The Best Cash Back Credit Cards – newshuntz.com

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The Best Cash Back Credit Cards: We analyzed nearly 130 credit cards issued by Visa, Mastercard, and American Express to select the most advantageous in terms of cashback, particularly on groceries.

Rewards per dollar spent, welcome bonus, long-term performance…see which ones will give you the most bang for your buck. Choosing a credit card for rewards is no easy task, as there are many elements to consider. How much are your monthly expenses? Where do you shop? Do you share the card with your partner?

To guide your choice Protegez-Vous used its credit card comparator to identify among more than 130 cards those that are the most advantageous in terms of cashback. Since the best offers vary depending on user profiles we chose that of a person with monthly expenses of $2,500 as well as an annual personal income of $75,000 and a family income of $120,000.

Most cards offer a good return in the first 12 months thanks to the welcome bonuses granted in the first year, which are in addition to the usual discounts. For this reason, our selection takes into account discounts obtained beyond the first 12 months. Our observation: generally speaking, American Express cards offer the best return.

However, as they are still refused in certain businesses, we have only chosen three and we have excluded those that come with high fees, aimed more at travelers. If your profile does not match the one we have chosen, use our credit card comparator and provide information related to your situation. Here are the elements to take into consideration to make the right choice.

Cash-back cards offer a lot of flexibility because you earn rewards no matter where you shop. As you shop, you accumulate discounts, for example, 3% on gas, 2% on groceries, and 1% on everything else. Rewards are typically shown as a dollar credit on the monthly statement, and most people use them to pay down their card balance.

Do you have a loyalty card like PC Optimum or Moi? “Use it at the same time as your credit card to accumulate more rewards,” suggests Jean-Maximilien Voisine, president of Milesopedia, which designed the Protgez-Vous credit card comparator.

Categories of businesses

Credit cards allow you to accumulate discounts based on the type of establishment where you shop. For example, if the card offers 2% back on groceries, you’ll earn them every time you spend at a supermarket, even if you alternate between Provigo, Maxi, and Metro, among other examples.

Issuers automatically know which category the majority of retailers fall into, including many small neighborhood businesses. In this regard, be aware that Costco is not considered a grocery store.

thus, the purchases you make there only earn the base rate, which generally varies between 0.5 and 1.5% (if this particularity encourages you to get the CIBC Mastercard credit card from Costco, consult the analysis that we did with it ).

Recurring invoices

In some cases, the discount is obtained by paying your recurring direct debit payments by credit card, for example, those from an insurer, a cell phone provider, or a streaming service like Netflix.

Ceiling

Several advertisements highlight an attractive rate (for example 4% on gasoline) accompanied by the symbol “*” or “†”. The terms and conditions are often mentioned in an inconspicuous section of the issuer’s website so that only perceptive people discover that there is a purchase limit – for example, the first annual tranche of $20,000 – after which the rate often drops to 1%.

Welcome offers

Many issuers waive the annual fee for the first year or offer twice as many discounts for the first few months. Since these offers only apply to new customers, this may encourage people to switch cards every year to take advantage of them. Keep in mind that doing this is not easy and could have an impact on your credit score.

Annual fees

Make sure they don’t exceed the value of the rewards. Consider the following example: The card has an annual fee of $150 and offers 1% back. If you spend $12,000 per year, you will receive $120… which doesn’t even cover the annual fee. On the other hand, if you spend $35,000 per year with the same card, the $350 back will pay off more.

Travel Insurance

Most of the time, it is enough to be a cardholder to benefit from health insurance abroad, but for protections such as baggage delay, you generally need to have paid for the trip with the card. Please note.

advertisements that mention “65 years and over” exclude in certain circumstances people over 75 (for reasons of space, this information is not always specified in the fact sheets that follow). “Find out information before leaving, because insurance involves a lot of subtleties,” insists Jean-Maximilien Voisine.

Protections on purchases

The main protections for purchases paid with the card are mobile device insurance, the extended warranty – it often extends by one year that is offered by the manufacturer – and the purchase protection guarantee (theft, loss, or damage in the first months following purchase).

But be careful: “If you cancel the card, you lose protection on purchases made with it,” warns Jean-Maximilien Voisine.

The Best Cash Back Credit Cards

The number one rule for accumulating as many discounts as possible: choose a card that matches your spending habits. And know that nothing obliges you to take one that is linked to your financial institution.

We chose the profile of a person with monthly expenses of $2,500 distributed as follows: groceries ($500), gas and transportation ($375), meals ($200), bills ($375), and travel ($175). ) and others ($875).

If this doesn’t exactly match your habits, enter the amounts yourself in our credit card comparator to find out how much your discounts will be. Some issuers allow you to use rewards whenever it is convenient for you, while others allow it once a year.

The information below is current as of August 2023 but is subject to change. If the card has an annual fee, these are subtracted from the rebate amounts.

Rewards based on monthly spending of $2,500.

American Express Cobalt Card

  • Annual fee: $156; $0 for additional cards
  • Interest rate (purchases): 20.99%
  • Minimum personal income: $0
  • Minimum family income: $0

Estimated annual rewards (less annual fees)

  • 1st year: $1,548
  • 2nd and subsequent years: $1,038

Rewards per dollar spent

  • Grocery, restaurants, bars, convenience stores, meal deliveries: 5%*
  • Select streaming services: 3%
  • Gas, local transportation, travel: 2%
  • Other purchases: 1%
  • Cap $2,500 per month (takes into account all purchases with 5% discounts), then 1% thereafter

Protections included

  • Travel insurance: accident ($250,000), flight delay, delay or loss or theft of baggage, medical care for people aged 64 and under ($5 million; 15 days), theft and damage related to rental cars, hotel burglary
  • Others: purchase protection guarantee ($1,000; 90 days), extended warranty (1 year), mobile device insurance ($1,000; 1 year)

Good to know

  • Get 2,500 points (the equivalent of $25) for each month you spend $500 in the first year ($300 total).
  • Book two nights at The Hotel Collection property and receive a US$100 credit and an upgrade.

American Express SimpleRebate Select Card

  • Annual fee: $120; $0 for additional cards
  • Interest rate (purchases): 20.99%
  • Minimum personal income: $0
  • Minimum family income: $0

Estimated annual rewards (less annual fees)

  • 1st year: $1,091
  • 2nd and subsequent years: $691

Rewards per dollar spent

  • Groceries*, gas: 4%
  • Other purchases: 2%
  • For the first $30,000 per year on groceries, then 2%

Protections included

  • Travel insurance: accident ($100,000), flight delay, delay or loss or theft of baggage, medical care for people aged 64 and under ($5 million; 15 days), theft and damage related to rental cars, hotel burglary
  • Others: purchase protection guarantee ($1,000; 90 days), extended warranty (1 year), mobile device insurance ($1,000; 1 year)

Good to know 

  • Get $40 back for each month you spend $750 in the first 10 months ($400 total).
  • Earn cash back when you refer new members (up to $750 total).

CIBC Dividend Visa Infinite Card

Annual fees: $0 the first year, then $120 in subsequent years; $0 for additional cards the first year, then $30 each thereafter
Interest rate (purchases): 20.99%
Minimum personal income: $60,000
Minimum family income: $100,000

Estimated annual rewards (less annual fees)

  • 1st year: $1,004
  • 2nd and subsequent years: $564

Rewards per dollar spent

  • Groceries, gas, electric vehicle charging: 4%*
  • Restaurants, bars, local transportation, recurring payments: 2%*
  • Other purchases: 1%
  • For the first $20,000 per year (takes into account all purchases with discounts of 2 and 4%), then 1%

Protections included

  • Travel insurance: accident ($500,000), medical care for people aged 64 and under ($5 million; 10 days), theft and damage related to rental cars
  • Other: purchase protection guarantee (90 days), extended warranty (1 year), mobile devices ($1,000; 1 year)

Good to know

  • Get 10% back for the first four months (up to $200 in rewards) if you take the card through the link provided in the Protégez-Vous comparator.
  • Save at least 3¢ per liter on gasoline at participating Ultramar and Pioneer gas stations.
  • Book a Visa Infinite Luxury Hotel Collection property and get an upgrade plus benefits like late check-out.

Scotiabank Gold American Express Card

Annual fee: $120; $29 per additional card
Interest rate (purchases): 20.99%
Minimum personal income: $12,000
Minimum family income: $12,000

Estimated annual rewards (less annual fees)

  • 1st year: $1,006
  • 2nd and subsequent years: $606

Rewards per dollar spent

  • Groceries, restaurants, bars, food delivery, entertainment: 5 points
  • Gas, local transportation, streaming services: 3 points
  • Other purchases: 1 point

Protections included

  • Travel insurance: accident ($500,000), flight delay, delay or loss or theft of baggage, medical care for people aged 64 and under ($1 million; 25 days) and 65 and over ($1 million; 3 days), trip cancellation and interruption, rental car theft and damage, hotel burglary
  • Others: purchase protection guarantee (90 days), extended warranty (1 year), mobile devices ($1,000; 1 year)

Good to know

  • Optimize the return on discounts, called “Scène+ points”, by using them with program partners, for example, IGA, Expedia, Best Buy, Harvey’s, or Home Hardware (10,000 points = $100). Otherwise, take them to pay off the card balance, but with a less attractive rate (14,500 points = $100).
  • Earn 20,000 Scene+ points if you make purchases totaling $1,000 in the first 3 months, then an additional 20,000 Scene+ points after $7,500 in purchases made in the first year.
  • Get 6 points (rather than 5 points) on your purchases at participating Sobeys network grocery stores, such as IGA, Les Marches Tradition, and Rachelle Bery.
  • Pay no foreign conversion fees.

Travel Rewards Credit Cards

This article is limited to cards with cash back, but our online comparator also lists cards that offer rewards that you can use to pay for a plane ticket or a hotel room. In some cases, however, you may have to deal with a particular agency or airline, which may limit your choices of destinations and dates. If you have a loyalty card like Aeroplan or Air Miles, you can use it alongside your credit card to earn more rewards.

Use our card comparator

These cards don’t meet your needs. Use our credit card comparator to find the one that’s right for you (low-interest rate, no annual fee, traveler-friendly, etc.).

Also read:  How to choose the best credit card and  The 7 best credit cards for groceries and  The Costco credit card, not as advantageous as you might think!

Read also: The Costco Credit Card is Not as Advantageous as You Might Think

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