If you need any help comparison shopping, read our frequently asked questions below:
How do cash back credit cards work?
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 varies from around 1%, with some of the best Canadian cash back credit cards offering 4%, or occasionally more.
When do I get my cashback?
The cash can be returned to you in a couple 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. One thing to be aware of is when you will receive your cashback. It might be monthly, annually or when you hit a milestone. The chart below shows the redemption timeline for some of the best cashback credit cards in Canada.
How much cash back can I earn?
How much cash back you can earn depends on the card you choose and your spending habits. While you can earn an unlimited amount of cash back for certain cards, there are some cash back credit cards which 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 in Canada have an annual fee because they offer higher cash back rebate percentages, potentially higher spending limits than other cards and special perks like extensive purchase and/or travel insurance. 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?
While getting rewards back is awesome, being in debt isn’t. 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 maximize your cash back rebate. But, 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. Otherwise, the rewards you receive from spending on your credit card are no longer “free”; you’ll be paying for them in the form of interest payments.
How do I choose the best cash back credit card?
When selecting the best cash back credit card for you, you need to look at the following: your financial preferences (i.e. do you want to pay an annual fee?), financial situation (i.e. what is your income?) and where you spend your money (i.e. do you spend more on specific things than others?). By understanding these factors, you’ll be able to receive the personalized recommendations from Ratehub.ca’s comparison tool since it will take all this information into consideration and display the best cash back cards which will maximize your net reward.
How can I maximize cash back rewards?
The best cash back credit card will vary per person because not all cash back cards offer a standard cash back return. Some cash back credit cards will offer higher cash back returns for specific purchases (e.g. Scotia Momentum Visa Infinite offers 4% on gas and groceries, 2% on recurring payments and drug store purchases and 1% on everything else). Therefore, by understanding where you spend your money while you’re searching for a new credit card, you can maximize the amount of cash back you receive.
Best Cash Back Credit Cards in Canada 2017
Scotia Momentum Visa Infinite
The Scotia Momentum Visa Infinite credit card is one of the most flexible and rewarding cash-back credit cards on the market. With this card, you’ll earn 4% cash back on gas and groceries, 2% cash back on recurring bills and pharmacy purchases, and 1% cash back on everything else. The first four categories have a spending limit of $25,000 per category per year, and after that limit is reached, you’ll earn 1% cash back. The annual fee for this credit card is $99. This credit card gives you access to a variety of complimentary insurance coverage including travel emergency medical and accident insurance, trip interruption insurance, baggage loss and delay insurance, and car rental collision insurance. Finally, the Scotia Momentum Visa Infinite credit card gives you access to the VISA Infinite 24/7 complimentary concierge service, the VISA Infinite Luxury Hotel Collection, and the VISA Infinite Dining Series.
SimplyCash Preferred Card from American Express
The SimplyCash Preferred Card from American Express is a cash-back credit card that allows users to earn a special welcome rate of 5% cash back on all eligible purchases for the first six months (up to $300) and 2% cash back after that on everything after that with no limits. The annual fee for this card is $99, and there is no minimum income requirement. Holders of the SimplyCash Preferred Card from American Express enjoy a plethora of insurance coverage including travel emergency medical and accident insurance, flight delay coverage, baggage loss, and car rental collision and loss damage coverage.
MBNA Rewards World Elite
The MBNA Rewards World Elite credit card is a rewards credit card that allows you to earn 2 MBNA Rewards points per dollar spent. We’ve calculated the average value of a MBNA point at $0.01. When you sign up for this credit card, you’ll earn 10,000 welcome points valued at $100. There is an $89 annual fee for this credit card, and applicants must have an individual income of at least $80,000 per year or a family income of at least $150,000 per year. The MBNA Rewards World Elite credit card also offers good insurance coverage including travel accident insurance, trip interruption insurance, baggage loss insurance and car rental collision/damage insurance.
Best No Fee Cash Back Credit Cards
SimplyCash Card from American Express
The SimplyCash Card from American Express is one of the best no fee cash-back credit cards on the market today. This credit card has a hearty welcome bonus, giving users 5% cash back on gas, groceries, and restaurant purchases for the first six months of card membership (up to $250). After that, you’ll earn 1.25% cashback on all purchases, with no limit on the amount of cash back you can earn. New cardholders are offered a special introductory interest rate of 1.99% on balance transfers in the first six months. There’s no annual fee for this credit card and no minimum income requirement, which makes it a great option for first-time rewards credit card users.
Tangerine Money-Back Credit Card
If you’re looking for a strong cash-back credit card with no annual fee, the Tangerine Money-Back Credit Card is an excellent choice. This credit card allows you to earn 2% cash back on purchases from your choice of two of the following categories: groceries, restaurants, entertainment, pharmacy, gas, bills, home improvement, furniture, hotels, parking, and transit. You’ll earn 0.5% cash back on all other spending, and there is no limit on the amount of cash back you can earn. One advantage card has over others is that it refunds cash back rewards monthly, not annually. If you choose to have your rewards deposited into a Tangerine Savings Account, you can choose a third 2% cash back category. This credit card can be a great option if you have multiple cardholders as there is no extra fee for additional cards.
Other Types of Credit Cards