5 Best Air Miles Credit Cards in Canada for 2024
Oct 14, 2024The best Air Miles credit cards in Canada earn points for the loyalty program on every purchase. Air Miles Dream Miles have an average value of 11.35 cents per mile.
Air Miles is one of Canada’s largest loyalty programs and is tied to more than 300 retailers and brands, including numerous airlines. Joining is free, and there are a handful of ways to earn points. The easiest strategy is to sign up for one of the best co-branded Air Miles credit cards, which earn Air Miles Cash Miles or Dream Miles, and will reward your loyalty with special perks and benefits that will make your next trip even more enjoyable.
Best Air Miles credit cards in Canada
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BACK TO TOPNerdWallet Canada selects the best AIR MILES credit cards based on overall consumer value as well as their suitability for specific kinds of consumers. Factors in our evaluation methodology include each card’s earning rates, rewards structure (such as flat-rate or bonus categories), annual fee, redemption options, promotional APR period for purchases, bonus offers for new cardholders, and noteworthy features such as insurance, loyalty bonuses or the ability to choose one’s own rewards categories.
Guide to Air Miles credit cards and rewards
Air Miles is one of Canada’s largest loyalty programs. The best co-branded Air Miles credit cards make it easy to earn rewards across the country and redeem them for an appealing array of options.
What are Air Miles credit cards?
Air Miles credit cards are co-branded rewards credit cards issued by BMO Bank that earn Air Miles on qualifying purchases. Cardholders can then redeem those Air Miles for various types of rewards, such as flights, hotels, merchandise, in-store cash rebates and more.
How do Air Miles credit cards work?
Air Miles credit cards earn a fixed amount of miles on every qualifying purchase, but the number of miles earned depends on the specific card’s Air Miles earn rates. In addition, co-branded cards offer insurance packages, welcome bonuses, extra perks and more.
Who should get an Air Miles credit card?
Air Miles credit cards are best for those seeking flexible travel rewards, such as frequent travellers craving travel perks alongside a diverse lineup of redemption options.
Cardholders can earn points with every purchase they charge to the card, whether or not the retailer participates in the Air Miles program. Often, customers can earn points twice when shopping with participating Air Miles retailers by making the purchase with their Air Miles credit card and then presenting their Air Miles Collector Card at checkout. (Cardholders can alternatively show their Digital Card via the Air Miles mobile app.)
Consider your lifestyle and spending habits when deciding whether to apply for an Air Miles credit card. You may also want to consider the distinct benefits and drawbacks of the program.
Pros for Air Miles credit cards
Air Miles credit cards maximize Air Miles earnings because you earn miles with every qualifying purchase.
Cards typically come with welcome bonus miles.
Business versions of Air Miles credit cards are available.
All Air Miles credit cards offer some form of insurance coverage.
Some cards come with no annual fee.
It’s possible to earn bonus Air Miles.
Air Miles has flexible redemption options, including flights, hotels, car rentals, merchandise and even in-store cash rebates (for Cash Miles).
Cons for Air Miles credit cards
Air Miles does not cover taxes and fees on redemption flights, and they can add up to be quite expensive.
Air Miles expire if your account is inactive for 24 months.
Dream and Cash Miles aren’t interchangeable. Once you’ve earned one type of miles, you can’t convert them to the other type.
You can’t transfer points to other loyalty programs like you can with points earned on Aeroplan credit cards.
There’s a fee of 15 cents per mile to gift miles or merge accounts with members of separate households.
How to choose the best Air Miles credit card for you
Choosing the best credit card for you will come down to a variety of factors that depend on your shopping habits, perk preferences and your personal finances (such as your yearly income and credit score).
Eligibility
Age
Air Miles credit cards have different eligibility requirements depending on the issuer, though all credit card providers in Canada require that you are at least the age of majority in your province or territory.
Credit score
Credit card providers tend not to state the minimum credit score required to apply for a credit card successfully.
In general, you are more likely to be approved with a “good” score of at least 660. Premium credit cards may require even higher credit scores.
Income
Air Miles credit cards may have a minimum personal or household annual income requirement. For example, the BMO AIR MILES®† World Elite®* Mastercard®* requires a minimum of $80,000 individual or $150,000 household annual income.
Type of card
The issuer and network of an Air Miles credit card may be important for some users. Only BMO Mastercard co-branded cards are available (so Visa lovers are out of luck).
Earn rates
The earn rates with Air Miles cards tend to be based on how much you spend (though you may get bonus miles at participating retailers). For example, a cardholder may earn 3 Air Miles for every $12 they charge to the card. Typically, you’ll get a higher earn rate with premium cards.
Features
After Air Mile earn rates, there are other essential features to consider when deciding whether an Air Miles credit card is the right pick for your needs and shopping habits.
Annual fee
Annual fees for Air Miles credit cards in Canada vary widely and range from $0 to as much as $149 for the BMO AIR MILES®† World Elite®* Business Mastercard®*. While it can be tempting to go for the card without the yearly charge, sometimes the annual fee is worth paying to enjoy a lot of valuable perks.
It’s wise to add up how much savings you may reap from things like the card’s insurance package, discounts and airport lounge access, not to mention the dollar value of all the extra Air Miles you’ll earn with the higher earn rate often awarded by premium cards.
Ability to earn Air Miles Onyx status
Air Miles Onyx status is the highest status tier of the Air Miles loyalty program. Members attain Onyx status when they earn 5,000 or more miles within a calendar year. People with Onyx status enjoy exclusive perks, like priority customer service and discounts of up to 40% on Air Miles flights and 10% fewer points for merchandise redemptions.
Some premium Air Miles credit cards allow cardholders to automatically receive Onyx status, which may be a welcome perk for some credit card users.
Welcome bonus
At the time of writing, all Air Miles credit cards offer welcome bonuses — though the specific amounts and how much you have to spend in a set period of time to claim the bonus are subject to change.
Insurance coverage
Even the most basic Air Miles cards offer extended warranty and purchase protection. When comparing cards, look for insurance extras that may be important to you, like travel accident coverage, rental car, flight and baggage delay, or roadside assistance.
Additional perks
Extra benefits can include things like discounts on miles needed for redemption, balance transfer promotions, airport lounge access, invites to exclusive events and more. It’s worth taking the time to compare perks, as they can result in big savings if you’ll frequently use the benefits.
Air Miles vs. Aeroplan
Aeroplan, Air Canada’s loyalty program, is an Air Miles competitor, offering many of the same perks and rewards, including flight tickets, car rentals, vacation packages, merchandise, and more. When comparing the two, look for what sets these programs apart to decide which travel card is best for your lifestyle and spending habits.
Aeroplan | Air Miles | |
|---|---|---|
Number of available credit cards. | 13. | 6. |
Credit card issuers. |
|
|
Credit card networks. |
|
|
Number of partner airlines. | 52. | 19. |
Average value per point, according to NerdWallet analysis. | 2.23 cents. | 11.35 cents. |
Special perks. | Air Canada benefits, including free checked bags, priority boarding, lounge access, and eUpgrades. | 25% discount on flights (conditions apply), free Boingo Wi-Fi around the world with select Air Miles Mastercard credit cards. |
Co-branded cardholder benefits. | Higher earn rate on Air Canada purchases and Preferred Pricing discounts on flights. | Earn Miles twice at participating Air Miles partners. |
Are points transferable to other loyalty programs? | Yes. | No. |
How the Air Miles loyalty program works in Canada
The Air Miles loyalty program is usually regarded as a travel rewards program, despite offering a wide spectrum of redemption options beyond travel and not being affiliated with a specific hotel or airline.
What is the value of an Air Mile?
Air Miles can be redeemed for an incredible variety of items, making it next to impossible to give an Air Miles point a standard dollar value. The value of an Air Mile depends on how it’s redeemed.
Things get even more complicated when you redeem miles for in-store cash rebates (but only if you pre-selected the “Cash” redemption option — more on that below), which gives miles an approximate value of 10.5 cents each.
How many Air Miles do I need for a flight?
NerdWallet analyzed 75+ data points to compare the Air Miles redemption values of flights in 2022 to determine a “cent per mile” value for each flight.
Based on our analysis, the value of 1 Air Miles Dream Mile is 11.35 cents.
More specifically, you can expect to get around:
10.1 cents per Air Miles Dream Mile for economy class redemptions.
12.6 cents per Air Miles Dream Mile for business class redemptions.
These average values can increase or decrease depending on the route and when the ticket is booked. Also, the value of a single Air Miles point when redeemed for flights depends on the class of the ticket (i.e., economy versus business), where and when you are travelling and how far ahead you book the ticket.
For example, when redeeming miles for a business class ticket travelling within Canada or internationally, the value of a single Air Mile can rise to as high as 16.8 cents, on average, if you book at least 180 days before departure. However, if you book the same business class seat on a flight only 15 days out, the average value of each Air Mile shrinks to 10.5 cents.
Bearing in mind that the value of your Air Miles will depend on where, when and how you book your travel, here’s how much Air Miles Dream Miles are worth, according to NerdWallet analysis:
1,000 Air Miles are worth around $113.
5,000 Air Miles are worth around $567.
10,000 Air Miles are worth around $1,135.
» MORE: How much are Aeroplan points worth?
Dream Miles vs. Cash Miles
One of the more unique and slightly complicated features of the Air Miles reward loyalty program is that you can earn miles as either Cash Miles or Dream Miles (or even both).
Cash Miles are rewards redeemable for certain cash-like purchases.
Dream Miles are miles that you can redeem for non-cash rewards, such as flights, hotels, experiences, rental cards and merchandise.
If you choose to earn your miles as Cash Miles, you can redeem points in-store at select partners for an automatic discount on your purchase. You can also put your cash rewards toward eVouchers that can be used in-store or online at Air Miles partners. Cash Miles can be redeemed at a rate of $10 cash for 95 Air Miles.
Air Miles members can elect to earn all their Air Miles as Dream Miles or Cash Miles. Members can also choose to earn Air Miles in both categories by using the Air Miles slider tool to select what percentages of Air Miles earnings they want to earn as Dream Miles and Cash Miles.
Can I convert Cash Miles to Dream Miles?
Air Miles rewards can’t be converted to a different category once earned. But you can change your reward category selection at any time by logging into your Air Miles account.
How many Air Miles do I need to fly?
The number of Air Miles needed to redeem a plane ticket varies by numerous factors, including destination and class of ticket.
Here’s how many Air Miles you need to book a round-trip economy class ticket 180 days before departure from Toronto’s Pearson Airport to the following destinations:
Destination | Number of Dream Miles needed |
|---|---|
Paris, France. | 1,095. |
London, England. | 1,900. |
Cancun, Mexico. | 2,291. |
New York City, United States. | 2,655. |
Vancouver, Canada. | 4,680. |
How to earn Air Miles
Earning Air Miles is easy. All you have to do is:
Join the program for free by signing up via the website.
Receive your membership number and a card.
Collect Air Miles by showing your card or entering your membership number when shopping in-store or online with an Air Miles partner.
The amount of Air Miles earned on a purchase depends on the retailer. Some retailers also have occasional promotional bonus offers, which can be a good way to boost earnings.
The best way to maximize your Air Miles earning potential is by using an Air Miles credit card. These co-branded credit cards allow users to earn Air Miles on every purchase, whether or not a retailer is an Air Miles partner (exact earning amounts vary by credit card). The Air Miles website (airmiles.ca) lists its partners and how many miles you can earn at each retailer.
How to get free Air Miles online
Another way to earn Air Miles is by shopping online through the Air Miles portal. To get started, you can:
Head to the Airmilesshops.ca portal and click on the desired retailer’s icon.
Make your purchase directly on the merchant’s website as you would normally.
Earn 1 Air Mile for every $20 you spend, excluding taxes and shipping fees.
Additional ways to earn free Air Miles online include participating in surveys from select companies, such as Shopper’s Voice and Rewarding Your Opinions. You can also earn Air Miles when booking travel, like flights and hotels, via the Air Miles travel portal (more on that below).
How to redeem Air Miles
To redeem your Cash Miles:
Visit a participating retailer.
Show your Air Miles card (or an eVoucher) and tell the cashier that you want to use your Cash Miles toward your purchase.
Redeem Cash Miles in $10 increments, using 95 Cash Miles to get $10 off your purchase, up to $750 daily.
To redeem Dream Miles:
Head to the Air Miles website.
Select the Rewards tab if you want to redeem your points for merchandise or experiences or donate miles to charity.
Select the Travel tab to redeem points for travel-related rewards, and then follow the prompts.
Is BMO buying Air Miles?
In June 2023, the Bank of Montreal (BMO) completed its acquisition of LoyaltyOne’s Air Miles Reward Program. While no major changes to the Air Miles program have been disclosed, BMO has announced its intention to reinvigorate the Air Miles program.<br><br>Intended program improvements include expanding the Air Miles partner network to include more Canadian brands and an improved travel booking platform. Air Miles collectors may also be able to earn bonus miles via receipt scanning. This new program feature is slated to roll out across Atlantic Canada before it’s eventually available across the country.
Outside these improvements, BMO assures Air Miles collectors that their account balances and ability to earn and redeem miles will not be affected.
Types of Air Miles rewards
One of the most attractive features of the Air Miles program is the large array of rewards available for redemption.
Air Miles travel
As the name implies, travel-related redemptions are the most popular way to use Air Miles. You can choose from a variety of travel rewards, including flights, rental cars, hotel stays, cruises and vacation packages.
Air Miles flights
When you book a flight via the Air Miles travel portal, you can redeem Air Miles or pay with a credit card and earn Air Miles on your purchase. Taxes and fees usually can’t be paid with Air Miles and can add up to a significant additional expense, especially when flying internationally.
Calculate the value of your points to figure out if you’re getting a good deal by using your points. Otherwise, you might be better off simply paying for the ticket. The number of miles you’ll need for a flight will vary.
Air Miles hotels
As with flights, you can redeem Air Miles to pay for a hotel room, or use the Air Miles travel portal to book a hotel and pay with a credit card. You’ll earn Air Miles rewards when paying with a credit card.
Air Miles shops
As noted above, you can also earn free Air Miles by accessing the retailer’s website through the Air Miles shopping portal at airmilesshops.ca. As long as the retailer is an Air Miles partner, you’ll earn 1 Air Mile for every $20 spent.
Dream Miles
Dream Miles are Air Miles you redeem for physical items or experiences (like flights or concert tickets). They’re different from Cash Miles, which are used to obtain a cash rebate on a purchase in-store or online (with an eVoucher).
How to get Dream Miles
Air Miles members can earn Dream Miles in many ways, including making purchases at Air Miles partners, using Air Miles co-branded credit cards and shopping through the Air Miles shopping portal. Just be sure to select Dream Miles (rather than Cash Miles) when you set up your Air Miles account.
Types of Air Miles Dream rewards
Air Miles members can use their Dream Miles to book flights, vacation packages, car rentals, hotel stays and cruises. You can also use Dream Miles for merchandise redemptions and experiences like concert or movie tickets. Air Miles collectors can even redeem 500 Dream Miles for a $50 donation to charities like Kids Help Phone or Food Banks Canada.
What Reddit has to say
To find the best Air Miles cards in Canada, NerdWallet’s credit card experts review hundreds of cards available on the market. But our Nerds know it can also be helpful to hear what everyday cardholders think. We took to Reddit to find out what users are saying across multiple threads.
Redditors somewhat agree with NerdWallet's Air Miles card picks.
As of this writing, Redditors agree that the best issuer for Air Miles cards is BMO (that makes sense — it’s the only option), but they don’t make any specific card recommendations. In fact, users almost unanimously say that the Air Miles program is not a good value. They feel that the Aeroplan rewards program is a much better choice.
Frequently asked questions
Do Air Miles expire?
Do Air Miles expire?
Yes, Air Miles expire if your account is inactive for 24 months. You can keep your account active by using your card to make a purchase or redeeming your Air Miles for a reward.
How do I apply for an Air Miles credit card?
How do I apply for an Air Miles credit card?
You can apply for an Air Miles credit card online by visiting the website of the card provider and filling out an online application. Or, you can visit a local bank branch to apply in person.
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