Tuesday, June 13, 2017

Case Study: Fixed Return Travel Card versus a Reward Chart Travel Card




In this feature we look at two very popular Canadian credit cards and the return you get from them for your everyday spending. One has a fixed point rewards chart system while the other is a straight cash back towards any travel purchase. The cards are the RBC® Visa Infinite‡ Avion® and the Capital One® Aspire Travel™ World Elite MasterCard®. The RBC card has your traditional reward chart system whereas the Capital One® card is your book travel anywhere and redeem against the charge system.
 
With RBC's reward chart system they have set out a points requirement for various regions of travel, short haul North America, long haul North America and so on. That fixed reward chart points requirement means that you have to use a set number of points to redeem for travel within that region. Taking short haul for example, you need to redeem 15,000 points for tickets that can cost up to $350 before taxes and fees. Doesn't matter if the actual ticket costs $150, $250 or $350 you need to redeem 15,000 points for it. The same goes for the other regions on the reward chart. To utilize the RBC reward chart you have to book via RBC Rewards at least 14 days in advance. As the card earns 1 RBC Rewards Point per dollar spend on the card (1.25 for travel purchases) the card provides anywhere from a 1% to 2.9% return on your spending (2.9 is if all your spending is on travel). As you'll see further on in this feature however getting above 2% is very limited.

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