Top Two Cashback Credit Cards In Canada – TD (Toronto Dominion) Cashback Visa Infinite Card And Tangerine Moneyback Credit Card
Know more about the top 2 Cashback Credit Cards in Canada – TD (Toronto Dominion) Cashback Visa Infinite Card and Tangerine Moneyback Credit Card from this blog.
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You get money without any need to pay interest. Top it up with lucrative rewards, perks, and benefits. Credit cards have certainly taken the usage of plastic money to a new level. Cashback credit cards are in vogue. Several Canadians now prefer to hold them.
TD Cashback Visa Infinite Card and Tangerine Moneyback Credit Card are two Cashback credit cards in Canada.
Let us explore them in greater detail and about the best credit card.
1. TD Cashback Visa Infinite Card
This credit card issued by the prestigious TD (Toronto-Dominion) Bank is one of the best options if you want to earn some cash back. Through this credit card, you will earn cashback in dollars that will never expire until you actively operate your account.
Welcome Offer
If you apply for this credit card by 5th September 2022, then you will:
- Get a 10% cash back on all purchases you make in the first three months. The upper limit of these purchases is $2,000
- After the expiry of the first $2,000, your cashback rate will reduce to 6% for the next $1,500.
Hence, in the first three months, you can earn a total cashback of:
| Quantum of Purchase | Cashback Rate | Amount |
| First $2,000 | 10% | $200 |
| On Next $1,500 | 6% | $90 |
| TOTAL | $290 |
Let us evaluate this credit card and its various conditions and features.
1. Eligibility
| Eligibility Requirements | |
| 1. | You must be a resident of Canada. |
| 2. | You must satisfy the following income requirements: Personal Annual Income: $60,000 Or Household Annual Income: $100,000 |
| 3. | Be a major to get this credit card in your name. This age of majority may vary from province to province. |
| 4. | A credit score of “good to excellent” is acceptable. |
2. Annual Fee
- This credit card has an annual fee of $120.
- The bank will charge the first additional cardholder an annual fee of $50. After this, the bank will not charge the subsequent cardholders.
3. Interest Rate
| Nature of Balance | Interest Rate |
| Purchases | 20.99% |
| Funds Advances (effective from the day account is opened) | 22.99% |
4. Earn Rate
This credit card allows you to earn cash back on all eligible purchases:
| Eligible Purchases | Reward Points |
| Gas, Grocery, and Recurring Bill Payments | 3% |
| On all the other purchases | 1% |
Based on the calculations, if you spend $12,500 monthly using this credit card, you can earn $2,585 in cashback in the first year.
5. Exclusive Benefits
| Benefits | Description |
| Complimentary Visa Infinite Concierge | You get a 24×7 concierge service whenever you travel and use your card. |
| Visa Infinite Food and Wine Experiences | You get benefits on hotel booking when you book select hotels. |
| Visa Infinite Luxury Hotel Collection | You get exclusive access to the best Canadian restaurants. Additionally, you get premium benefits when participating in wineries in British Columbia and Ontario. |
2. Tangerine Money-Back Credit Card
Issued by Tangerine, this credit card allows you to magnify your savings by offering rewards on everyday purchases. It gives you unlimited monthly money-back reward points.
Welcome Offer
If you apply for this credit card by 31st July 2022, you can earn an accelerated cashback of 10% in the first two months. The purchase cap is $1,000.
Let us delve deeper and do detailed scrutiny. Below is a list of all associated conditions and features:
1. Eligibility
| Eligibility Requirements | |
| 1. | You must be a resident of Canada. |
| 2. | Your minimum personal annual income should be $12,000. There is no condition for minimum household income. |
| 3. | Be a major to get this credit card in your name. This age of majority may vary from province to province. |
| 4. | A credit score of 660+ to qualify for the card. |
2. Annual Fee
- There is NO ANNUAL FEE.
- This credit card is free to hold.
3. Interest in Balances
| Nature of Balance | Interest Rate |
| Purchases | 19.95% |
| Cash Advances | 19.95% |
| Balance Transfers | For the first 6 months – 1.95% After the first 6 months – 19.95% |
4. Earn Rate/ Rewards/ Cashback
- This credit card allows you to earn cashback via two different earn rates, which are:
| Cashback Rate | Condition |
| 2% | You will get 2% cashback in any two categories*. |
| 0.50% | You will get 0.50% cashback in all the rest of the categories*. |
* The distinct categories are:
Grocery, Restaurants, Furniture, Hotel-Motel, Gas, Recurring Bill Payments, Drug Store, Home Improvement, Entertainment, Public Transportation, and Parking.
5. Additional Benefits
| Benefit | Description |
| Purchase Assurance | In the first three months, you get coverage for loss, theft, and damage of select newly insured items. The limit for this coverage is $60,000 |
| Extended Warranty | The period of your repair services gets doubled up to a maximum of one year. |
Comparative Analysis
No one size fits all. Different people have different requirements and choose a credit card based on them. Let us now clear your understanding by comparing these two credit cards against each other:
| Parameters of Difference | TD Cashback VISA Infinite Card | Tangerine Money-back Credit Card |
| Income Condition: Minimum Annual Income Minimum Household Annual Income | $60,000 $100,000 | $12,000 Not Applicable |
| Annual Fee | $120 ($50 for additional cardholder) | $0 |
| Interest in Balances: Purchase Cash Transfer | 20.99% 22.99% 22.99% | 19.95% 19.95% 19.95% (1.95% for the first 6 months) |
| Normal Earn Rate | 1% – 3% | 0.5% – 2% |
| Welcome Offer Earn Rate | 10% on the first $2,000 6% on next $1,500 Within 3 months of account opening | 10% on the first $1000 Within 2 months of account opening |
| Additional Benefits (nos.) | 3 | 2 |
Benefits of Tangerine Money-Back Credit Card
- If you are low on annual income and are looking to build credit, along with earning some cashback – Tangerine Money-Back Credit Card will work best for you due to its absence of an annual fee and low annual income requirements.
- If you frequently leave balances, this credit card offers you an affordable 19.95% interest rate on all balances.
Benefits of TD Cashback VISA Infinite Card
- This credit card offers you a higher Earn Rate, which translates into more savings and affordable shopping.
- Further, if you stay in luxury hotels, frequently dine, and prefer concierge services.
Cost-Benefit Analysis
When selecting any credit card, analyze the different monetary aspects. Expertbyarea.money intends to present you with a cost-benefit analysis through a practical example:
- Emma Brown, a resident of the Greater Toronto Area, is exploring both these credit cards and is determined to have one.
- She went to an independent advisor and got the following representation (prepared after assuming an annual spending of $10,000):
| Monetary Aspects | TD Cashback VISA Infinite Card | Tangerine Money-back Credit Card |
| Welcome Cash Back | $290 ($2,000 x 10%+$1,500 x 6%)($2,000 x 10%+$1,500 x 6%) | $100 ($1,000 ($1,000 x 1%)($1,000 x 1%) |
| Accelerated Cashback (On select categories, assuming spend of $5,000) | $150 ($5,000 x 3%)($5,000 x 3%) | $100 ($5,000 x 2%)($5,000 x 2%) |
| Normal cashback (On non-select categories) | $15 ($1,500 x 1%)($1,500 x 1%) | $20 ($4,000 x 0.5%)($4,000 x 0.5%) |
| Total Cashback Earned | $455 | $220 |
| Less: Annual Fee | Waived Off | $0 |
| Net Benefit | $455 | $220 |
- We can observe from the above analysis that TD Cashback VISA Infinite Card offers you an additional net cashback of $235 [Equation]on the first $10,000 purchase.
Final Opinion of Expertbyarea.money
If you satisfy the income requirements, you can go for TD Cashback VISA Infinite Card, as that would help you earn a higher cashback besides enjoying the services of a concierge and premium benefits on hotel booking and dining experiences.
