Top Rewards and Cashback Cards in Canada

Top Rewards and Cashback Cards in Canada

Cashback cards have been the most popular form of credit cards in Canada in the past three or four years. And why not?  Cashback cards and rewards programs offer cardholders a certain percentage of the total amount spent on purchases each year as cash. Usually, the amount varies between 0.5% and 2%.

For consumers who use credit cards frequently, this is a highly lucrative offer. Cashback programs are obviously created by nest-eggcredit card companies to lure in new customers. The “cashback” option in these cards may not necessarily mean hard cash returns. The annual rebate may include refunds and other forms of payback with equal monetary value such as air miles or gift cards. In any case, the rewards are highly promising. If you are a Canadian who wants to apply for or switch to a cashback credit card reward program, here are the best offered in the country.

Sometimes if saving money is not an option, you can try increasing your income. One option is to start your own business. If you have a bad credit, you can get a secured credit card from Refresh Financial and try to improve your credit first, so you would be able to finance your business later.

Capital One Aspire Cash Platinum MasterCard

This credit cards offers 1% annual rebate on all purchases minus refunds. The card requires no annual fee, and technically the cashback rewards are unlimited. Cardholders do not need to keep track of purchases or sign up for rewards separately. Everything is automated. The annual interest rate was 16.8% early this year. Price protection, purchase insurance, car rental insurance, fraud protection and  long warranty are included.

Scotiabank Momentum VISA Infinite

Available exclusively to Canadian citizens and permanent residents, cardholders can earn as much as 4% cash back on gas and grocery purchases from eligible stores. Certain purchases from drug stores and pharmacies come with 2% cash back, and everything else eligible has a 1% annual rebate. This was ranked the best cashback credit card three years in a row from 2013 to 2015.

SimplyCash Preferred Card from American Express

Offered by a well-regarded company, SimplyCash offers a 1.5% cashback on purchases made all year. If the net purchases made during the first 6 months reaches or exceeds $400, the cardholder has the chance to get 5% cashback by the end of the year on all purchases. That could amount to a tempting several hundred dollars annually. On the flip side, there’s $79 annual fee, and the interest rate is a steep 19.75%. However, once a cardholder makes more than $100,000 on all purchases, the cashback percentage reduces by a little to 1.25%, but with no cap. Each card is offered with purchase protection, flight delay insurance, rental vehicle insurance, travel accident insurance, and an extended warranty.

MBNA Canada Smart Cash Platinum Plus MasterCard

This popular credit card offers amazing cash returns on everyday purchases. During the first 6 months, Smart Cash offers 5% cash back on gas or any grocery purchases made at stores participating in the program. After the first 6 months, cardholders can still get up to 2% cash back on similar purchases. All other purchases have a 1% cash back guarantee (as the contract allows). To top it all off, there is no annual fee. Those who perform well get the option to easily upgrade to the World Elite version that comes with higher cashback returns.

While the above cashback credit cards seem highly lucrative and desirable, consumers must be aware that there are caveats involved. Understand that you might not necessarily agree to cash returns when you sign the contract. Also, some stores where you spend money at may not qualify for the program. In some instances, the cashback rewards are automatically deducted from interest. If the cardholder misses a payment, nothing will be rewarded for that year.

Importantly, cashback credit cards encourage spending. Do not overspend if you hold one of these cards. Always remember that what you get in return is only a minute fraction of the amount you spend, and also it might not be cash.

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