How To Earn Cash Back For Your Summer Travel Plans
It’s officially the summer — if you haven’t started planning your summer travel plans, what exactly are you waiting for? Now is an ideal time to travel: since it’s off-peak, prices tend to be lower. However, if you don’t have time to travel now, you can still use your credit cards to save money toward a vacation this summer.
Using credit cards to save money sounds weird, right? If used responsibly, you can reap the benefits by simply charging your everyday purchases to your cards.
The case for cash back
Frequent travellers are typically better off using one of the best travel rewards credit cards, but cash-back credit cards are growing in popularity. With cash-back credit cards, there’s no need to worry about points expiring, blackout dates, or paying taxes. You’re dealing with cash, which is easy to understand.
The trick is to save those cash back rewards specifically for your travel plans. This is easy if you consider the rewards as part of your travel fund, but there’s also nothing wrong with using those rewards on something else. The key thing to know is when you can cash out your rewards. If you have a card that only issues cash back rewards annually, you’ll want to set a reminder in your calendar.
Before you book your plane tickets or other travel expenses, read the travel insurance policies of all your credit cards to see what you’re entitled to. When you’re ready, charge those purchases to the credit with the best travel insurance so you’ll be covered during your travels.
Using a cash back card
One could argue that cash-back credit cards are now the way to go. Over the last few years, many travel rewards programs have devalued their points making it harder to claim rewards. Disappointed with these changes, many travellers have decided to switch to cash back cards since the rewards are pretty much like cash. These credit cards also appeal to casual travellers since they get to decide what they use their cash back rewards on. There are many different cash-back credit cards on the market, but here are a few worth checking out:
SimplyCash Card from American Express
Best for Everyday spending
based on spending $2,200/mo after $0 annual fee
- Earn rewards
1.25% – 2% earn rate
- Welcome bonus
$100
- Annual fee
$0
Perks
- In your first 10 months as a new SimplyCash® Card from American Express Cardmember, you can earn a $10 statement credit for each monthly billing period in which you spend $300 in purchases on your Card. This could add up to $100 in statement credits in the first 10 months
- Earn accelerated earn rates on eligible gas and grocery purchases
- Earn 2% cash back on eligible gas purchases in Canada, 2% cash back on eligible grocery purchases in Canada (up to $300 cash back annually), and 1.25% cash back on all other eligible purchases
- Access events and special offers curated for Cardmembers with American Express® Experiences
- Insurance coverage and 24/7 Customer Service
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information click the Apply now link. Conditions apply
Features
Ratehub’s take
The SimplyCash from American Express credit card lets you earn cash back without restrictions. This card is a great option for those who aren’t looking for premium perks or who won’t earn enough rewards to offset an annual fee. offers a great cash back rate, no limit to the amount you can earn, and all the benefits of American Express perks.
Pros
- Streamlined rewards structure: Simple and easy rewards structure that doesn’t require any extensive research or understanding
- Insurance: Travel and purchase protection coverage, including travel accident insurance ($100,000), purchase protection, and extended warranty
- 24/7 concierge services
- Exclusive access: Enjoy privileges such as access to Front of the Line Presale and Reserved tickets to concerts, theatre performances, movie screenings, culinary events, and other special offers
- No annual fee: No annual fee for primary or additional cardholders
Cons
- Limited acceptance: American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
- Low redemption flexibility: Cash-back rewards are only redeemable once per year
- Low earn rate: The card’s standard earn rate of 1.25% isn’t particularly compelling when stacked up against other no-fee cash back cards
- Limited insurance: Other than the standard purchase protection and extended warranty, the only coverage offered is travel accident insurance (up to $100,000)
Eligibility requirements
Minimum credit score: 725
Minimum income: N/A
Interest rates
Purchase interest: 20.99%
Cash advance: 21.99%
The SimplyCash Card from American Express is a popular card for everyday spending since it offers 2% cash back on gas and groceries, and 1.25% on everything else. There’s no annual fee, but the downside is that the cash back rewards can only be applied to your credit card statement once a year.
The included travel insurance benefits may appeal to casual travellers. You get up to $100,000 of accidental death and dismemberment insurance (not to be confused with travel medical insurance). This insurance covers you, your spouse, and dependent children under the age of 23 from accidental death and dismemberment when any of you travel on a common carrier (plane, train, bus, or ship). To qualify for the included insurance, you must charge the entire cost of the car rental or travel tickets to your SimplyCash card.
Scotiabank Momentum Visa Infinite
Best for Groceries & bills
based on spending $2,200/mo after $120 annual fee
- Earn rewards
1% – 4% earn rate
- Annual fee
$120 $0 first year waived
Perks
- Earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). No annual fee in the first year, including on supplementary cards. Offer ends October 31, 2024.
- Earn 4% for every $1 you spend on grocery store purchases, recurring bill payments, and subscription purchases.
- Earn 2% for every $1 you spend on gas purchases and daily transit purchases.
- Earn 1% cash back on all other purchases with no cash back limit.
Features
Ratehub’s take
The Scotiabank Momentum Visa Infinite Card offers impressive rewards on everyday purchases. This card earns great cash back on many categories – however, its distinguishing feature is the 4% cash back on groceries. This card can help offset rising household expenses and is considered to be one of the best cash back credit cards.
Pros:
- High cash back rate on essentials: Enjoy significantly higher earn rates on groceries and gas than most other cards (4% cash back)
- Comprehensive insurance coverage: Benefit from strong insurance coverage typically is reserved for travel credit cards
- Lucrative welcome offer
Cons:
- Spending cap on bonus categories: Annual total spend limit of $25,000 on the 4% and 2% spending categories; thereafter, the earn rate drops to 1%
- Limited redemption flexibility: Cash back reward is only offered as a statement credit once per year in November and cannot be redeemed in smaller amounts or any other time of year
Eligibility requirements
Minimum credit score: 725
Minimum income: $60,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
Although the Scotia Momentum Visa Infinite has an annual fee of 120, the increased cash back categories are appealing to people who spend a lot.
Simply put, the Scotiabank Momentum Visa Infinite offers some of the highest cash back rewards available. Couples or families who drive a lot can easily earn hundreds of dollars in cash back rewards every year. Note that the cash back is earned at the end of the month, but is awarded annually as a statement credit or deposited to your Scotiabank chequing account (if you have one).
In addition, cardholders get a comprehensive travel insurance package that covers travel emergency medical, trip interruption, flight delay, delayed and lost baggage, travel accident, and rental car collision loss/damage insurance.
Tangerine Money-Back Credit Card
Best for Flexible spending
based on spending $2,200/mo after $0 annual fee
- Earn rewards
0.5% – 10% earn rate
- Welcome bonus
$100
- Annual fee
$0
Perks
- Ratehub.ca’s 2023 Award Winner – Best No Fee Cash Back Credit Card
- Life’s back in session. Enjoy it with an extra 10% back.*
- Apply for a Tangerine Money-Back Credit Card by April 30, 2024 and earn an extra 10% back (up to $100) when you spend up to $1,000 in everyday purchases within your first 2 months.*
- Earn 2% Money-Back Rewards on purchases in two 2% Money-Back Categories of your choice, and 0.50% Money-Back Rewards on all other purchases.
- Earn extra rewards – have your Money-Back Rewards deposited into a Tangerine Savings Account, and get a 3rd 2% Money-Back Category.
- No limit on the amount of Money-Back Rewards you can earn.
- Change your 2% Money-Back Categories to suit your spending.
Ratehub’s take
While the Tangerine Money-Back Credit Card is a no annual fee card, what really sets it apart is the ability to customize your rewards. With this card, you can choose your own bonus categories (which will earn you a strong cash back rate of 2% per dollar spent). This is rare in the credit card market and means you can avoid being locked into a bonus category that you can’t take full advantage of, or that doesn’t align with your spending habits.
Pros
- Customizable bonus categories: Flexibility to pick up to three bonus categories to earn 2% cash back on (out of a total of 10 options), which is in sharp contrast to most other cards where you have fixed bonus categories that you have no control over. Users are also given the freedom to change the bonus categories at any time (changes will take up to 90 days to come into effect)
- High cash back earning rate: 2% cash back per dollar on bonus categories is one of the richest earn rates for a no-fee card, plus your rewards are unlimited and don’t have monthly or annual maximums
- Wide acceptance: Widely accepted almost everywhere including No Frills and Costco
- Additional cards at no cost: Free supplementary cards for authorized users
- Frequent cash back reimbursement: Cash back is refunded on a monthly basis, instead of the standard annual reimbursement
Cons
- Limited cash back for non-bonus categories: For all purchases that aren’t categorized under one of your chosen bonus categories, you’ll earn just 0.5% cash back
- Limited travel insurance and perks: No travel medical insurance or any substantial side perks
Eligibility requirements
Minimum credit score: 660
Minimum income: $12,000/yr
Interest rates
Purchase interest: 19.95%
Cash advance: 19.95%
Finally, there’s the Tangerine Money-Back Credit Card. What makes this card unique is that the cash back rewards are deposited monthly and you’re allowed to pick two categories that will earn you 2% cash back. You can earn a third 2% category by having your cash back rewards deposited directly into your Tangerine savings account, while all other categories earn 0.5% cash back.
Travelling may not be your passion, but having a good cash back card can help offset costs when you do decide to take a trip.
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