While a credit card certainly allows you to borrow a pre-approved amount of money, they can also offer a wide range of rewards and benefits if used correctly. Here’s a look at the different ways to make the most of them.

“Some cards truly offer many benefits, whether it’s reward points for travel or cash back,” explains Marie-Ève Leclerc, web content director for the Milesopedia website, which specializes in comparing credit cards and rewards.

With the cost of air travel soaring and the cost of hotel accommodation soaring, it’s hardly surprising that travelers are looking for ways to save money. And banks, airlines and hotel chains are multiplying their offers to win the loyalty of globetrotters. Here’s a roundup of travel points cards.

The Canadian benchmark for travel points is Milesopedia, a company founded almost ten years ago by Jean-Maximilien Voisine. “It’s like the value of the dollar, there’s a devaluation. So you can’t compare a point in 2010 with a point today. We don’t treat these rewards programs like RRSPs. You have to use your points regularly, because they’re only called upon to do one thing: devalue,” explains the founding president.

Inflation is raging. You might as well use bonus points to pay for groceries. Here are seven of the most generous credit cards.

Reward program points are not RRSPs. With inflation and conditions of use constantly changing, it’s best not to accumulate them.

“During the pandemic, reward programs adapted. As people couldn’t travel, they extended usage to all types of purchases. Most have maintained these conditions,” explains Jean-Maximilien Voisine, founding president of Milesopedia.

With inflation hitting everyday budgets hard, every deal is worth taking. To make the most of every opportunity to keep more money in your pocket, you can cut your expenses by using the right credit card, there are plenty of reward programs that help you save on groceries or gas, and even on travel!

With smart use of these offers, some people have even saved up to $10,000 to travel the world. Narcity therefore spoke with Jean-Maximilien Voisine, an expert in loyalty programs and credit cards, who is the president and founder of Milesopedia, — a website that compares various banking offers and programs.

EXCERPT

At IGA, until June 28, a 750-ml case of strawberries from Quebec is $2.44 for Scene+ cardholders. On the other hand, if you’re unlucky enough not to have one, you’ll have to pay $3.99, or about 60% more. On social networks, some people were outraged to see member and non-member prices appearing in several food banners on fruits, vegetables, condiments and other popular foods.

At the same time, several grocery banners have announced changes to their loyalty programs with great fanfare in recent months. Here are our answers to a few questions on the subject.

What has changed?

Since the end of May, the Moi program, promoted by Metro, has included several other banners belonging to the same company: Super C, Jean Coutu, Brunet and Première Moisson. Each dollar spent earns one point, and each 500 points is redeemable for a $4 discount. The Scene+ card, meanwhile, is being introduced in Sobeys-related stores – IGA, Marchés Tradition and Rachelle-Béry – which are dropping Air Miles. These programs allow you to earn points when you purchase certain products. In both cases, personalized offers are also sent to users.

Loblaw-owned chains such as Provigo and Shoppers Drug Mart have a similar program, using the PC Optimum card. The Milesopedia site offers a detailed comparison of the different formulas.

Jean-Philippe Khazoom has just returned from a trip to Vancouver, for which he spent just a few hundred dollars, as he did for his skiing trip in Western Canada at spring break.

As for Jean-Maximilien Voisine, he and his family flew around the world in business class before the pandemic, free of charge… or almost. They are among the thousands of Quebecers who have become masters in the art of juggling credit card rewards programs, and who travel the globe with their travel points.

The company behind the Air Miles loyalty program, Loyalty Ventures, is preparing to file for bankruptcy protection in the coming days.

UPDATE | Convention d’achat pour que BMO achète le programme de fidélisation Air Miles

According to Bloombergthe American company, which has lost a large number of customers, has been in negotiations with creditors since this year to reach a restructuring agreement.

Air Miles cardholders will have to hurry to spend their points before the company makes it official in the next few days.

According to Milesopedia, Air Miles has been struggling since the start of the pandemic, which “has only accelerated its decline in the Canadian rewards landscape”.

“Here’s some news that’s shaking up the world of rewards programs in Canada! Scotiabank and Cineplex are pulling off a major coup by teaming up with the Empire Group to bring the Scene+ program to hundreds of grocery and drug stores across the country. And they’re doing it in a bid to combat the equally well-established PC Optimum program,” reads a post on the Milesopedia.com blog, a reference site on loyalty programs and credit cards.

It’s a win-win situation for the consumer, according to Jean-Maximilien Voisine, CEO of Milesopedia, a website specializing in loyalty programs and credit cards. “The Air Miles program is still perceived as complex. […] The Scene+ program is much simpler to understand. You’ll be able to earn points more easily. There’s diversity in accumulation via credit cards, via cinemas, via restaurants, via travel. And on the usage side, it stays simple too: 1,000 points are worth $10.”

Traveling first class on a New York-Dubai flight with Emirates for only $700, when it would normally cost $15,000: mission impossible? Not for Jean-Maximilien Voisine, who, thanks to his credit cards and a few tricks, manages to benefit from a host of advantages when he travels.

Milesopedia, the information site he launched in 2015, is a reference in Canada for loyalty programs and rewards point credit cards, so much so that its credit card comparator has become the official comparator for Protégez-Vous. He shares some tips with us here.

You can’t go wrong with your first card, because it’s in your interest to hold on to it for as long as possible.

“The longer he keeps it, the better his credit score will be,” says Jean-Maximilien Voisine, founder of Milesopedia, a Quebec-based website specialized in loyalty programs and credit cards. Stability fosters a good credit rating, and this quality is measured, among other things, by the duration of your cards.

Initially, avoid all those that require an annual fee. There will come a time when it will no longer be used, but will be kept only to gild your record.

“A common mistake is to order a new card from the parents’ account,” warns Jean-Maximilien Voisine. To build his or her case, the child must cut the cord and use his or her own card. And, of course, he must pay his balance each month before the due date and use only a fraction of the card’s capacity.

Jean-Maximilien Voisine, founding president of Milesopedia.com, the largest community of Milesopedia users in the country, keeps telling his members that bonus points are not RRSPs.

“You need to use them over a 12 to 24-month horizon,” he adds.

It suggests that consumers set themselves specific goals, such as using the points for a particular aspect of their consumption or travel (car rental, purchase of renovation materials or petrol…).

And to have options, like using them for a trip to Canada in time of pandemic.

Last March, Jean-Maximilien Voisine was in Australia in the middle of a five-month round-the-world trip with his family when the pandemic forced him to return to Quebec. He had to write off the rest of his journey funded by years of accumulating points.

“We left in December. We were going to end up in Japan,” says the founder of the Milesopedia website, dedicated to tips for maximizing the benefits of travel credit cards.

But after nine months of the pandemic, travel credit cardholders are wondering whether they should keep this type of card, which costs them $100 to $150 in annual fees and no longer offers many benefits.

But think twice before you cancel your card. If you have had it for a long time, it can hurt your credit score. In addition, you will automatically lose the extended warranty that covers all products purchased with your card.

Instead, Mr. Voisine suggests negotiating a reduction in annual fees with your financial institution. “We have multiple examples in our community,” he says. Several issuers have made adjustments to avoid losing a customer. They’ve removed half or even all of their annual fee.”

Nothing ventured, nothing gained.

The best way to maximize your points is to look beyond air tickets. “Our readers were encouraged to broaden their view of travel to include the concept of vacation,” Voisine says.

We tend to forget it, but hotels, cottages, Airbnb, campsites, train tickets and car rentals also fall into the “travel” category of credit cards. You can plan a great vacation at Quebec or in Canada.

As of 2018, however, programs are better regulated. Points can no longer expire (wow!), just as it is no longer possible for issuers to drastically devalue the units in their program.

Still, it’s hard to follow. The rules are written in fine print and can change at the whim of the program promoter. When the company goes bankrupt, the points are lost and, in the event of the holder’s death, they can rarely be transferred at their full value.

So, a reminder to those who rely on their points to fulfill their retirement plans, it’s risky to say the least. A loyalty program is not an RRSP.

“We recommend a 12 to 24 month vision,” advises Jean-Maximilien Voisine, founder of Milesopedia, a website specialized in loyalty programs.

In his view, these programs should be considered as savings accounts linked to specific projects, but whose value remains uncertain.

ForAeroplan members, the uncertainty persists. They were certain that the program would remain unchanged until 2020, and are now wondering whether Air Canada will make any changes as soon as the deal closes next autumn.

“What’s going to happen? Are they going to touch the fare grids? Are they going to touch the value of the miles? We don’t really know. And that’s what worries me a little,” confided Jean-Maximilien Voisine, founder of Milesopedia, a website specializing in the analysis of loyalty programs and credit cards.

In the Journal de Montreal and in 24H, journalist Philippe Orfali writes on 22/08/2018 aboutAeroplan in an article: Turbulence in sight for members Aeroplan:

“If it goes through, the transaction will produce the best possible scenario for Aimia shareholders as well as members,” says Air Canada CEO Calin Rovinescu. “It will allow for the smooth transition of Aeroplan points to Air Canada’s new frequent flyer program, as well as the protection of points.”

But for Jean-Maximilien Voisine of Milesopedia, this is probably bad news for the program’s members:

“The consortium will acquire […] a huge debt of $1.9 billion, the value of all Aeroplan miles currently in circulation. No doubt they’ll try to make up for it by devaluing the program,” he says.

In its July 2017 issue, Protégez-vous took a look at advances relating to the AIR MILES loyalty program in an article entitled: Finally, has AIR MILES kept its promises? Milesopedia was interviewed for the occasion. We invite you to find the full interview in the July 2017 magazine!

Jean-Maximilien Voisine, founder of milesopedia.com, a Quebec-based site specializing in loyalty programs, believes that the seduction campaign is far from being won. “Let’s make no mistake: Air Miles is in a very delicate position, one that LoyaltyOne has put itself in over the last few months.” The company, he asserts, still has work to do to regain the trust of its members.

A strategy that could quickly show its limits if miles come to be devalued, believes Matthieu Guyonnet-Duluc, blogger for milesopedia.com: “LoyaltyOne could choose to modify the program by decreasing the value of miles in order to compensate for the financial losses weighing on its profitability.” The cancellation of the miles expiry policy in 2016 cost LoyaltyOne around $200 million, as members will finally have the opportunity to use their miles that were due to expire.

Jean-Maximilien Voisine believes that Air Miles would do better to simplify its operations, for example by eliminating the distinction between the Dream and Cash reward systems or, failing that, by allowing consumers to freely migrate miles from their Dream account to their Cash account – and vice versa.

Columnist and digital marketing specialist Maxime Trudel conducted an interview on TVA’s LCN with the subject “Travelling with your points: tips for getting there”(In your pockets column).

He mentions milesopedia as the only French-Canadian reference for learning and informing yourself about loyalty programs.

The more flexible you are when it comes to travel, in terms of dates and destinations, the easier it is to use them, because not all flights are available, and there are a limited number of seats available for people who want to buy with their points,” adds Maxime Trudel, who also recommends making arrangements in advance.

The digital marketing expert also suggests finding out about the different programs, as it is sometimes possible to transfer points from one to another.

“You have to play around with it a bit, but there are ways of treating yourself to a great vacation, inexpensively, anywhere in the world,” concludes Maxime Trudel, explaining that certain websites like Milesopedia help people see things more clearly and get the most out of their loyalty program.

Maxime Trudel published an article in the Journal de Montreal on the theme ” It’s possible to travel with your points” :

A “free” trip is planned by selecting the right map. The best way to earn miles is through the generous sign-up bonuses of the major cards. When on promotion, you can sometimes get a free flight on your first purchase, which would otherwise require you to spend tens of thousands of dollars.

(…) if the idea of cheap travel appeals to you, start by learning about it. At Quebec, milesopedia.com and its Facebook group are the most comprehensive source of information on the various cards available, and a great way to exchange tips with other travellers. Have a good trip!

“Rebate and rewards hunters must be disciplined so that cashbacks don’t turn into late fees,” says Jean-Maximilien Voisine, founder of the Milesopedia website and blog. This French-speaking site is one of the few in Quebec to address the benefits of miles hunting in the world of credit cards. Self-employed individuals who accumulate many expenses and frequent travelers are among the consumers most favored by the multiple credit card offers, states Jean-Maximilien Voisine.

Don’t hesitate to select credit cards from competitors of your financial institution. If your current expenses are significant, negotiate an annual fee waiver, suggests Jean-Maximilien Voisine. “If the answer is no, cancel your card before the anniversary date and look for another one without annual fees,” he continues.

What about your credit report?

As long as your credit card balances are paid in full each month, having multiple cards does not in itself harm your credit report,” maintains Jean-Maximilien Voisine. He has held more than 30 different credit cards over the past five years without a single blemish on his credit record.

Paying off card balances a few days in advance and limiting credit utilization to 30% of the total combined limits are factors that improve one’s credit score.

Protégez-vous conducted a major annual survey of 70 credit card loyalty programs. The article featuring milesopedia is available to subscribers:

Nicknamed “Mr. Miles” by his friends, Jean-Maximilien Voisine is a point hunter.

Noting that the details of credit card loyalty programs were often in English, in the summer of 2015 he created the Milesopedia site to help Quebecers understand and optimize their “points and miles assets,” which most consumers accumulate without really knowing what to do with them.

Choosing a credit card to earn rewards is no easy task. “There’s a clear lack of education about loyalty programs,” he notes, referring to the 500 or so Internet users who visit his site every day, looking for advice and information.

Jean-Maximilien is launching a blog these days, milesopedia.com. This will be the very first French-language site to address strategies for accelerating the accumulation of points and miles from the various loyalty programs (credit cards, hotels, airlines, etc.) available on the market. And contrary to what one might think, his credit rating is not worse. It is even excellent. (…)

Jean-Maximilien Voisine, like 70% of Canadian consumers, pays his sales on the nose every month. Unless you’re a millionaire, or use your credit card(s) for business purposes, very few people in this country break the 300,000-point barrier every year through tricks and schemes.