How to Choose the Best Credit Card for Your Needs

“What is the best credit card for me?” This question comes up often in our group and at Milesopedia events, highlighting the growing role credit cards play in the realm of cash back and travel benefits.

The best card depends primarily on your main spending categories. Here’s where to start based on your profile:

However, there is no universal answer due to the diversity of offers and individual needs.

This article is intended as a comprehensive resource, bringing together all the relevant questions related to this topic. Its goal is to help everyone choose the right credit card.

Define Key Goals for Your Credit Card in Canada

Before you start choosing the best credit card, take the time to define your intentions and goals, and have a clear idea of what you want to use it for.

When it comes to rewards, there are two main categories:

Cash back rewards
Travel points rewards

It’s essential to consider credit cards first and foremost as payment methods, while seeking to earn rewards. If budget management or maintaining your credit card balance poses difficulties, it’s advisable to review your financial habits.

Reviewing balance transfer or cash advance options can help you rebalance your financial trajectory, but can also be used to earn rewards or a bit of passive income. Warning: interest charges on unpaid balances will certainly exceed the value of rewards earned. Balance transfer and cash advance offers are not incentives to increase spending, but serve to pay down debt.

For those seeking advice on building credit, valuable resources are available in articles provided by Milesopedia to understand how it works and the best ways to improve it:

Choose the Best Credit Card Rewards Based on Your Needs

For those experienced in financial management and budgeting, credit cards become tools for optimizing rewards, allowing you to:

Save on everyday spending with cash back on all purchases,
Increase the frequency and type of travel (for example, flying in first-class suites on Emirates or Singapore Airlines)
Leverage loyalty points for maximum tax efficiency
Invest strategically by using credit card points
Achieve your dreams and retire early.

If your primary goal is to accumulate significant cash back, skip directly to the fourth step.

Refine Your Travel Goals and Needs with the Ideal Credit Card

If your goal is to accumulate rewards for travel, define these goals precisely. Unlike cash back rewards, travel rewards encompass a multitude of options and avenues. Therefore, choosing the best credit card for travel requires careful consideration.

Choosing a credit card suited to travel requires evaluating many factors. The following considerations will help you make your decision:

Type of points and types of travel: Rewards programs offer different types of points: airline miles, hotel points, etc. Each of these points is best suited to specific types of travel. It can be advantageous to accumulate different types of points for different trips, depending on your destinations and preferences. Are you often targeting budget destinations or luxury getaways to the Maldives or French Polynesia?
Destination and type of travel: Before choosing a card, identify your planned destinations and preferred travel style. Business trips, family vacations, solo adventures—each type of travel influences the choice of the ideal card.
Date flexibility and seasonality: Are you flexible regarding travel dates? Do you travel during peak season with school constraints or during off-peak periods? These factors play an essential role in card selection, as some programs are more advantageous outside peak periods.

Number of travelers and baggage: Are you traveling alone, as a couple, with a large family, or in a group? Do you need a card that offers benefits to multiple people? Additionally, consider whether you need benefits such as free checked baggage.
Insurance and coverage: Travel insurance can vary considerably from one card to another. If you’re looking for specific insurance coverage, make sure the card offers the necessary protections.

Travel class: Do you want to travel in economy class or business class? Some cards offer exclusive benefits for business class flights, which can influence your decision.
Airport lounge access: Frequent travelers often appreciate access to airport lounges to relax before their flight. If this interests you, look for cards that offer this benefit.
Travel frequency: Are you an occasional or frequent traveler? Some cards are designed for heavy travelers, while others are better suited to those who travel sporadically. When you’re a heavy traveler, you’re more likely to achieve a higher target valuation (even exceeding Milesopedia’s estimate).

Points and Best Use for Travel

The following table summarizes the different travel goals and associated point types.

The redemption possibilities listed are only the most popular and generally represent the best way to optimize your points, but there may be many other uses not mentioned. For more details, follow the links.

Air Canada, partners (Etihad Airways, Emirates, etc.) and Star Alliance flights
Short-haul flights in North America
Long-haul economy class flights (depending on cash price)
Aeroplan stopovers
Premium economy or business class flights

Flights, hotels and car rentals via Blue Rewards Travel (powered by Expedia)
Gift cards, in-store discounts and statement credit (1,500 points = $10)

American Express Membership Rewards credit cards

Any travel expense: flights on any airline, hotels, Airbnb, excursions, tours, cruises, etc.
Transferable to various other programs, including: Aeroplan, Avios, Flying Blue, Asia Miles, Marriott Bonvoy and Hilton Honors.

Cathay Pacific, OneWorld and partner airline flights
Flights with stopovers
Flights with multiple Oneworld partners
Qatar Airways Qsuites

Any travel expense: flights on any airline, hotels, Airbnb, excursions, tours, cruises, etc.
CIBC Aventura: How to Use Aventura Points to Travel for Less

British Airways, Qatar Airways, OneWorld and partner airline flights
Oneworld multi-partner award tickets
North America to Europe in economy class during off-peak dates
Short, direct flights
Domestic flights in Japan, Australia, the United States, etc.
Qatar Airways Qsuites

Any travel expense: flights on any airline, hotels, Airbnb, excursions, tours, cruises, etc.
National Bank: How to Use NBC Rewards Points for Your Travel?

Air France/KLM, Skyteam and partner airline flights
North America to Europe in economy class with Promo Rewards
Discounted award flights for children under 11

Over 8,000 stays at Marriott hotels
Get the 5^th night free when paying with points
Transferable to various airline programs

Any travel expense: flights on any airline, hotels, Airbnb, excursions, tours, cruises, etc.
How to Use Your Scene+ Points to Save on Travel

RBC WestJet^® World Elite Mastercard

WestJet and partner flights

Points program	Credit card	Popular Uses
Aeroplan	Aeroplan Credit Cards American Express Membership Rewards credit cards
Blue Rewards

American Express Membership Rewards

Asia Miles

Aventura

Avios

National Bank Rewards

Flying Blue

Marriott Bonvoy

Scène+

Dollars WestJet

VIPorter

Porter Airlines and partner flights

Once travel goals are well defined, move on to the next step.

How to extend travel insurance for the Scotiabank Passport Visa Infinite + Card - Stock photo travel adventure

Tips to Maximize Rewards Accumulation on Your Credit Card

Whether you’re looking to earn cash back or travel points, points accumulation follows two paths:

Generous welcome bonuses
Strategic organic earning

A balance between these approaches optimizes rewards. While welcome bonuses offer substantial gains, long-term viability requires a combination of strategies. The impact of occasional new card applications on credit scores is less severe than commonly thought.

Our community often discusses the best credit card to choose for the next “rounds,” as intermittent applications are frequent. For newcomers, it’s advisable to integrate gradually into this world, given the marathon nature of this game.

Create a comprehensive list of regular expenses by category. Each card comes with powerful category accelerators, allowing you to maximize earnings precisely.

At the same time, establishing a budget helps reduce phantom spending or refine savings goals.

A Simple Wallet for the Best Cash Back Returns

The following example is a simple two-credit-card wallet for someone who isn’t ready to tackle credit card fees but still wants to achieve maximum cash back returns.

Other

10% (up to $2,000 in the first 4 months), then 1%.

Grocery

EV charging

Amazon, SAQ, Netflix, clothing, etc. (with the gift card strategy)

Recurring bill payments

Credit card	Category	Return
Tangerine World Mastercard	Pharmacy Rénovation Public transit and parking
CIBC Dividend^® Visa Infinite* Card((no annual fee the first year))

Restaurants

Our credit card selection
Credit card	Annual fee	Welcome offer
Tangerine^® Money-Back World Mastercard^®* Apply NowCompare	Annual fee$0	Welcome offerAfter $1,500 in 3 months $120 cash backEnds Nov 30, 2026 After $1,500 in 3 months	Apply NowCompare
CIBC Dividend^® Visa Infinite* Card Apply NowCompare	Annual feeFirst Year Annual Fee Rebate$120 $0First Year Annual Fee Rebate	Welcome offerAfter $2,000 in 4 months Up to $250 cash back After $2,000 in 4 months	Apply NowCompare

In this example, you could keep your core product for your organic spending, the Tangerine World Mastercard, and benefit from a high return for those famous “other” categories for a few months with the CIBC Dividend^® Visa Infinite* Card.

Then, for the rest of the year, you can earn more cash back without paying fees. When your time is up with the CIBC Dividend^® Visa Infinite* Card, you can close it and spend the following year with the TD Cash Back Visa Infinite* Card to continue achieving high returns.

Visa’s compatibility with Costco offers a unique opportunity. Purchasing a $2,000 Costco gift card yields a 10% return, a substantial increase over the 1% return. This will keep you set for a while and you won’t be rushed to spend it.

A Simple Wallet for the Best Travel Rewards

Here’s a simple core wallet example for general travel expenses (flights, accommodation, excursions, getting the best exchange rate, savings on conversion fees, etc.). While it’s harder to avoid paying fees with these cards, they’re considered the best credit cards for regularly accumulating a large number of points. Additionally, most of these cards come with annual travel credits or recurring promotional offers.

Since this is a core wallet, you can add other products to cover all your specific needs and desired benefits, as earning points for “travel” can be very vague. For example, if you need a Nexus membership to get through the airport faster or if you need Marriott free night certificates because you often stay with the chain to take advantage of your elite status.

Any travel expense: flights on any airline, hotels, Airbnb, excursions, tours, cruises, etc.
Suitable for economy class flights (all airlines), business class, and all-inclusive vacations.
Versatile points suitable for any destination worldwide
Transferable to various other programs, including: Aeroplan, Avios, Flying Blue, Asia Miles, Marriott Bonvoy and Hilton Honors.

Amazon, SAQ, Netflix, clothing, etc. (with the gift card strategy)

Streaming subscriptions

Restaurants

Other

Any travel expense: flights on any airline, hotels, Airbnb, excursions, tours, cruises, etc.
Suitable for economy class flights and all-inclusive vacations
Suitable for Air Transat flights
Excellent travel insurance coverage (when paying with cash or points)
Unlimited access to the NBC Lounge
DragonPass lounge membership
$150 annual travel credit
National Bank: How to Use NBC Rewards Points for Your Travel?

Amazon, SAQ, Netflix, clothing, etc. (with the gift card strategy)

Recurring bill payments

Restaurants

Other

For every dollar spent at Sobeys, IGA, Safeway, Foodland, FreshCo, Voilà by Sobeys, Voilà by IGA, Voilà by Safeway, Chalo! FreshCo, Thrifty Foods, IGA West, Les Marchés Tradition, Rachelle Béry and Co-Op.

Any travel expense: flights on any airline, hotels, Airbnb, excursions, tours, cruises, etc.
Suitable for economy class flights (all airlines), business class, and all-inclusive vacations.
No foreign conversion fees
Six complimentary lounge passes
How to Use Your Scene+ Points to Save on Travel

Credit card	Category	Return	Needs
American Express Cobalt^® Card	Grocery










National Bank World Elite Mastercard
Grocery










Scotiabank Passport^™ Visa Infinite +* Card

Purchases at grocery stores, restaurants, entertainment venues, and daily transportation (including buses, subways, taxis, etc.)

The famous “other” category never offers a generous return, which is why I try to dedicate these expenses exclusively to unlocking a welcome bonus when possible.

Our credit card selection
Credit card	Annual fee	Welcome offer
American Express Cobalt^® Card Apply NowCompare	Annual fee$191.88	Welcome offerGet 1,250 points after $750 in purchases per month for 12 months Up to 15,000 points Get 1,250 points after $750 in purchases per month for 12 months	Apply NowCompare
Scotiabank Passport^® Visa Infinite +* Card Apply NowCompare	Annual fee$150	Welcome offerAfter $2,000 in 3 months Up to 35,000 pointsEnds Nov 1, 2026 After $2,000 in 3 months	Apply NowCompare

Select the Optimal Rewards Multiplier for Your Card in Canada

A complete list of monthly expenses makes choosing the right credit card for each category easier.

You can consult our various guides here:

Conclusion

Before choosing the credit card that’s right for you, start by defining your goals (cash back or travel, and what type of travel) and evaluating your specific needs. Detailed comparisons of benefits, annual fees, and point conversion rates should guide your decision-making process.

Remember that credit cards should be treated like debit cards. While enjoying the benefits, be careful not to go into debt. The key is to spend wisely and live within your means. After all, the best rewards are peace of mind and good financial health.

There is no one best credit card, but rather a card that best matches your preferences and habits. Making an informed choice requires time, research, and a thorough understanding of what each card offers.

In summary, while the question “What is the best credit card?” persists, it’s important to remember that the answer lies in a thorough analysis of your personal needs.

Compare

American Express Cobalt^® Card

American Express Amex Membership Rewards

Annual fee: $191.88
Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$255Total$255Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.: $255
Welcome offerGet 1,250 points after $750 in purchases per month for 12 months: Up to 15,000 points

The American Express Cobalt^® Card is a versatile American Express card, whether you want points for travel or cash back.

American Express Cobalt^® Card welcome offer

The welcome bonus is paid out monthly over your first 12 months. You earn 1,250 Membership Rewards points for each monthly billing period in which you charge $750 in net purchases to your card, in any category (1X, 2X, 3X or 5X). That adds up to 15,000 Membership Rewards points over the year, a welcome offer valued at $255.

Earning the full bonus means $9,000 in net purchases spread across 12 monthly billing periods. This offer rewards steady monthly spending rather than one large purchase.

You can use these points as statement credits on everyday or travel purchases, at the same rate either way: 1,000 points = $10.

You can also transfer them to Aeroplan, Avios (British Airways and Qatar Airways), Flying Blue, Marriott Bonvoy or Hilton Honors. With the full welcome bonus, that is a choice between:

15,000 Aeroplan points
15,000 Avios points
15,000 Flying Blue Miles
18,000 Marriott Bonvoy points

American Express Cobalt^® Card benefits

Here is what the card gives you, starting with the benefits cardholders use most.

5X points on eligible eats and drinks in Canada: groceries, restaurants and bars, home food delivery and convenience stores. A spend cap applies.
3X points on eligible streaming subscriptions in Canada.
2X points on eligible gas, public transit and ride sharing purchases in Canada.
1 additional point on eligible hotel and car rental bookings made through American Express Travel Online.
1X point per dollar on everything else, with no category restrictions.
Points that hold the same value either way: 1,000 points = $10 as a statement credit, or a 1:1 transfer to several airline and hotel loyalty programs.
No minimum income requirement, as with every American Express Canada card.
Additional cards at no extra cost: the first and every other supplementary card is $0.
The Hotel Collection: a room upgrade when available, 12pm check-in and late check-out when available, and up to $100 USD in hotel credit on amenities charged to the room for a stay of two or more consecutive nights, booked through American Express Travel.
Front Of The Line^® presale and reserved tickets for concerts and theatre performances, plus offers and events curated for cardmembers through Amex Experiences.
A soft credit check before you apply: you can see whether you will be approved with no impact to your credit score. This applies to American Express personal card applications.

The 5X categories and where they apply

The 5X rate is the reason most people carry this card. In Canada it covers four kinds of merchants:

Groceries: Metro, IGA, Sobeys, Super C, Safeway, Whole Foods.
Restaurants and bars: sit-down meals, takeout and drinks.
Home food delivery.
Convenience stores: Couche-Tard, 7-Eleven.

The 2X rate covers gas stations such as Esso, Shell and Petro-Canada, along with public transit and ride sharing.

With the American Express Cobalt^® Card, you earn between 1 and 5 points per dollar:

Category	Points per dollar
Grocery (Metro, IGA, Sobeys, Super C, etc.)	5
Home food delivery	5
Restaurants and bars	5
Convenience stores	5
Streaming services	3
Service station	2
Transport	2
Travel	1
Other	1

That works out to a 1 to 5% return on those purchases. For example, if you spend $1,000 per month across groceries, restaurants and food delivery, you earn $50 back per month, or $600 per year from that category alone. Transfer the points to a program such as Aeroplan instead and the return can be higher.

You can also stack these categories with the hundreds of stores that offer 5x points.

American Express Cobalt^® Card insurance coverage

The card comes with a broad insurance package. The amounts below are the coverage limits; conditions, age limits and exclusions are set out in the certificate of insurance linked in the Insurance section above.

Travel insurance

Emergency medical: up to $5,000,000 for the first 15 days of a trip.
Travel accident: accidental death and dismemberment of up to $250,000 for you, your spouse and dependent children under age 23 when travelling on a common carrier (plane, train, bus or ship) and the tickets are charged to your card. Supplementary cardholders and their families are covered too.
Flight delay: up to $500 for necessary hotel, meal and sundry expenses bought within 48 hours when you are delayed or denied boarding for four hours or more and no other transportation is available. This $500 is an aggregate limit per occurrence, shared with missed connection and delayed baggage coverage.
Delayed baggage: up to $500 for essential clothing and sundries bought within four days when your outbound luggage is delayed six hours or more. This $500 is an aggregate limit per occurrence, shared with missed connection and flight delay coverage.
Lost or stolen baggage: up to $500 per occurrence for all insured persons combined, for checked or carry-on baggage and personal effects in transit, when the airline tickets are charged to your card. Within that limit, jewellery is capped at $300 per occurrence and golf clubs, including golf bags, at $250 per occurrence.
Hotel and motel burglary: up to $500 against the loss of most personal items if your hotel or motel is burglarized, when the stay is charged to your card.

Rental car insurance

Theft and damage coverage is included for a rental car with an MSRP, for its model year, of up to $85,000 excluding all taxes, for rentals of up to 48 days. To use it, decline the Loss Damage Waiver (LDW) or any similar option from the rental company and charge the full rental to your card. There is no cost for this coverage, and it replaces the daily insurance the rental company charges, usually $16 to $23 per day.

Mobile device insurance

Your device is covered for up to $1,000 per occurrence when it is charged to the card, for up to two years from the date of purchase. The payout is based on the depreciated value of the device, which falls by 2% of the purchase price for every completed month, less a 10% deductible. Theft and accidental damage coverage starts on the 91st day after purchase, because the first 90 days are covered by purchase protection.

Purchase protection and extended warranty

Eligible items charged to your card are insured against accidental physical damage or theft for 90 days from the purchase date, up to $1,000 per occurrence for all items combined. The card also extends the original manufacturer’s warranty by up to one additional year on eligible items, with indemnification limited to $10,000 per insured item and $25,000 per Cardmember per policy year for all items combined.

American Express Cobalt^® Card fees

Card fee: $15.99 per month, which equals $191.88 per year, for residents outside Quebec. Quebec residents are billed $191.88 per year.
Additional cards: $0.
Purchase interest rate: 21.99%.
Cash advance interest rate: 21.99%.
Foreign transaction fee: 2.5%.
Minimum income required: none.

Because the fee is billed monthly rather than in one annual charge, you can stop and restart the cost in step with how much you are actually using the card.

Legal

American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, we may receive compensation from American Express, which can be in the form of monetary payment.

Annual fee

Primary card$191.88

Additional card$0

Annual income required

Individual$0

Household$0

Conversion fees

2.5%

Earning rate

5xRestaurants
5xGroceries
3xStreaming
2xTransit
2xGas
1xAll spending

Value

1st Year Value$1,675

2nd Year Value$799

Transfer partners

AeroplanAirline
British Airways ClubAirline
Cathay Asia MilesAirline
Etihad GuestAirline
Flying BlueAirline
Hilton HonorsHotel
Marriott BonvoyHotel

Travel insurance

Travel medical (under 55)Up to $5,000,000 / 15 days

Travel medical (55-64)Up to $5,000,000 / 15 days

Delayed BaggageUp to $500

Lost BaggageUp to $500

Flight DelayUp to $500

Hotel BurglaryUp to $500

Travel AccidentUp to $250,000

Purchase protection

Purchase ProtectionUp to $1,000 / 90 days

Extended Warranty+1 years

Mobile DeviceUp to $1,000 / 2 years

Auto Rental Collision (primary)Up to $85,000 / 48 days

Frequently Asked Questions

How do I know which credit card is right for me?

Start with your main spending categories (groceries, gas, restaurants, travel) and your goal: cash back or travel points. The right card is the one that earns the most on your actual spending categories. Our comparator calculates that return for you.

Is it better to get a cash back card or a travel points card?

Cash back is simple and flexible: you get a percentage back on your purchases, with no conversion. Travel points often earn more, but only if you take the time to use them well. Choose based on how much time you want to devote to it.

What income do you need for a Visa Infinite or World Elite card?

Most Visa Infinite and World Elite cards require an annual income of at least $60,000 for an individual, or $100,000 per household. Always check eligibility before applying, because a denial leaves a mark on your credit file.

How many credit cards should I have?

Start with a single card aligned with your main spending category. You can add a second, complementary card once you’ve mastered the first. The key is to use each card where it earns the most.

Is a card with an annual fee worth it?

Yes, as soon as the annual value (welcome bonus, rewards, and perks) exceeds the fee. With regular spending in the right categories, an annual-fee card often earns more than a no-fee card. Calculate the net gain for your budget.

How do I use the Milesopedia comparator?

Select up to three cards, enter your spending by category, and the comparator shows the net return for each one in the first year, after fees. It’s the fastest way to decide between two cards you’re considering.