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If you usually pay your credit card bills on time, you should consider rewarding yourself by getting cash back on every purchase you make. Cash back programs are not always easy to use but can sometimes get you better returns than a similar travel rewards card. Depending on the type of consumer you are, a cash back credit card may be right for you.
Best credit cards in Canada
We have included the list of top 5 credit cards with cash back in 2015 below. Depending on what you look for in a card, these are some of the best credit cards in Canada. To compare the return on each card, this expense profile was used:
According to this profile of monthly expenses, in order from highest to lowest, here are the top 5 credit cards with cash back available:
1. If you spend a lot, the Good Momentum Infinite Visa can get you one of the best returns from any credit card. With this card, you get 4% cash back on gas and groceries, 2% cash back in pharmacies and on recurring bill payments and 1% cash back on the rest. The card comes with an annual fee of $ 99, but during the current promotion, the fees will be removed for the first year. However, even with the annual fee, this card pays for itself if you follow an expenditure profile similar to ours.
2. GFIC World Elite Rewards
Second online is the GFIC World Elite Rewards MasterCard, which lets you get 2% cash back on every dollar you spend with the card – no categories excluded. You will also get 10,000 points worth $ 100 when you make your first purchase. The card comes with an annual fee of $ 89, but during the current promotion, the fee will be waived for the first year and will pay for itself in the following years
3. Cash Express Simply Cash Card
The Cash Express Simply Cash Card is one of the newest credit cards in Canada, and comes with the best Introductory Money-Back Credit Card offer: 5% on gas, groceries, and restaurants for the first six months. Depending on the spending profile we have developed, this card will get you the biggest return in the first six months.
Best cashback credit cards with no annual fee available
When the promotion ends, this card remains third in this list, making this card one of the best cashback credit cards with no annual fee available.
4. Cash Express Simply Cash Preferred Card
Cash Express also offers an enhanced version of this card: the Cash Express Simply Cash Preferred Card. With this card, you will get 5% cash back on everything for the first six months, then 1.5% after, with a spending limit of $ 100,000 (after the rate drops to 1.25% cash back). You will also get access to 24/7 customer service and extensive Cash Express insurance coverage.
5. Credit Card Melon Discounts
The Melon Discount Card with no annual fee is a great card, if you want to avoid an annual fee or Cash Express credit cards. This card offers impressive flexibility as it allows you to choose up to 3 categories of your choice to receive 2% Cash Back. On the rest of your purchases, you will receive 1%. The ultimate benefit of this card is the fact that it is no annual fee.
Benefits of Cash Back Programs
The biggest benefit of using a cash back credit card is the simplicity of getting money for your purchases. While some travel reward credit cards give you more value, receiving cash back gives you more freedom. With cash back, no need to worry about the availability of a flight, blackout dates or redemption levels. Bringing back with cash back is also a lot easier. Instead of having to deviate from your path in order to make purchases in certain stores, you can buy anywhere you want and be assured that you will get cash back on every transaction.
When choosing a cash back credit card, there are different things you will want to consider:
- Annual Fees – No annual fee cards typically offer lower payments compared to cards that have them. Depending on your annual expenses it may or may not be advantageous for you to get a premium credit card with an annual fee.
- Sign Up Bonus – Search for cards with sign-up bonuses, such as annual fees removed or high percentage of cash back during the initial period. Bonuses are very good sides that can soften the deal for any card.
- Categories – Many cash back credit cards offer better returns for expenses in certain categories, such as gas or groceries. It is therefore important to understand a cashback program in its entirety.
- Returns – The returns you get from a cash back credit card is probably the most important aspect; Usually, this is expressed as a percentage of what you spend. The most common return for cashback credit cards is 1.00%, so use this percentage as a benchmark when comparing different cards.
TO YOU: What is your favorite cash back credit card and why?