If you need any help comparison shopping, read our frequently asked questions below:
What is a cash back credit card?
As the name suggests, cash back credit cards provide a cash rebate for every dollar you spend on your credit card. The amount of cash back you can earn is typically 1-4%, depending on which credit card you choose to use. The cash can be returned to you in one of two ways: either as a credit on one of your monthly statements or as a cheque in the mail every time you reach a specific milestone.
How much cash back can I earn?
How much cash back you can earn depends on the card you choose and your spending habits. Some cash back credit cards have a maximum cash back amount that you can receive each month. For example, a card could pay 1.00% cash back on all purchases up to $2,000 spending per month, but nothing above that limit. If you spent the maximum, you would earn $20 per month or $240 per year.
Why do some cash back credit cards come with an annual fee?
The best cash back credit cards have an annual fee, because they offer higher cash back rebate percentages and potentially higher spending limits than other cards. Before applying for a cash back credit card, use our tool to enter your monthly spending and find the card that will offset the annual fee and give you the most cash back.
What else should I consider before applying for a cash back credit card?
One thing to consider with cash back credit cards is because you earn money every time you make purchases with your card, you could be tempted to overspend and wind up in credit card debt. In order to receive the full benefits of this type of rewards credit card, you should be in the habit of paying off your balance in full and on time each month, before starting to use a cash back credit card for all your purchases.
Other Types of Credit Cards