These credit cards give you the opportunity to redeem a percentage of your total monthly purchases in cash.
With product prices soaring worldwide and the economy becoming increasingly volatile, a credit card offering cashback may be the ideal option for weathering the economic downturn.
“Credit cards are a convenient and flexible payment option that offers a range of benefits,” said Laurent Anderson, retired financial planner in Montreal, Canada. “Whether you need to make a small purchase like a coffee or a larger expense like a vehicle repair, credit cards can provide a convenient way to access funds when you need them.”
Consumers have many types and terms to choose from, but there are clear advantages when using credit cards with cash back[1]. The cashback functionality enables you to redeem a percentage of your monthly shopping through a cash reward[2]. Choosing this type of low-interest card is an ideal way to get the most out of it.
“I would stress the importance of using credit cards responsibly in order to avoid accruing unnecessary interest or damaging your credit score. To do this, it is essential to make timely payments and use your credit cards wisely,” Anderon said.
However, there is a multitude of brands in the Canadian market. With so many to choose from, it cannot be evident to narrow it down to just one. To help you out, here are five low-interest cashback cards. You’re sure to find one that deserves a place in your pocket.
1. Mastercard Brim World Elite
To use this one, the annual fee is $199, the introductory offer is $0, and additional cardholders pay $50.
The system works on points, which means you’ll earn 2% of your purchases in redeemable points.
As a welcome bonus, you won’t have to pay an annual fee for the first year. Get an initial offer of $500 or more.
The Mastercard Brim World Elite is designed for the business class. If you regularly travel for business or leisure, this credit card with cashback will cover your needs. For instance, it offers many member benefits, such as:
- Foreign transaction fee of zero percent;
- Worldwide free Wi-Fi;
- Delayed flight insurance, and;
- Keyed-in lounge access.
Along with the growing digital economy, Brim introduces a unique feature: uploading your card to your beloved mobile wallet like Google Pay, Apple Pay and Samsung Pay.
This credit card offers a cashback package with no purchase limits, providing you with the flexibility to make contactless payments for all of your purchases,” said Sarah Mackenzie, independent financial planner in Montreal, Canada “This can be a convenient and cost-effective way to use your credit card, as you can earn rewards on a wide range of transactions and enjoy the ease of contactless payments.”
2. Preferred Card American Express SimplyCash
The annual fee is $99, $0 for cardholders with additional cards. As a reward, earn 2% in cash back on any of your purchases, with no limit on rewards.
Its welcome bonus gives you 10% cash back on qualifying purchases in your four first months of membership, capped at $450 as cashback.
This card is the ultimate low-interest, high-reward credit card for the Canadian shopper[3]. With no minimum earnings threshold, the bonus program is designed to give you 2% cash back on any purchase, with no limit to the number of rewards to earn. This card includes coverage for purchases made online and in-store, extended manufacturer warranties, and retail purchase protection to cover your shopping.
If one of your friends or relatives is searching for a cashback card, recommend SimplyCash to gain up to $1,500 in cashback.
3. Visa Infinite Momentum from Scotia
It costs $120 per year to hold, while it is $50 for people who have more than one card.
Regarding rewards, note the 4% on grocery purchases and repetitive bills, 2% on transportation and fuel, and 1% on everything else.
As a welcome bonus, 10% cash back in your initial three months and no fee for the first year if you are a primary or supplementary cardholder.
The exclusive credit card is an ideal solution for daily purchases and consumers who have never used credit[4]. Rated the best credit card with a cashback of 2022 by MoneySense, it’s a trusted and safe way to redeem rewards. Suppose your minimum yearly income is $60,000 as an individual or $100,000 as a household. In that case, you have the opportunity of earning cash back on groceries, membership services, trips, gas and other day-to-day purchases.
4. MBNA World Elite Rewards Mastercard
With an annual fee of $120, or $50 for multiple cardholders, this MBNA World Elite Rewards Mastercard is based on a point system. For every dollar spent on groceries, digital media, household products, restaurants and memberships, you earn five points, up to $50,000 per year, toward each category. One point per dollar is awarded for all other qualified purchases.
As for bonus rewards, Master Cardmembers earn bonus anniversary points each year, equaling 10% of their total points earned on the account during the preceding 12 months, up to a maximum of 15,000 points per year.
The MBNA World Elite Mastercard Rewards program is the ultimate credit card with cash back for the traveling public. Suppose your income is $80,000 or more annually or your family’s annual household income is $150,000. In that case, you’ll easily access various bonuses and features that characterize this unique card[5]. Scalable reward points are tradable for money, gift cards, trips and charities.
In an environment where international travel is becoming more unpredictable than ever, this product will ensure ease of mind by providing coverage for travel medical expenses, damage caused by delayed or lost luggage, and flight and travel delays. Here are some other benefits:
- Travel assistance;
- Emergency money transfers;
- Replacement of lost documentation and tickets, and;
- 24-hour, seven-day-a-week concierge services.
“I would recommend considering the travel assistance feature on your credit card as a valuable resource if you frequently travel,” Sarah said. “This feature can provide a range of benefits, such as emergency medical and travel assistance, trip interruption and cancellation coverage, and lost luggage protection.”
5. About the BMO MasterCard Cash Back World Elite
With an annual fee of $120 ($50 for extra cardholders), you’ll earn cashback of 5% on goods bought at the grocery store, 4% on public transportation, 3% on gas, 2% on regular bills and 1% on any other purchases. As a welcome bonus, you’ll get 10% cash back in your initial three months and no yearly fee for your first year.
It’s the only card that grants 5% cash back on sales at grocery stores in Canada[6]. In addition, your cash rewards amount can be accessed from as little as $1 at any given time. To earn it, individuals must have an annual income of $80,000 or more or a total family income of $150,000.
Some of this credit card’s unique features include its 1% rewards offer for all remaining purchases and limitless rewards threshold. The following incentives are offered for its use:
- Roadside assistance;
- Coverage for your travel and medical needs;
- A free access to Wi-Fi using Boingo, and;
- Reductions on car rentals from National & Alamo.
Conclusion
With increasing prices for goods worldwide and the economy becoming more unstable, access to reliable funds whenever and wherever you need them is a must. Getting money back on your purchases is also an intelligent way to protect yourself from inflation[7]. By opting for a credit card with a low-interest rate and cash back, you can enjoy unique benefits when making daily purchases and more significant expenses.
