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Strategy · Last reviewed 2026-06-01

Travel vs cashback credit cards in Canada — how to choose

Cashback or points? It's the most common credit-card question Canadians ask. Here's the simple framework we use.

The short answer

Choose cashback if you spend under $30,000/year, fly less than twice annually, or want zero optimization work. Choose a travel/points card if you spend $40,000+, fly internationally yearly, or already use Chexy + an Membership Rewards–earning Amex for rent. Hybrid 2-card setups often beat either choice alone.

The decision tree

  • Spend < $30,000/year and fly rarely → cashback. Simpler, no redemption skill required.
  • Spend $30,000–$50,000 and fly 1–3 times/year → flexible points (Amex Membership Rewards, Aeroplan points). Higher ceiling on returns.
  • Spend $50,000+ and fly internationally → premium travel (Amex Platinum, Aeroplan points Reserve). Lounge access alone justifies the fee for frequent flyers.

Hidden tiebreakers

  • Rent strategy: routing rent through Chexy + Cobalt earns more Membership Rewards than any cashback card on Chexy.
  • FX: travel cards more often waive the 2.5% foreign transaction fee — meaningful if you shop USD subscriptions.
  • Insurance: travel cards bundle rental car + trip cancellation insurance worth $200–$400/year if you'd buy it standalone.

See the rankings

FAQ

Common questions

Are cashback cards better than travel cards in Canada?+

For most casual spenders, yes — cashback wins on simplicity and predictability. Travel cards win once you can reliably redeem points at 1.5+ cents each, which usually requires intentional optimization.

Can I have both a cashback and a travel card?+

Yes — and that's often the strongest setup. Use the cashback card as your default and the travel card for category multipliers (groceries, dining, travel). See our 2-card wallet guide for proven combos.

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