Love them or hate them, Aeroplan branded rewards cards are some of Canada’s top-earning travel cards. The welcome bonuses are enough to make your eyes water, and the perks (like priority seating and buddy passes) can make even the most average flight feel like royalty.
But, hey, I get it: the times have changed (or rather they are changing), and what once was a superb card in your wallet could now be taking up too much space. If you’re on the fence about renewing your Aeroplan rewards card, here are some signs you might want to cancel it.
1. You don’t earn enough to justify the annual fee
It’s no secret. Most Aeroplan rewards cards come with steep annual fees.
Of course, for the hefty price, you get higher earn rates, more luxurious perks, and fat welcome bonuses that can be more than double the annual fee itself.
But to justify paying the fee, you’ll have to earn more on the card than the fee costs you. For example, if you’re paying $120 for an Aeroplan rewards card, you’ll want to earn the equivalent of $120 or more within the year.
And that’s just to pay the annual fee. If you want the card to be worth its weight, you’ll also have to consider what you could have earned had you picked a card with no annual fee. If you just earn $120 on a card with a $120 fee, for instance, you might have been better off with a no-fee rewards card: whereas you break even on the card with the annual fee, you could earn something on the card without one.
Do a cost analysis for your Aeroplan rewards card. Look at your last year of earnings. Are they large enough to justify renewing your card? Would you have earned more on a simple rewards or cash back card? If the answer is yes, it might be time to browse through Canada’s top no-fee credit cards to find one that better suits you.
2. You don’t redeem points for flights
In general, you’ll get the most value out of your Aeroplan points when you redeem them for flights. Of course, if the pandemic has left you bound to your home, you might be using your points in other ways, such as for merchandise, gift cards, or even rental cars.
These redemptions might seem harmless, but they’ll typically give you less value. Many gift cards, for instance, give you around $0.70 per point, which pails in comparison to flight redemptions, which sometimes amount to more than three cents a pop.
For those Aeroplan cardholders who no longer fly frequently, you might be better served with another rewards card, perhaps one that rewards you generously for the biggest line item in your budget (for example, groceries).
3. You could be earning more on another card
This goes hand-in-hand with the reason stated above: if you’re not redeeming Aeroplan points for flights, then what’s the point in earning, well, Aeroplan points?
In fact, I would go so far as to argue you’re missing opportunities on other great credit cards. For example, instead of redeeming your Aeroplan points for gift cards, you could just earn cash on a cash back credit card. You’ll earn cash back at a flat rate (say, 2%), and you can redeem your cash back in numerous ways: statement credits, gift, even direct deposits in your chequing or brokerage account.
Of course, if you fly frequently, and you feel like your card is giving you maximum earnings, don’t sweat it: keep using your Aeroplan rewards card. Otherwise, browse some of Canada’s top credit cards and see if another card will better serve you.
