Earn money while you spend with Cash back credit cards. Why not get rewarded while using a credit card to make purchases? Cash back credit cards in Canada offer anywhere between 1% to 5% money back for every dollar spent using your cash back card. Some cash back cards may charge an annual fee, or in some cases a high interest rate. Compare and apply for the best cash back credit card in Canada.
Best CashBack Credit Cards Canada
A cash back credit card is basically a credit card with rewards. In other words, it allows you to earn a certain amount of money as cashback for every dollar you spend using your card. The percentage you could earn varies from bank to bank, anywhere from 1% to 4%, or even more with special promos. Once you reach a certain milestone, the cashback reward comes either as credit to your account or a cheque is issued.
Note: There can be a limit to your cash back. Check the bank’s policy before you apply for a cash back credit card.
Is there an annual fee for a cash back credit card?
Some cash back credit cards in Canada come with an annual fee. It is important to take the annual fee into account before applying for a cash back credit card. Do some math to evaluate your monthly spending vs. the annual fees. It would only make sense to apply if the result is positive. But there are some great cash back credit cards such as Tangerine Money Back Credit Card with no annual fees and Scotia Momentum Visa Card with a low annual fee of $39. Compare all cash back credit cards to find the one that suits you best.
Do I need to pay my credit card balance monthly?
Yes. Although a cash back reward could be tempting, you anyways shouldn’t spend more than you can afford to pay back. It’s true that there are financial rewards with cash back credit cards, but they won’t be able to cover your debt entirely. It is also important to pay the entire balance each month to avoid high interest charges. The Alterna MBNA Rewards card with no annual fees, low interest rate and cash back rewards proves to be a win-win for all.
Compare cash back credit cards
With so many cash back credit cards in Canada, start by comparing the reward rates and annual fees. Some cash back credit cards offer 4% cash back, but charge high annual fees - turning out the cash back is mostly covered from your own pocket!
When applying for cash back credit cards make sure you assess your spending habits. Big spenders should apply for cash back credit cards that reward their appetite for spending with high reward rates. The moderate and lower spenders will do just fine with standard cash back credit cards that also have a lower annual fee.
It’s always wise to choose your cash back credit card considering the type of items you plan to purchase. There are different types of cash back credit cards and many of them focus on certain types of items, such as groceries and gas, or even a specific category of products. You can also use them for paying your monthly bills.
Compare cash back credit cards according to your type of spending, and choose the card that fits your lifestyle.
Cash back Credit Cards
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.
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 benefitted on the fly while you spend a lot both locally and internationally, cash back might add some extra spices to your credit card experience.