Andrew Vaughan/The Canadian Press
Years ago, credit card review sites and bloggers were dependable sources for advice. But today, with lucrative referral commissions available, recommendations often reflect marketing incentives more than genuine expertise.
Before applying for any card, it’s worth considering the source of the advice and whether it can be trusted.
Travel influencers may be biased
As a content creator and credit card influencer myself, I only recommend cards I have personally used. While I do earn referral points or affiliate commissions on some recommendations, it’s a minor part of my income, so I’m not afraid to share my honest opinions about the 20-plus cards I currently have.
The same can’t be said about travel or points influencers. A few years ago, a credit card offered a substantial payout of $400 per referral. Many travel influencers and points influencers heavily promoted the card as an easy way to earn KrisFlyer miles – the loyalty program of Singapore Airlines.
What these influencers didn’t mention is that the points weren’t the easiest to use because the airline only released a limited number of seats for redemptions. Essentially, many people who signed up were aiming for Singapore Airlines’ elusive first-class experience but ended up with a suitcase full of points with nowhere to go.
Have credit cards morphed into a lifestyle choice?
Another common scenario is when an influencer claims that it only takes a certain number of points to fly business class to Europe. Those points can be gained by signing up for a single card – with their referral link, of course. While that claim is technically valid, they fail to mention that those cheap redemptions are incredibly hard to find since only a handful of seats are made available.
Following travel and points influencers is a great way to be inspired, but when it comes to points redemptions, it’s never that easy.
Lifestyle influencers sell the dream, not the details
Whether it’s someone who specializes in beauty routines or a relatable mom, influencers can have a significant impact on their followers. People who watch their daily posts feel like they’ve been invited into their lives and are part of their social circle, even though it’s a one-sided relationship.
It’s common for credit card providers to partner with influencers to promote their cards. While it’s easy to highlight the perks that cards offer, influencers often fail to mention the downsides, such as high annual fees or substantial interest charges if you don’t pay off your entire balance each month.
Influencers are often paid to promote credit cards, whether or not they genuinely use them. Followers might end up signing up for cards that aren’t suitable for their financial situation.
Affiliate commissions over honesty
You’d think credit card review sites would be unbiased, but there’s a natural conflict of interest since they usually earn a commission when users sign up through one of their links. It’s not hard to come across a site promoting a mediocre cash back card as the “best for everyday spending” when there’s a high referral payout.
To make things even more complicated, these sites have affiliate managers who must approve any articles before they’re published. Even if there’s a hint of negativity, there’s a good chance the manager will request revisions. Many sites won’t push back because they don’t want to jeopardize their relationships with the financial institutions that pay them.
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It’s also worth noting that several review sites in Canada have foreign ownership. Some reviews may be written by individuals who have never visited Canada, let alone used the recommended cards themselves. It could be worth looking up where the authors are based for a sense of their reliability.
How to spot a trustworthy source
With all the questionable recommendations circulating, how can you identify someone you can trust? When it comes to travel or lifestyle influencers, check whether they have consistently endorsed the card. If it’s the first time they’ve mentioned it, and an #ad hashtag appears afterwards, it’s best to do your research before applying.
Even when there’s no sponsorship behind the mention, you should stay cautious because of the potentially high affiliate commission. Usually, sites or influencers who aren’t afraid to critique cards or can demonstrate they use the cards themselves are more trustworthy.
Some Canadian sites I find to be unbiased include: Credit Card Genius, Rewards Canada, Fly Trippers and The Globe’s Big Guide to Canadian Credit Cards. Regardless of where you get your information, it’s essential to remember that credit cards are a personal decision, so you should verify that the perks and rewards align with your lifestyle before applying.
Barry Choi is a credit card and loyalty expert.
