How to Get the Most Out of Your Loyalty and Credit Card Rewards Programs

Canadians are on the lookout for value. With the cost of living on the rise, more people are seeking breaks, deals and discounts wherever they can find them. Loyalty and rewards programs are one way to stretch your dollar. From travel upgrades to grocery savings, these programs can make everyday spending go further. There’s real value to be found — if you know where (and how) to look.

Canadians are already tuned in to the power of these programs. As of 2024, Canadians held an estimated 175 million loyalty memberships — that’s roughly four per person, on average. But here’s the thing: Having a loyalty card isn’t the same as using the program to its full potential. You don’t want to leave points, perks and value on the table. Instead, make the points you earn work harder for you — and get more out of the spending you’re already doing.

What are loyalty and credit card rewards programs?

Loyalty and rewards programs offer incentives to encourage repeat spending. In exchange for your continued business, you earn rewards. The two types of programs work differently:

• Loyalty programs are run by businesses such as airlines, hotels, grocery stores and clothing retailers. Their goal is to keep you coming back by offering points or perks for your purchases.

• Credit card rewards programs, instead of being tied to one store or brand, reward you for using your card regardless of where you shop.

Used thoughtfully, both types of programs can turn everyday spending into meaningful benefits.

The different types of loyalty programs in Canada

Loyalty programs generally fall into three main categories: retail, travel and credit card rewards. Here’s how they compare:

Retail loyalty programs

Think of these as your everyday points programs. Whether it’s your favourite grocery chain, gas station or clothing store, you can earn rewards just by spending as you normally do. While many programs offer points you can redeem for future purchases, others offer exclusive access to sales, discounts or new product drops.

Travel loyalty programs

These programs are designed for travellers who want to save on flights, hotel stays and vacation packages—and with Canadians’ love of travel, it’s no surprise they’re especially popular. For many, loyalty points make trips more affordable or help unlock experiences that might otherwise be out of reach.

Airlines and hotel chains tend to offer some of the most robust loyalty programs, but you’ll also find rewards available through car rental companies and online travel booking platforms.

• Airlines: You can earn miles or points based on how far you fly, the cost of your ticket or the type of fare you buy. These can then be redeemed for free or discounted flights, seat upgrades, free checked bags, priority boarding or access to airport lounges.

• Hotels: You can earn points for each stay, which you can redeem for free nights, room upgrades or benefits like early check-in or free breakfast. Some programs may also offer member-only perks such as access to exclusive floors and events.

• Travel platforms: Some booking sites offer points or member-only benefits that you can use across multiple brands. 

Many travel programs also come with status levels, which you can reach based on how much you travel or how much you spend. The higher the tier, the better the perks.

Credit card rewards programs

Many Canadian credit cards come with built-in rewards programs, offering a convenient way to earn points or perks on your everyday spending. Most specialize in one of three areas:

• Travel rewards: You earn points or miles that can be redeemed for flights, hotels and vacation packages.

• Cashback: Earn a percentage of your spending back in cash.

• Flexible rewards: Redeem points for a mix of travel, merchandise, gift cards or even statement credits.

Some credit card programs link to specific retailers or travel partners, while others are give you flexibility in how and where you use your rewards.

With Avion Rewards, you can get it all — cash back, points and savings. Learn how to shop, earn, save and redeem on everyday purchases.

Generally, the more comprehensive the rewards program, the more likely the card comes with an annual fee. Premium cards often include higher earn rates, travel insurance, airport lounge access or concierge services — but there are also many no-fee cards that offer solid perks.

The key is to choose a card that aligns with what you already spend your money on so you can take full advantage of the rewards.

Smart strategies to earn more points

If you’re already spending, why not make those purchases work harder for you? With a few smart habits, you can boost your points balance faster and start seeing rewards sooner.

• Pick programs that match your habits: Do you shop regularly at certain stores? Do you tend to travel often with one airline? Choose programs that align with your lifestyle so you can be rewarded for things you do anyway.

• Don’t overdo it: Avoid signing up for programs you won’t use. It’s better to focus on a few that offer real value.

• Double up on rewards: Use a store loyalty card and a rewards credit card at the same time to earn points from both programs on a single purchase.

• Watch for promotions: Many programs offer sign-up bonuses or limited time offers that let you earn points faster.

• Watch for bonus point opportunities: Some programs offer 2X, 3X or even 5X the points on certain categories like groceries, dining or gas. Paying attention to these offers can help you rack up rewards much faster.

• Know the fine print: Track expiry dates, understand how points are calculated and stay on top of the latest offers.

• Use apps to track your points: There are even tools out there that let you see all your balances in one place. 

Three steps to redeeming points for maximum value

When it comes to making the most of your rewards program, earning points is only half of it. Redeeming them is where the real value is. Here’s how to max out your value:

1) Watch for redemption events. Some programs offer bonus redemption days when your points are worth more.

2) Don’t let points expire. Make a habit of checking expiry dates and using points before they disappear.

3) Choose high-value redemptions. Travel bookings — especially flights and hotels — often offer better dollar value than merchandise or gift cards. It’s worth looking into your program’s rewards catalogue to see where you can get the most value.

Credit card points, cash back and rewards: Which is best for you?

If you’re considering a credit card with a rewards program, you may wonder what type of program to join. There’s no one-size-fits-all answer – it depends on your lifestyle, spending habits and goals. Here’s a quick rundown that can help you narrow down your options:

Loyalty and rewards programs can be a powerful way to get more from the money you’re already spending. Whether it’s scoring a free flight, saving on groceries or unlocking VIP perks, the right program can deliver real value.

And don’t forget: These programs aren’t just for frequent flyers or big spenders. Paying with a rewards card or scanning your loyalty app even for small, routine purchases can lead to meaningful savings and rewards.

The key is to be intentional. Choose programs that align with your lifestyle and goals, take time to understand how they work, and check in now and then for bonus offers or redemption opportunities. With a little planning, your everyday purchases can help your budget go further.

Looking for a rewards program that delivers real value? Explore the many ways to shop, save and earn with Avion Rewards.