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Best Cashback Credit Cards in Canada

Earn money while you spend with Cashback credit cards. Why not get rewarded while using a credit card to make purchases? Cashback credit cards in Canada offer anywhere between 1% to 5% money back for every dollar spent using your cashback card.
Best Cashback Credit Cards in Canada
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Top 5 No Fee Cash Back Credit Cards

Hate paying Annual Fees for Credit Cards?

Interestingly, you’re not alone. We all hate to pay annual fees for a service we could avail for no cost. In fact, we do our best to avoid paying even a single dollar as a credit card fee whenever possible. But in some instances, a credit card with low annual fees may not be that bad. Some of you might ask what’s so good about paying extra. That’s a valid question. Think about it this way: all popular cashback credit cards in Canada have some sort of annual fee. The real moment of joy, however, comes when you decide to do the math. When you break down the money you pay an annual fee or other credit card charges, you will find that the fee gets refunded back to you thanks to cash-back rewards. hat’s right. Exciting cashback credit cards that charge you nothing.

Tangerine Money-Back Credit Card

This credit card is an absolute steal. There’s no annual fee and you can spend your money the smart way. Simply put, every purchase you make earns cash back rewards that you can enjoy however there’s a slight twist. This credit card allows you to decide whether you want the cashback to be deposited in your credit card balance or into a savings account. Isn’t this exciting? Yes, you have the power to choose spending categories for the bonus you earn with a Tangerine money back credit card, unlike other options where you forced to use your cash-back as standard gas or groceries.

  • 0% annual fee
  • 2% cashback on all your purchases
  • No limit on the total cashback you can earn on your purchases

Specification: Tangerine Cash Back Credit Card

Balance Transfer Promo

1.95%

Annual Fees

$0

Interest Rate

19.95%

Balance Transfer

19.95%

Cash Advance

19.95%

Network
Card Type

Balance Transfer, Cashback, Low Interest, No Annual Fee

0

When you apply for a credit card, you have the chance to choose up to three categories. Don’t worry, these bonus categories aren’t fixed and can be changed using the credit card’s online interface once every 3 months. You get 2% bonus cash on the categories you choose. Cash-back on other purchases is 1%.

SimplyCash – American Express

As the name suggests, you get 1.25% flat cashback on all purchases without any limits or questions asked. Yes, this no-fee cash back AMEX card perhaps offers the highest earning rate and the good news doesn’t end here.

  • $99 Annual Fee
  • 2% Cashback on all of your purchases
  • No limit on the total cashback you can earn
  • Open to residents of Canda

Specification: SimplyCashTM Preferred Card from American Express

Annual Fees

$99

Interest Rate

19.99%

Balance Transfer

22.99%

Cash Advance

21.99%

Network
Card Type

Cashback, Travel Rewards

0

SimplyCash also helps you earn a 5% bonus on gas and grocery purchases for the first 6 months. The maximum bonus you can earn is $250. Like other AMEX cardholders, SimplyCash allows you free access to Front of the Line and get event and concert tickets. When you apply for SimplyCash, you also get a 1.99% interest rate for the first 6 months on balance transfers.

  • Variety of options to redeem points
  • $0 annual fee
  • Easy-to-get welcome bonuses
  • No eligibility requirements, so anyone can apply
  • Competitive interest rates

Specification: MBNA Rewards Platinum Plus® Mastercard®

Annual Fees

$0

Interest Rate

19.99%

Balance Transfer

22.99%

Cash Advance

24.99%

Network
Card Type

Cashback

0
MasterCard

 

The MBNA Rewards MasterCard offers 1% cashback on spending but there’s something else you should know. The card has no limits on the amount of cashback you can earn. Plus, you get more insurance coverage for free, unlike other no-fee credit cards. The cash-back you earn can be redeemed anytime, anyway, you want. If you’re looking for a really simple and flexible cash-back credit card, this would be the right choice for you. This MBNA credit card also offers 90 days purchase protection, travel accident insurance, 12 months extended warranty, and car rental theft protection.

SimplyCash Credit Card from American Express

This credit card helps you earn 1.25 points for every dollar you spend. If you charge $500 on your card as purchases during the first 3 months, you can get a signup bonus of 10,000 Blue Sky® Points. The good thing about this credit card is that there are no travel restrictions. Yes, you have read it right. There are no advance purchase requirements, seat limitations or travel restrictions.

  • $99 Annual Fee
  • 2% Cashback on all of your purchases
  • No limit on the total cashback you can earn
  • Open to residents of Canda

Specification: SimplyCashTM Preferred Card from American Express

Annual Fees

$99

Interest Rate

19.99%

Balance Transfer

22.99%

Cash Advance

21.99%

Network
Card Type

Cashback, Travel Rewards

0

You can always earn additional Blue Sky points by referring your friends. Each successful referral approval gives you the chance to earn 5,000 Blue Sky Points.

Scotiabank SCENE Visa Card

Earn 2,500 bonus SCENE points for everyday purchases of $ 500 in the first three months

Specification: Scotiabank SCENE®* Visa* Card

Annual Fees

$0

Interest Rate

19.99%

Balance Transfer

22.99%

Cash Advance

22.99%

Network
Card Type

Cashback, Travel Rewards

0

If you love to watch movies, this is the no-fee credit card you should own. $500 worth of purchases in the first three months can help you earn 2,000 bonus SCENE points, which are equivalent to two free movie tickets. You earn 1 SCENE point for $1 spent. Similarly, every $1 spent at Cineplex theatres helps you earn 5 SCENE points. You will definitely enjoy being a SCENE member. SCENE points can be redeemed at SportCheck (shopping for sports gear), participating restaurants and AVIS car rentals. As a Scotiabank cardholder, you have added protection against emergency situations and unpredictable life events.

Scotia Momentum Visa Infinite

Specification: Scotia Momentum® Visa Infinite* Card

Annual Fees

$120

Interest Rate

20.99%

Balance Transfer

22.99%

Cash Advance

22.99%

Network
Card Type

Cashback

0
The Scotia Momentum Visa Infinite is one of the best cashback cards currently available in Canada. Scotia Momentum Visa Infinite offers 4% cash back for groceries and on recurring bills, 2% cashback on gas and public transit, taxis & Uber, and 1% on everything else.

TD Cash Back Visa Infinite Card

  • Up to 3% cash back on eligible purchases
  • Cash back rewards don’t expire
  • Travel and roadside assistance services
  • Purchase security and warranty protection
  • Manage card in the TD app

Specification: TD Cash Back Visa Infinite* Card

Annual Fees

$120

Interest Rate

20.99%

Cash Advance

22.99%

Network
Card Type

Cashback

0

Best no annual fee cash back credit card

Tangerine Money-Back Credit Card

  • 0% annual fee
  • 2% cashback on all your purchases
  • No limit on the total cashback you can earn on your purchases

Specification: Tangerine Cash Back Credit Card

Balance Transfer Promo

1.95%

Annual Fees

$0

Interest Rate

19.95%

Balance Transfer

19.95%

Cash Advance

19.95%

Network
Card Type

Balance Transfer, Cashback, Low Interest, No Annual Fee

0

CashBack Credit Cards

Cashback credit cards allow you to earn back some of the money you spend when making purchases of goods and services. You could receive the rebate amount by way of credit each month in the credit card statement. Or, the company might send you a cheque in the mail after a fixed period like a year or preset milestone you attain. However, since you earn this rebate on the purchases you make, you’ll need to take care not to spend too much. If you go over the limit, you could end up paying a high amount of interest that could even out the cash benefit you receive.

Credit card issuers may reward subscribers with money credited to their accounts when they use credit cards for making purchases. Each company has different systems by which they offer rewards:

  • Particular dollar amount
  • Percentage of every purchase you make
  • One-time rebate on signing up
  • On expenditure of a fixed amount within a specific time frame
  • Promotional cashback schemes for existing customers for spending at a particular retailer or store like for instance, $30 for purchases in ABC Grocery Store.
  • A cash-back credit card often has many great benefits. However, there are many different credit cards to choose from. You do not want to go to your primary bank and choose the credit card they offer you. This could lead you to miss out on hundreds of dollars in rewards.

    Through research and comparing credit cards, you can choose the best one for your interests and enjoy the rewards offered for your spending. We’ve got a few great tips for choosing the right cash-back credit card and maximizing your rewards.

    Here are a few cash-back rewards cards worth looking at:


    SimplyCash Card from American Express

    • $99 Annual Fee
    • 2% Cashback on all of your purchases
    • No limit on the total cashback you can earn
    • Open to residents of Canda

    Specification: SimplyCashTM Preferred Card from American Express

    Annual Fees

    $99

    Interest Rate

    19.99%

    Balance Transfer

    22.99%

    Cash Advance

    21.99%

    Network
    Card Type

    Cashback, Travel Rewards

    0

    One of the more popular cards because it offers 5% cash back on gas, groceries, and restaurants for the first six months. Plus, 1.25% on all other purchases. The only downside to this credit card from American Express is that the rewards can only be applied to your credit card statement once a year.

    This credit card has great travel insurance benefits, as well. They offer complimentary car rental theft and damage insurance. They also offer up to $100,000 of accidental death insurance. They also cover you, your spouse and children up until the age of 23 from accidental death when you travel on a plane, train, bus or ship. In order to qualify for this insurance, the entire cost of the car rental or the travel ticket must be charged on your SimplyCash Card.


    Scotia Momentum Visa Infinite

    Specification: Scotia Momentum® Visa Infinite* Card

    Annual Fees

    $120

    Interest Rate

    20.99%

    Balance Transfer

    22.99%

    Cash Advance

    22.99%

    Network
    Card Type

    Cashback

    0

    If you are a big spender, then this credit card from Scotiabank is right for you. Even though it has a $99 annual fee, you will see that you get some of the highest cash back rewards. You can use your cash-back rewards as a statement credit or deposit it into your Scotiabank chequing account.

    This card also offers travel insurance the covers travel emergencies, flight delays, lost baggage, as well as rental car collision loss/damage insurance.


    Tangerine Money-Back Credit Card

    • 0% annual fee
    • 2% cashback on all your purchases
    • No limit on the total cashback you can earn on your purchases

    Specification: Tangerine Cash Back Credit Card

    Balance Transfer Promo

    1.95%

    Annual Fees

    $0

    Interest Rate

    19.95%

    Balance Transfer

    19.95%

    Cash Advance

    19.95%

    Network
    Card Type

    Balance Transfer, Cashback, Low Interest, No Annual Fee

    0

    With this card from Tangerine, you get 2% cashback on two categories that you get to pick. So, this card can be customized to get benefits based on your lifestyle. These cash back rewards are deposited monthly. If you have your rewards deposited directly into your Tangerine savings account, then you can choose

    With this card, you get 2% cashback on two categories that you get to pick. So, this card can be customized to get benefits based on your lifestyle. These cash back rewards are deposited monthly. If you have your rewards deposited directly into your Tangerine savings account, then you can choose a third category to receive 2% back. All other categories will receive 0.5% cashback.

    Even if you are not a big traveller, you want a cash-back card that can help you pay for your next trip.


    Choosing the Right Card

    Cash-back cards offer various rewards in different classifications. This is unlike travel credit cards which often provide you with points for each dollar spent.

    The Scotia Momentum Visa Infinite card, for example, provides you with 4% cashback on gasoline purchases, as well as groceries. They also offer 2% cash back on bills and pharmacy purchases and 1% back on everything else. This is a great credit card option for those who spend a great deal of money on gasoline purchases. It would not be a good option for someone who does not own a car.

    If you spend a great deal of money dining out at restaurants or make large purchases then you might want to choose SimplyCash Preferred Card from American Express. The card offers cardholders 2% cash on all purchases. Plus, for the first six months, you will receive a 5% cashback.

    Sign-Up and Spending Bonuses for your Credit Card

    Choosing a credit card based on cash rewards is an important factor. However, you should also check out the sign-up and spending bonuses. These bonuses could be very beneficial to your wallet.

    The Scotia Momentum Visa Infinite credit card does not charge you the $99 fee for the first year. The SimplyCash Preferred Card, as mentioned above, offers a 5% cash back on purchases for the first six months.

    You also want to keep an eye on the limits set for spending. If you pass the limits set, you may receive a lower percentage of cash back. The Scotia Momentum card only offers the 4% rate for the first $25,000. After you hit that limit you will only earn 1% back. If you find that you are not reaching your spending limits, one tip is to buy gift cards for your favourite stores, so you will earn the cashback you deserve.

    Pay Off Your Bill Completely Each Month To Get More Credit Card Rewards

    Credit card interest can completely defeat the objective of getting cash-back rewards. If you do not pay off your credit card balance each month, you will not really be reaping the reward benefits as the interest charged will cancel out the cashback rewards.

    Now that we have gone over the tips for choosing the right cash-back rewards card, use our comparison tool to determine which card is best for you.

    Earn Cash Back For Your Summer Travels with a Travel Credit Card

    Use your travel credit cards to save money on a vacation. By charging your everyday purchases to your credit card, your rewards can help you save up for your next big trip.

    If you are a frequent traveller, you might consider using a travel rewards credit card. However, with your cash-back credit card, you can save your cash benefits and you no longer have to worry about your points expiring or any blackout dates. If you do want to save your cash towards your next vacation, remember to check when you are able to cash out your rewards and be sure to put them towards your travel fund.

    Also, when you are planning to book your plane tickets, be sure to read about the travel insurance and charge your purchases to the credit card that has the best travel insurance policies.

    The Best Way to Use a Cash-Back Credit Card

    Many travellers have decided to turn to cash-back rewards cards because the travel rewards cards have changed their policies and made it harder to claim the rewards. The cash-back credit cards are great for both frequent travellers and casual travellers because you can decide what you want to spend your cash on.

     

How does a CashBack Credit Card work?

When shopping for cashback credit cards, you might want to check the terms and conditions offered by each card issuer by reading the Product Disclosure Statement before making your choice. Remember, refunded purchases, balance transfers, and cash advances may not be included in the cashback scheme.

Here are the different methods by which companies offer cash-back rewards.

  • You earn cashback each time you make a qualifying purchase on the card. For instance, if your card provider offers a 3% cashback deal and you make purchases on $1,000, you’ll receive a rebate of $30.
  • The card provider offers the cashback scheme to new customers on signing up. If you apply before a certain date and purchase items worth a particular amount before due date, you receive cashback.
  • The card provider allows you to redeem reward points on flights and purchases for cash that is deposited into your account.

Your credit card company allows you a rebate on certain purchases and this amount works out as a percentage of your purchase. This percentage varies according to the specific items you buy. For example, the Scotiabank Momentum VISA Infinite gives you:

  • 4% cashback on gas refills and groceries
  • 1% to 2% cashback on all other items

Here are some other factors to keep in mind:

  • The credit card company charges you an annual fee for the cashback facility. Before buying it, make sure you intend to use the card often so you can cover the fee with the cash
  • The cashback facility rebate does not cover interest charges, cash advances, and balance transfers.
  • If you typically pay cash to buy gas and groceries, using your credit card could be a money-saving option.

FAQ

Is there an annual fee for a cashback credit card?

Sample some cash back credit cards in Canada come with an annual fee. It is important to take the annual fee into account before applying for a cashback credit card. Do some math to evaluate your monthly spending vs. the annual fees. It would only make sense to apply if the result is positive. But there are some great cashback credit cards such as Tangerine Money-Back Credit Card with no annual fees and Scotia Momentum Visa Card with a low annual fee of $39. Compare all cashback credit cards to find the one that suits you best.ontent

Do I need to pay my credit card balance monthly?

Yes. Although a cashback reward could be tempting, you anyways shouldn’t spend more than you can afford to pay back. It’s true that there are financial rewards with cashback credit cards, but they won’t be able to cover your debt entirely. It is also important to pay the entire balance each month to avoid high-interest charges. The Alterna MBNA Rewards card with no annual fees, low-interest rate, and cashback rewards proves to be a win-win for all.

Why Compare Cashback credit cards in Canada?

With so many cashback credit cards in Canada, start by comparing the reward rates and annual fees. Some cashback credit cards offer 4% cashback, but charge high annual fees – turning out the cashback is mostly covered from your own pocket! When applying for cashback credit cards make sure you assess your spending habits. Big spenders should apply for cash back credit cards that reward their appetite for spending with high reward rates. The moderate and lower spenders will do just fine with standard cashback credit cards that also have a lower annual fee.

Why a Cash-Back Credit Card is a Great Choice

Cash-back credit cards can be a great choice for people who prefer not to keep cash with them. Moreover, these cards can actually give you money for using them.

Travel rewards vs cash-back rewards

Travel rewards credit cards allow you to accumulate points when you make purchases with them. These points can then be used for your next travel. The downside is that the guidelines are often complicated. There are also multiple restrictions surrounding the points. By contrast, cash-back credit cards are usually a better option. Their terms are simple enough to understand. The rewards are also versatile enough to be used for a variety of things. Cash-back cards are definitely a good option if you want to make the most out of your spending. The fact that you get something in return every time you spend is not a bad deal at all.

The benefits of using a cash-back card

Credit card users have many reasons to prefer cash-back cards over other cards. Here are some of them:

Returns

This is definitely the most prominent feature of a cash-back card. Usually, the minimum amount of cash return is 1% of every purchase. For example, let’s say you used your card for a $100 purchase. You earn yourself $1 back. This may seem small to you, but this is just the minimum. Most cards offer bigger returns for certain types of purchases. If you use your card for a purchase at the drugstore or grocery store, for instance, you may get a larger percentage of the price in return. Sometimes, the extra rewards can reach up to four times the minimum.

Fees

The annual fee is often the first detail people check when getting a credit card. For travel reward cards, the fees are usually quite high. This is not the case for cash-back cards. Many cash-back cards do not require you to pay any annual fee. For those that do have fees, the cash rewards given are usually much higher.

Bonuses

It’s normal for credit card companies to give rewards to their users. With cash-back cards, the cash you get back is already a given. The good news is there’s a lot more you can get from frequent use. Credit card companies may give you a sign-up bonus when you opt for a cash-back card. Other bonuses may include higher returns for a certain time period. Your annual fee may also be waived.

Limits

Different card companies may only give you rewards up to a certain spending limit. This makes it the perfect option for those who do not really spend a lot. If you need to make larger purchases with your card, however, you may want to think about other options.

How to make the most of your cash-back card

Once you get your cash-back card, you have to make sure you maximize it. The rewards are the main reason you chose this option, after all. The best way to make the most out of your cash-back card is to keep track of spending categories that give the most rewards. For example, some cards give more rewards when you use your card for grocery shopping. On the other hand, some may give you better deals when you use yours for gas. A great example would be the Scotia Momentum Visa Infinite. Did you know that they give you 4% back every time you use your card in grocery stores and gas stations? As for Tangerine Money-Back Credit Card, they give you up to 2% in chosen categories. Just make sure you double check the spending categories. You may be surprised that you’re not getting the rewards you’re expecting because of confusion in some categories. For example, Costco and Walmart do not always fall under grocery stores. Now, what if you have both of these cards mentioned above? That’s even better! This means that you can use the cards for specific purchases. Use your Scotia Minimum Visa Infinite when making gas or grocery purchases. Then, use the other card for other categories.

What to Consider in Choosing a Card

Choosing the right card is not just about picking the one everybody else uses. Here are the most important questions you should ask before you decide:

What gives you the most rewards?

A good choice is the MBNA Rewards World Elite Mastercard. If your annual spending is around $25,000, you may end up with a net of $411 in cash. This amount comes after the annual fee has been deducted. That’s 1.64% in returns! The MBNA Rewards World Elite Mastercard also gives a $100 sign-up bonus. This means that in the first year, you may be taking home up to $511 in rewards. The Scotia Momentum Visa Infinite is also a great choice. Don’t let the 1% cash-back on regular purchases dissuade you. If your list of expenses has groceries and gas on top, you’ll be surprised what the 4% bonus can do. With $25,000 annual spending, you may earn more than $400 in rewards for the entire year. Obviously, your biggest expenses should play a huge role in your decision. As discussed earlier, certain purchases will give you more rewards than others. Check what spending categories each card gives the most rewards to. Go with the cards catering most to your biggest expenses.

Do you hate paying annual fees?

The great thing about cash-back cards is that some providers still offer no-fee cards. Look for cards that do not require a fee, then you’re good to go. Before completely discounting card options that require annual fees, consider all the options. Sometimes, the annual fee is more than worth it. Cards with annual fees usually offer more perks than the usual cash-back card. The rewards may be higher. There may be added bonuses, too. Do some computations and see if you could gain more rewards through this option despite the fee.

Is there a minimum income required?

Understandably, card companies want to keep themselves protected. This is why a lot of them have minimum income requirements. Those who have a minimum salary of $35,000 usually qualify for average cash-back cards. World Elite cards may require more, usually around $60,000 to $80,000. Earning a lot less than that? The SimplyCash Preferred by American Express actually has a great minimum income requirement. Basically, anybody with an income of $15,000 can qualify. They also have a sign-up bonus, as well as a 2% cashback rate. That alone makes it a great choice. Note that you may still be approved for a card even if you do not meet the minimum income requirement. However, you have to make sure your credit and payment history is impeccable.

Are there added perks and insurance?

Hands down, the BMO CashBack World Elite Mastercard is the top choice if you think insurance is important. This card offers 14 different types of insurance, so they’re bound to have the kind of coverage you need. They also offer free roadside assistance on top of the other rewards.

Maximizing the Cashback on Your Credit Card the Right Way

There are a few ways that you can form the perfect cash-back strategy this summer. If you learn some tricks, you’ll be able to earn back a lot of cash.

Maxing Out Bonus Categories

Some cards offer category-based bonuses like earning five points per dollar on the purchase. These categories change every quarter of the year so shopping at such outlets is a strategic way to help you earn more points in over a period.

Choose More Cash Back on Regular Shopping Or Selected Categories

Although it may sound appealing when card companies boast a whopping 5% cashback on categories that rotate quarterly, it’s far better to opt for a 1.5% cashback instead that will cover all your purchases. This is because choosing to get 5% back on categories will lead to only 1% back on regular purchases.

Save Your Travel Expenditure on a Rewards Card

It’s a smart move to use your rewards card when travel season is coming close because reward cards can stock up on points that you can exchange for miles. Read How to Make The Most of Cash-Back Rewards from Credit Cards and Getting Cash Back for Traveling for more information and tips.

Take Advantage of the Sign-Up Bonus and Earn Some Cash Back

You won’t be cheating on your rewards card if you get another card that offers a good sign-up bonus. This will allow you to get cashback as long as you don’t pay interest and pay your bill on time.

Pair Together Two Cash Bank Cards

One way to get more money is to use different cards to make separate kinds of purchases. An example is rotating categories of grocery shops and other services that users can avail using their credit card. However, the 5% cashback that you received won’t last forever. This makes it better to get a card with 1.5% cashback that can be availed of all your regular shopping because other cards only offer 1% back.

How You Should Manage Your Credit Card

Don’t Overspend

Whenever you hear a person’s bad experience with credit cause, it’s most likely due to foolishly spending money that they didn’t have. Don’t make the same mistake and treat it as the same amount that’s present in your bank account.

Keep Track

With credit cards, it’s really easy to get carried away and overspend which leads to many people getting in trouble with their respective credit card companies. Sign up for account management services online with your company. Check your account weekly so you can avoid forgetting that the money will eventually go out of your account to pay for it.

Don’t Wait Until Your Bill Is Due

Paying your credit card bill more than once a month will help you stay on track of your expenses and on top of your finances which delivers you peace of mind. At the very least you should pay your bill before the month ends to avoid overspending and helps imitate the feeling of having spent money.

Don’t Pay Interest

By following the steps above; you won’t have to pay interest on your bill because it won’t be overdue. Otherwise, you’ll be spending more money than saving it and having to pay interest is a clear sign that paying for expenses through a credit card is unmanageable for you.

Credit cards with cash-back rewards options can prove to be great saving tools. Many people want to understand how cash-back credit cards work. You can do the necessary research to find the credit cards with rewards best suited for your spending habits. For instance, if you’re a frequent traveler, you’ll need a credit card that offers travel points. On the other hand, if you intend to use the card for shopping, groceries, day-to-day expenses, and restaurant dining, you might want to choose a card that offers savings on these expenses.

Before making your choice, compare the benefits offered by the different credit card companies and tally the rewards you’re likely to earn on each. You’ll be surprised at the savings you can add up.

Choose the Right Credit Card According to Your Spending Habits

Cash-back credit cards typically offer you categories and different tiers of reward points you can earn. If you can match your maximum spending to the relevant category, you can get the card where you can earn the most cashback rewards.

For instance, say, your family spends a major share of your disposable income on utilities, gas, groceries and other essentials. Accordingly, you might want to choose a card that offers added points on these expenses. You’ll still earn points on other purchases, but the points are typically half of what you earn in your chosen category. Let’s try another example. If your family travels or dines out a lot, look for a credit card that allows you to earn cashback on travel tickets, hotel bookings, and restaurants.

Use the Benefits of Promotions and Bonuses

Many credit card companies offer you an added bonus when you sign up for their services. For instance, you might qualify for and receive a sign-up bonus. Then there are also cards that have certain requirements like for instance, the company might have a condition that you make purchases worth a specific sum within the first one to three months of receiving the credit card to avail of a say, 5% cashback.

With a little smart thinking, you could use these conditions to your advantage. To cover the requirement of spending a certain sum, you could charge every grocery trip to the credit card. Consider buying items with a long shelf life or gift cards for upcoming birthdays and anniversaries.

Typically, credit card companies have ties with business partners and offer you extra points if you use their services. For instance, you might have the option of earning 10 times the number of advantage points if you buy groceries at a certain convenience store or rent a car from a particular dealer. By choosing these services, you can earn additional points and make large savings.

There are other ways you can maximize your cash-back credit card rewards, so do a bit of research and make the most out of your credit card rewards.

Pay Off Your Balance in Full Each Month

Cash-back credit cards are a great option only as long as you pay off the balance in full each month. Keep in mind that such cards typically charge high rates of interest on unpaid balances. If you carry a balance and miss the payment due date, you could end up paying high rates of interest that negate the cash-back advantage you earned.

Benefits of Using a Credit Card as a Budgeting Tool

Earn Cash Back

If you still use your debit card or cash to pay for your expenses, then you’re missing out because there’s much to gain by using a credit card. If you follow through responsibly, you can earn up to 5% back on your purchases with a credit card. The way to do this is by opting for a suitable credit card because there are different kinds of credit cards that are suitable for certain needs. Getting a card that is suitable for the purchases you make regularly is a good way to earn and save points regularly.

Basic Tips on Maximizing the Cashback

Make A List Detailing Your Annual and Monthly Expenditure

Your monthly spending will help you know if it aligns better with a card that offers cashback on categories. Meanwhile, your annual spending will determine if you spend enough to use up the rewards offered by a credit card with a designated category.

Choose a Rewards Program Suited To Your Spending

After you’ve noted down what exactly you spend money on, you can sign up for a cash-back credit card. The list can go on, but the top contenders are Discover It®, Blue Cash Preferred® and Chase Freedom® because their features are suited to a large variety of people.

Track Expenses with a Credit Card Statement

Use your credit card statement to see where you stand regarding expenses and update your list accordingly.

Best CashBack Credit Cards in Canada

Here are 3 examples of the best cashback credit cards available in Canada:

Specification: ECHO® Cashback MasterCard®

Annual Fees

$30

Interest Rate

20.99%

Balance Transfer

22.99%

Cash Advance

22.99%

Network
Minimum Income

$80,000

Card Type

Cashback

0

Then get 1% cashback on all credit card purchases!

  • Up to 3% cash back on select purchases
  • Redeem cash back for as little as $1
  • Flexibility where cash back rewards go
  • Add another cardholder for free
  • Gain financial insights from money tracking

Specification: BMO® CashBack® Mastercard®*

Annual Fees

$0

Interest Rate

19.99%

Balance Transfer

22.99%

Cash Advance

24.99%

Network
Card Type

Cashback

0
  • No annual fee
  • Unlimited cash back and 2% back on groceries*
  • Purchase security and extended warranty protection

Specification: RBC Cashback Mastercard

Annual Fees

$0

Balance Transfer

19.99%

Interest Rate

19.99%

Network
Cash Advance

22.00%

Card Type

Balance Transfer, Cashback, Low Interest, Travel Rewards

Minimum Income

$65000

1
  • 0% annual fee
  • 2% cashback on all your purchases
  • No limit on the total cashback you can earn on your purchases

Specification: Tangerine Cash Back Credit Card

Balance Transfer Promo

1.95%

Annual Fees

$0

Interest Rate

19.95%

Balance Transfer

19.95%

Cash Advance

19.95%

Network
Card Type

Balance Transfer, Cashback, Low Interest, No Annual Fee

0
  • Variety of options to redeem points
  • $0 annual fee
  • Easy-to-get welcome bonuses
  • No eligibility requirements, so anyone can apply
  • Competitive interest rates

Specification: MBNA Rewards Platinum Plus® Mastercard®

Annual Fees

$0

Interest Rate

19.99%

Balance Transfer

22.99%

Cash Advance

24.99%

Network
Card Type

Cashback

0

Earn 2,500 bonus SCENE points for everyday purchases of $ 500 in the first three months

Specification: Scotiabank SCENE®* Visa* Card

Annual Fees

$0

Interest Rate

19.99%

Balance Transfer

22.99%

Cash Advance

22.99%

Network
Card Type

Cashback, Travel Rewards

0

Further Advice on How To Maximize Your Cashback

Prepare For Category Season

Make sure that you get maximum cash back by not missing out on opportunities of seasonal categories. Learning the categories of each season beforehand will help you plan out any expenditure that you might have to make around that time of the year.

Redeem Your Points in Cash

Instead of redeeming your cash back in the form of expensive and luxurious items, it is recommended that you take the cash. This will have a real impact on you about how your smart spending decisions brought a positive outcome.

Helps in Compensating For High Gas Prices

Having a credit card that offers cash back on purchasing fuel can be very beneficial if you’re one to drive around a lot. It can help compensate for whenever gas prices get higher, so you earn more points when you purchase gas at inflated prices.

Gift Cards

Gift cards are also a good way to redeem your cashback, and they’re also a way to ensure that you can save money outside the category period. If you haven’t spent the maximum amount within three months, you can assess whether you feel like you’ll need to save in the same category in the future months. If so, you can redeem your cashback in the form of gift cards.

Conclusion

You can see that there is no one-size-fits-all card, however, you can have a closer look at some of the best options mentioned above to see what works for your financial goals and situation. Here’s some friendly advice. When you are shopping for a no-fee cash back credit card for the first time, make sure you get a second no-fee cashback credit card as a backup. Remember, the second credit card might cost nothing but you do have a backup if your primary card gets frozen, stolen or misplaced. Secondly, you should always use your credit cards carefully. Simply put, even if you are paying nothing to the bank, doesn’t mean you use the credit card carelessly. Space out your purchases and take note of your spending habits. Of course, a free movie or travel ticket along with other bonuses is exciting, but make sure your spending doesn’t get off track. After all, the last thing you want to happen is to end up in credit card debt and fail to identify a way to get out of it.

Earn money while you spend with Cashback credit cards. Why not get rewarded while using a credit card to make purchases? Cashback credit cards in Canada offer anywhere between 1% to 5% money back for every dollar spent using your cashback card. Some cashback cards may charge an annual fee or in some cases a high-interest rate. Compare and apply for the best cashback credit card in Canada.

It’s always wise to choose your cashback credit card considering the type of items you plan to purchase. There are different types of cashback credit cards and many of them focus on certain types of items, such as groceries and gas, or even a specific category of products. You can also use them for paying your monthly bills.

Compare cashback credit cards according to your type of spending, and choose the card that fits your lifestyle.

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