Best Cashback Credit Cards in Canada

How Do You Earn Cashback?

When you use a cashback card and make qualifying purchases, you earn cashback. While some cards have no limits to how much cashback you might earn, some others have caps in place. For example, a card may offer cashback on all purchases, up to a maximum spending amount of $2,500 per month or even up to $100,000 per year. 

Some cashback credit cards offer higher cashback returns for purchases made in specific categories. For instance, a card might offer 4% cashback on groceries and gas, 2% cashback on recurring payments, and 1% cashback on all other purchases.

In some cases, you might benefit from getting a higher cashback of 4% to 10% for an introductory period of three to six months. Some cards also come with welcome cashback bonuses that cardholders can earn by meeting specific spending criteria.

When Do You Get Your Cashback?

When you receive your cashback depends on your card provider. In some instances, you need to earn a minimum amount of cashback before redeeming becomes possible. Some cashback credit cards offer cash back rewards once a month, and in some cases, it might extend to once a year.

Annual Fees

You can find cashback credit cards that charge no annual fees. However, they usually don’t offer much in the form of additional features. Annual fees, when applicable, typically vary from $99 to $199. Depending on the card you get, you might qualify for a first year fee waiver. If you choose to apply for a card that attracts an annual fee, determine if the cash back you earn will offset the fees you pay ahead of time.

Additional Benefits

Depending on the card you get and the annual fee you need to pay, you might get access to a range of benefits. These include:

• Mobile device insurance
• Travel insurance
• Purchase protection
• Extended warranties
• Concierge service
• Visa Infinite Dining and Music Series / American Express Invites
• Balance transfer
• Referral bonus
• Auto Club membership
• Medical insurance 

How to make the most of Cash-Back Rewards from Credit Cards

Have you ever applied for, and received, a cash-back credit card that promised great rewards? Were you satisfied with the card? Did you get as many cash-back rewards as you were promised? One of the challenges of choosing a cash-back credit card is that there are so many available. Some options are better for people with specific lifestyles. For example, some cards are better for travelers while others are better for daily expenses.

Want to know one of the best-kept secrets of cash-back credit cards? Spend a bit of time researching and comparing your options. By doing this you can increase the number of cash-back rewards you receive each month. You will see that finding the right credit card will help you get more rewards than you imagined.

How Spending Habits Should Influence Your Card Choice

One important aspect of cash-back credit cards is that different tiers of reward points are available for distinct categories. As such, it is important to review where you spend the most money each month. This will help you find a card that will maximize your potential earnings in those areas.

If you and your family spend a lot of your disposable income on groceries, gasoline, and bills, look for a credit card that offers extra cash-back rewards in those areas. Usually, you will find that extra points are offered in these categories, but you will still get some points (usually half) for all other purchases in other categories. However, if you prefer to eat out a lot, then you might look for a card that rewards you for spending your money at restaurants.

Look for Special Points Promotions and Sign-up Bonuses

Check out which credit cards offer to sign up bonuses. You might be required to spend a certain amount within 1-3 months of receiving the card. Other times you will automatically receive a sign-up bonus.

Additionally, some credit cards will offer certain points promotions throughout the year. For example, if you rent through a specific car company you might receive six times the amount of points you would have received in other categories. Try to take advantage of special points promotions and partner deals that offer additional points.

If you get certain benefits for the several months or year after you sign up for the card, try to maximize your spending in that area. For example, you might be offered 5% cashback on groceries for the first three months. You might consider purchasing gift cards, stocking up on non-perishable items, or simply making sure that you use that card every time you go grocery shopping.

Make Sure You Do Not Carry a Balance

The quickest way to lose when it comes to cash-back credit cards is to carry a balance. These cards are not a good option because of high-interest rates unless you plan to pay off your balance in full each month. Expect to be hit with large fees if you miss a payment deadline or have a balance.