Barry Choi • Nov 27, 2019
If you don’t like to travel and you don’t really care about earning points that can be redeemed for merchandise, then a cash-back credit card is what you should look at. People love cash-back credit cards because they’re easy to understand. You’ll earn a set percentage in cash-back for every purchase you make, how amazing is that? Although this concept is great, no two credit cards are alike.
Before you sign up for the first credit card you see that offers cash-back, you need to consider the annual fee (if any), the percentage in cash-back you’re getting, and any higher rates of return you get when spending on certain categories. You should also take a look at any additional offers and benefits available that may appeal to you such as balance transfers and roadside assistance.
Comparing all the different-cash back cards can be a tedious task which is why we’ve looked at all the details and have come up with the four best cash-back credit cards in Canada.
The Simply Cash Card from American Express looks like a pretty simple credit card, but when you take a closer look at it, you’ll realize why people love it. The 1.25% cash-back on all purchases is fantastic considering this is a cash-back credit card with no annual fee, but you also get 2.5% cash-back in your first 3 months of card membership (up to $150 cash-back). In other words, if you have a large purchase coming up, this is a card you may want to apply for.
Another benefit that comes with this card is American Express Invites which gives you front of the line access to concerts, movies, dining experiences and more. You’re basically getting early and sometimes exclusive access to some amazing events which shouldn’t be missed. Check your credit score with Borrowell to see if you could qualify for this awesome credit card!
If you do the majority of your spending at merchants where American Express isn’t accepted, you’ll want to consider a card such as the Scotia Momentum® No-Fee Visa* Card. This card has no annual fee, but the top cash-back is limited to four categories: groceries, gas, drug stores, and recurring bill payments. All other purchases earn your 0.5% cash-back. This is clearly not the most generous cash-back card out there, but it may be the most convenient considering Visa cards are widely accepted around the world.
Supplementary cards are free so you can pool the cash-back earned with family members or other authorized users. What’s also nice is cardholders get up to 25% off base rates at participating AVIS and Budget car rental locations in Canada and the U.S. To take advantage of this offer, you just need to pay your car rental with your Scotiabank card.
Are you looking for a no fee cash-back card that offers some generous cash-back categories? If you said yes, you’ll want to consider the MBNA Smart Cash Platinum Plus Mastercard, but be sure you take the time to understand the details. For the first six months of cardmembership, you’ll earn 5% cash-back on gas and grocery purchases, but that only applies to a combined total spend of $500 every month. If you reach that threshold, you’ll earn just 0.5% cash-back on those purchases.
After the promotional period ends, you’ll still earn a generous 2% cash-back on gas and grocery purchases, but that $500 limit every month still applies. The limit will annoy some people, but you just need to look at your overall spending and compare the cash-back you get with this card to what the other cards on this list offer before deciding on which card to apply for.
What’s interesting about the MBNA Smart Cash Platinum Plus Mastercard is that you also get some additional benefits that may be useful to you. There’s purchase assurance that covers your purchases from theft, loss, and damage for 90-days from the date of your purchase. There’s also extended warranty included that doubles your manufacturer’s warranty up to one additional year. Finally, you get some basic travel insurance which includes common carrier accidents, unexpected return home, car rentals, and lost luggage.
The Interest Rate is in effect the day the Account is used or activated.
In case you didn’t know, most credit cards charge a 2.5% currency conversion fee when you make purchases in a foreign currency. As you can imagine, that fee can add up to quite a bit unless you have a card such as the Home Trust Preferred Visa. With this card, the currency conversion fees are waived, so you’ll pay the exchange rate that Visa sets every day. This pretty much ensures that you’ll be paying one of the lowest rates when making a purchase in any currency besides Canadian dollars.
With all of the spending you make, you’ll earn 1% in cash-back. That’s right, there’s no need to worry about different categories, you’ll earn that 1% cash-back on all purchases with no limits. What’s also nice about this card is that you get free roadside assistance. If you were to purchase roadside assistance on your own, it could potentially cost you more than $75 a year, so you’re getting a lot of value here considering that the Home Trust Preferred Visa has no annual fee.
Editorial Note: Our editors’ opinions are their own and content is accurate to the best of our knowledge when it is posted. Borrowell does receive compensation from third-party advertisers, but it does not affect our editors’ opinions.
The credit card companies featured in this blog are not responsible for maintaining the content on this site. Please click on the application links for the most up to date information.
You may have heard that making on-time payments is the key to having a good credit score. But just how important is it to make your payments on time? If you’ve made the mistake of missing payments in the past, what can you do to help improve your credit score now?
The Borrowell Team
Jun 12, 2020
It's always good to know what you can do to improve your credit score, no matter where you are on your financial journey. Whether you’re looking to rebuild your profile or planning a big purchase in the future, increasing your score can mean more attractive interest rates and offers on things like credit cards, loans, mortgages and lines of credit.
The Borrowell Team
Mar 01, 2020
With all the different credit options available in Canada, it’s important to understand the differences between each one so that you can find the right product for your needs. Credit can be useful to help you establish a history and finance purchases, but should be used mindfully. In this Borrowing 101 article, we’ll give you an overview of personal loans and lines of credit to help you understand how they work, when to use them, and what to be careful of in order to protect your credit score.
The Borrowell Team
Apr 27, 2020
Borrowell® is a registered trademark of Borrowell Inc. All Rights Reserved. The Equifax credit score is based on Equifax’s proprietary model and may not be the same score used by third parties to determine your credit profile. The score provided to you for educational use is the Equifax Risk Score.
2014-2020 Borrowell® | The Credit Is All Yours!