Student credit card rewards series: travel

By RateHub.ca

Banks assess eligibility for credit cards on a number of factors, including credit score and income. Because both of these are likely to be fairly low while you’re studying, as a student you’re unlikely to be successful if you apply for most mainstream credit cards.

Luckily, however, there are some great options designed specifically for students. In this series, we’re looking at the best student credit cards for rewards.

 

What are travel rewards?

Many students love to spend their vacations travelling; learning about new cultures and travelling the world is practically a rite of passage. There’s only one problem – the cost!

A good way to help offset this expensive habit is by having a student travel rewards credit card. With this type of card, you collect points on your everyday spending which you can redeem against a range of travel-related categories. There are a number of travel rewards programs in Canada and they all work differently. So, before deciding on one, make sure you understand the way it works.

Although the thought of collecting travel points can be attractive, it’s also important to use your credit card mindfully. Try to only use your credit card for purchases you know you can afford to repay to make sure you avoid interest charges and keep your net return positive.

 

Which travel cards can I apply for as a student?

As the name suggests, the MBNA Rewards MasterCard credit card for Students is specifically aimed at students, so it’s a great option available to those in university who want to start collecting travel points.

Key travel reward features

·       Rewards type: travel, MBNA Rewards Program

·       Earning rewards: 1 point per $1 spent

·       Redeeming rewards: $0.01 per point

·       Spending bonus: 1,000 points after your first eligible purchase (worth $10)

·       Anniversary bonus, 1,000 points each year on you account anniversary (worth $10)

 

How does the MBNA Rewards Program work?

The MBNA Rewards program is one of the most popular travel programmes in Canada and has a range of redemption categories including flights and hotels.

Unlike some programs which vary their redemption rates, the MBNA Rewards Program is fixed and the value of an MBNA Reward point is set at $0.01. This might not sound like much, but this is equivalent to a 1% return, and depending on how much you use your card, your points can quickly add up.

 

Next in the series: cash back student cards

 

RateHub.ca is an independent financial product comparison site that empowers Canadians to make smart financial decisions by comparing rates on mortgages, credit cards, savings accounts and insurance.