Canada's 7 Best Rewards Credit Cards of December 2025

How we picked these cards

When deciding which cards earned the top spots for rewards, three factors were considered. First, the reward rate on purchases across different categories was evaluated. Second, we looked at whether these categories were popular spending areas, such as groceries, restaurants, and similar everyday expenses. Finally, the annual fee was deducted from the total rewards to ensure a fair comparison between cards with no annual fee and those that have one.

Since FinlyWealth's credit card compare tool already factors in all these considerations, most of the selected cards are top recommendations from that tool.

What are the different types of rewards credit cards?

Generally, there are a few different card types to consider: personal credit cards, business credit cards, or credit cards that are co-branded with specific retailers (think Costco, Amazon, or PC Optimum). Within these card categories, cardholders either receive cashback, points or miles.

Below, we've broken down these reward types even further:

Cashback

Cashback credit cards put a percentage of your eligible purchases back in your pocket. These percentages are based either on specialized earn categories or a flat rate. Specialized earn categories might include gas, groceries or recurring payments, depending on the card. Each category will have its own cashback rate. For example, your card might earn you 4% cashback on groceries, 3% cashback on gas, and 1% cashback on everything else. Flat-rate credit cards, on the other hand, have a fixed cashback rate on all eligible purchases.

Browse your top cashback options here: Canada's Best Cash Back Credit Cards

Points

Some cards earn you points on eligible purchases instead. You can collect points on everyday purchases or travel. Like cashback cards, points cards either come with specialized earn categories or a flat-rate of points earned on all eligible purchases. Points are usually earned on a per-dollar basis. For instance, you might earn 4 points per dollar spent on groceries.

The value of your points depends on the card's loyalty program and that program's redemption categories. Take American Express Membership Rewards points for example. These points are most valuable when redeemed towards travel (specifically transfers to airline partners) and least valuable when redeemed towards merchandise.

Miles

Miles operate similar to points but are linked to specific airline programs, like AIR MILES or Asia Miles. Oftentimes, you'll earn miles on travel-related purchases and then be able to redeem them for the best value towards future flights, whether that be within the same airline or any partner airlines.

Read More: Best Air Miles Credit Cards in Canada

Should you go for a cashback or points credit card?

Whether you choose a cashback credit card or a points credit card ultimately depends on your spending habits. Generally, if you tend to spend more money on everyday purchases, then you'd go for a cashback credit card that complements your financial lifestyle. On the other hand, if you travel often and want to take advantage of premium trip-oriented perks and coverage, you should opt for a points credit card instead.

Cashback credit cards are often more flexible when it comes to redeeming rewards, since you can apply your cashback towards any future purchase you'd like. Alternatively, points credit cards are limited to the redemption categories associated with their corresponding loyalty program. The value of your points also varies depending on the redemption category. For example, most of the time, travel tends to be the most valuable way to spend your points. To add a bit more flexibility, points can sometimes be transferred to other loyalty programs. For instance, American Express Membership Rewards points can be transferred to Aeroplan at a 1:1 ratio.

Due to their premium travel perks, points credit cards often have higher annual fees on average, but they usually come with bigger welcome bonuses.

In summary, cashback credit cards are ideal for cardholders who want a simple and flexible rewards program that caters to everyday purchases. Points credit cards, on the other hand, are best suited for frequent travellers looking to indulge in better travel perks, coverage, and intro offers.

Read More: Cashback vs. Travel Rewards Credit Cards, Best Travel Credit Cards in Canada, Top Signup Bonus Credit Cards in Canada

Tips on how to best use your rewards credit card

The best way to use your rewards credit card is to maximize its full potential.

This starts with selecting a rewards credit card that complements your spending habits. For instance, if you spend most of your money on groceries and gas, you'll want a credit card that optimizes both of those categories. You'll also want to pick a card that offers consistently high reward rates in your most common spend categories.

Read More: Best Grocery Credit Cards in Canada, Best Gas Credit Cards in Canada

The second strategy you'll want to tap into is timing intro offers with large purchases. Many credit card welcome bonuses come with minimum spending requirements, meaning you'll need to meet these spending milestones in order to cash in on extra points or cashback. To ensure that you'll hit those milestones, time the opening of a new card with booking a trip or funding new furniture or appliances for your home.

Third, you'll want to practice strategic card switching. This means curating the perfect line-up of credit cards that cover all your expenses. Your perfect line-up might consist of an everyday cashback card, a premium travel card, and perhaps a store-branded credit card for more niche purchases.

Finally, you can also take your reward accumulation even further by stacking your credit card rewards. The best way to do this is by making purchases with your card on a cashback app. These apps earn you extra cashback on partner retailers. This method allows you to collect both the rewards on your card and the purchases you make through the app.