What is a cash back credit card?
A cash back credit card in Canada is a type of credit card that rewards you with a percentage of your purchases back in the form of cash. This cash can typically be redeemed as a statement credit, direct deposit into a bank account, or sometimes even as a check.
Most cash back cards offer a base rate (e.g., 1%) on all purchases. But there also may be higher cash back rates (e.g., 2% to 5%) on specific categories such as groceries, gas, dining, or travel.
As a rule, you can apply your cash back to reduce your credit card balance or transfer the cash back to your bank account. Some cards offer the option to redeem cash back for gift cards or merchandise.
Many cash back cards offer a sign-up bonus if you spend a certain amount within the first few months of opening the account. Some cards offer additional benefits such as extended warranty, purchase protection, travel insurance, and access to exclusive events.
What are the best Visa cash back credit cards?
Here are some of the best Visa cash back credit cards in Canada, highlighting their key features, cash back rates, and any additional benefits:
1. Scotiabank Momentum Visa Infinite Card
2. CIBC Dividend Visa Infinite Card
3. TD Cash Back Visa Infinite Card
4. TD Cash Back Visa Card
5. RBC Cash Back Preferred World Elite Visa
6. Scotiabank Value Visa Card
7. HSBC +Rewards Mastercard
Are there 2 cash back credit cards in Canada?
Yes, there are many cash back credit cards available in Canada. Here are details on two popular options:
- Tangerine Money-Back Credit Card
- 2% on up to three categories of your choice (e.g., groceries, gas, dining, entertainment, recurring bill payments)
- 5% on all other purchases
- Scotiabank Momentum Visa Infinite Card
- 4% on groceries and recurring bill payments
- 2% on gas and daily transit
- 1% on all other purchases
How do I get cash back from my credit card?
Most credit card issuers provide an online portal or mobile app where you can track your cash back earnings. Some cards automatically apply cash back as statement credits, reducing your outstanding balance.
The process for redeeming cash back can vary depending on the credit card issuer. Here are some common methods:
- Statement Credit. Most cash back credit cards allow you to apply your cash back as a statement credit to reduce your balance. This is often done through your online account or mobile app.
- Direct Deposit. Some cards let you deposit your cash back rewards directly into your bank account.
- Gift Cards. Some issuers offer the option to redeem your cash back for gift cards to various retailers.
- Charitable Donations. A few credit cards provide the option to donate your cash back rewards to a charity of your choice.
Some cards require you to accumulate a certain amount of cash back (e.g., $25) before you can redeem it.
Are there 10% cash back credit cards?
Yes, some credit cards in Canada offer promotional cash back rates of up to 10% for a limited period. These offers are generally available to new cardholders for the first few months after account opening.
- Scotiabank Momentum Visa Infinite Card
- Promotional Rate: 10% cash back on all purchases for the first three months (up to $2,000 in total purchases).
- Regular Rate: 4% on groceries and recurring bill payments, 2% on gas and daily transit, 1% on all other purchases.
- BMO CashBack World Elite Mastercard
- Promotional Rate: 10% cash back on all purchases for the first three months (up to $2,600 in total purchases).
- Regular Rate: 5% on groceries, 4% on transit, 3% on gas, 2% on recurring bills, 1% on all other purchases.
- TD Cash Back Visa Infinite Card
- Promotional Rate: 10% cash back on all purchases for the first three months (up to $2,000 in total purchases).
- Regular Rate: 3% on groceries, gas, and recurring bill payments, 1% on all other purchases.
- American Express SimplyCash Preferred Card
- Promotional Rate: 10% cash back on all eligible purchases for the first four months (up to $400 cash back).
- Regular Rate: 2% on all purchases.
- CIBC Dividend Visa Infinite Card
- Promotional Rate: 10% cash back on all purchases for the first four months (up to $2,000 in total purchases).
- Regular Rate: 4% on groceries, 2% on gas, transportation, dining, and recurring bills, 1% on all other purchases.
These promotional offers can provide significant savings during the initial months of card ownership. However, it's important to check the terms and conditions of each offer, including the maximum amount of cash back you can earn during the promotional period, as well as any requirements to qualify for the promotion.
As an alternative, you can also take out a personal loan. Your possible expenses:
Personal loan calculations for 1 year (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 20,000 | 8.05% | 872 |
| 20,000 | 11.05% | 1,197 |
| 20,000 | 14.05% | 1,522 |
| 50,000 | 8.55% | 2,316 |
| 50,000 | 11.25% | 3,047 |
| 50,000 | 14.25% | 3,859 |
| 100,000 | 8.45% | 4,577 |
| 100,000 | 11.45% | 6,202 |
| 100,000 | 14.45% | 7,827 |
| 200,000 | 8.65% | 9,371 |
| 200,000 | 11.65% | 12,621 |
| 200,000 | 14.65% | 15,871 |
Are there no fee cash back credit cards in Canada?
Yes, there are several no-fee cash back credit cards available in Canada. These cards offer cash back rewards without charging an annual fee. Here are a few popular options:
1. Tangerine Money-Back Credit Card
2. Simplii Financial Cash Back Visa Card
3. BMO CashBack Mastercard
4. Rogers World Elite Mastercard
5. PC Financial Mastercard
6. American Express SimplyCash Card
7. CIBC Dividend Platinum Visa Card
How do credit cards with cash advances work?
Credit cards with cash advance features in Canada allow cardholders to withdraw cash from an ATM or bank up to a certain limit, which is a portion of the card’s credit limit. Each credit card has a specific cash advance limit, which is a portion of the total credit limit. You can usually find this limit on your credit card statement or online banking account.
Cash advances come with fees. Typically, there is an immediate fee for taking out a cash advance, which can be a flat fee (e.g., $5 to $10) or a percentage of the amount withdrawn (e.g., 2% to 4%).
The interest rate for cash advances is usually higher than the rate for regular purchases. This rate can be around 19% to 29% or more, depending on the credit card issuer. Unlike regular purchases, cash advances start accruing interest immediately from the day the cash is withdrawn, without any grace period.
You can take a cash advance at an ATM using your credit card and PIN, or by visiting a bank. Some ATMs may also charge additional fees for using the machine, especially if it’s not from your card issuer’s network.
You can see the similar FAQ at the link:
- How do I apply for a Citibank credit card?
- How do I cancel my CIBC credit card?
- How do I check my CIBC credit card application status?
- How do I check my CIBC credit card balance?
- How do I defer my mortgage payment in CIBC
Details of companies offering the financial services:
Home Trust
Web-site: https://www.hometrust.ca/
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
Tangerine Bank
Head office’s address: 3389 Steeles Avenue East Toronto, Ontario
Contact center: 888-826-4374
Phone: 416-756-2424
Web-site: https://www.tangerine.ca/en/index.html
BSB: 614
Tangerine Bank
Head office’s address: 3389 Steeles Avenue East Toronto, Ontario
Contact center: 888-826-4374
Phone: 416-756-2424
Web-site: https://www.tangerine.ca/en/index.html
BSB: 614
ATB Financial
Head office’s address: 2100, 10020 – 100 Street, Edmonton, Alberta
Contact center: 800-332-8383
Mail address: [email protected]
Web-site: https://www.atb.com
Swift code: ATBRCA6E
Stock code: ATB Financial
BSB: 219
Neo Financial
Web-site: https://www.neofinancial.com/
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
CIBC
Head office’s address: 199 Bay St, 44th Floor Toronto
Contact center: 800-465-2422
Web-site: https://www.cibc.com/en/personal-banking.html
Swift code: CIBCCATT
Stock code: CM
BSB: 010
CIBC
Head office’s address: 199 Bay St, 44th Floor Toronto
Contact center: 800-465-2422
Web-site: https://www.cibc.com/en/personal-banking.html
Swift code: CIBCCATT
Stock code: CM
BSB: 010
CIBC
Head office’s address: 199 Bay St, 44th Floor Toronto
Contact center: 800-465-2422
Web-site: https://www.cibc.com/en/personal-banking.html
Swift code: CIBCCATT
Stock code: CM
BSB: 010
Capital One Bank
Head office’s address: 161 Bay St. #1800, Toronto, ON M5J 2S1
Contact center: 800-481-3239
Web-site: https://www.capitalone.ca/
Swift code: NFBKUS33
BSB: 323
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
CIBC
Head office’s address: 199 Bay St, 44th Floor Toronto
Contact center: 800-465-2422
Web-site: https://www.cibc.com/en/personal-banking.html
Swift code: CIBCCATT
Stock code: CM
BSB: 010
ELGA Credit Union
Head office’s address: 6065 Grand Pointe Blvd., Grand Blanc, MI, United States, Michigan
Phone: +1 810-715-3542
Web-site: https://www.elgacu.com/
Neo Financial
Web-site: https://www.neofinancial.com/
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002
TD Bank
Head office’s address: Toronto-Dominion Centre, Po Box 1 Stn Toronto Dom, Toronto
Contact center: 866-222-3456
Web-site: https://www.td.com/about-tdbfg/our-business/index.jsp
Swift code: TDOMCATTTOR
Stock code: TD
BSB: 004
TD Bank
Head office’s address: Toronto-Dominion Centre, Po Box 1 Stn Toronto Dom, Toronto
Contact center: 866-222-3456
Web-site: https://www.td.com/about-tdbfg/our-business/index.jsp
Swift code: TDOMCATTTOR
Stock code: TD
BSB: 004