12 Best Cash-Back Credit Cards in Canada for November 2024

Simplicity — cash-back cards make it easy to earn valuable rewards.

Welcome bonuses and introductory offers can be quite generous.

Accumulated rewards can help pay down your card balance.

High earn rates for items you buy regularly can yield big rewards.

You may not typically buy items that yield above-average earn rates.

Amassing rewards can be slow depending on how much you spend each month, and whether you pay your bill in full.

Bonus and introductory offers tend to come with conditions, including spending minimums, which may be challenging to meet.

Should I choose cash-back or rewards points?

American Express. All cash back earned is paid out annually on your September statement.

BMO. Redeem as little as $1 in cash back as a statement credit. You can also set up automatic direct deposits to your BMO chequing or savings account starting at $25.

CIBC. Cash-back redemptions start at $25. Any unredeemed cash back will appear on your January statement annually.

RBC. Once you earn $25 in cash back, you can have the balance credited to your account at any time by calling in. Alternatively, all accumulated cash back will be credited to your account every January.

Scotiabank. All cash back earned appears as a credit on your November statement.

Tangerine. Paid monthly to your savings account or applied to your credit card balance.

TD. You can redeem your cash back when you have a minimum amount of $25. Another option is to take your cash back annually every January where there is no minimum amount required.

Grocery. Any purchase made at grocery stores, such as Loblaws, No Frills and Metro.

Gas. Includes any purchase made at a gas station or service station, like Shell, PetroCanada and Esso.

Restaurants and dining. This usually includes takeout and food delivery services like Uber Eats, DoorDash and SkipTheDishes.

Travel spending. Airline tickets, hotels, car rentals, etc.

Transit and transportation. This may include taking an Uber, a taxi, or paying for public transportation.

Streaming services. Monthly subscriptions to products like Netflix, Disney+, Spotify, etc.

Drug stores and pharmacies. This may include purchases made at a drug store, like Shoppers Drug Mart.

Entertainment. This may include money you spend on tickets to the movies, theater, or a live music concert.

Bills and recurring payments. Including wireless phone, internet, and utility bills paid with a credit card.

Interest rates. It’s important to look closely at the interest rates associated with any cash-back credit cards you’re considering; many start out in the 19.99% range. Zero interest is charged on balances paid in full every month, but if you don’t, it can significantly add to your debt and erode the benefit of any cash-back rewards you earn.

Annual fee. Decide if you want to pay an annual fee or not. In most cases, paying a yearly fee means earning more cash back and getting better benefits. On the other hand, no-fee cash-back cards may have a lower earn rate, but if you don’t charge much to your card, you could come out ahead compared to a card with a fee.

Welcome bonus or intro offer. Cash-back credit cards in Canada commonly offer a sign-up bonus for new applicants. The welcome bonus usually comes as a higher cash-back rate for a set period. For example, you might get 10% cash back on all purchases up to $3,000 in spending. If the earn rates are similar with two cards, but one has an excellent welcome bonus, then you might as well take advantage of the promotion. Credit card bonus offers nearly always come with terms and conditions to be met, but be sure you read over the offer thoroughly and understand how much you may need to spend to qualify.

Bonus rewards categories. The increased earn rate on bonus categories is arguably the most critical factor when comparing cash-back cards. It’s ideal to choose a card that gives you the most cash-back in the categories where you do the most spending. Remember that the amount you spend in bonus categories every year could earn you more than any welcome bonus offered.

Credit card insurance and additional perks. Many cash-back credit cards offer various forms of insurance and additional benefits that may appeal to you. Some perks to look out for include:

Age and residency status. Most cash-back credit cards require you to be both a Canadian resident and the legal age of majority in the province where you live to apply for your own card. The age of majority is 18 in Alberta, Manitoba, Ontario, Prince Edward Island, Quebec and Saskatchewan. It’s 19 everywhere in all other provinces.

Credit score. A good credit score is required in most cases to qualify for a cash-back credit card. In Canada, a credit score that ranges between 660 and 724 is considered good. If you do not have a good credit score, consider a credit card designed for bad or no credit, a prepaid card, or a secured credit card instead of a cash-back credit card.

Personal or household income requirements. Some cash-back credit cards come with relatively lower income requirements, but if you want a higher-tier cash-back credit card, you’ll likely need a higher income.

Apply for a new card ahead of major expenses. Since many of Canada’s best cash-back credit cards have a generous welcome bonus, it’s often worth your trouble to apply for a new card before you make a major purchase. For example, let’s say you need to renew your home and auto insurance, which will cost you about $2,000. You could apply for a cash-back credit card offering 10% cash back as the welcome bonus. Then, when you charge your insurance to your card, you’d get $200 back.

Keep your eye out for attractive intro offers and sign-up bonuses. Welcome offers are constantly changing, so watch for any current promotions. Getting 10% cash back for a set period is generous, but if the card also waives the annual fee for the first year, they’re practically paying you to sign up. When you get close to 12 months of card membership, you might cancel the card before your annual fee posts. You could then apply for a new cash-back credit card with a strong bonus.

Pay attention to intro offer limits. Keep in mind that many cash-back credit cards have a limit on their sign-up offer. If you have a substantial purchase, you could apply for more than one card and split up your purchase to maximize your cash back. However, if you need to pay an annual fee for the new card, it may negate the cash back you earn, so pay attention to the details.

Carry multiple cards. Many people focus on a single cash-back credit card, but there’s nothing wrong with having multiple credit cards. In fact, having more than one card is the easiest way to maximize your cash back. Start with a primary card that gives you an increased earn rate where you spend most of your spending. You could then complement that card with a no-fee card that gives you bonus categories where your primary card doesn’t. Just use the credit card that gives you the most cash back whenever you shop.

Buy gift cards in bonus categories. Groceries and gas are two of the most popular merchant categories where you’ll earn additional cash back. Here’s the thing: grocery stores and gas stations sell gift cards that can be used at many retailers. That essentially allows you to earn extra cash back.

Add supplementary users. Most credit cards allow you to add supplementary users. The advantage is that all authorized cardholders earn cash back on their purchases, including any bonus. Best of all, the cash back gets combined into a single pool, so you’ll be racking up that cash back in no time.

Use cash-back websites. Various online sites allow you to earn additional cash whenever you shop online. First, you need to create an account. Afterwards, you would select the partner retailers through their online portal. When you do your shopping, eligible purchases will earn you cash back. You’ll earn cash back twice if you pay with your cash-back credit card.

Cash-back rewards may be the route to take if you’re hoping for a little help paying your credit card bills, or want to earn rewards that are typically easy to calculate, collect and apply toward your balance.

Rewards points, however, can generally be redeemed in a wider variety of ways, including discounts on travel or merchandise. That flexibility can be very attractive to some consumers. However, the value of the points you collect can fluctuate, making tracking your points a more complicated endeavour than cash-back rewards.