What Credit Card Has The Most Cash Back

When Not To Use Cash

You should not use cash-back credit cards to get actual cash back from. Except in extreme emergencies, do not use credit cards, cash-back or otherwise, for actually getting cash back from an ATM or when checking out at a store. Credit cards generally charge fees for cash advances often in the 3% to 5% range plus there are sometimes fees for using the ATM. Additionally, the APR on cash advances is often higher than on regular purchases, and that interest usually starts accruing immediately rather than after a grace period. Once the fees and interest start piling up, you’ll regret the decision to use your card for a cash advance.

It’s also important to be aware of other fees. All card issuers will let you know whether they assess usage fees like:

• Foreign transaction fees
• Balance transfer fees
• Late fees

If you can avoid using your card in situations in which you know you’ll be assessed an additional fee, you’re on the right track!

When Is Cash Back Paid Out

Every cash back credit card in Canada has different rules when it comes to payouts. Some payout in the form of a statement credit while others payout based on a date. This date could be monthly or once a year. Some of these credit cards also have a minimum requirement before theyll cash you out. Before you sign up for a card, make sure you find out when you get paid as it may not work for your timeline. Here are the best cash back credit cards in Canada. Heres a quick look at when the best cash back credit cards in Canada pay out.

• BMO You can choose once you meet a certain amount
• Tangerine Every month
• American Express Once per calendar year or as needed for statement credits
• Scotiabank Once per calendar year in November

Home Trust Secured Visa*

One of the best ways to repair a not-so-favourable credit history is to use a credit card responsibly. But most typical credit cards are out of reach for those with a low credit score. Thats where secured credit cards come in handy. With a secured card, you put a deposit down so the bank doesnt have to assume the risk of lending to someone with poor credit. Then, by using your card and paying it offideally in full and always on timeyou can begin to rebuild your credit score. Its unusual to find a secured card with no fee, making the Home Trust Secured Visa outstanding in this category and our top pick.

• Welcome bonus: None

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Winner: Simplycash Card From American Express

Earn 1.25% cash back on all purchases with the SimplyCash Card from American Express. Cardholders may not earn the most rewards for groceries, gas or the usual accelerated reward categories. Still, they can earn more money than the typical no-fee card for transactions like technology, sports equipment, gardening tools and clothing. Often, no-fee credit cards offer around 0.5% back for these purchases.

According to our Best of Finance methodology, the average Canadian could earn around $465 cash back in the first year.

• Earn 1% cash back on all purchases.

How To Maximize Your Cash Back

Analyze your spending patterns. What are your biggest bills? If its groceries and gas, pick a credit card like the CIBC Dividend Visa Infinite* Card that rewards that spending.

If youre undertaking a major home renovation, sign up for the;BMO CashBack® Mastercard®*;and take advantage of the generous welcome bonus of 5% cash back for 3 months. For a $15,000 renovation, that would net you $750, and you dont even have to pay an annual fee! Its all about being strategic in your spending, and its why;having more than one credit card is a good idea.

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Meet Our Credit Cards Expert

Ben Woolsey is Investopedia’s Senior Editor for Credit Cards. He has more than 30 years of experience in the financial services industry, including marketing for banking and financial institutions such as Associates First Capital and Bank One. Prior to Investopedia, he managed credit card content for;;and;Bankrate.com.

Whats The Best Cash Back Credit Card

If youre looking for flat-rate cash back rewards, we like the Citi® Double Cash Card 18 month BT offer . It gives 2% cash back for everything 1% for purchases, 1% for payments.

Buying groceries or gas? Try the Blue Cash Preferred® Card from American Express , which offers 6% back at U.S. supermarkets and 3% back at U.S. gas stations.

Want a card with bonus categories that change over time? The Discover it® Cash Back provides 5% cash back in categories that change every three months, often including groceries, restaurants, rideshares, and Amazon .

Or, if youre dealing with fair or average credit, the Capital One QuicksilverOne Cash Rewards Credit Card is designed for you. It comes with 1.5% back on everything, though it has a small annual fee.

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When Cashback Credit Cards Are A Good Idea

If you pay your credit card bill off in full every month, then cashback credit cards can be a great idea. This is because youre getting rewarded for spending money you would have spent anyway.

If you dont always pay off your credit card bill in full, then cashback credit cards are not a good choice.

Although youll earn cashback on your spending, this will usually be less than the interest charged on your outstanding debt.

How Does A Cash Back Credit Card Work

Cash back credit cards usually work on a percentage formula. For example, if your cash back credit card promises you 3% instant cash back on grocery purchases, and you decide to purchase $500 worth of groceries with your card, you will earn $15 back into your credit account. This means you save 3% from your total amount spent.

If the same card promises you a bonus cash back of 5% on entertainment purchases and you purchase movie tickets for $200, youll receive an instant cash back of $10.

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Capital One Savorone Rewards Credit Card

Best for: Dining and entertainment

If you find yourself frequently swiping your card on dining, entertainment, and groceries, then the SavorOne can save you some serious cash back, with no annual fee. Youll get 3% cash back on dining, entertainment, popular streaming services and grocery stores , and 1% on everything else.

• First-year rewards value: $555.56
• Subsequent annual rewards value: $355.56

Pros And Cons Of Using Cash Back Credit Cards

If youre used to using debit or a credit card that doesnt earn rewards, the idea of cash back might sound too good to be true free cash just for using the card?

Fortunately, cash back isnt a gimmick. Plenty of people use cash back cards to bank hundreds of dollars per year without changing their spending habits. Here are some advantages and disadvantages of carrying a cash back card.

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How To Make The Most Of A Cashback Credit Card

Also pay special attention to bonus categories that can help you rack up more rewards over time as well as bonus cashback offers.

To make the most of a cashback credit card, you should use it for all your regular spending and bills. Also, you should always pay your balance in full and never, ever carry long-term debt with a rewards credit card. Cashback credit cards tend to charge high APRs that start at around 11.99%. Using a card to earn 1% to 3% cash back will not compensate for the amount you have to pay in interest.

If youre looking for a credit card that offers the most cash back, or simply the card that has the best cashback program, recognize that different cards offer different amounts of cash back in varying categories. For example, if youre unsure what 1.5 cash back means on a credit card, that indicates that youll get 1.5 cents in cash back rewards per dollar spent in a particular category, like gas or groceries. Here is a breakdown of the major types of cash back categories.

Best Cashback Card For Overall Spending

As mentioned, you want to pick a credit card that gives you the highest earn rates where you do the majority of your spending. Who cares about streaming services, pharmacy, and recurring payments when you mostly charge groceries, gas and transit to your card. Overall, theres one card that stands out.

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Pros And Cons Of A Cash Back Credit Card

Cash back credit cards are often best used in combination with cards that earn points to create a complete credit card portfolio that takes advantage of multiple types of rewards. If you’re trying to decide whether to open a cash back credit card, whether as your first card or one of many, bear these pros and cons in mind:

Pros of cash back credit cards:

• They rarely carry annual fees
• There are no restrictions to how you can redeem and spend the cash
• You can earn airline and hotel status by booking with cash

Cons of cash back credit cards:

• They rarely offer large sign-up or welcome bonuses
• Cash back is generally less valuable, dollar for dollar, than points

American Express Cobalt Card

• $12.99 Monthly fee ;
• 2,500 monthly Membership Rewards points after charging $500 in purchases each month for a year
• 20,000 additional Membership Rewards points when you spend $3,000 in the first three months of cardmembership
• Earn 5 points per $1 spent on eats and drinks
• Earn 3 points per $1 spent on streaming services
• Earn 2 points per $1 spent on travel
• Earn 1 point per $1 spent on all other purchases
• Comprehensive travel insurance package included
• Mobile device insurance
• American Express Invites access
• Free supplementary cards

The American Express Cobalt Card gives you ultimate flexibility. It doesnt matter if youre redeeming your points for travel or a statement credit, your points are worth the same. Since you get 5 points per $1 spent on eats and drinks, that effectively gives you a 5% cash back return. Best of all, you can redeem your points for a statement credit pretty much whenever you want through your online account.

If you decided to use your points you have a lot of flexibility. You can use the American Express travel portal or you can redeem points on any travel purchase you make. Additionally, you can transfer your points to Aeroplan, , and other travel partners.

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Bank Of America Customized Cash Rewards Credit Card

Our pick for: Customizable cash back 3% categories you can adjust monthly

The Bank of America®;Customized;Cash Rewards credit card gives you a little more control over your credit card rewards by letting you choose which category earns the highest cash-back rate, from a list that includes gas stations, restaurants, travel and others. You also get bonus rewards at grocery stores and supermarkets, plus a great new-cardholder bonus offer. Read our review.

What Are The Different Types Of Cash Back Cards

• Flat rate ;These cards earn the same rate of cash back on all purchases. For example, the Chase Freedom Unlimited® earns 1.5% back on most spending .
• Select bonus categories Many other cash back cards offer bonus cash back on select spending categories. For example, with the Capital One® Savor® Cash Rewards Credit Card, you’ll earn 4% back on dining, streaming services, and entertainment, and 3% back at grocery stores.
• Rotating categories A few cards, including the Chase Freedom Flex, offer bonus cash back on a selection of spending categories that changes every quarter of the year. These cards have a cap on how much bonus cash back you can earn each quarter with the Chase Freedom Flex, you’ll earn 5% back on up to $1,500 in combined purchases each quarter .
• Some cards are starting to offer yet a fourth format for delivering cash back rewards: pick your own bonus categories from a list of options. These cards include the Bank of America Cash Rewards credit card and the U.S. Bank Cash+ Visa Signature Card.

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What Are The Highest Cash Back Credit Cards

The highest cash back rates currently available include, but arent limited to:

The Chase Freedom Flex is a longstanding favorite, also providing 5% back in a selection of categories that changes every three months.

Finally, the U.S. Bank Cash+ Visa Signature® Card is a powerhouse that doesnt get enough attention. You can choose two of your own 5% categories each quarter, from rare but handy choices such as TV/internet streaming services, home utilities, cell phone providers, and ground transportation .

Best Cash Back Card For Travel And Rewards

It may seem odd to feature a cash back card that earns you points, but hear me out. American Express recently changed its membership rewards program. It no takes 1,000 points for $10 in statement credits or travel rewards. What that means is that all American Express cards are just as good for cash back, but theres one that stands out.

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Who Should Get A Cash

The nice thing about cash back is that it’s something everyone can use. However, that doesn’t mean everyone should get a cash-back credit card.

These cards are best for the people who have the following:

• Good or excellent credit, although some cards are available to those with fair credit scores
• Self-discipline to pay off a balance before interest accrues

What’s more, these cards are best for those who want a simple way to earn and redeem rewards. However, if you like to travel, check out the best travel credit cards because you may find one of those meets your needs better.

Best For Amazon And Whole Foods Shoppers

Reward rates:;5% on Amazon, Whole Foods; 2% at restaurants, gas stations, drugstores; 1% on everything elseAnnual fee:;$0New member bonus:;$100 Amazon Gift CardBonus redemption threshold:;Card approvalFair14.24% to 22.24% variable;14.24% to 22.24% variableBalance transfer fee:;5%

This card is a must-have for . I’m not even going to offer a minimum recommended threshold as there’s no downside and few other cards offer Amazon-specific discounts.

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Bank Of America Customized Cash Rewards Credit Card: Best For Flexible Cash Back Categories

Why we picked it: The Bank of America® Customized Cash Rewards credit card, you have the freedom to change your bonus category once per calendar month, allowing you to tailor your rewards to your spending habits. Thats especially handy when your summer budget may skew more heavily toward gas or travel, but you spend more on online shopping during the holidays. Bonus categories include gas, online shopping, travel, drug stores, dining and home improvement/furnishings. If you plan ahead, this card can be exceptionally valuable, especially since theres no annual fee.

Pros: Cardholders earn 3% cash back on the category of their choice, plus 2% cash back at grocery stores and wholesale clubs . Theres a competitive sign-up bonus: Earn $200 if you spend $1,000 in your first 90 days. That amount matches the highest current cash back bonus, though some cards, like the Chase Freedom Unlimited®, have a lower required spend Bank of America customers with at least $20,000 across checking or savings accounts can qualify for a 25% to 75% rewards boost through the Bank of America Preferred Rewards program.

Cons: Rewards are limited to cash back. Theres also a $2,500 combined spend cap on 2% and 3% reward categories for each quarter. Frequent travelers may be put off by the 3% foreign transaction fee and lack of travel benefits.

Read our Bank of America® Customized Cash Rewards credit card review or jump back to this cards offer details.

How We Chose The Best Cash Back Credit Cards

We narrowed down the dozens of cash back credit cards currently available to new applicants by looking at a few factors:

• Ease of use Are there any hoops to jump through, like needing to be a member of a specific bank?
• Cash-back earning potential How much cash back can you earn with this card, and how broad are the bonus categories?
• Annual fee Many cash back cards waive an annual fee, but for the few that do charge a fee, is it justified based on the card’s rewards?
• Options for various types of consumers We wanted our top cash back card picks to reflect different types of users, from families looking to maximize grocery spending to those looking to rebuild their credit score.

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