Wondering if travel points are better than cash back or other rewards programs? You’ll save more on travel with points than with cash back when you use them wisely.
With the right credit cards, you can earn 1.5X to 3X more value, and in some cases up to 10X, compared to cash back. Check out our points valuation guide for more details.
Here’s why points beat cash back, how to get the most from each, and when cash back still makes sense.
The Power of Points for Travel
Cash back may feel simple, but you’ll usually get more value from travel points.
You’ll earn points faster with the right credit cards through welcome offers, everyday spending, and promotions.
You can redeem those points for flights and hotels that cash back can’t match, cutting your travel costs to a minimum.
You’ll also get more flexibility with points. Changes and cancellations are easier, and travel-focused cards along with co-branded flight and hotel cards, add extra benefits.
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Fuel your adventures with points
Signup to get expert guidance and the latest Canadian points and miles tips. Learn how easy it is to travel more for nearly free.
The AWP Newsletter
Fuel your adventures with points
Signup to get expert guidance and the latest Canadian points and miles tips. Learn how easy it is to travel more for nearly free.
Earning Points Example
Here’s how many points you can earn in your first year with the American Express® Cobalt.
Spending $1,000 a month on groceries and dining:
Based on our points valuation guide, at $0.02 per American Express MR® point, that equals $1,500 in travel. After the annual fee, you’ll still get at least $1,320 in value.
Redeeming Points Example
What can you book with 75,000 American Express® MR® points transferred to Aeroplan®?
AWP TIP
You’ll get the most from your points when you book strategically. Try to avoid peak dates, book early, and check alternate routes.
Top Offers
Wondering which credit card to get next?
Check some of the best credit card offers in Canada.
Top Offers
Wondering which credit card to get next?
Check some of the best credit card offers in Canada.
Cash Back Alternative
You’ll also find value with the best cash-back cards, like the Scotia Momentum® Visa* Infinite, one of the top cash-back options in Canada.
Spending $1,000 monthly on groceries and dining:
That’s $680 in your first year with the annual fee rebate.
Grocery Store Points Alternative
How many points can you earn with $1,000 a month in grocery spending on a store’s reward credit card?
What’s the value? These points can only be redeemed at participating retailers. At $0.001 per point, that’s $630 with the first year’s annual fee rebate.
Points Beginner’s Guide
From points newbie to booking your first trip.
Learn how easy it is for Canadians to earn points. Choose the best credit cards and programs. Make your first redemption for almost free travel.
Points Beginner’s Guide
From points newbie to booking your first trip.
Learn how easy it is for Canadians to earn points. Choose the best credit cards and programs. Make your first redemption for almost free travel.
Bottom Line
You’ll get more value from travel reward credit cards than from cash back, even if you only take one trip a year.
You can get 1.5X to over 10X more per point when you redeem for flights and hotels instead of cash back or other points.
You’ll save the most with the right cards and transferable points like American Express Membership Rewards®. That’s how you’ll enjoy premium travel for a fraction of the cost.
Check out our points valuation guide to see where you’ll get the most value.
