Air Miles Credit Cards

Air Miles is one of the most popular rewards programs in Canada and is used by many large retailers and credit card issuers including BMO and American Express.  The Air Miles collector card can be used to earn Air Miles rewards at any sponsoring retailer.  The benefit of using Air Miles credit cards is that you can earn Air Miles with any purchase at any retailer regardless if they are an Air Miles sponsor or not.

Air Miles can be redeemed for flights, vacations, and merchandise all through their online store.

Air Miles Credit Cards

BMO and American Express are the only two issuers of Air Miles credit cards.  They combine to offer 6 different choices of Air Miles credit cards, including a no fee option and a platinum option for earning Air Miles even faster.  Let’s take a look at the different options issued by BMO and American Express:

No Fee Air Miles Credit Cards

1. BMO Air Miles MasterCard – with this credit card you can earn at least 1 Air Mile for every $20 spent at any location.  There is no annual fee and the interest rate is 19.5%.  This card comes with limited insurance benefits but balance insurance, travel and medical protection can be added for additional fees.
2. American Express Air Miles Credit Card – another basic rewards credit card earning at least 1 Air Mile for every $20 spent at any location.  There is no annual fee and the interest rate is 18.5% (after an introductory rate of 3.99% for the first 6 months).  This card includes $100,000 in automatic travel accident insurance.

Low Interest Rate Air Miles Credit Cards

1. BMO Air Miles Low Rate MasterCard – earn Air Miles with every purchase and benefit from a low interest rate of 12.9%.  This card has an annual fee of $35 and comes with limited insurance benefits but balance insurance, travel and medical protection can be added for additional fees.
2. BMO Gold Air Miles Low Rate MasterCard – earn 1 Air Mile for every $15 spent on your BMO Gold Air Miles MasterCard and enjoy a 25% discount on Air Miles flights worldwide. The annual fee of $134 gets you a low interest rate of 12.9% and includes extended warranty/purchase protection and travel and medical protection and balance insurance can be added for a fee.

Gold/Platinum Air Miles Credit Cards

1. American Express Air Miles Platinum Credit Card – With this credit card, earn 1 Air Mile for every $15 dollars spent. Earn 1 Air Mile per $10 spent when purchased at an Air Mile sponsor.  This card has an annual fee of $50 and the interest rate is $18.5%.  Insurance benefits include extended warranty doubling the manufacturers warranty, car rental insurance and $100,000 travel accident insurance.
2. BMO Gold Air Miles MasterCard – Earn 1 Air Mile for every $15 spent on your BMO Gold Air Miles MasterCard and enjoy a 25% discount on Air Miles flights worldwide.  The annual fee of $99 includes extended warranty/purchase protection and travel and medical protection and balance insurance can be added for a fee.  The interest rate is 19.5%.

Final Thoughts

Air Miles credit cards are a great way to earn additional rewards with your everyday purchases.  When determining the best reward credit cards for your situation, it’s always best to understand your shopping patterns and your monthly spending habits.  It’s also important not to carry a balance on your credit card, since the interest you pay will negate any rewards you earn.

For the no fee cards, I would tend to choose BMO over American Express since MasterCard is more widely accepted in Canada.  The exception would be if you shop regularly at Costco, which only accepts American Express.  I’ll ignore the low interest rate cards, since I don’t carry a balance.

As for the Gold/Platinum options, the American Express Air Miles Platinum has the same earning power as the BMO Gold Air Miles MasterCard and costs $49 less per year to carry.  If you spend over $2,500/month on your credit card or you require a small business credit card, the American Express Air Miles Platinum looks like the best choice.