[ANALYSIS] RBC WestJet Credit Cards

• $99 annual fee
• $49 for a supplementary cardholder
• Earn $250 WestJet dollars on your first purchase
• Earn 2 WestJet dollars for every $1 spent on WestJet flights or WestJet Vacation packages
• Earn 1.5 WestJet dollar for every $1 spent on all other purchases
• Pay $99 for a companion flight to anywhere in Canada or the United States (excluding Hawaii and Puerto Rice)

In terms of the first year of having this credit card, the $99 annual fee is offset by $250, so you are essentially getting $250 – $99 = $151 on the first year. It is not a very lucrative deal, but still money. I would have liked to see the first year annual fee waived, so that there is more incentive to retain this credit card a second year.

Speaking of the second year, the current incentive to retain this credit card beyond the first year is if can take advantage of the $99 companion flight. A long distance flight to anywhere in Canada or the United States is usually above $500. Therefore, $500 – $99 nets you around a $400 return, which essentially covers the annual fee. So if you can find a way to take advantage of this perk every year, then you will have maximized the benefits of the $99 annual fee.

If you are looking for a credit card with lower annual fee, the WestJet RBC MasterCard offers the following:

• $39 annual fee
• $19 for a supplementary cardholder
• Earn $50 WestJet dollars on your first purchase
• Earn 1.5 WestJet dollars when you purchase WestJet flights or WestJet Vacation packages
• Earn 1 WestJet dollar for every $1 spent on all other purchases

In the first year, you are earning a dismal $50 – $39 = $11. Beyond that, there is nothing to help justify the $39 annual fee. You are essentially paying $39 to earn WestJet Rewards. I would have liked to see a zero annual fee credit card and do away with the $50 sign up bonus.

Conclusion: Since WestJet dollars expire if there is no activity on your account every 12 months, this is a great way to keep your account active. If you are a big fan of WestJet, I would go for the WestJet RBC World Elite MasterCard, it has a very generous rate of return and if you can take advantage of the companion flight, you already justified the $99 annual fee.