Travel bug credit cards
Points that become flights and hotel nights. How Canadian travel cards differ, what a point is really worth, and the perks that matter once you're in the air.
Travel cards can return far more than cash back, but only if you redeem the points well. The trick is to understand which kind of points you’re collecting, and what they’re realistically worth to you.
Three kinds of travel points
| Type | Examples in Canada | Strength | Watch out for |
|---|---|---|---|
| Flexible (transferable) | American Express Membership Rewards, RBC Avion | Move points to several airline or hotel programs. Wait for the best deal. | Best value usually needs a little research |
| Airline or hotel | Aeroplan, WestJet Rewards, Marriott Bonvoy | Straightforward redemptions, plus status perks like free checked bags or upgrades | Locked to one program; value depends on availability |
| Bank travel points | TD Rewards, CIBC Aventura, Scene+, BMO Rewards | Simple: book any travel and pay with points | Usually a fixed value per point, so less upside |
What is a point worth?
A point is worth what you can redeem it for, divided by the number of points. If 25,000 points cover a flight that would cost $400, each point was worth 1.6¢.
Rough working values Canadians use (and Fruga’s starting defaults):
- Aeroplan and Amex Membership Rewards: around 1.5¢, more on premium-cabin flights
- RBC Avion, CIBC Aventura and Scene+: around 1¢
- TD Rewards: around 0.5¢ when booking through TD’s travel service
These are estimates, not promises. If you only ever redeem for statement credits, use the lower value. In Fruga’s settings you can set your own value for every program, and every recommendation updates instantly.
Earning faster
- Category bonuses. Many travel cards earn extra on travel, dining, groceries or gas. Use the card that earns most per purchase. Fruga does this at checkout automatically.
- Welcome bonuses. Often the biggest single source of points. Bonuses come with a minimum spend within a set period, so only apply when your normal spending can reach it.
- Partner and portal offers. Airline shopping portals and linked loyalty programs can stack on top of your card’s earn rate.
Perks that matter when you travel
- No foreign transaction fee. Most cards add about 2.5% to every purchase in another currency. A few travel cards waive it, which is worth more than many “bonus” categories while you’re abroad.
- Travel insurance. Emergency medical, trip cancellation, delays and baggage. Coverage usually applies only if you charged the trip to the card. Read our credit card insurance guide.
- Lounge access and airline perks. Free checked bags and lounge passes can easily outweigh an annual fee, if you travel enough to use them.
A simple travel setup
- One card that earns a flexible or airline currency for most of your spending.
- A card with no foreign transaction fee for trips and US-dollar shopping.
- A no-fee card you keep forever for credit history.
How Fruga helps
At every checkout Fruga turns points into dollars using your values. It also counts foreign transaction fees on US-dollar purchases, so a 2× card with a 2.5% fee doesn’t wrongly beat a 1× card without one.