What Are the Top Cash Back Credit Cards in Canada?

Cash back credit cards are a great way to earn money back on everyday purchases. There are several types of cash back cards such as bonus category, tiered rewards, and flat percentage cash back cards. Different types of cards have different features, benefits, drawbacks, and features. Take a look at some useful tips when choosing the best card for spending habits.

There’s more than one type of cash back card.

Cash back cards are popular because holders can earn money on everyday purchases like groceries and gas. These cards are only advantageous if you plan to pay your credit card bill on time and in full each month. The average credit card comes with an APR of 19.99 percent, which is far above the average cash back reward rate.

A flat-rate cash back card features a flat cash back rate on all purchases made. The reward rate is usually low, but there are several advantages for those interested in holding one credit card. A bonus category cash back card is a credit card with different bonus reward rates on different spending categories. A flexible cash back credit card gives cardholders the ability to customize their reward categories and eligible purchases.

The best way to apply for the best card for your spending habits is to consult a personal finance site like Wealth Rocket. The trusted site offers a comprehensive overview of its picks for the top cash back credit cards in Canada. The list compares credit cards based on the annual fee, the cash reward rate, the intro APR, and the minimum income amount. According to Wealth Rocket, the best cards for Canadians include the Tangerine Money-Back Credit Card, the Scotia Momentum Visa Infinite for bonus categories, the CIBC Dividends Visa Infinite for grocery stores purchases, the BMO Cash Back Mastercard, and the Scotiabank Gold American Express Card for traveling.

What are cash back categories?

The most popular merchant categories include any purchase made within a grocery store, restaurants including take-out and food delivery services, travel purchases, any purchases made at a gas station, and transportation including rideshares, taxis, and public transportation. Each credit card has its definition of merchant categories, so it’s a good idea to read the fine print to ensure you make the right eligible purchases.

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How do you compare cash back cards?

There are a few things to keep in mind when considering a cash back card. Some cardholders don’t mind paying an annual fee. Paying an annual fee often results in more cash back rewards and better perks. No-fee cash back cards often have lower earn rates. Check to see if there’s a welcome bonus or intro offer for new applicants. Welcome bonuses usually mean a higher cash back rate for a set period. Review the bonus categories to choose the best card that rewards your unique spending habits. Bonus categories are usually fixed, but some cards give you the choice of bonus categories.

Cash rewards cards consider an applicant’s creditworthiness and income level to determine eligibility and the extent of cash rewards.