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Best Cash back Credit Cards in Canada

Best Cash back Credit Cards in Canada
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Cash Back Credit Cards

Cash back credit cards allow you to earn back some of the money you spend. 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. 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.

Advantages of The Best Cashback Credit Cards

One of the best advantages of the newest credit cards that banks are offering is that they are easy to use with transparent terms and conditions that most points programs don’t have. And, that makes them the best avenue for earning rewards regardless of whether you’re making large or small purchases. You can comfortably use them as primary or back-up credit cards and receive the cash back as a debit in your bank account or added to the statement of your bank credit. At the time of signing up for Cashback credit cards, take care to check the specific categories in which you can avail of the cashback facility. By matching them to your usual spending habits, you can get the best benefits possible.

Top 5 Picks of The Best Cash Back Credit Cards

These are the 5 best cash back credit cards in Canada offered now:
5 Results Updated: July 8, 2019

19.95%

Interest Rate

Free

Annual Fee

3.00%

Balance Transfer

Promotional Balance Transfer: 1.95% interest for the first 6 months

$35,000/year

Minimum Income

Min Credit Score: 640

$25 Gift Card upon Approval

More Details

Earn cash back

Earn 2% Money-Back Rewards on your everyday purchases in two 2% Money-BackCategories of your choice, and 0.50% Money-Back Rewards on all your other everyday purchases.

Earn extra Rewards

Get your Rewards deposited into your Tangerine Savings Account and get a 3rd 2% Money-Back Category.

Automatic earning

Money-Back Rewards are earned automatically on everyday purchases and paid monthly. These can be applied to your Credit Card balance or redeemed into your Savings Account.

No limits

No limit on the amount of Money-Back Rewards you can earn on your everyday purchases. Conditions apply.

Transfer and save

During your first 30 days, transfer balances and pay only 1.95% interest on the transferred balance for the first 6 months (19.95% after that).

Track and categorize your spending

Organize your transactions and stay on top of your spending, so you can see your financial habits and you’ll get a better idea of what you have left to spend each month.

Card details

Network: Mastercard
Provider: Tangerine Credit Cards
Card type: Cashback, Low Interest, No Annual Fee, Travel Rewards

Special Offers

Earn 4% Money-Back Rewards in up to 3 Categories for 3 Months

19.99%

Interest Rate

Promotional APR: 7.99%

Free

Annual Fee

22.99%

Balance Transfer

No Minimum

Minimum Income

Min Credit Score: 300

More Details

Card details

Network: Visa
Provider: Scotiabank Credit Cards
Card type: Bad Credit / Establish New Credit, Cashback, No Annual Fee

Special Offers

7.99% introductory interest rate on everyday purchases for the first 6 months

19.99%

Interest Rate

Promotional APR: 7.99%

Free

Annual Fee

22.99%

Balance Transfer

No Minimum

Minimum Income

Min Credit Score: 300

More Details

More reasons to get this card for your everyday purchases

  • Gas Stations 1%
  • Grocery Stores 1%
  • Drug Stores 1%
  • Recurring Bill Payments 1%

Card details

Network: Mastercard
Provider: Scotiabank Credit Cards
Card type: Bad Credit / Establish New Credit, Cashback

Special Offers

7.99% introductory interest rate on purchases for the first 6 months

19.99%

Interest Rate

Promotional APR: %

Free

Annual Fee

-

Balance Transfer

Promotional Balance Transfer: N/A

$60,000

Minimum Income

Min Credit Score: 550

More Details

Card details

Network: Mastercard
Provider: Canadian Tire
Card type: Cashback, No Annual Fee, Store

19.99%

Interest Rate

Promotional APR: %

Free

Annual Fee

-

Balance Transfer

Promotional Balance Transfer: N/A

Minimum Income

More Details

Collect 4%† in Canadian Tire Money® at any of our great stores. Plus, enjoy 5¢-7¢ per litre in Canadian Tire Money® at Gas+ and participating Husky stations, and more great benefits.

Card details

Network: Mastercard
Provider: Canadian Tire
Card type: Cashback, No Annual Fee, Store
  • No annual fee.
  • You’ll receive the cash back at the end of the month in place of the year-end redemption as with other cards.
  • You can choose 2 additional bonus categories to earn 2% cash back. Further, if the cash goes back into the Tangerine account, you get 3 categories.
  • Purchases in all other categories earn you 0.5% cash back.
  • There are no other terms and conditions.
American Express offers users the cashback facility by way of their SimplyCash Preferred Card. Here are some of the features you might like to know about:
  • $99 annual fee that is offset by the 2% cash back you’ll receive on all purchases.
  • Simply by spending the small amount of $165 each month in the promotional time interval, you can cover the $99 annual fee. Once this interval is over, you only need to make purchases worth $412.5 each month to earn back the fee.
  • Receive additional facilities and insurance such as baggage and flight delay, travel accident, province or country emergency medical expenses, and car rental.
  • Any items you purchase using the card automatically entitle you to a doubled manufacturer’s warranty period that lasts for a maximum of one year. You’ll also get insurance against theft and damage to the item.
$99 Annual waived for the first year† Great reasons to get this card for your everyday purchases:
  • Earn 4% cash back on gas and grocery purchases
  • Earn 2% cash back on drug store purchases and recurring bill payments
  • Plus earn 1% unlimited cash back on all other eligible purchases

Best Cashback Offer in Canada

  • Min Credit score required: good
  • Min personal income required: $60000
  • Annual fees: $120 (First year free)
Earn 15,000 bonus points worth $150 in travel with Scotiabank®* Gold American Express® Card. Earn travel rewards up to 4x faster Earn 4x Scotia Rewards points for every $1 you spend at eligible gas stations, grocery stores, on dining and entertainment.

How to Take Advantage of the Credit Card Cash Back Program

With some smart thinking, you can make the most of the cashback programs and get the best benefits.
  • Stacking is where you buy a bunch of cash back cards and use the specific one that earns you the most cash back on a particular purchase. Spread your expenses across different cards and earn back the maximum possible without paying any fee. Here’s how to use the no-fee cash back cards.
    • President’s Choice Mastercard World Elite, you earn 3 cents at Esso, and 3% each when shopping at Shoppers Drug Mart and Loblaws.
    • Rogers Mastercard, you earn 1.75% on all purchases with an additional 4% on foreign transactions.
    • Tangerine card, you’ll get back 2% cash back on public transport, diners and restaurants, and other regular expenses.
  • Yet another strategy is making the most purchases on a card during its promotional period. For instance, the PC Mastercard World Elite may offer you a 3% cashback rate. But, it makes sense to use the Amex SimplyCash card for 6 months and avail of its 5% cashback rate.

Why You Should Use Cashback Cards

If you’ve been looking for more than just points and miles as rewards, it just might be time to think about using cashback cards. Even if you’ve been using debit cards, you most likely pay a charge for using it. On the flipside, using the cashback cards rewards you with a percentage of every purchase making them a far more viable option. You can also make use of the other benefits banks are offering you such as zero-fee cards, various promotional period offers, and waivers on the fees for the first year. And, that makes cashback cards the best option for users today!

What is a Cashback Credit Card?

If you want to use a credit card which is among the most popular cards across Canada, you will also have to pay a decent amount of interest rate per month. This might discourage you from using these cards but there is good news for you. The cashback offers made by many of these credit card providers sometimes outperform the lowest interest rates available in the market. This is simply a strategy to serve you in a way that you will convince yourself to abide by their terms. You will benefit from this option though. Cash Back Credit Cards offer varying percentages for different types of purchase options. Some of these will require you to spend a minimum amount of money to avail this offer. This minimum amount is calculated on monthly basis and there are strict rules for maintaining the limit. Some purchase options are given more priority over the others such as gas or travelling purchases. Cash back offers are not necessarily cash or money back. The “earn while you spend” offer is also sometimes converted to “earn points while you spend” offer. Associates of a financial organization will sell their products at a cheaper price if you can earn those points. Sometimes, the values put by these points are greater than usual. They have calculated automatically once you make a purchase and they don’t expire. You will simply make the purchase and the discount will be applied only if you have the points and you are eligible for the service. If you are tired of paying debts, you now know a way to resolve the issue with the higher rates. The cash back offer attracts too many people. It’s very useful for the people who like to go shopping with the family members every now and then. Just make sure it doesn’t limit the value of the credit card that you own right now or the one you are planning to get. Banks or other financial institutions offer unlimited cash backs so that when you shop around with your dear ones or all of your family members, you will get great cash backs or discounts. Just make sure that it doesn’t limit the value of the credit card that you own right now or the one you are planning to get. Banks or other financial institutions offer unlimited cash backs so that when you shop around with your dear ones or all of your family members, you will get great cash backs or discounts. Sometimes, you will get insurance opportunities along with the cash backs. Insurance is a great way of securing your financial accounts. If you want to get benefits while you spend money locally and internationally, cash back might add some extra fun to your credit card experience.

Assessing Various Cash Back Offers

Before you choose a cash back credit card, you might want to check out the various options out there. Here are the factors to keep in mind:
  • Cashback offered: Match the amount you’ll receive for the purchases you’re likely to make each month. Also, buy the credit card only if you think you’ll benefit from it.
  • Paying Off Credit Card Balance: In an attempt to earn enough cash back, you may end up making more purchases than you can afford. If you think you cannot pay back the balance on the credit card before the due date and you incur interest, the benefit of the cash back scheme may be evened out.
  • Eligibility of Transactions: Credit card issuers may have conditions about the kind of transactions that can earn you rewards. For instance, you can’t earn cash back on transactions such as gambling debts, cash advances including ATM withdrawals, credit card fees, and payments for certain bills.
  • The value of Rewards: Certain rewards on particular items, travel upgrades, and flight costs may have retail or regular prices that are more beneficial as compared to the cash back incentive. Compare the rewards against the cash backs when making your decision.
  • Terms and Conditions Available: Typically, credit card companies offer cash back schemes by way of special promotions. Check the terms and conditions carefully before choosing the best offer. For instance, ask about the expiration date for the offer, partnering retailers, and the amount you need to spend to avail of the benefits of the cashback scheme.