Best Cash Back Credit Cards in Canada for 2021


Cash Back Credit Cards

Cash back credit cards are a type of loyalty program. Instead of collecting points towards free rewards such as travel, cardholders receive cash back. While this might seem impossible to imagine, credit card companies see the value in helping people grow their money, instead of just their debt. Here we look at the Best Cash Back Credit Card and further down everything you need to know about cash back credit cards to help you decide if they are right for you.

Tangerine Money-Back Credit Card
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Annual Fee: $0
Purchases Interest Rate: 19.95%
Cash Advance Interest Rate: 19.95%
Min Income Requirement: $12000
Why Apply:
  • No annual fee
  • Unlimited rewards
  • Automatic monthly cash back redemption
  • Flexibility
  • Get more rewards
Recommended Credit Score:
670 900
Average to Excellent
Apply Nowlock On Tangerine's Secure Website

Earn an extra 15% back* for a limited time with a Tangerine Money-Back Credit Card.

1.95% interest on the transferred balance for the first 6 months


Regarded as one of the best credit card in Canada, Tangerine Money-Back Credit Card provides no annual fee, a lucrative 2% cash back in up to 3 merchant categories, and 0.5% on all other purchases with no caps, tiers or limits. It provides choice, value and convenience to beginner credit card users and even works great as a secondary credit card.

  • No annual fee -The no annual fee for both primary and secondary holders means that you are not paying for your cash back.
  • Unlimited rewards -Earn as much cash back rewards regardless of the category.
  • Automatic monthly cash back redemption -Every month, Tangerine will either apply your cashback dollars against your credit card balance or deposit it directly into your Tangerine Savings Account.
  • Flexibility - You can choose 2-3 categories for the 2% cash back and change categories once every 90 days to match your spending pattern.
  • Get more cash back rewards -Maximize your credit card rewards by choosing another cash back credit card that has bonus categories and using your Tangerine card to expand and get more bonus categories.


If you've been looking for a credit card that offers money-back rewards, then the Tangerine Money-Back Credit Card might be right for you. The card has no annual fee and is designed to offer cash back on all purchases made with the card - anytime during the year!


Great credit card for those who would like to maximize the cashback they earn by choosing their spend categories to earn more cashback.

Viewed as one of the best credit cards in Canada, Tangerine Money-Back Credit Card provides no annual fee, a lucrative 2% cash back in up to 3 merchant categories, and 0.5% on all other purchases with no caps, tiers or limits. It provides choice, value and convenience to beginner credit card users and even works great as a secondary credit card. Apply for a Tangerine Money-Back Credit Card by November 30, 2021 and earn an extra 15% back (up to $150) when you spend up to $1,000 in everyday purchases within your first 2 months.*


 The most notable feature is the cash back rewards. Who wouldn't want to earn money while they spend! In order to determine an estimate of how much you'll earn using this card, take your total credit card spending per month and multiply it by 1%. Typically, these card users average out to 1% cash back on purchases between the special 2% categories and 0.5% on all other purchases. If you spend $1,000 a month, you'll earn $10 ($1,000 x 0.01)!


Tangerine's Money Back Credit Card has lower than average fees as well. In addition, they are an excellent bank to work with since they're owned by Scotiabank. More often than not, Tangerine's clients benefit indirectly from Scotiabank's services without paying the big bank fees. That being said, Tangerine's services are so affordable because they don't offer in person services the way traditional banks do. If that's something you value, this card might not be right for you.

Pros of Tangerine Money back Mastercard 

  • No annual fee -The no annual fee for both primary and secondary holders means that you are not paying for your cash back.You can carry this card at no cost
  • Unlimited Cash Back: -Earn as much cash back rewards regardless of the category.
  • There is no limit on how much cash back you can earn.
  • Insurance coverage: Extended warranty and purchase protection.
  • Promotional balance transfer rate: 1.95% interest on the transferred balance for the first 6 months.
  • Automatic monthly cash back redemption -Every month, Tangerine will either apply your cashback dollars against your credit card balance or deposit it directly into your Tangerine Savings Account.
  • Flexibility - You can choose 2-3 categories for the 2% cash back and change categories once every 90 days to match your spending pattern.

 

Cons of Tangerine Money back Mastercard 

  • The only drawback is that you will earn 0.5% for all purchases outside your top 2 or 3 money back categories.

The Tangerine Money Back Credit Card is one of the best credit cards on the market right now. Getting cash back as a reward is essentially the most optimal reward you can get since it can be put towards other expenses. In addition, this card is affordable to use and accessible to nearly every Canadian. 


Tangerine Frequently Asked Questions

Is Tangerine a good credit card?

Tangerine has two credit cards. The Tangerine Money-Back Credit Card and the Tangerine World Mastercard. Both offer no annual fee and a 19.95% interest rate. They offer purchase assurance and extended warranty on products fully purchased with their credit cards.

Tangerine also offers 2% Money-Back Rewards in two categories of your choice and 0.05% on all other everyday purchases. If you deposit your Money-Back directly into a Tangerine savings account, you unlock a third 2% Money-Back Rewards category. This credit card has no cap on the amount of Money-Back Rewards you can earn. The Tangerine Money-Back Credit Card is a great choice and is competitive with the credit card options of big banks. The Tangerine World Mastercard has added benefits and is harder to qualify for. Benefits include: Mastercard travel rewards, Mastercard airport experiences, mobile device insurance, car rental insurance, and worldwide wi-fi hotspot access.

How do I qualify for a Tangerine credit card?

Tangerine Money-Back Credit Card

To qualify for this credit card, you must have: a gross annual income of $12,000 plus, be the age of majority in your province or territory, be a permanent resident of Canada and be clear of bankruptcies over the past 7 years.


Tangerine World Mastercard

To qualify for this credit card, you must have: $60,000 plus gross annual income OR $100,000 plus household income OR $250,000 in Tangerine bank accounts. AND you must: be the age of majority in your province or territory, be a permanent resident of Canada and be clear of bankruptcies over the past 7 years.

Does Tangerine do a credit check?

Yes, Tangerine will do a credit check as you must agree to a credit check as part of your application process for either credit card Tangerine offers.

What credit bureau does Tangerine use?

Tangerine pulls credit history and credit scores using the TransUnion credit reporting agency.

How do I increase my Tangerine credit card limit?

Tangerine does not provide information on their website about how to increase credit card limits. In most cases, maintaining a good payment history and low borrowing load will welcome credit increases. Often banks and creditors will offer regular increases without requests, but you will be asked and must approve these increases. If you would like a credit increase, you can call and speak to Tangerine’s client service representatives, who can walk you through their specific process and submit your request for a credit increase. Tangerine, like most banks, has an online credit increase form you should be able to complete and submit on your own too.

How can I apply for a Tangerine credit card?

You can apply for a Tangerine credit card online, but you will need to register as a Tangerine client first. If you are already a Tangerine client, you can apply online or call.

TD Aeroplan Visa Infinite Card
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Annual Fee: $139
Purchases Interest Rate: 19.99%
Cash Advance Interest Rate: 22.99%
Min Income Requirement: $60000
Why Apply:
  • Earn Aeroplan points on your everyday Purchases.
  • Redeem your rewards any time – Every seat, every flight, no restrictions
    Use Aeroplan points for more than just flights 
  • Peace of mind when travelling
  • Assistance on the road
Recommended Credit Score:
670 900
Average to Excellent

The TD Aeroplan Visa Infinite Card is a versatile credit card that allows you to earn Aeroplan miles, get a comprehensive travel insurance package, and earn rewards at a decent rate. With TD being the official partner of Aeroplan, we consider this one of the best Aeroplan credit card in Canada. It targets members and gives double miles when used together with the Aeroplan membership card.

  • Earn Aeroplan points on your everyday Purchases. Whether you use your TD® Aeroplan® Visa Infinite Card for gas, bills or groceries, you’re rewarded with Aeroplan points that can take you across the globe
  • Redeem your rewards any time – Every seat, every flight, no restrictions
    Every Air Canada seat available to buy for cash is also available for points – no restrictions, no blackout periods.
  • Use Aeroplan points for more than just flights - Redeem your points across your trip, from hotel rooms to car rentals.
  • Peace of mind when travelling – With a medical coverage that includes standard protection and up to $2 million coverage during the first 10 days of a trip, this card lets you travel in peace. In addition, it also offers access to emergency travel assistance as well as delayed and lost baggage insurance.
  • Assistance on the road – This credit card gives you complimentary membership to the company’s TD Auto Club and makes you eligible for free emergency roadside assistance anytime.

The most obvious feature of this credit card is in the name, it has a connection to Aeroplan. Aeroplan is Canada’s frequent flyer program and the TD Aeroplan Visa Infinite allows card holders to earn Aeroplan points on daily expenditures. In addition, there is a welcoming bonus of 10,000 bonus Aeroplan points with your first purchase. It doesn’t take much to start earning!

 

Card holders earn 1.5 miles per dollar spent on groceries, pharmacies, gas and Air Canada purchases. One point per dollar spent is earned on all other purchases. A notable benefit of the TD Aeroplan Visa Infinite credit card is you can earn points on everyday expenditures which means it’s not challenging to earn at all.

 

In addition to the ease of earning points, cardholders gain access to travel insurance. The insurance covers car rental insurance, delayed or lost baggage, trip cancellation or interruption, flight delay, travel accident and medical emergency expenses. However, insurance only applies when you charge the full cost to your TD Aeroplan Visa Infinite which can be inconvenient when you’re abroad. Finally, cardholders have special Air Canada benefits when you redeem your points for Air Canada flights. These include priority check-in, priority boarding, an annual visit to the Air Canada Maple Leaf Lounge and a complimentary first checked bag.

 

A pitfall of this credit card is the $139 annual fee. TD will waive the fee for the first year if you have an All-Inclusive Account and have $5,000 or more sitting in that account. Another disadvantage is that it's hard to peg the actual value of the points you earn. The amount of points you need for a flight depends on your desired travel class and destination. TD allows card holders to redeem their points on any Air Canada flight or any other Star Alliance partner airline which gives you ample choice. While the travel points aren’t the best on the market, it can be an extremely favourable card for those who like to travel with Air Canada.

 

All in all, the TD Aeroplan Visa Infinite card has a lot of advantages, but they’re not the best on the market. Also, the disadvantages can off put the advantages making it subpar. However, it is more attainable than other travel based credit cards on the market and is an excellent choice if you already bank with TD and work with Aeroplan.

SimplyCashTM Preferred Card from American Express
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Annual Fee: $99
Purchases Interest Rate: 19.99%
Cash Advance Interest Rate: 21.99%
Min Income Requirement: Not Available
Why Apply:
  • High cashback rewards
  • Complete suite of insurance and protection plans
Recommended Credit Score:
670 900
Average to Excellent
Apply Nowlock On American Express's Secure Website

If you are comfortable with shelling out a small fee of $99 per year, then the SimplyCash Preferred Card from American Express is one of the best cashback rewards cards. Those who want to maximize their rewards can take advantage of the limited-time 10% cashback rewards. It also offers a comprehensive insurance package that's worth more than $100 in value.

 

Why We Like It:

  • High cashback rewards One of the highest we've seen, the 10% promo cash back is a welcome opportunity for people who have a major purchase coming up. After the four-month promotional period is up, it returns to a still high 2% cash back with no limits. Cash back is applied as a statement credit to your account each September.
  • Complete suite of insurance and protection plans This Amex card offers extensive insurance that includes insurance against rental car damage, travel accident, foreign medical, and baggage theft as well as double manufacturer's warranty and insurance against theft or damage for purchases.

The SimplyCash Preferred credit card allows you to earn while you spend. There are no categories or limitations - wherever you spend, you’ll earn cash back with no earning caps. While the credit card does come with an annual fee of $99, you’ll benefit from numerous perks in addition to cash back.

American Express - SimplyCash Preferred Card

The American Express SimplyCash Preferred Card offers cardholders an incredible range of benefits that include high cashback rates and a referral bonus. American Express offers exceptional customer service to its cardholders, with customer care professionals that are available to answer questions and deal with card problems, such as lost or stolen cards, 24 hours a day.

Features and Benefits of the SimplyCash Preferred Card

  • Fantastic Welcome Offer. Earn 10% cash back in your first four months of card ownership.
  • Cash Back Rate. After the welcome offer expires, earn 2% cash back on all purchases.
  • Up to $1,500 cashback annually for approved referrals
  • No Limit on Earnings. After the welcome offer expires, there are no limitations on earnings with the 2% rate. 
  • Travel and Shopping Insurance. Travel abroad and shop around with peace of mind. Insurance coverage includes travel accident, car rental theft and damage, buyers assurance protection and much more.
  • Entertainment Benefits. Access special event offers from American Express, such as theatre, music, fine dining, fashion and shopping.
Pros and Cons of the SimplyCash Preferred Card

Pros
  • Cashback is earned on every purchase made with your card
  • There are no limits on the amount of cashback you can receive
  • Travel insurance limits are generous
  • Early access to concerts and other events

Cons

  • Amex isn't accepted as widely as Visa and Mastercard

The Takeaway

The American Express SimplyCash Preferred Card is an excellent option for those who are looking for a generous cashback program. Individuals who travel frequently for business or pleasure can also benefit from this card's included travel insurance, which covers accidents, medical expenses, and even lost baggage. Although this card comes with great benefits, it's important for potential users to consider the downfalls, which is the fact that some retailers across Canada don't accept American Express cards.It is always good to have a Visa or Mastercard credit card as a backup.

SimplyCashTM Card from American Express
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Annual Fee: $0
Purchases Interest Rate: 19.99%
Cash Advance Interest Rate: 21.99%
Min Income Requirement: Not Available
Why Apply:

 

  • No Annual Fee
  • Awesome Welcome Offer
  • Cash Back Rate
  • Entertainment Special Access
  • Basic Insurance Coverage
Recommended Credit Score:
670 900
Average to Excellent
Apply Nowlock On American Express's Secure Website

If you’re looking for a straightforward cash back credit card - this could be an ideal option for you! With no annual fee, earn 1.25% cash back, obtain insurance coverage and access to American Express special events. This is an ideal credit card for individuals wanting to earn cash back without making a big commitment to an annual fee.

 

  • No Annual Fee. One of the few American Express cards that comes with no annual fee.
  • Awesome Welcome Offer.  New SimplyCashTM from American Express Cardmembers can earn 4% cash back on purchases (up to $200 cash back) for the first 6 months of Cardmembership
  • Cash Back Rate. Once the welcome offer expires, earn 1.25% on all purchases with no limitations.
  • Entertainment Special Access. Gain access to American Express exclusive offers and experiences.
  • Insurance Coverage. Travel accident, buyer’s assurance and purchase protection insurance comes with card ownership.

American Express - SimplyCash Card

The American Express SimplyCash Card features no annual fees and offers cardholders a flat, unlimited cashback rate. Just as with the SimplyCash Preferred Card, American Express offers its members the opportunity to receive a generous bonus for referrals. Its customer care professionals are available around-the-clock to address cardholder concerns and fraud protection is included with every card.

Features and Benefits of the SimplyCash Card
  • 4% cashback introductory rate; 1.25% cashback after the first 6 months
  • Up to $750 cashback annually for approved referrals
  • Purchase Protection Plan covers all purchases made with the card
  • Front of the Line ticket access for concerts, dining, film, and other experiences with American Express Invites
  • Built-in fraud protection and emergency card replacements
  • $100,000 travel accident insurance that includes a Buyer's Assurance Protection Plan
Pros and Cons of the SimplyCash Card

Pros

  • No annual fees
  • Cashback is unlimited
  • Purchase Protection Plan protects you from shopping with bad merchants
  • Early access to concerts and other events

Cons

  • Amex isn't accepted as widely as Visa and Mastercard
  • Travel benefits are reduced when compared with the SimplyCash Preferred Card


The Takeaway

The American Express SimplyCash Card is among the best choices for individuals who are looking for a cashback card that doesn't cost an arm and a leg. Because cashback earnings aren't limited with this card and the interest rate is reasonable, this card makes a great choice for everyday use. Those who travel frequently and require comprehensive insurance may want to consider upgrading to the SimplyCash Preferred Card, as the SimplyCash card's travel insurance benefits are limited by comparison.

Scotia Momentum® Visa Infinite* Card
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Annual Fee: $120
Purchases Interest Rate: 19.99%
Cash Advance Interest Rate: 22.99%
Min Income Requirement: $60000
Why Apply:
  • Welcome bonus
  • No-nonsense rewards
  • Enhanced insurance package
Recommended Credit Score:
670 900
Average to Excellent
Apply Nowlock On Scotiabank's Secure Website

For people who love to eat and drive, the Scotia Momentum VISA Infinite Card is the best rewards credit card with a fee. It provides an unrivaled 4% cash back on food and gas along with 2% on recurring payments and drugstore purchases, and 1% on the rest. On top of that, this card also comes with comprehensive insurance benefits and concierge benefits.

  • Welcome bonus  No annual fee in the first year, including on supplementary cards.
  • No-nonsense rewards Rewards are clear, transparent, easy to earn and easy to redeem. Cash back rewards are paid out annually either as a deposit to eligible chequing or savings account or credited to your credit card statement.
  • Enhanced insurance package The improved insurance package is comparable with other more premium cards. It provides comprehensive coverage on travel, including rental car collision loss or damage as well as purchase security and extended warranty protection.
  • Additional Perks. Obtain exclusive offers from Scotiabank including concierge service, competitive hotel rates and upgrades, and access to dining and wine country programs.
  • Annual Fee. Gain access to all of the above perks at the cost of $120 after the first year.

Excellent credit card with outstanding benefits and full insurance coverage.

The Scotia Momentum Visa Infinite card was the winner of the MoneySense best cashback card with a fee in 2020 - and for good reasons! Card holders earn cash back on all purchases at varying rates. There are also other perks of card ownership including access to exclusive Scotiabank events and offers, plus ample insurance coverage.

  • Special Welcome Offer. No annual fee in the first year, including on supplementary cards.
  • Tiered Cash Back Rates. Earn 4% cash back for every dollar spent on groceries and recurring bill payments. Earn 2% cash back for every dollar spent on gas and daily transit. Finally, earn 1% cash back for every dollar spent elsewhere.
  • Additional Perks. Obtain exclusive offers from Scotiabank including concierge service, competitive hotel rates and upgrades, and access to dining and wine country programs.
  • Insurance Coverage. Ample coverage comes with this credit card, such as new mobile device, trip cancellation, trip interruption, purchase protection insurance and much more.
  • Annual Fee. Gain access to all of the above perks at the cost of $120 after the first year.
Home Trust Preferred Visa Card
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Annual Fee: $0
Purchases Interest Rate: 19.99%
Cash Advance Interest Rate: 19.99%
Min Income Requirement: Not Available
Why Apply:
  • No annual fee
  • No foreign exchange fees
  • 1% Cash back rewards on eligible purchases
Recommended Credit Score:
670 900
Average to Excellent
Apply Nowlock On Home Trust's Secure Website

With no foreign transaction fee and no annual fee in one credit card, what’s not to like about the Home Trust Preferred Visa? And because this is a no fee credit card, all benefits come free.

Why We Like It:

  • No annual fee – You can try it for free.
  • No foreign exchange fees – 0% foreign currency conversion charge when shopping abroad. It’s perfect for online and cross-border purchases – saving you 2.5% of the total cost.

  • 1% Cash back rewards – Regardless of the category, this credit card gives 1% cash back on all eligible purchases. The total cash back balance is credited to your account at the start of each year.


The Home Trust Preferred Visa Card is an excellent credit card for those who would like to save on foreign transactions fees.

This credit card provides 1% cash back rate along with its no foreign transaction fees which is excellent for travelers and online shoppers. In fact, cardholders will be saving 2.5% fees on purchases made outside Canada or in a foreign currency.

The combination of these 2 features make this card a great card to have, especially when there is no annual fee.

One of the most attractive features of the Home Trust Preferred Visa is the cash back rewards. Cash can be earned on all eligible purchases and there is no limit on how much cash you can earn. Your rewards are paid as a credit to your credit card statement annually (every January).

 

In addition to the lucrative cash back rewards, there is no annual fee for this card. There are also secondary benefits that card holders are eligible for including no foreign exchange fees.

 

The most notable of this list is the lack of foreign exchange fees. If you’re an avid traveler or do a lot of online shopping in foreign currencies, the Home Trust Preferred Visa is an excellent choice. Foreign transaction fees might seem like nothing, but they add up, especially when you factor in foreign exchange rates. 

 

Not only is the Home Trust Preferred Visa great from a financial aspect, the bank itself has stellar ideals and makes it their mission to cater to their customers. They aim to provide financial services to individuals who don’t have a typical credit background and can’t reach their financial goals with traditional banks. 

 

There are some drawbacks to using this credit card and working with Home Trust. For one, this card is not accessible in Quebec. In addition, the amount of transactions the cardholder can incur per day is ten. Most credit card users won’t exceed this limit, but it’s a hassle to always have it on your mind. The card also does not allow for tap payments and customer service is not available 24/7, only during business hours.

 

Overall, the Home Trust Preferred Visa is a phenomenal choice. If you’re an individual who travels a lot, this card is especially beneficial considering how rare no foreign transaction fees are in combination with no annual fee. Home Trust is a small, yet effective, bank that delivers to their customers. 

This credit card has a close cousin which is the Home Trust Secured Visa.To get more information read our review on the Home Trust Secured Visa.

Tangerine World Mastercard®
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Annual Fee: $0
Purchases Interest Rate: 19.95%
Cash Advance Interest Rate: 19.95%
Min Income Requirement: $60000
Why Apply:

Earn extra Rewards
Boingo Wi-Fi for Mastercard®
On-Demand and Subscription Services
Mobile Device Insurance

Recommended Credit Score:
670 900
Average to Excellent
Apply Nowlock On Tangerine's Secure Website

The World Mastercard offers new perks to their customers that are not available to Tangerine Money-Back Mastercard users. Mobile insurance of $1,000, rental car insurance worth $65,000 for 31 days and Mastercard airport experiences are perks that cardholders gain access to. Both of these insurance packages are beneficial for individuals who have a smartphone and are renting cars often.

The Tangerine World Mastercard is a new addition to Tangerine’s financial products. As with the Tangerine Money-Back Mastercard, there is no annual fee, 2% cash back on three categories and 0.5% cash back on all other purchases. Some of Tangerine’s spending categories include restaurants, furniture, groceries, gas, home improvement and entertainment.

Earn an extra 15% back* for a limited time with a Tangerine World Mastercard.

Apply for a Tangerine Money-Back Credit Card by November 30, 2021 and earn an extra 15% back (up to $150) when you spend up to $1,000 in everyday purchases within your first 2 months.*

The World Mastercard offers new perks to their customers that are not available to Tangerine Money-Back Mastercard users. Mobile insurance of $1,000, rental car insurance worth $65,000 for 31 days and Mastercard airport experiences are perks that cardholders gain access to. Both of these insurance packages are beneficial for individuals who have a smartphone and renting cars often. In addition, with the Mastercard LoungeKey membership, you can access airport lounges all over the world at a discounted rate.

 

All in all, the Tangerine World Mastercard is an excellent choice because of the cash back rewards and other perks. Start earning cash on your expenditures today!

Tangerine Frequently Asked Questions

Is Tangerine a good credit card?

Tangerine has two credit cards. The Tangerine Money-Back Credit Card and the Tangerine World Mastercard. Both offer no annual fee and a 19.95% interest rate. They offer purchase assurance and extended warranty on products fully purchased with their credit cards.

Tangerine also offers 2% Money-Back Rewards in two categories of your choice and 0.05% on all other everyday purchases. If you deposit your Money-Back directly into a Tangerine savings account, you unlock a third 2% Money-Back Rewards category. This credit card has no cap on the amount of Money-Back Rewards you can earn. The Tangerine Money-Back Credit Card is a great choice and is competitive with the credit card options of big banks. The Tangerine World Mastercard has added benefits and is harder to qualify for. Benefits include: Mastercard travel rewards, Mastercard airport experiences, mobile device insurance, car rental insurance, and worldwide wi-fi hotspot access.

How do I qualify for a Tangerine credit card?

Tangerine Money-Back Credit Card

To qualify for this credit card, you must have: a gross annual income of $12,000 plus, be the age of majority in your province or territory, be a permanent resident of Canada and be clear of bankruptcies over the past 7 years.


Tangerine World Mastercard

To qualify for this credit card, you must have: $60,000 plus gross annual income OR $100,000 plus household income OR $250,000 in Tangerine bank accounts. AND you must: be the age of majority in your province or territory, be a permanent resident of Canada and be clear of bankruptcies over the past 7 years.

Does Tangerine do a credit check?

Yes, Tangerine will do a credit check as you must agree to a credit check as part of your application process for either credit card Tangerine offers.

What credit bureau does Tangerine use?

Tangerine pulls credit history and credit scores using the TransUnion credit reporting agency.

How do I increase my Tangerine credit card limit?

Tangerine does not provide information on their website about how to increase credit card limits. In most cases, maintaining a good payment history and low borrowing load will welcome credit increases. Often banks and creditors will offer regular increases without requests, but you will be asked and must approve these increases. If you would like a credit increase, you can call and speak to Tangerine’s client service representatives, who can walk you through their specific process and submit your request for a credit increase. Tangerine, like most banks, has an online credit increase form you should be able to complete and submit on your own too.

How can I apply for a Tangerine credit card?

You can apply for a Tangerine credit card online, but you will need to register as a Tangerine client first. If you are already a Tangerine client, you can apply online or call now.

 

What is a cash back credit card?

 

Cash back credit cards pay users a percentage of the money they spend on the card. This works similar to a rebate program. In most cases card holders can expect to receive somewhere between 1 to 2% of their purchases. For example, if you were to spend $1,000 on a 1% cash back card, you earn $10. This type of reward program helps people in a number of ways including:

 

  • Building a good credit rating
  • Payment towards purchases
  • Growing savings

 

As a result, they have become a very popular form of reward credit card.

How do cash back credit cards work?

 

Most cash back cards require an average to excellent credit score to qualify. If you don’t have a credit history or have a poor credit score, chances are you might not qualify. Here are the basics of how cash back credit cards work:

 

Sign-on Bonuses

 

Some cards offer sign-on bonuses such as $200 for newly approved cardholders. However, these also come with requirements such as cardholders have to spend a certain amount of money by a certain date to receive the bonus. Another thing to watch for is the low introductory APR when you sign up. Once this rate expires you can face APRs ranging from 15% – 25%.

 

Annual Percentage Rate (APR)

 

Each cash back credit card has an APR that determines how much interest you pay. It’s always best to pay off your monthly balance on time each month to maintain a good credit score and avoid interest charges. If not, you basically cancel out anything earned in your cash rewards. Often the higher the cash back rate, the higher your APR.

 

Fees

 

These credit cards might apply various fees including:

 

  • Annual Fees: Because cash back cards offer cash rewards, they often charge an annual fee. This can range from $50 to $100 per year. As with APRs you will find that the higher the cash back rate, the higher the annual fee might be. Depending on how much you intend to spend on your cash back card, the rate of cash back and how often you carry a balance, you might find your cash back card costs you more than a normal credit card.
  • Late Fees: Some cards also have late payment fees, so if you tend to be behind on your credit card payments, this card is probably not right for you.
  • Foreign transaction fees: Many cardholders don’t even notice they are being charged this fee. However, if you shop at global sites, or travel, this can really add up.

 

Redemption

 

Cards redeem points in different ways including:

 

  • Checks
  • Direct deposit to your bank account
  • Deductions from your credit card balance
  • Gift cards
  • Donations

 

Most offer more than one option, so you can choose the one that suits your needs. You either cash out online or call their customer service line. When you redeem can vary based on timelines or minimum amounts. Some cards have expiry dates for cash points, while others hold your cash rewards as long as your card is active. Some cards have cutoff dates for cashing in, while others will automatically deposit your cash in your bank account at regular intervals like a paycheck.

 

Registering Online

 

Many cash back credit cards require to register online to earn special rewards. This includes special offers with retailers, accelerated rewards, earning points for certain categories, promotions, and more. To ensure you don’t miss out on rewards, read the registration instructions carefully and sign up to receive notifications for special promotions that require registration.

Types of cash-back credit cards

 

Most cards use a point system where points are added up and then converted into cash. Some features that differ among cash back credit cards include:

 

  • Limits: Most cards have a limit or cap applied to how many points cardholders can earn. This can be applied monthly, quarterly, or annually.
  • Cash versus Cash Value: This is very important as some cards offer actual cash, while others provide other forms of rewards such as gift cards or refunds.
  • Cash Back Categories: Make sure you understand how rewards are calculated. Some cards offer the same rewards across any type of purchase, while others offer different rates based on categories such as groceries, movies, gas, travel, etc. Some even allow you to choose your top categories.
  • Specific Stores: As with above, some cards are specific to partnering retailers or services. If you don’t usually shop at these stores, it really doesn’t make sense to have the card.

 

Some examples of Canadian cash back credit cards include:

 

  • AMEX SimplyCash Preferred
  • Tangerine Money-Back
  • Rogers World Elite
  • Scotia Momentum Visa Infinite
  • CIBC Dividend Visa Infinite
  • Meridian Visa Infinite Cash Back
  • TD CashBack Visa Infinite
  • BMO CashBack Mastercard

 

Cash back credit card advantages

 

There are many advantages to cash back credit cards including:

 

  • Cash rewards are earned either based on the amount of money spent, or on a percentage of purchases.
  • Most do not charge an annual fee and those that do make it worthwhile with higher cash earned.
  • You can find sign-up bonuses for a certain amount of cash at the time of approval or special introductory APRs.
  • Many provide special cash rewards based on shopping with special stores or based on certain categories that allow you to build up cash rewards faster.

Cash back credit card drawbacks

 

There are also some drawbacks such as:

 

  • High APRs are very common with cash-back cards.
  • Travelers need to be wary of foreign transaction fees which can be as high as an additional 3% for international purchases online or when traveling.
  • May have earning caps that can interfere with building up savings or money paid towards paying your balance.
  • Some are not actually cash back cards and instead offer “cash value” such as refunds or gift cards.


How to choose a cash back credit card

 

First, do your research before applying for any credit card, as the more applications you fill out, the worse it can be for your credit score. Next, look for the card that offers lower APRs and higher percentages for their rewards. Avoid high annual fees, and also pay close attention to sign-up bonuses.

 

For example, a card might offer a very enticing APR for the first few months, but then that rate rises to an alarmingly high rate. Make sure you’ll use the card consistently and that the offering for rewards makes sense for your shopping habits for cards with categorized rates or that prefer certain retailers or services.


Who should apply for a cash back credit card?

 

You’ll get the most out of a cash back credit card if you:

 

  • Plan to keep your balance paid each month
  • Have good credit, so you get lower interest rates and higher cash back rates
  • Tend to shop at the same stores, have predictable spending habits and choose a card in the categories where you tend to spend the most

 

If this sounds like you, you will maximize rewards and avoid getting further into debt.


Bottom line

 

Cash back credit cards are the perfect choice for those who control their spending and pay off their monthly credit card balances. If not, you won’t reap the rewards and end up paying more in fees and interest than you receive in cash back rewards.


FAQ’s

 

When Do I Get My Cashback?

 

It depends on the card. Some choose a cash back interval such as monthly or quarterly, while others offer automatic redemption when you reach a target balance.

 

When should you redeem cash back?

 

It depends on a few factors:

 

  • If you have a redemption minimum
  • If your cash has an expiration date
  • If rewards can devalue
  • If there are timing bonuses for redemption

 

What's better points or cashback?

 

Since cash back is more flexible and easier to redeem, many people prefer this option. However, if you plan to travel, in some cases you get more bang for your buck with a travel points card that allows you to work towards a free or partially paid vacation. It really depends on your goals.

 

Are cash back credit cards worth it?

 

As long as you pay your balance off each month, a cash back credit card really is an excellent way to get a little extra money in your bank account or pocket.

 

Is cash back from credit cards taxable income?

 

No, in most cases, the CRA views reward programs as a discount, not income.

 

How to Maximize Your Cash Back?

 

You can maximize your cash back when you:

 

  • Choose a card with no or minimal fees
  • Collect bonus cash rewards by tracking and registering for special offers
  • Pay attention to limited-time offers
  • ALWAYS pay your balance in full

 

What is the best cash back credit card in Canada?

 

Scotia Momentum Visa Infinite Card offers:

 

  • Waived annual fee for first year
  • Welcome Bonus to earn 10% cash back on all purchases for the first 3 months up to $2,000 in total
  • 4% cash back on all grocery, recurring bills, and subscription services
  • 2% cash back on daily transit
  • 1% cash back on everything else

 

What is the best no-fee cash back card in Canada?

 

Tangerine Money-Back Mastercard offers:

 

  • 2% cash back on 2 personal spending categories you select
  • 5% on all other purchases
  • Earn 2% cash back if you deposit the cash back you earn to a Tangerine Savings Account

Author Bio

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Mohamed Konate

Mohamed Konate is a personal finance expert, blogger, and marketing consultant based out of Toronto. He is a former financial services professional who worked for many years at major Canadian financial institutions where he managed the marketing strategy around various financial products ranging from credit cards to lines of credit. Mohamed is passionate about personal finance and holds a Bachelor in Business Administration from the University of Quebec (Montreal) and a Master in International Business from the University of Sherbrooke (Quebec).He is also the author of the Canadian Credit Card Guidebook.