If you are looking for a credit card that rewards you for every purchase you make, you might be interested in credit card highest cash back offers. These are credit cards that offer a high percentage of cash back on your spending, either in specific categories or on everything. Cash back is one of the most flexible and easy-to-use rewards, as you can apply it to your credit card bill, save it for a rainy day, or spend it on whatever you want.
But how do you find the best cash back credit card for your needs? And how do you make the most of your cash back rewards? In this article, we will answer these questions and more, by comparing some of the top cash back credit cards in Canada and giving you some tips and tricks to boost your earnings. Let’s get started!
What is a cash-back credit card?
A cash-back credit card is a type of rewards credit card that gives you a percentage of your spending back as cash. For example, if you have a credit card that offers 2% cash back on everything, and you spend $1,000 in a month, you will earn $20 in cash back.
Cash-back credit cards can have different structures and features, such as:
- Flat-rate cash back: This means you earn the same percentage of cash back on all your purchases, regardless of the category. For example, the SimplyCash Preferred Card from American Express offers 2% cash back on everything.
- Tiered cash back: This means you earn different percentages of cash back depending on the category of your purchase. For example, the Scotiabank Momentum Visa Infinite offers 4% cash back on groceries and recurring bill payments, 2% on gas and transit, and 1% on everything else.
- Rotating cash back: This means you earn a high percentage of cash back on certain categories that change every few months. For example, the Citi Custom Cash Card offers 5% cash back on your highest spending category each billing cycle (up to $500 in purchases), and 1% on everything else.
- Bonus cash back: This means you earn extra cash back for meeting certain criteria or spending thresholds. For example, the BMO CashBack World Elite Mastercard offers 10% cash back in the first three months (up to $2,600 in purchases), and a $50 annual fee rebate for the first year.
Some cash-back credit cards also offer other benefits, such as:
- Insurance coverage: This can include travel insurance, purchase protection, extended warranty, rental car insurance, and more.
- Perks and discounts: This can include airport lounge access, concierge service, roadside assistance, entertainment access, and more.
- No annual fee: This means you don’t have to pay a yearly fee to use the card.
- Low-interest rate: This means you pay less interest if you carry a balance on your card.
How to compare Credit Card Highest Cash Back
When choosing a Credit Card Highest Cash Back, there are several factors to consider, such as:
- Your spending habits: You should look for a card that matches your spending patterns and preferences. For example, if you spend a lot on groceries and bills, you might want a card that offers a high cash-back rate on those categories. If you spend evenly across different categories, you might want a card that offers flat-rate cash back on everything.
- Your income level: You should look for a card that has an income requirement that you can meet. Some cards have no income requirement, while others require a minimum annual income or household income to qualify.
- Your credit score: You should look for a card that has a credit score requirement that you can meet. Some cards have no credit score requirement, while others require a good or excellent credit score to qualify.
- Your annual fee tolerance: You should look for a card that has an annual fee that you are willing to pay. Some cards have no annual fee, while others charge a fee that can range from $25 to $150 or more. Generally, cards with higher annual fees offer higher cash-back rates and more benefits.
- Your interest rate preference: You should look for a card that has an interest rate that suits your needs. Some cards have low-interest rates, while others have standard or high-interest rates. Generally, cards with lower interest rates offer lower cash-back rates and fewer benefits.
To help you compare different cash back credit cards, we have created a table that shows some of the best options available in Canada. We have selected these cards based on their popularity, features, and reviews. Open in browser
|Cash Back Rate
|SimplyCash Preferred Card from American Express
|20.99% on purchases, 22.99% on cash advances
|2% on everything
|Earn 4% cash back on all purchases for the first six months (up to $300 cash back)
|Purchase protection, extended warranty, referral bonus
|Scotiabank Momentum Visa Infinite
|$120 (waived for the first year)
|20.99% on purchases, 22.99% on cash advances
|4% on groceries and recurring bill payments, 2% on gas and transit, 1% on everything else
|Earn 10% cash back on all purchases for the first three months (up to $2,000 in purchases)
|Travel insurance, purchase protection, extended warranty, concierge service, entertainment access
|Citi Custom Cash Card
|13.99% – 23.99% variable on purchases and balance transfers, 25.24% variable on cash advances
|5% on your highest spending category each billing cycle (up to $500 in purchases), 1% on everything else
|Earn $200 cash back after spending $750 in the first three months
|Purchase protection, extended warranty, Citi Entertainment
|BMO CashBack World Elite Mastercard
|$120 (waived for the first year)
|20.99% on purchases, 22.99% on cash advances
|5% on groceries, 4% on transit, 3% on gas and electric vehicle charging, 2% on recurring bill payments, 1% on everything else
|Earn 10% cash back in the first three months (up to $2,600 in purchases)
|Travel insurance, airport lounge access, roadside assistance, concierge service
How to maximize your cash back rewards
Once you have chosen a cash back credit card that suits your needs, you can use some strategies to increase your earnings and savings, such as:
- Pay your balance in full and on time: This is the most important rule of using any credit card, as it will help you avoid paying interest and fees that can negate your cash back rewards. It will also help you maintain a good credit score and avoid late payment penalties.
- Use your card for all your purchases: The more you spend with your card, the more cash back you will earn. You can use your card for everyday expenses, such as groceries, gas, bills, online shopping, and more. You can also use your card for big-ticket items, such as travel, furniture, appliances, and more. Just make sure you have enough money in your bank account to pay off your balance in full every month.
- Choose the right categories: If you have a tiered or rotating cash back card, you should try to spend more on the categories that offer the highest cash back rate. For example, if your card offers 4% cash back on groceries and recurring bill payments, you should use your card for those expenses as much as possible. If your card offers 5% cash back on a different category every quarter, you should plan your spending accordingly and take advantage of the bonus rate.
- Redeem your cash back regularly: You should check your cash back balance often and redeem it when you have enough to make a difference. Some cards let you redeem your cash back anytime you want, while others have a minimum threshold or a specific redemption period. You can redeem your cash back as a statement credit, a direct deposit to your bank account, a gift card, or a donation to charity.
- Take advantage of other benefits: You should also make use of the other features and perks that your card offers, such as insurance coverage, perks and discounts, referral bonus, and more. These can help you save money and enhance your experience with your card.
FAQ – Credit Card Highest Cash Back
1. What is a “Credit Card Highest Cash Back”?
“Credit Card Highest Cash Back” refers to a type of credit card that offers the highest percentage of cashback rewards on eligible purchases. These rewards are usually a percentage of the total amount spent on the credit card, and they can be redeemed for cash, statement credits, or other rewards.
2. How does a “Credit Card Highest Cash Back” work?
When you use a “Credit Card Highest Cash Back” for purchases, you earn a certain percentage of cash back on each transaction. For example, if the card offers 5% cash back and you make a $100 purchase, you will earn $5 in cash back rewards. These rewards accumulate over time and can be redeemed for various benefits or converted into cash.
3. What makes a credit card the “Highest Cash Back” card?
A credit card is considered the “Highest Cash Back” card based on the percentage of cash back it offers on eligible purchases. The higher the cashback rate, the more rewards you earn for your spending. Typically, the highest cash back cards offer rates that can range from 1% to 5% or even more, depending on the specific card and its terms.
4. Are there any limitations or restrictions on earning cash back?
Yes, “Credit Card Highest Cash Back” cards often have limitations or restrictions. Common restrictions may include a cap on the total cash back you can earn in a specific period, bonus categories for earning cash back, or expiration dates for redeeming rewards. It’s essential to read the card’s terms and conditions to understand the limitations and restrictions.
5. How can I redeem the cash back rewards earned on my credit card?
Redeeming cash back rewards is typically straightforward. Most credit card issuers offer several redemption options, such as receiving a statement credit, getting a check mailed to you, depositing the cash back into your bank account, or using the rewards for merchandise or travel bookings. Check with your credit card company for specific redemption methods.
6. Can I use the cash back rewards for anything I want?
In most cases, you can use the cash back rewards for almost anything you desire. Once you’ve earned cash back rewards, they are usually treated as equivalent to cash, providing you with flexibility in how you use them. Whether you want to offset your credit card bill, go on a shopping spree, or save the cash back for future use, the choice is yours.
7. Is there an annual fee for “Credit Card Highest Cash Back” cards?
Some “Credit Card Highest Cash Back” cards may come with an annual fee, while others may not. The presence of an annual fee often depends on the card issuer, the rewards program, and the overall benefits the card provides. It’s essential to evaluate whether the cash back rewards and other perks outweigh the cost of the annual fee when considering such cards.
8. What factors should I consider when choosing a “Credit Card Highest Cash Back”?
When choosing a “Credit Card Highest Cash Back,” consider the cash back percentage, any spending categories that offer higher rewards, annual fees, interest rates, redemption options, and any limitations on earning or redeeming cash back. Additionally, examine the overall benefits of the card and ensure it aligns with your spending habits and financial goals.
9. Are there any eligibility criteria for obtaining a “Credit Card Highest Cash Back”?
Yes, each credit card has its own eligibility criteria, which may include factors such as credit score, income level, and credit history. To qualify for a “Credit Card Highest Cash Back,” you generally need a good to excellent credit score, a stable income, and a positive credit history.
10. Can I have multiple “Credit Card Highest Cash Back” cards?
Yes, you can have multiple credit cards, including different “Credit Card Highest Cash Back” cards, if you meet the eligibility requirements for each card. However, it’s essential to use credit responsibly and manage multiple cards carefully to avoid accumulating debt or harming your credit score.
Cash back credit cards are a great way to earn rewards for every purchase you make. They offer flexibility and simplicity that other types of rewards cards may not. However, not all cash back credit cards are created equal. You should compare different options and find the one that matches your spending habits and preferences. You should also use some strategies to maximize your cash back earnings and savings.
If you are looking for some recommendations for the best cash back credit cards in Canada, you can check out SafexBudget, a website that provides unbiased reviews and comparisons of various financial products and services. They have articles on topics such as credit card instant approval Canada, credit card overpayment, credit card aeroplan and more.
We hope this article has helped you learn more about credit card highest cash back offers and how to use them effectively. Happy earning!