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A cashback credit card is one of the simplest credit card rewards systems. It is a credit card that allows you to earn a small percentage of cash on the purchases you make on your card. Instead of a card that provides points that you can later redeem for cash, merchandise, or any other product or service that is available for redemption, a cashback card simply rewards you with cash. 

Unlike points, cash has no restrictions and can be used for any kind of purpose such as spending, saving, even or investing. Moreover, it is easy to calculate the value of cashback credit cards due to the simplicity of the cashback reward system. To understand the value you get from your cashback card, you simply have to look at the cashback percentage rate. With points, things are more complicated as travel, merchandise, airline providers, etc. all affect the value of your points. For example, 100 points may equal $1 dollar in travel expenses, but the same 100 points may equal 0.50 cents in merchandise expenses. 

Which Cashback Credit Card Should I Choose? 

There are many different cashback credit cards on the market, each of which comes with its own perks, earn rates, and bonuses. To see which card is the best match for you, you should consider the following factors in relation to your needs and spending habits. 

  • Annual Fee – It may seem counterproductive to pay money to get money, but it can prove valuable if it has a high cashback rate and beneficial perks like travel and purchase insurance. To help you justify the cost of the credit card, it’s best to check how much you’d have to spend to earn enough cashback to cover your annual fee. For example, with a cashback of 2%, you’d have to spend $5,000 in a year to cover an annual fee of $100. 
  • Welcome Offer – The credit card market is highly saturated and as a result, many credit card providers offer very generous welcome bonuses that can really tip the scales in your favour.
  • Point Categories – While the cashback earn rate is important, the category of the cashback earn rate is even more significant. For example, a credit card may have a 4% earn rate for all hotel bookings you make but only 1% for groceries. This may be a great offer for someone who travels a lot, but it’s not a very lucrative offer for someone who does not. 
  • Perks – More often than not, additional benefits like travel insurance, purchase insurance, discounts and more are included with the credit card. Depending on your needs, some may be more worthwhile than others.

Best Cashback Credit Cards

  • Neo Secured Credit
  • TD Cashback Visa Infinite
  • Scotia Momentum Visa Infinite
  • Tangerine Money-Back Credit Card

Neo Secured Credit

neo financial credit card
Annual Fee            None
APR– 19.99% – 26.99%
– QC: 19.99% – 24.99%
Cash Advance Rate – 22.99% – 28.99%
– QC: 22.99% – 25.99%
Welcome BonusEarn up to 15% cashback¹ on your first purchase at participating partners

Neo Secured Credit is a unique secured credit card option for those consumers who want to work toward improving their credit while still taking advantage of some of the perks associated with traditional credit cards. Probably the most impressive feature of the Neo Card is that it is both a secured credit card and a rewards credit card. Users can earn an average of 5% cashback¹ when shopping Neo partners and earn up to 15%1 cashback on their first purchase with a Neo partner. There are no annual or monthly fees and no credit check is required to get approved.

$25 Welcome Bonus

Neo is offering new customers a $25 welcome bonus, sign up by clicking the button below and receive your $25.

Extra Features

  • No cashback limits – Neo Credit does not have any limits to how much cashback you can earn when shopping at participating partners.
  • Change your limit – You can choose (and change at a later date) your credit limit based on how much you can save for your security deposit.
  • No credit check – Neo will not perform a credit check during its approval process.
  • Track your spending With Neo’s real-time notifications, you can track what you’re buying and stick to your budget by viewing your balance.
  • Neo Credit Perks – Neo Credit holders can customize their cards by adding perks. Neo perks are stackable and reward you for spending by boosting cashback offers for different categories. Neo perks are flexible and come with no commitment. You can easily add a perk to your card via the Neo app and cancel it at any time
Everyday Essential Perks 

Valued at over $170 a year, Everyday Essentials perks can be added to your Neo Credit card for a low fee of $8.99 a month. With it, users can earn 1.5x more cash back when they shop at participating grocery stores and gas stations.

  • 1.5x more cashback at grocery and wholesale stores like Costco and Walmart
  • 1.5x more cashback at specialty food and liquor store partners
  • 1.5x more cashback at gas station partners
  • Access to exclusive offers from grocery stores and gas stations 
  • Have your card balance covered with life insurance protection
Travel Perks 

Neo Travel perks cost $4.99 a month and have a value of over $360 a year. Users who travel regularly will benefit from the added perks.

  • 1.5x cashback boost at all airline, hotel, and car rental travel partners
  • 2% cashback on all foreign transactions
  • Comprehensive travel insurance
  • Priority Pass airport lounge access 
Premium Access Perks 

Premium Access perks is a great option for all Neo Credit holders, as the price tag is so affordable at $0.99 a month with a value of over $100 a year. 

  • Up to 20% cashback on first-time purchases
  • Exclusive monthly cashback bonus offers
  • Priority phone line with customer support
  • Purchase protection with extended warranty

Eligibility Requirements

  • Must be the age of majority in your province or territory of residence
  • Must be a Canadian resident
  • Must provide security funds

TD Cashback Visa Infinite

TD Cashback Visa Infinite
Annual Fee$120
Cash Advance Rate22.99%
Welcome Bonus10% cashback

With an annual fee of $120 and a welcome bonus valued at $200, this credit card pays for itself.  During the first 3 months after signing up, you can get a return of 10% in cash on any expense, with a cap of $2,000. This is equivalent to a $200 cash bonus when you spend $2,000 in 3 months. In addition, with this card, you can earn 1% or 3% in cash for every dollar you spend. You can earn 3% on eligible groceries and gas expenses as well as recurring bills. All other purchases will earn you 1%. 

Extra Features 

  • Insurance coverage – Provides classic travel protection such as medical insurance, car rental insurance, baggage insurance and emergency travel assistance
  • Annual fee – Your annual fee will be waived for the first year you sign-up.
  • Roadside assistance– Gain free membership and access to roadside assistance through TD’s Deluxe Auto Club.

Eligibility Requirements

  • You are a permanent Canadian resident
  • You have reached the age of majority in your province
  • You need a personal income of at least 60,000 or a household income of $100,000

Scotia Momentum Visa Infinite

Scotia Momentum Visa Infinite
Annual Fee$120
Cash Advance Rate22.99%
Welcome Bonus10% cashback

Scotia Momentum Visa Infinite has one of the highest cashback earn rates with a 4% return on every dollar spent on groceries, expenses, subscriptions and even recurrent bills. Gas and daily transportation expenses like trains, buses, and metros will earn you 2% on the dollar. All other purchases will earn you 1%. Moreover, during the bonus period (first 3 months of signing-up), you’ll receive a return of 10% on any expense (capped at $2000). This is equivalent to a $200 cash bonus when you spend $2,000 in 3 months. You can redeem your cashback rewards as credit or have them deposited into your chequing or savings account

Extra Features 

  • Insurance coverage – Provides classic travel protection such as medical insurance, flight delays insurance, trip cancellation insurance, baggage insurance, mobile insurance and purchase protection.  
  • Annual fee – For the first year you sign-up, your annual fee will be waived. 

Eligibility Requirements

  • You have reached the age of majority in your province
  • You need a personal income of at least 60,000 or a household income of $100,000

Tangerine Money-Back Credit Card

Tangerine Money-Back Credit Card
Annual Fee$0
Cash Advance Rate19.95%
Welcome Bonus1.95% balance transfer interest

Tangerine’s Money-Back credit card is well-balanced and overall has the best cashback value. With no annual fee, a cashback earn rate of 2% on any 2 major spending categories, and 0.5% cashback on all other purchases, Tangerine provides great value and flexibility. Moreover, if you deposit your money into a Tangerine’s savings account, you can add a third spending category that can earn you 2% in cash. 

Special Offer

Apply for a Tangerine Money-Back Credit Card by July 5, 2023. If you’re approved, you’ll earn an extra 10% back on up to $1,000 in everyday purchases made within your first 2 months.*

Extra Features

  • Purchase Assurance and extended warranty – Shop confidently with Tangerine’s Purchase Assurance which will cover any theft, loss or damage to your items within 90 days of the purchase date. 
  • Balance Transfer – Get a low-interest rate of 1.95% for 6 months if you transfer your balance within 30 days of owning the card. 

Eligibility Requirements

  • You must be a permanent resident of Canada and be the age of majority in your province 
  • You must have an annual income of at least $12,000
  • There should be no bankruptcies declared over the last 7 years 

Bottom Line

Cashback reward credit cards are very attractive due to their flexibility and simplicity. Rather than using point-based credit cards which typically limit you to travel and merchandise expenses, cashback gives you the freedom to use your money as you please. Moreover, when you redeem rewards with your points, the value of the point changes based on what you buy which can easily lead to a loss. On the other hand, cashback credit cards provide a simple value system where you know exactly what you’re getting.

Card issued by ATB Financial pursuant to license by Mastercard International Inc.

1Average based on current offers at select partners. Cashback varies per plan, offer and partner.

Priyanka Correia avatar on Loans Canada
Priyanka Correia

Priyanka Correia is a Marketing Coordinator and personal finance expert at Loans Canada. Priyanka completed her Bachelor's degree in Marketing at Concordia University and has published work that has been mentioned in various news media. She is passionate about money management and educating Canadian consumers about how to take control of their financial lives.

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