In today’s fast-paced world, credit cards have become an essential tool for everyday transactions. However, not all credit cards are created equal. Cash-back credit cards have gained immense popularity in Canada due to their unique benefit of earning money while you spend.
Here, we explore the perks of cash-back credit cards and highlight some of the best options available to Canadians:
How do cash-back credit cards work?
Cash-back credit cards operate on a simple premise: they offer a percentage of your spending back to you as cash rewards. These rewards can either be applied as statement credits or deposited directly into your bank account. The more you use your cash-back credit card, the more cash rewards you can accumulate.
Types of cash back credit cards
Rotating category cash back
Some cash-back credit cards rotate their bonus categories every quarter, offering higher cash-back rates for a limited time. This type of card is ideal for individuals who enjoy strategizing their purchases and maximizing their rewards in specific categories.
Category-specific cash back
These cards offer higher cash-back rates in specific spending categories, such as groceries, gas, dining, or travel. If you tend to spend more in these categories, choosing a card that rewards you with higher cash-back rates can be a smart move.
Flat-rate cash back
These cards provide a flat percentage of cash back on every purchase you make, regardless of the spending category. For example, a card may offer 1.5% cash back on all transactions, making it a straightforward choice for those who prefer simplicity and consistency.
Choosing the right cash back credit card
When selecting a cash-back credit card in Canada, it’s essential to consider the following factors:
Additional perks
Some cash-back credit cards offer extra benefits like travel insurance, extended warranty, or purchase protection. Assess these perks to find a card that complements your lifestyle.
Spending habits
Analyze your spending patterns and choose a card that aligns with your most significant expenses.
Annual fee
Consider whether the potential cash-back earnings outweigh the annual fee associated with the card.
Cash back percentage
Look for cards that offer competitive cash-back rates to maximize your rewards.
Top cash-back credit cards in Canada
SimplyCash Preferred Card from American Express
This card offers a generous 2% cash back on all eligible gas and grocery purchases in Canada and has no annual fee for the first year.
Scotia Momentum Visa Infinite
With high cash-back rates on groceries, gas, recurring bills, and pharmacies, this card is a favorite among frequent shoppers.
Tangerine Money-Back Credit Card
This card offers 2% cash back in up to two spending categories of your choice and 0.5% on all other purchases.
Cash-back credit cards provide an excellent opportunity for Canadians to earn rewards while making everyday purchases. By understanding the different types of cash-back cards available and considering your spending habits, you can find the card that best suits your needs. Remember, responsible credit card usage is crucial to avoid falling into debt. Happy spending and earning with your cash-back credit card!
Visit Great Canadian Rebates for a wide range of cash back credit card options to earn while you spend.
Take the first step towards earning the benefits of a cash back credit card today!