As I’ve mentioned before, I recently started getting into applying for credit cards not for the purpose of travel hacking, but for the purpose of cash back hacking, on big, expected purchases. I applied for my first 10% cash back credit cards in Canada (the 10% cash back is a welcome bonus, usually for the first “X” dollars spent in purchases for a limited time) and then became enthralled and applied for another 10% cash back credit card in Canada.
Last updated: May 2023
Table of Contents
10% Cash Back Credit Cards in Canada
Even though 10% cash back sounds insanely high, these 10% cash back credit cards in Canada don’t add up to very much.
This is because there is a cap limit of how much promotional cash back you can get, for example, you can get 10% cash back on a $2000 spend in the first number of months after card opening.
To be honest, it’s really like $100 or $200 cash in the grand scheme of things, but psychologically, it makes paying for a big non-negotiable expense that you would normally have to pay for less… well, painful.
For example, car insurance, other big ticket items that you would normally have to pay.
Best Cash Back Credit card in Canada for 2023?
I might venture to say that most of these credit cards could take the top spot as the best cash back credit card in Canada for 2023, especially if you use it for the main bit ticket payment and cancel once you receive your reward.
It takes a bit of forward planning- you have to apply in advance and make sure to account for delayed credit card approval process, delayed Canada Post sending your credit card out, and all other things that could potentially go wrong…. but the reward is pretty good.
If you always pay off your credit card bills, why not save $160 on your car insurance payment, thanks to your cash back credit card welcome bonus?
Highest Cash Back Credit Card in Canada
Here are the highest cash back credit cards in Canada (well promotionally anyway). After the promotion ends most of these cards are just average cash back.
Here are four 10% cash back credit cards in Canada for your next big ticket item (for example, a $1600 ICBC annual car insurance payment).
Most of these do not have any fees for the first year or don’t have any credit card annual fees period.
This makes them one of the best no fee cash back credit cards in Canada.
Scotiabank MOmentum Visa Infinite
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The Scotiabank Momentum Visa Infinite gives you 10% cash back on your first $2000 spent in the first 3 months.
This offer expires June 30, 2023.
Also, they are providing first year free (FYF, music to my ears) which is normally $120 per year. They are also providing the first year’s supplementary card for free too, which is normally $50/year.
I might continue to use the Scotiabank Momentum Visa Infinite as you can get it for free annually if you have a Scotiabank Ultimate Package (no monthly fee is you keep a certain account minimum or have a certain amount in their SavingsPLUS account).
Here’s my Scotiabank Ultimate Package review.
You can get the Momentum Visa card free for the first year if you have a Scotiabank Preferred Package account.
Even after the 3 month welcome bonus offer period is over, the Scotiabank Momentum Visa is still a decent card.
Here are the cash back rates after the promotional bonus rate.
- There’s 4% cash back on groceries and recurring bills.
- 2% cash back on gas and daily transit
- and 1% cash back on everything else.
The downside to this card is that the regular cash back is only awarded once a year, in November.
However, for the 10% bonus cash back portion of it, you get a statement credit quite soon after you meet the $2000 spend and you don’t have to wait until November, which is awesome because who likes delayed gratification of 10% cash back anyway?
Tangerine Money-Back Credit card
The Tangerine Money-Back credit card has a new promotion of 15% cash back.
If you apply before July 5, 2023 you can get 10% cash back on all your purchases, up to a $1000 spend on the first 2 months of your card.
This makes it $100 cash back.
After that, you get 2% cash back in two categories of your choice, and 0.5% cash back on all other purchases. If you get your money deposited into a Tangerine Savings Account, you can get third 2% cash back category added.
You have to activate your Tangerine Money Back credit card within 45 days of approval and this 10% promotional cash back is only for new credit card applicants. The cash back is applied about 60 days (or two billing cycles) after you qualify for the 15% cash back.
The positive thing about the Tangerine Money Back credit card is that the income requirement is only $12,000- compared to the other cards for Tangerine. this is much much lower.
Also, it is $0 annual fee, so you don’t have to worry about cancelling before the first year is up.
This is great for university students who might be working a part-time job, a free $100 for just applying for the card…much better than my first credit card, the BMO Mosiak I had in university where the only thing it had going for it was pretty beach scenery on the card.
In addition, if your credit score is not excellent, you can still apply even if your credit is ‘fair’.
The $100 gets credited to your statement within about 1-2 statements after the 60 day period after activation, however, I got mine pretty quickly, closer to the 1 statement mark.
Tangerine World Mastercard
Another 10% cash back credit card in Canada is the Tangerine World Mastercard. The Tangerine World Mastercard is offering the same promotion until July 5, 2023 which is 10% cash back.
If you apply for a Tangerine World Mastercard before the aforementioned date, you can get 15% cash back on the first $1000 spend within the first 60 days of card activation.
This also makes it $100 cash back if you spend $1000.
The cash back after the promotional period is the same as the Tangerine Money Back credit card, which is 2% cash back in two categories of your choice, and 0.5% cash back on all other purchases. If you get your money deposited into a Tangerine Savings Account, you can get third 2% cash back category added.
The minimum income you need to have the Tangerine World Mastercard is $60,000.
The minimum credit score you need to apply for the Tangerine World Mastercard is 600, this has been lowered recently from 700 (good to excellent).
The benefits of the “World” status includes some perks such as Mobile Device Insurance and Rental Car Collison/ Loss Damage Insurance.
There is a $0 annual fee for this card.
Unfortunately you can’t have BOTH the Money-Back and the World card (at least for me, I tried), it’s either one or the other.
CIBC Dividend Visa Infinite
The CIBC Dividend Visa Infinite also has a 10% cash back welcome bonus promotion on the first $2000 spent in the first four months, which makes it essentially $200 cash back. The counter for number of months left to utilize your cash back starts after your application is approved, and does not start when you receive the card and use the CIBC Dividend Visa for the first time.
I don’t see a deadline to apply for this card by and couldn’t find it in the Terms and Conditions either.
The great thing about the CIBC Dividend Visa Infinite is that the cash back is in the accounts pretty much immediately and can be redeemed in increments of $25.00.
After that, the cash back is pretty much comparable to the Scotiabank Momentum Visa Infinite where you get cash back on:
- 4% cash back for groceries and groceries
- 2% cash back on transportation, dining, and recurring payments
- 1% on everything else
There’s also Mobile Device Insurance but you have to have purchased your device on the phone, or have recurring cell phone payments charged onto the phone if your phone payment is part of a ‘buy it over time’ contract.
The CIBC Dividend Cash Back card is also First Year Free. Just remember to cancel them before the first year is up otherwise you will get charged the annual fee which is $120 a year.
CIBC Dividend Platinum Visa Card
The CIBC Dividend Platinum Visa Card also gives you 10% back on the first 4 statements, up to a total of $2000 spend.
This is essentially $200 cash back on a $2000 spend in the first four statement periods.
The annual fee is waived for the first year as well.
This is normally $120.
BMO CashBack World Elite Mastercard
With the BMO Cashback World Elite Mastercard, you can get 10% cash back on your first 3 months after you are approved, up to a total of $2000 spend, which means you can get $200 cash back.
After the welcome cash back is exhausted, you can get:
- 5% cash back on groceries (this is very high, even higher than the 4% for Scotiabank Momentum Visa though there is a cap of $500 a month)
- 4% cash back on transit with max of $300 a month
- 3% cash back on gasoline and electric vehicle charging fees with a cap of $300 a month
- 2% cash back on payments that are recurring (for example, subscriptions, Internet charges) and there is a cap of $500 per month
- After the cap is met in the above categories, it is 1% cash back
- 1% cash back on all other purchases
The annual fee is $120 but this is also FYF, and waived for the first year.
There’s also free roadside assistance with this card, a $69/year value.
The minimum income requirement for this card is high though, $80,000 a year for personal or $150,000 for household.
10% Cash Back Credit Card in Canada Recap
The highest cash back credit cards in Canada all have 10% in cash back rewards, at least for a promotional duration of time.
To summarize there are a few 10% cash back credit cards in Canada right now.
These are the:
- Scotiabank Momentum Visa Infinite
- CIBC Visa Dividend Cashback
- Tangerine World Elite
- Tangerine Money-Back credit card
- BMO Cash Back World Elite Mastercard
Personally, I find applying for 10% cash back credit cards in Canada easier to do for cash back compared to the bank account promotions earning similar amounts ($300 or $350 in cash) except for the credit cards, you don’t have to try and arrange for your employer to update paperwork for direct deposits.
There are some credit cards like TD Bank that offer 6% cash back, but personally to me, that’s not worth it for the hassle.
I have seen the TD Bank Cash Back card at 10% though previously.
The TD credit cards of First Class Visa (you can even get cash back on CAMPING reservations- our favourite Canadian ‘vacation’ option these days) and the TD Aeroplan Visa Infinite are great though.
Go big or go home!
Don’t get me wrong, I am still hoarding Aeroplan points and travel points for future travel, just also taking advantage of some cash back offers too- all at the same time making sure I don’t apply for too many at one time otherwise my credit score will decrease from Excellent and I’ll get rejected for the cards!
There’s something very satisfying knowing you’ll get 10% cash back on something that you need to pay for anyway (or maybe want to pay for, this might be a good ‘hack’ if you’ve been wanting to reward yourself with a luxury wallet or a Louis Vuitton handbag or something like that).
Or even more satisfying might be getting 10% back when you pay your CRA taxes with a credit card (minus the credit card convenience payment fees of course).
I’m sure there will be more to add to this list of 10% cash back credit cards in Canada, I have noticed that it is getting more popular now to have better cash back welcome bonuses compared to travel rewards.
You might also be interested in:
- Best No Fee US Dollar Credit Card in Canada
- Best Travel credit cards for seniors in Canada
- Tangerine Promotions and Referral
Have you applied for a 10% cash back credit card in Canada to save $100 or $200?
genymoney
GYM is a 30 something millennial interested in achieving financial freedom through disciplined saving, dividend and ETF investing, and living a minimalist lifestyle. Before you go, check out my recommendations page of financial tools I use to save and invest money. Don’t forget to subscribe for blog updates, a free dividend yield spreadsheet, and the free Young Money Bootcamp eCourse.
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FAQs
Can I get a US credit card in Canada? ›
Yes, as a Canadian, you can apply for a US dollar credit card through one of Canada's major banks. Since the credit card is a US dollar card, you won't be charged a foreign transaction fee when you make purchases in US dollars. NOTE: In order to make your monthly payments however, you'll need a source of US dollars.
How does percentage cash back work on credit cards? ›Cash back rewards operate on a percentage basis. An example: If you have a card with a purchase rewards rate of 1.5% and you make $100 in purchases, you would earn $1.50 in cash back. These rewards may seem small, but they can add up quickly.
What percentage of Canadians use credit cards? ›Percent of people aged 15+ who have a credit card
The latest value from 2021 is 82.74 percent. For comparison, the world average in 2021 based on 121 countries is 22.26 percent. See the global rankings for that indicator or use the country comparator to compare trends over time.
If you are looking to maximize rewards, a 5% cash-back card can be a great asset. Oftentimes, they have standard interest rates and no annual fee. However, these rotating category cards aren't for everyone. Trying to optimize your usage can be a lot of work, and many people don't want the hassle.
Which US credit card works in Canada? ›Visa and Mastercard are the most widely accepted networks, and you should be able to use their cards at any merchants that take credit cards in Canada.
What American credit cards are accepted in Canada? ›Canadian merchants accept Visa, Mastercard and American Express credit cards. Canada uses Interac Direct Payment (IDP) and you can use this system to get cash out over-the-counter if you're paying with your debit or travel card.
What is cash back 10%? ›Shopee 10% Cashback Programme is a programme designed to boost seller' sales. On top of the 10% Cashback Vouchers (no minimum spend), buyers can also earn and spend Shopee Coins! *The 10% Cashback Vouchers and Shopee Coins redemption will be subsidised by Shopee.
What is 5% cash back on $100? ›Getting 5% cash back on a credit card means you will earn $5 in cash back rewards for every $100 you spend on qualifying purchases. You can usually redeem cash back rewards for a statement credit, a check in the mail, or a deposit into an eligible bank account.
What are the disadvantages of cash back credit cards? ›There are a few drawbacks to a cash-back rewards card, including a higher-than-usual APR, having to wait to access your cash-back funds, and a cap on how much you can earn each year. Also, when it comes to travel rewards such as airline miles, sometimes the miles are worth more than the cash.
Should I use cash or credit card in Canada? ›Use the credit card instead of cash wherever possible. Credit card issuers typically charge fees for international transactions and you may get the best exchange rate and fees lower than those associated with exchanging cash.
What is the best way to pay for things in Canada? ›
Most casual visitors to Canada should use their credit cards for purchases and make larger ATM local currency withdrawals at Canadian banks, but frequent travelers should talk to their banks about the best debit and credit cards for these purposes.
Does Canadian credit count in USA? ›Unfortunately, your Canadian credit history cannot follow you to the United States. While credit reporting companies like Experian have operations in multiple countries, the information they maintain in each individual nation cannot be transferred across national boundaries for several reasons.
How do I get 5% cash back on everything? ›- Chase Freedom Flex℠ ...
- Discover it® Cash Back. ...
- The Target REDcard. ...
- American Express Blue Cash Preferred. ...
- Ink Business Cash® Credit Card. ...
- SimplyCash® Plus Business Credit Card. ...
- Amazon Prime Signature Rewards Visa Signature Card. ...
- Label your cards.
For example, if you spend $1,000 on purchases eligible for 3% cash back, you get $30 in rewards. Then, you can usually redeem that cash back as a statement credit or a deposit to a bank account, and sometimes for a check.
What happens when you use a US credit card in Canada? ›No foreign transaction fees
When you make a transaction in a foreign currency, the charge posted on your statement is converted to Canadian dollars. The foreign currency conversion rate is set by a payment network, such as Visa, Mastercard or American Express, used by your card issuer.
One of the most noticeable differences between US and Canadian credit cards is their fees. Canadian credit cards are much more likely to charge an annual fee than American credit cards. Sure, there are plenty of rewards cards in the US that charge an annual fee.
Will my US bank card work in Canada? ›Yes. Cards issued by U.S. Bank can be used in most foreign countries for transactions.
Should I exchange money before I travel to Canada? ›It's always advisable to bring money in a variety of forms on a vacation: a mix of cash, credit cards, and traveler's checks. You should also exchange enough petty cash to cover airport incidentals, tipping, and transportation to your hotel before you leave home, or withdraw money upon arrival at an airport ATM.
What is the 5 24 rule in Canada? ›The bank is known for following the controversial '5/24 rule'. This means your application for a new credit card will not get approved if you have opened more than five credit cards in the last 24 months.
Can you use cell phone in Canada? ›Canada Cellular Phones (Mobile Telephones)
Mobile phone service, or cellular, or cell phone service in Canada is the same as the U.S.A., but different from that in the rest of the world. If using your phone from home, roaming charges can be expensive. Check with you service provider if they offer any roaming packages.
Does cashback actually give you money? ›
Most cashback cards credit the amount you earned onto your statement, reducing your credit card bill. Some cards send the cashback to a bank account so you can spend it, or let you convert it to points or vouchers. Reward points can normally be exchanged when you have enough to qualify for a 'reward'.
Does cash back give you money? ›Cash back cards give you back a certain percentage of your qualifying spending in the form of cash rewards. Some cash back cards have a flat rate reward structure where you get the same cash back percentage across all shopping categories, while others have different rewards structures for different categories.
How much is 2% cash back on $100? ›What Is 2% Cash Back? If you're wondering, 'What does 2% cash back mean exactly?,' here's how it works. Earning 2% cash back simply means that for every $100 you spend on your credit card, you'll get $2 back.
How much is 1% cash back on $100? ›To simplify things, if you spend $100, you'll receive $1 cash back.
Can you get 5 dollars cash back at Walmart? ›You can receive cash back at Walmart registers and self-checkout stations up to three times per day. While there may be varying limits based on your payment method, you can generally choose to receive between $20 and $100 in $20 increments. Therefore, you can choose to get $20, $40, $60, $80 or $100.
Are cashback cards worth it? ›Cash back rewards cards are worth it because they can help you save money as long as you pay off your balance each month. It is also worth noting that the best cash back credit cards with the highest rewards rates and signup bonuses sometimes have annual fees.
Are you taxed on cash back credit cards? ›Are credit card cash-back rewards taxable? No, credit card cash-back rewards are not taxable. The IRS treats cash-back rewards as a rebate on spending and not as income, so you aren't required to pay income tax on these rewards.
Why shouldn't you withdraw cash from a credit card? ›Withdrawing cash (also known as a cash advance) from a credit card can have a negative impact on your credit score. Lenders may look at this unfavourably as it can be an indication of poor money management especially if there are multiple cash advances in a short period of time.
Is it better to pay in U.S. or Canadian? ›When you travel to Canada, it is best to pay in local currency (CAD) instead of USD. We show you the top three benefits of paying with CAD. Find out how you can save money on your overseas trip and avoid unnecessary currency exchange fees.
How much cash should I bring to Canada? ›Any time you enter or leave Canada, you must declare any money or monetary instruments, such as stocks, bond or cheques that you are carrying valued at $10,000 or more.
How much should I spend on credit card Canada? ›
Use credit wisely
Try to use less than 35% of your available credit. It's better to have a higher credit limit and use less of it each month. For example: a credit card with a $5,000 limit and an average borrowing amount of $1,000 equals a credit usage rate of 20%
Banks and exchange services tend to offer better rates than the exchange kiosks you'll find in airports and train stations. That's because those kiosks have a “captive” tourist audience and don't have as much need to be competitive.
How to use Canadian credit card in USA? ›Pay at the pumps like a pro!
Time to swipe that shiny Canadian card with pride! When the machine asks for a zip code, try entering the three consecutive numbers of your postal code followed by two zeros.
Conclusion. Canada is undoubtedly one of the top countries for salaries, employees compensation, and job opportunities. In 2021, the average annual salary in Canada was $65,773. But keep in mind that salaries vary greatly from one industry to another and one region to another.
Does Canada check US credit history? ›Unfortunately, your U.S. credit history will not transfer to Canadian credit reporting companies when you move. Each country has its own unique credit reporting system with different laws regulating them, so the information isn't shared across borders.
What is the credit score in Canada vs USA? ›For example, Canadian credit scores range from 300-900 while US credit scores range from 300-850. While both share FICO's common credit score model, the average credit score in Canada is 650, while the US's average score is 704.
What is a good credit score in Canada? ›In Canada, according to Equifax, a good credit score is usually between 660 to 724. If your credit score is between 725 to 759 it's likely to be considered very good. A credit score of 760 and above is generally considered to be an excellent credit score. The credit score range is anywhere between 300 to 900.
Can you apply for a US credit card from outside the US? ›Applicants must provide a physical address in the U.S. Applicants need to provide a physical address, not necessarily in the U.S. Many credit card companies offer credit cards to overseas applicants, but they each have a varied application process and eligibility requirements.
Is it worth having a US credit card in Canada? ›Making purchases, getting gas, and managing monthly spending in the U.S. are easy when you have both cards, and use them in tandem to cover your expenses south of the border. They help you avoid unfavorable foreign exchange rates and fees – and the risk that your Canadian card won't be accepted.
How can I build my US credit from Canada? ›- Secure a U.S. mailing address.
- Open three loan accounts, such as a bank-issued credit card, department store credit card or personal line of credit.
- Use your accounts and make payments on time, every time. ...
- Apply for a United States Social Security Number (SSN).
Can you apply for a credit card outside the US? ›
Foreign banks also issue credit cards. You can begin to cultivate a good credit score in a foreign country by looking at cards offered by the local banks there.
Will my credit card work in USA? ›Visa, Mastercard and American Express credit cards are all widely accepted in the USA, though you should be aware that payment methods differ slightly from those in the UK.
How to use credit card internationally? ›- Tell your credit card issuer that you'll be traveling. ...
- Use a card with no foreign transaction fees. ...
- Avoid dynamic currency conversion. ...
- Confirm that your destination accepts your credit card. ...
- Know your card's travel protections. ...
- Use your card to access airport lounges.
The four major credit card networks in the United States are Visa, Mastercard, American Express and Discover. All four are widely accepted within the U.S. Abroad, your best bet may be Visa or Mastercard, because Amex and Discover acceptance lags in some countries.
Will my US debit card work in Canada? ›Yes. Cards issued by U.S. Bank can be used in most foreign countries for transactions.
Is it better to exchange money or use credit card? ›Credit cards typically provide better exchange rates than what you'll get from ATM machines and currency stands. Depending on your card issuer, your purchases might automatically qualify for insurance. This coverage doesn't simply apply to consumer goods — it also covers travel delays and lost luggage.
Is Canada and USA credit score the same? ›In Canada, your credit score will range from 300-900, while in America, scores usually range from 300-850. Although they function in very much the same way, in that you're looking for a high score.
Which is the easiest credit card to get in USA? ›- Discover it® Student chrome. ...
- Capital One Quicksilver Secured Cash Rewards Credit Card. ...
- Capital One Platinum Secured Credit Card. ...
- Discover it® Secured Credit Card. ...
- Milestone® Mastercard® ...
- Aspire® Cash Back Reward Card. ...
- Fortiva® Mastercard® Credit Card.
You can apply for these Chase credit cards online by following the Apply Now link. All of these cards are available in Canada.