Best Travel Credit Cards

Planning your next trip to Europe? Weekend getaway to Vancouver? Business travel that feels endless? The right travel credit card can turn every dollar you spend into flights, hotel nights, and experiences you’ll actually remember.

But here’s what the banks don’t tell you: most “travel” cards are garbage for actual travelers.

What Makes a Travel Credit Card Actually Worth It

Travel credit cards aren’t just about earning points. Any decent rewards card can do that. The best travel credit cards solve real problems you face when you’re away from home.

Free checked bags that save you $50+ per trip. Airport lounge access when your flight gets delayed for three hours. Travel insurance that actually covers you when things go sideways abroad.

Plus earning rates that make sense for how you actually spend money, not just on flights and hotels.

The Cards That Actually Deliver for Canadian Travelers

American Express Aeroplan Reserve Card

This isn’t just a credit card. It’s a travel transformation system. The $599 annual fee sounds steep until you realize what you’re getting.

Welcome bonus of up to 130,000 Aeroplan points. That’s enough for business class flights to Europe or multiple domestic trips. The earning structure hits 3x points on Air Canada purchases, 2x on dining and food delivery, plus 1.25x on everything else.

But the real value is in the perks. Maple Leaf Lounge access when flying Air Canada. Priority Pass membership for over 1,200 lounges worldwide. Free checked bags for up to nine passengers on the same reservation.

The annual companion flight benefit lets you book a second ticket using points on the same itinerary. For couples or families, this single benefit can save thousands annually.

Priority airport services mean shorter lines, faster security, and priority baggage handling. When you’re rushing to catch connections, these aren’t luxuries. They’re necessities.

American Express Cobalt Card

Here’s the thing about travel: most of your spending isn’t actually on travel. It’s on food, groceries, and everyday expenses that happen to fund your adventures.

The Cobalt Card gets this. It offers 5x Membership Rewards points on groceries, restaurants, bars, and food delivery in Canada. That’s industry-leading earning on categories you spend on every week.

The monthly fee structure of $12.99 instead of an annual fee makes the $155.88 yearly cost feel more manageable. Plus you get comprehensive travel insurance up to $5 million and the flexibility to transfer points to airline partners.

The welcome bonus spreads 15,000 points across your first year, rewarding consistent spending rather than forcing you to hit massive thresholds immediately.

Where this card shines is point transferability. Membership Rewards transfer to Aeroplan, British Airways, Marriott Bonvoy, and other partners. Smart redemptions can yield 2-5 cents per point in value, making that 5x earning rate effectively 10-25% back on food spending.

The Hidden Costs of “Free” Travel Cards

Every bank pushes no-fee travel cards. They sound appealing until you realize what you’re giving up.

Lower earning rates that make accumulating meaningful rewards take forever. Limited or non-existent travel insurance. No lounge access when your flight gets cancelled.

Zero foreign transaction fees? Great. But if the card only earns 1 point per dollar, you’re still losing money compared to premium cards with better earning structures.

The math is simple: would you rather pay $120 annually for a card that earns 2x points on everything, or use a “free” card that earns 1x points? If you spend $10,000 annually, the premium card nets you 8,000 more points even after the fee.

Travel Insurance: The Feature Nobody Reads About

Until you need it. Then it’s the only thing that matters.

Comprehensive travel insurance can save thousands when trips go wrong. Emergency medical coverage abroad, trip interruption protection, baggage delay compensation.

The Aeroplan Reserve includes up to $5 million in medical coverage. The Cobalt matches this. Most no-fee cards offer basic coverage at best.

Consider this: a medical emergency in the US can cost $100,000+. Travel insurance that comprehensive costs $500+ if purchased separately. Suddenly that annual fee looks reasonable.

Airport Lounges: Worth the Hype?

If you travel more than twice a year, yes. Absolutely.

Free food and drinks save $50+ per airport visit. Quiet workspaces with reliable wifi when you need to be productive. Comfortable seating when delays stretch for hours.

The Aeroplan Reserve provides Maple Leaf Lounge access plus Priority Pass membership. The Cobalt doesn’t include lounge access, but the points you earn can transfer to programs that offer day passes.

Priority Pass alone is worth $400+ annually if you use it regularly. Single-visit day passes cost $30-40 each.

Earning Strategies That Actually Work

Stop chasing travel spending. Unless you’re dropping $50,000+ annually on flights and hotels, category bonuses on everyday spending earn more points.

The Cobalt’s 5x on food means $200 in restaurant spending earns 1,000 points. The same amount on travel spending with most cards earns 400-600 points.

Use your travel card for everything it excels at. Dining, groceries, and recurring payments add up faster than sporadic travel purchases.

Set up automatic payments for subscriptions, utilities, and insurance. These recurring charges earn points monthly without additional effort.

The Two-Card Strategy

No single card optimizes everything. The best approach combines complementary cards.

Aeroplan Reserve for Air Canada flights and premium perks. Cobalt for everyday spending that funds those trips. Or SimplyCash for straightforward cash back when you don’t want to play the points game.

The key is using each card for what it does best, not trying to force one card to handle everything.

When Premium Cards Make Sense

If you spend less than $15,000 annually, premium travel cards probably aren’t worth the fees. Stick with no-fee options or cash back cards.

If you travel once a year or less, the perks don’t provide enough value to justify costs. Focus on earning flexibility instead of travel-specific benefits.

But if you’re a frequent traveler, business person, or high spender, premium cards deliver outsized value. The combination of earning rates, insurance coverage, and travel perks can easily exceed $2,000 in annual value.

Points vs. Cash Back: The Eternal Debate

Points offer higher redemption potential when used strategically. Cash back provides simplicity and guaranteed value.

Membership Rewards points can be worth 2-5 cents each when transferred to airline partners for business class redemptions. The same points are worth 1 cent each for statement credits.

If you’re willing to research redemption strategies and plan travel around point availability, travel cards offer superior returns. If you want simplicity and immediate value, cash back cards make more sense.

Foreign Transaction Fees: The Silent Killer

Most premium travel cards waive foreign transaction fees. This saves 2.5% on every international purchase.

If you travel internationally or shop online from foreign retailers, this single benefit can save hundreds annually. For frequent travelers, it’s non-negotiable.

Even domestic travelers benefit. Online purchases from international retailers, digital subscriptions priced in foreign currencies, and emergency purchases while traveling add up.

Making the Decision

The best travel credit card depends entirely on your spending patterns and travel frequency.

Heavy Air Canada flyers who value premium experiences should consider the Aeroplan Reserve despite the high annual fee. The perks and earning rates justify the cost for frequent travelers.

Food-focused spenders who travel occasionally might prefer the Cobalt Card. The 5x earning on dining and groceries outweighs travel-specific perks for most people.

Budget-conscious travelers should start with no-fee options or cash back cards that offer travel redemption flexibility.

Don’t choose based on welcome bonuses alone. The ongoing earning structure and benefits matter more than short-term incentives.

Pull your spending data from the last year. Calculate potential rewards with different cards. Factor in annual fees, redemption values, and benefit usage. The math will reveal which card delivers the most value for your situation.

The best travel credit card isn’t the one with the highest earning rate or most premium perks. It’s the one that aligns with how you actually spend and travel, delivering maximum value for your specific lifestyle and goals.

Why Choose Smarter Loans?

Access to Over 50 Lenders in One Place

Transparency in Rates & Terms

100% Free to Use

Apply Once & Get Multiple Offers

Save Time & Money

Expert Tips and Advice