There are numerous Cash Back Credit Cards in Canada with several offers and benefits. Each credit card has its unique features, annual fee, charges, earn rates, and welcome offers. Hence, you need to have a careful consideration of the different options available to pick the right credit card that suits your lifestyle and needs.
Cash Back Credit Cards enable you to get back a certain percentage of every dollar spent on your credit card. However, unlike other reward cards, like the travel rewards credit card that earns you points which you can redeem for various items as allowed by the issuer, a Cash Back Credit Card simply returns part of the money (cash) spent on purchases. The returned cash can either be in your statement credit, or as cash in your bank account.
As earlier noted, all Cash Back Credit Cards have diverse offers, and it is essential to choose a card that suits your purchasing habits. Here, you will discover some of the Best Cash Back Credit Cards in Canada for 2020.
How Cash Back Credit Card Works
Cash Back Credit Cards, just as the name suggests, enable you as a cardholder to earn or get back a certain percentage of the money you spend on purchases. The more you spend and make payment with the credit card, the more money you get back as a reward.
The amount or percentage of Cash Back you can get will depend on the Cash Back Credit Card issuer, and the features of the card, such as the credit limit. Interestingly, the money you get as a Cash Back can be spent on anything you want. This cash can be returned to you either as a credit on your statements or as a cheque in the mail.
Best Cash Back Credit Cards
Tangerine Money-Back Credit Card
The Tangerine Money-Back Credit Card is a no-fee MasterCard from Tangerine Bank. The Tangerine Credit Card makes it easier for you to save money on your everyday purchases with its money back rewards. This credit card has simple and flexible cash back features and benefits.
There are three categories available to cardholders to earn on this card. You can choose two categories to earn 2 percent cash back. However, to enjoy the other 2 percent cash back in the third category, your earned cash back has to be deposited directly into your Tangerine Savings Account.
For all other purchases charged to your credit card, there is a 0.5 percent cash back reward. The tangerine money back credit card offers unlimited money-back rewards on your everyday purchases. Besides, you’ll enjoy all the benefits that come with MasterCard credit cards. Other features and perks of this card include:
- Annual fee: $0 (no annual fee)
- Monthly money back rewards
- Unlimited money-back rewards
- The annual interest rate on purchases: 19.95%
- The annual interest rate on cash advances: 19.95%
Eligibility
- This card is available to permanent residents of Canada who are of the age of majority in their province or territory.
- A gross annual income of $12,000 or more
- Clear of bankruptcies over the past 7 years
Scotia Momentum Visa Infinite Card
This Visa Infinite card tops the Cash Back Credit Cards suitable for grocery spending and recurring bills. Scotiabank issues the Scotia Momentum Card, and it comes with a fantastic promotional offer. New cardholders enjoy a 10 percent cash back on all purchases of up to $2000 for the first 3 months.
Also, there is no annual fee in the first year on both the primary card and authorized user cards. Other features and perks of this card include:
- Annual fee: $120
- The annual interest rate on purchases: 20.99%
- The annual interest rate of cash advances: 22.99%
- Minimum credit limit: $5000
- Earn 4% for every $1 spent on grocery store purchases, recurring bill payments, and subscription purchases.
- Earn 2% for every $1 spent on gas purchases and daily transit purchases.
- Earn 1% cash back on all other purchases
- No cash back limit
Eligibility
- This credit card is available to Canadian residents who are of the age of majority in their province or territory of residence.
- A minimum personal annual income of $60,000 or a minimum household income of $100,000 or minimum assets under management of $250,000
Rogers World Elite MasterCard
The Rogers Bank issues this Cash Back Credit Card, and it offers you more cash back rewards, travel, and insurance benefits. This no-fee travel rewards card offers cash back rewards on purchases within the last 90 days that can be redeemed instantly. Other features of this credit card include:
- Welcome bonus of $25 in cash back rewards when you make your first card purchase within 3 months of account opening
- Annual fee: $0 (no annual fee)
- The annual interest rate on purchases: 19.99%
- The annual interest rate on cash advances: 22.99%
- The annual fee on additional cards: $0 (free)
- Earn 1.75% in unlimited cash back rewards on all eligible purchases in the Canadian dollar
- Earn 4% in unlimited cash back rewards on all purchases made in a foreign currency
- Earn 2% in unlimited cash back rewards on Rogers products and services charged to your card.
- Enjoy MasterCard travel rewards cash rebate
Eligibility
- This credit card is available to Canadian residents who are of the age of majority in their province or territory of residence.
- A minimum personal annual income of $80,000 or a minimum household income of $150,000
Simply Preferred Card from American Express
This Cash Back Credit Card from the Amex Bank of Canada is famous for its unlimited cash back reward flat rate. With this card, you earn a great cash back rate on everything you purchase. As a welcome bonus, you also earn 5 percent cash back in your first 6 months, for up to $300. You can also earn a bonus of $100 cash back for each approved friend you refer to the bank’s card referral program. Other features of this card include:
- Annual fee: $99
- The annual interest rate on purchases: 19.99%
- The annual interest rate on funds advances: 21.99%
- No annual fee on additional cards
- Earn 2% cash back on all purchases when the welcome offer ends.
- Unlimited cash back earnings
Eligibility
This card is available to Canadian residents with a Canadian credit file, and who are of the age of majority in their province or territory of residence.
TD Cash Back Visa Infinite Card
This Cash Back Credit Card issued by TD Bank has a welcome offer of 6 percent cash back on all purchases for the first 3 months, up to total spending of $2000. Cardholders enjoy annual fee rebate for the primary and first additional cardholder in the first year. Interestingly, you can redeem your cash back dollars whenever and however you please, as it can be applied to pay down your account balance. Other features of this card include:
- Annual fee: $120
- The annual interest rate on purchases: 20.99%
- The annual interest rate on funds advances: 22.99%
- Additional card fee: $50 for the first additional card, and $0 for subsequent additional cardholders
- Earn 3% in cash back dollars on eligible grocery purchases and gas purchases, and regular recurring bill payments.
- Earn 1% in cash back dollars on all other purchases made with your card.
- Your cash back dollars never expire as long as your account is active.
- Travel medical insurance
- Complimentary visa infinite concierge service 24/7
- Minimum credit limit: $5000
Eligibility
- This credit card is available to Canadian residents who are of the age of majority in their province or territory of residence.
- A minimum personal annual income of $60,000 or a minimum household income of $100,000
Cash Back Credit Cards by category
Flat Rate Cash Back Credit Cards
These cards earn you the same amount of cash back on every purchase you make with your credit card, including spending on gas, grocery, and everything else. An example is the Simply Cash Preferred from American Express, which offers 2 percent on all purchases.
No Fee Cash Back Credit Cards
These cash back cards have no annual fee on the card. Hence, cardholders can earn more cash back while paying no fee on their card. Examples are the Tangerine Money-Back Credit Card and the Rogers World Elite MasterCard.
Bonus Cash Back Credit Cards
These are the most prominent types of Cash Back Credit Cards. These cards offer you more rewards on specific types of purchases than other categories of spending. The bonus categories can include gas, groceries, and recurring bill payments. An example of this category of Cash Back Credit Cards includes the scotia momentum visa infinite card, and the TD Cash Back Visa Infinite Credit Card that offers cash back of 4% and 3% respectively on gas, groceries, and recurring bill payments.
Flexible Bonus Cash Back Credit Cards
These types of Cash Back Cards allow you to choose the category of your choice to earn rewards. An example is the tangerine money back credit card.
Final Thought
Cash Back Credit Cards are fantastic ways to save on your expenses and have more money to spend. Before choosing your preferred Cash Back Credit Card, ensure to look at the features and the benefits offered by each credit card issuer.
