How Travel Credit Cards Work & Whether They're Actually Worth It — According To An Expert

Catching a flight can be pretty expensive and if you're looking for ways to save money on your future travel plans, you might have considered getting yourself a travel rewards credit card.

If you're unfamiliar, travel rewards credit cards are specific bank accounts that allow you to earn points or air miles whenever you make a purchase.

Depending on the card and account you have, you could earn free or discounted flights, hotels or other perks like airport lounge access or upgrades.

But if you're not someone who spends a lot of money or travels frequently, you might be wondering whether it's actually worth taking the time to set up a new credit card.

Barry Choi, personal finance and travel expert at Money We Have, told Narcity that even if you aren't a big spender, it may still be worth taking a "slow and steady" approach to a travel rewards credit card in Canada.

"It really depends on the individual and what their goals are," he said. "If you're on a fixed income and you don't spend a lot, there are a few travel rewards credit cards with no annual fees that can still be helpful."

"Obviously you won't earn as many rewards as those who have a premium credit card or that are spending thousands of dollars every single month, but slow and steady will still earn those points which can be used to offset future travel."

So, while you may not get a free flight within weeks of having your account open, letting those points gradually add up over a period of months or even years could really pay off in the long run.

Some of the cards that might be worth looking into if you're not dropping a ton of cash, according to Choi, are accounts like the CIBC Aeroplan Visa, which has no annual fees. While you'll earn fewer points than other premium cards, any points you're able to rack up will help offset future travel costs on Air Canada flights or even on hotels and vacation packages.

Described by CIBC as "the no annual fee travel card that turns your everyday purchases into a dream vacation," the card enables account holders to get 10,000 Aeroplan points when they make their first qualifying purchase, which CIBC says is enough for a one-way economy class short-haul ticket in North America.

Card holders will also get one point for every $1 spent on eligible gas, electric vehicle charging and groceries, and one pointfor every $1.50 spent on all other purchases.

Choi also recommends the American Express Green Card, another option that has no annual fees and where earned points can be spent on travel purchases.

New American Express Green card holders can earn a welcome bonus of 10,000 membership points if they spend $1,000 in the first three months of having the account – which is pretty impressive.

After that, you can earn one point for every $1 spent on qualifying purchases, and an additional one point for money spent on eligible travel, hotel or car rental bookings.

And don't count out travel credit cards with annual fees, as Choi says some offer pretty good bang for the buck. With some accounts having annual fees of between $120 to $150, it could be worth considering whether you'll still save money in the long run.

"If it's a co-branded card, it might give you free checked bags, priority line access or airport lounge access," Choi explained.

Cards such as the American Express Aeroplan credit card, for example, let you bring your first checked bag for free and can be applied to up to nine people travelling on the same reservation — which could end up saving you a lot, and certainly more than the $120 annual fee.

So, regardless of your travel and spending habits, a travel credit card could be a good option for you. Just make sure to do your research and ask your bank for advice if you're unsure!