How to Maximize Credit Card Rewards
Most Canadians leave hundreds of dollars on the table by not optimizing their credit card rewards. These strategies—from simple to advanced—will help you earn significantly more without changing your spending habits.
Strategy #1: Use the Right Card for Each Purchase
The simplest way to maximize rewards: don't use the same card for everything.
Example optimization: - Groceries: BMO CashBack World Elite (5%) → 5% back - Dining: Amex Cobalt (5x points) → ~5% back - Gas: CIBC Dividend Visa Infinite (4%) → 4% back - Everything else: Rogers World Elite (1.5%) → 1.5% back
vs. using one 1.5% card for everything: On $3,000 monthly spending ($1,000 groceries, $500 dining, $300 gas, $1,200 other): - Optimized: $50 + $25 + $12 + $18 = $105/month - Single card: $3,000 × 1.5% = $45/month
That's $720/year extra just from using the right cards.
Strategy #2: Stack Rewards
Combine multiple rewards programs on the same purchase:
Layer 1: Credit Card Rewards Use a card that earns in that category (e.g., 5% on groceries)
Layer 2: Store Loyalty Program PC Optimum, Scene+, Air Miles, etc. Many are free to join.
Layer 3: Shopping Portals Rakuten, Great Canadian Rebates, Aeroplan eStore give cashback/points for online shopping.
Layer 4: Gift Card Deals Buy discounted gift cards (e.g., 20% off at Costco) for stores you shop at.
Example stack: 1. Buy Uber Eats gift card at Loblaws with PC World Elite (3% in PC points) 2. Load to Uber Eats account 3. Order food with Uber Eats promo code (20% off) 4. Triple-dipped on one purchase
Strategy #3: Hit Welcome Bonuses
Welcome bonuses are the fastest way to accumulate rewards.
The math: - Scotiabank Gold Amex: 45,000 points = $450 value - Spend requirement: $2,000 in 3 months - Effective return: 22.5% on that spending!
How to hit bonuses responsibly: 1. Time new card applications before large planned expenses 2. Pay insurance premiums, property taxes with new cards 3. Use for regular spending you'd do anyway 4. NEVER overspend just to hit a bonus
Timing tip: Many cards waive the first-year fee. Apply, earn the bonus, and evaluate before year 2 whether the card is worth keeping.
Warning: Don't churn excessively. Banks notice and may deny future applications.
Strategy #4: Optimize Redemptions
Earning is only half the equation—redeeming wisely matters too.
Points redemption hierarchy (best to worst): 1. Transfer to airline partners for premium flights (1.5-2.5¢/point) 2. Book travel through card portal at good rates (1-1.5¢/point) 3. Statement credit for travel purchases (1¢/point) 4. Cashback redemption (0.5-1¢/point) 5. Gift cards (0.5-0.8¢/point) 6. Merchandise (0.3-0.7¢/point) ← Avoid!
Cashback optimization: Some programs give better value when redeemed certain ways: - Rogers: 1.5x value when applied to Rogers/Fido bills - TD: Extra value when used for TD products
Never let points expire: Use them or lose them. Set calendar reminders.
Strategy #5: Pay Bills with Credit Cards
Many bills can be paid with credit cards, earning rewards on fixed expenses:
Usually free to pay by card: - Insurance premiums (home, auto, life) - Phone and internet bills - Streaming services - Subscriptions
Often possible with a fee: - Property taxes (some municipalities) - Income tax (CRA accepts cards via third parties) - Utilities (sometimes) - Tuition
Calculate the math: If you pay 2% fee to use a credit card but earn 2% back, it's a wash. But if you're hitting a welcome bonus, the fee might be worth it temporarily.
Set and forget: Put recurring bills on your highest-earning card for that category, then automate.
Strategy #6: Product Switch to Avoid Fees
Don't want to pay an annual fee on year 2? Product switch instead of cancelling.
How it works: 1. Call your card issuer before your annual fee hits 2. Ask to product switch to a no-fee card in their lineup 3. Keep your credit history and limit intact 4. Avoid the fee
Example switches: - Scotiabank Gold Amex → Scotiabank Value Visa - TD Aeroplan Visa Infinite → TD Rewards Visa - CIBC Dividend Visa Infinite → CIBC Dividend Visa
Why this matters: - Keeps your credit age intact (closing hurts your score) - Maintains your credit limit (good for utilization) - No new hard inquiry - Can product switch back later if you want the premium card again
Strategy #7: Use Shopping Portals
Online shopping portals give extra rewards for shopping through their links.
Popular Canadian portals: - Rakuten: Cash back at 750+ stores - Great Canadian Rebates: Cash back, often higher rates - Aeroplan eStore: Earn bonus Aeroplan points - Scene+ eStore: Bonus Scene+ points - Drop: Points on linked card purchases
How to use them: 1. Before any online purchase, check portals for that retailer 2. Click through the portal link 3. Complete your purchase normally 4. Earn portal rewards ON TOP of credit card rewards
Example: - Buy $200 at Best Buy - 2% from Rakuten = $4 - 2% from credit card = $4 - Total rewards: $8 (4% effective rate)
Pro tip: Browser extensions like Rakuten's automatically remind you when a portal bonus is available.
📌 Key Takeaways
- ✓Use different cards optimized for each spending category
- ✓Stack rewards: credit card + loyalty program + shopping portal
- ✓Welcome bonuses offer 10-20%+ returns—time applications strategically
- ✓Redeem points for travel, not merchandise, for maximum value
- ✓Product switch instead of cancelling to keep credit history