We all know that credit cards can get us in a lot of trouble debt-wise, BUT they can also be a good thing…if “treated” properly and we choose the right kinds. Are you picking up what I’m throwing down?

Those kinds of credit cards are the cash back kind. Today, we’ll chat about the 5 best cash back credit cards in order for you to get your best bang for your buck.

What are Cash Back Credit Cards?

Cash back credit cards pay you back a small percentage of your amount spent on your purchases. The percentage is typically between 0.5% and 3% cash back.

Example: Let’s say you bought something for $1000, and your cash back credit card gave a rebate of 2%. You would get $20.00 back. Pretty sweet deal, hey?

How Does the Cash Back Redemption Work?

How you get compensated with cash back credit cards varies with each financial institution. They may pay you once per month, once per calendar year or depending on your dollar amount spent.

You will get your rebate on your credit card statement, or some institutions will have the option to deposit it into a bank account for you.

Okay, let’s get to the good stuff…

5 Best Cash Back Credit Cards

1. BMO CashBack Mastercard

• 3% cash back on groceries, 1% cash back on recurring bill payments and 0.5% cash back on all other purchases
• No annual fee
• Welcome Offer (subject to change): Up to 5% cash back in your first 3 months and 1.99% interest rate on balance transfers for 9 months with a 1% transfer fee
• Bonuses: Up to 25% off rentals with participating National Car Rental and Alamo Rent-A-Car locations and Purchase Protection and Extended Warranty on most purchases bought with your card
• Either use your rebate as a credit on your monthly statement, or have it deposited right into your BMO chequing or savings account

Get more information on the BMO CashBack Mastercard.

2. SimplyCash Preferred Card From American Express

• 2% cash back on all purchases
• $99 annual fee
• Welcome Offer (subject to change): Earn 10% cash back in your first 4 months (up to $400 cash back)
• No limit to how much cash back you can earn
• Cash back rebate is applied as a credit to your account annually each September

Get more information on the SimplyCash Preferred Card from Amex.

3. CIBC Dividend Visa Card

• 2% cash back on groceries, up to 1% cash back on all other purchases
• No annual fee
• No limit to how much cash back you can earn
• Minimum annual income: $15,000
• Cash back rebate is at the end of each calendar year, credited to your account

Get more information on the CIBC Dividend Visa Card.

4. Meridian Visa Infinite Cash Back Card

• 4% cash back on gas and groceries, 2% pharmacy and utility bill payments and 1% on all other eligible purchases
• No annual fee for the first year (after that, it’s $99)
• Minimum annual income (personal): $60,000 or (household): $100,000
• Redeem your cash back rebates through account credit, merchandise, event tickets or gift cards on a monthly basis

Get more information on the Meridian Visa Infinite Cash Back Card.

5. Tangerine Money-Back Credit Card

• 2% cash back on 2 Money-Back Categories of your choice (add a 3rd category if you have rebates deposited into your Tangerine Savings Account) and 0.5% on all other purchases
• No annual fee
• Minimum annual income: $12,000
• No limit to how much cash back you can earn
• Rebates paid monthly to either your credit card balance or have it deposited into your Tangerine Savings Account

Get more information on the Tangerine Money-Back Credit Card.

 

Now you just have to figure out which of these 5 best cash back credit cards will work best for you and your needs. It’s important to note that none of these will work well for you if you carry a balance, so the key thing is to pay off any balance right away. Ciao for now!