Cash Back Credit Cards

Cash back 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.

What is a Cash back 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 cash back 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 be benefitted by 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 traveling purchases.

Cash back offers are not always simply cash backs. 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 for shopping with the family members every now and then. 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.

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 benefit on the fly while you spend a lot both locally and internationally, cash back might add some extra spices to your credit card experience.

Most Popular Cash Back Credit Cards In Canada

Tangerine Money-Back Credit Card

19.95%
No Annual Fee
3% Balance Transfer & Earn 2% Money-Back Rewards on purchases
Get a $25 gift card from CompareMyRates.ca upon approval

SimplyCash Preferred Card from American Express

19.99%
$99
5% Cashback & 1.99% Balance Transfer for first 6 months

MBNA Rewards World Elite® Mastercard®

19.99%
$89
Receive 10,000 Bonus Points††
Get a $50 gift card from CompareMyRates.ca upon approval

 

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. 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 expiry date of the offer, partnering retailers, and the amount you need to spend to avail of the benefits of the cash back scheme.