And don’t forget to share this article with your fellow Hustlers who are looking for the best Air Miles credit card. Happy earning and redeeming! 🛫