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The trend in credit card sign-up bonuses in Canada is that they are less straightforward than they used to be. Rather than spending a fixed amount within a certain timeframe and earning a big chunk of points, banks have changed things up by distributing points more evenly over a longer period.
An Understandable Shift
For someone who signs up for cards to earn the sign-up bonus and quickly accumulate points, 2026 is objectively less lucrative than 2018. You might earn the same number of points (or more), but have an increased spending requirement sustained over a longer period and pay a higher annual fee. Instead of giving you the full bonus upfront after you meet the requirements, banks now release it in multiple chunks tied to specific milestones. In many cases, you’ll have to hold a card for a second year in order to earn the full bonus.
However, it does make sense from the bank’s perspective. With a focus on retention, banks reduce short-term losses by cutting off unprofitable customers who earn a sign-up bonus and then cancel the card. The new structure has a few clear benefits:
- By requiring cardholders to hold the card for at least two years, it increases the likelihood that the card becomes integrated into the cardholder’s lifestyle, which could lead to the cardholder keeping the card long-term and putting regular spend on it.
- It increases breakage, since not all cardholders will hit every milestone to earn the full bonus.
- Advertise a very high welcome bonus, even if part of it is locked behind a high spending requirement.
It’s not surprising to see credit card issuers move in this direction and I’d say it’s working, given that this new kind of sign-up bonus seems to be sticking around.
A More Focused Effort
Today, you need a more concentrated effort on your travel. Figure out where you want to go, what kind of award space you can grab to make that happen, and work backwards to see which kind of credit card points you need. Also rather than signing up for every card under the sun, it’s important to strike when the iron’s hot on any elevated offers.
For example, right now, the RBC Avion Visa Infinite is offering 55,000 points as a sign-up bonus and if you and your partner both get one, that’s 100,000+ Avion (which can be Avios, AAdvantage, Asia Miles) right there.
Don’t overlook fixed-value points currencies that can be used to offset any travel expense. Sure, it’s not first class, but $450+ in Scene+ points sure helps when travelling! The TD First Class Travel Via Infinite is offering 165,000 points, worth $825 if you redeem on Expedia for TD.
PMB puts together a monthly list of the best credit cards to sign up for, and I’d recommend checking it out to see which cards you should get this month.
The “strike when the iron’s hot” applies to award space, as well. Award space is harder to find post-pandemic, and to really maximize your points, it’s best to be flexible. You can consider paid services like Thrifty Traveller and receive alerts when there are big award drops on saver awards. If your dates are fixed, it’s crucial to track award space availability and grab seats as soon as they become available.
Takeaway
Earning points via credit card sign-up bonuses is different today than it was a few years ago. With banks focused on reducing churn, more bonuses have shifted from a one-time award of a large number of points to a more gradual distribution over a longer period tied to spending milestones.
Nowadays, it’s essential to focus on earning the right currency for your travel goals, and acting fast on elevated credit card sign-up bonuses or rare award space is available.
