I wrote about my favorite credit card, The MBNA SPG Credit card, a while back and now I’m wondering what is your favorite credit card?
I’m a fan of the no fee, high reward type cards. The reason why I like the MBNA SPG credit card so much is because of the potentially high return on your dollars spend through the card. From my reward redemptions thus far, I have returned around 3-5%. Of course, this card is suited best for people who like to stay at hotels when they travel.
One particular redemption that they offer that I like is the flights and nights award. For 70,000 points (approximately 2 yrs of spending for us), you can fly 2 people with their airline partners anywhere in North America, and get 5 nights in one of their 4 star hotels. Their 4 star hotels can cost anywhere from $200-$500USD/night and a flight for 2 across the country would cost us at least $1800. Assuming the hotel value is worth around $1,500CAD (5 nights x $300/night) + $1,800 = $3300. Since the SPG credit card is a 1:1 point system after bonuses, my return is: $3300/$70,000 = 4.7%.
I’ve recently been asked by a reader about decent VISA credit cards in Canada. In my opinion, there aren’t many decent NO FEE VISA cards in Canada. The only exception being the CIBC Dividend card which gives 1% cash back after you spend $3000. Other than that, in order to get a sensible return on your spending, you have to resort to fee based VISA’s like the CIBC Aerogold , or the RBC Avion both of which are $120/yr for primary and $50/yr for secondary cards..
Well, that’s my Saturday speel. Back to my original question, what is your favorite rewards credit card and why?
Note that these rewards based credit cards are only effective if you pay off the balance in FULL every month.
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