For the 26-year-old tech professional, Genevieve D’Souza, credit cards are more than just a convenient payment method. They are a strategic tool for maximizing rewards and minimizing costs. Whether it’s bagging free flights to Japan, earning thousands of dollars in points for groceries and coffee, or getting money towards a new iPhone, she has figured out how to make the most out of her credit cards.
This savvy cardholder juggles between two to 15 cards and is one of the “super users” we spoke to for our latest edition of The Globe’s Big Guide to Credit Cards. These super users share a common trait: they have spent years researching how to turn credit cards into powerful tools for minimizing everyday costs and maximizing perks.
Super Users and Their Credit Card Strategies
Canadians are known for their extensive use of credit cards, outpacing all other forms of payment methods. According to Payments Canada, the growth of credit card use surpassed that of all other cards in 2024, with a 14% rise in transaction volume and a 32% increase in value. To help consumers navigate the complex world of credit cards, their rewards programs, interest rates, and fees, The Globe and Mail launched its annual Big Guide to Credit Cards.
This year, we have enlisted the help of savvy cardholders like D’Souza to share their playbooks. We also added a major upgrade: a personalized ranking tool that allows readers to generate customized rankings for cash-back and travel cards by entering monthly spending amounts across 12 categories. Before you give it a test run, let’s dive into some expert tips from our super users on getting the biggest payoff – regardless of the type of card in your wallet.
Travel Cards: An Opportunity to Explore the World
COVID-19 lockdowns left many of us longing to travel, and D’Souza was no exception. She found herself deep in the weeds of rewards programs and earn rates, hoping to figure out how she could lower the cost of fulfilling her travel desires. This year, she managed to visit India, Indonesia, Taiwan, and Japan, and also enjoyed several weekend getaways within Canada.
One of her most utilized cards, the American Express Cobalt, earns her five times the points on groceries and dining up to $2,500 a month. The card also came in handy when her iPhone got stolen two years ago, covering a large chunk of the cost through its insurance offer. However, it’s not accepted everywhere and doesn’t offer great foreign-exchange benefits. To balance this, she uses the Scotiabank Passport Visa Infinite, which helps her avoid foreign-exchange fees and access lounge passes. Her TD Aeroplan Visa Infinite, on the other hand, offers comprehensive travel insurance and earns Aeroplan points that can be applied to flights with Air Canada or its Star Alliance partners.
Cash-Back Cards: Earning Real Dollar Value
For 37-year-old Ahmad Halak, the focus is not on travel points or lounge access, but on maximizing real dollar value and high cash back. He treats credit cards as an earning tool, almost like a source of income, rather than a way to get perks or justify extra spending. Halak uses two credit cards in his rotation: the BMO CashBack World Elite MasterCard and the American Express Cobalt. Both offer good returns on food and groceries, which is crucial for him as he spends about $8,400 annually on groceries for his household of two.
Balance Transfer Cards: A Strategy for Managing Debt
Between the ages of 18 and 22, Bridgette Vong accumulated $15,000 in credit-card debt by treating it like a debit card. A conversation with a friend turned into a wake-up call and she was introduced to the concept of a balance-transfer card. She was initially skeptical about opening a new card, but the interest savings she achieved with her MBNA True Line MasterCard quickly proved its worth. She was able to transfer a maximum of $6,000 to the card, which had a 0% interest rate for 12 months. This allowed her to focus on paying off the debt within a year.
Good Advice for Any Card
Travel points still tend to have better value
For Claire and Darcy Haughian, travel points hold more value than cash back. They own about 15 different cards each and realized the value of credit cards when they found themselves booking flights at least once every two months, spending tens of thousands on vacations and visiting family abroad.
Don’t get sneaky with sign-ups – time them to big purchases
While there are many online tips about sneaky ways to hit sign-up bonuses with minimum spends, D’Souza avoids them all. Instead, she times bonuses around major purchases or life events.
Watch out for category coding and bank calculators
Category spending caps can undermine advertised rewards, and category “coding” on purchases can be counterintuitive. Some cards do not consider certain shops where Canadians regularly buy food under the grocery category.
Don’t hoard points and beware of devaluation
If you pick a credit card geared toward collecting rewards or travel miles, avoid hoarding them. The most-prized redemptions, such as long-haul business-class flights, are harder to find nowadays than they used to be for programs like Aeroplan.
Using points on a proprietary platform doesn’t pay off
The vast majority of our super users recommend against redeeming points through proprietary platforms or programs. For example, using Aeroplan points with Air Canada. They have found that they can get far more value by redeeming points strategically through other platforms.
For balance transfer, look at how providers split expenses
When choosing a good balance transfer card, it’s important to not only consider the lowest rate, but also how the provider separates balances. Some cards charge any new purchases at the full interest rate after transferring an initial balance at a low rate.
A final takeaway from our super users is that a credit card should match your lifestyle, rather than the other way around. Most agreed that credit card tinkering shouldn’t overshadow other personal finance goals, such as contributing to a TFSA. The ideal setup is a “yin-yang pairing,” where one card is heavy on perks and another is strong on earning rates. Just remember, a great credit card should be the cherry on top of your personal finance planning, not the main focus.
