There is no shortage of cashback credit cards in the Canadian market place. With so many options: no annual fee; cashback choices; rewards; and other perks, we will try to help break down a few beneficial features that can help find the right cashback card for you.
The key to getting the most out of your cashback credit card is to ensure that you find a card that makes the most of your everyday purchases. For example, look at the cashback percentage offered on the different types of purchases (i.e. groceries vs. gas, etc.) and select the card that will help you earn the most cashback based on you spending habits and/or budget. Another factor to consider is the cost of an annual fee, it may be obvious but ensure that you will earn enough cashback to at least offset the cost of the annual fee. In addition to the above, it is important to consider the other benefits being provided by the card, some may suit your lifestyle better than others. It is not as simple as looking for the highest cashback rate.
Here are a 5 cashback cards that have benefits and features that set them apart from the rest:
No Annual Fee Cash Back:
American Express® SimplyCashTM Card
This is a great cashback credit card, despite having no annual fee, it has great perks and benefits associated to it. There are 2 introductory offers, allowing new cardholders to take advantage of a 6-month 1.99% balance transfer offer, in addition to offering 5% cashback for the same period. 5% cashback is fairly generous when compared to other cashback cards (in fact 5x the average), but please keep in mind that there is a maximum cashback of $250 (at the 5% rate). Once the welcome cashback rate expires, card members can earn 1.25% cashback on all other purchases and there is no maximum to the cashback that you can earn. Cardholders can also use the American Express Invites program, giving cardholders special access to events and concerts. There are also perks such as purchase protection, travel insurance, and rental car protection available with this card. While there are many benefits to this card, please always keep in mind these features only matter, if you plan to use them.
Cashback Credit Card:
Scotia Momentum® Visa Infinite* card
This cashback credit card is great for individuals or families who spend a lot of their budget on groceries and gas. There is a welcome bonus, allowing new cardholder to earn 5% cash back on their first $3,000 in purchases for the first three months (up to $150 cashback). Once the welcome rate expires cardholders can earn 4% cash back on gas and groceries, which is higher (about 4 times higher) than most of it’s competitor cards. They can also earn 2% cash back on drug store purchases and recurring bill payments, and 1% cash back on all other purchases. When used for everyday household shopping this card can provide a lot of value, especially given that the first year’s annual fee is being waived as well. The card also offers extensive insurance coverage as well as warranty and purchase protection. Cardholders can also take advantage of one-of-a-kind dining experiences, entertainment adventures, and exclusive benefits of Visa Infinite.
Annual Fee Cashback Credit Card:
SimplyCashTM Preferred Card from American Express
This is a great cashback credit card; it does have an annual fee, but for the right consumer the perks and benefits associated to it can be worth it. New cardholders can earn 5% cashback in their first 6 months (up to $300 cashback), once the welcome rate ends they can earn 2% unlimited cashback on all their purchases. There is even an opportunity to earn a $100 statement credit if you charge $6,000 in purchases to your card within the first 6 months of card membership, this will easily cover the $99 annual fee. This card can be great for travel benefits as well, cardholders can take advantage of extensive insurance coverages: Car Rental, Travel Accident, Emergency Medical, Lost or Stolen Baggage, Flight Delay, as well as Baggage Delay Insurance. Not to mention there is warranty coverage and purchase protection available with this card as well.
Travel Cashback Credit Card:
Scotiabank® Gold American Express® card
This is not a cashback credit card in the traditional sense, it actually provides reward points to it’s cardholders. However, these reward points can be redeemed for cash, specifically (and only) for the use of travel. With this card you can earn 25,000 bonus points with your first $1000 in everyday purchases in the first 3 months. Cardholders earn 4 Scotia Rewards points on every $1 they spend at eligible gas stations, grocery stores, dining and entertainment. The accumulated Scotia Reward points can be used to book and redeem for travel anywhere, anytime, with no travel restriction using Scotia’s full-service travel agency and concierge assistance. Another bonus is that the first year’s annual fee waived as well. This card also comes with 7 types of travel insurance, in addition to price protection and extended warranties on purchases.
Student Cashback Credit Card:
BMO SPC® CashBack® MasterCard®
This is a great student cashback credit card, it has no annual fee, as well as many perks to help students save money and build their credit. Cardholders have an opportunity to earn 1% cashback on all credit card purchases with no restrictions. There is even a limited time offer to earn 4% cashback for your first 4 months when you sign-up. Additional perks include extended warranty, purchase protection, and cardholders are able to access exclusive SPC discounts (Student Price Card Ltd.) of 10% to 15% at hundreds of stores. These benefits will help students save money and earn cash while using the card.