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Tag: cash back credit cards

  • “I’m interested in visiting Europe”: How this student can build a credit score while earning valuable travel rewards – MoneySense

    “I’m interested in visiting Europe”: How this student can build a credit score while earning valuable travel rewards – MoneySense

    Before heading to school, Kinsey acquired her first credit card, an Alterna Savings Cash Back Visa. Although she also banks with EQ Bank, her primary bank card was with Alterna Savings and Credit Union. “So it was kind of natural and the easiest way for me to get a credit card,” she explains.

    Still new to credit cards, Kinsey doesn’t have a credit score—a number between 300 and 900 that shows lenders how creditworthy you are (the higher the score, the better). She’s looking to build one while also earning rewards—be it cash back (to “make the most of my spending”) or travel points (she’s an Aeroplan member). 

    Kinsey is an avid traveller—she recently visited Greece and Japan, where she has family. “I’ve been down south to Cuba and Florida. I went to Halifax, because I have some friends out there. I’ll travel within Canada, but I’m definitely more interested in visiting places in Europe,” she says. 

    Photo courtesy of Aya Kinsey

    What credit card features does she need? 

    Like many university students, Kinsey’s ambitious, eager to travel and just wants to find her financial footing. Given her existing ties to Alterna, it’s no surprise she ended up with an Alterna Savings Cash Back Visa—most Canadians stick with the same financial institutions for a good part of their lives. But, Kinsey can find a credit card better suited to her needs by expanding her horizons. 

    With Alterna, she gets 1 Collabria reward point per $1 spent on groceries, gas, public transit, select recurring bills and digital streaming purchases, and 0.5 points on all other purchases. The value of those points maybe an issue. The value of a Collabria point fluctuates based on what you’re redeeming for: cash back offers the best value, at $0.01 per point, but you must redeem in increments of 3,000 points (for $30), 5,000 points ($50) and 10,000 points (for $100), depending on the Collabria card you have. And when redeeming for travel, merchandise or gift cards, a point can be worth anywhere from $0.002 and $0.008. This means cardholders earn a maximum return of 1% in rewards ($0.01) for every dollar they spend. Often, the return is less than that. 

    For Kinsdey, it’s clear travelling is a priority. She needs a credit card that can cheapen the costs of flying to visit family and friends. At the same time, she’s just getting familiar with paying for life on her own, tuition being her biggest expense, and her income this year will be modest at best—she hopes to freelance as a content marketer. 

    So, right now, Kinsey’s primary goals should be building a credit score and increasing her income potential by completing her studies. Later in life, she will likely have access to plenty of premium travel credit cards to match her desired lifestyle—for example, she’ll need a personal annual income of $60,000 for Visa Infinite cards and $80,000 for World Elite Mastercards. 

    Which credit card should she get?

    Credit card pick #1: CIBC Aeroplan Visa Card for Students

    For her current situation, the CIBC Aeroplan Visa Card for Students would tick a lot of boxes. It’s a no-fee, no-income-required card. Kinsey’s already an Aeroplan points collector, and the CIBC Aeroplan Visa would add 1 Aeroplan point to her account per $1 spent on Air Canada purchases (such as future flights) and on groceries—she has a campus meal plan but expects it won’t cover all her food expenses. That’s in addition to points already earned as an Aeroplan member, through the “earn points twice” feature of Aeroplan credit cards. 

    Justin Dallaire

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  • “I’m interested in visiting Europe”: How this student can build a credit score while earning valuable travel rewards – MoneySense

    “I’m interested in visiting Europe”: How this student can build a credit score while earning valuable travel rewards – MoneySense

    Before heading to school, Kinsey acquired her first credit card, an Alterna Savings Cash Back Visa. Although she also banks with EQ Bank, her primary bank card was with Alterna Savings and Credit Union. “So it was kind of natural and the easiest way for me to get a credit card,” she explains.

    Still new to credit cards, Kinsey doesn’t have a credit score—a number between 300 and 900 that shows lenders how creditworthy you are (the higher the score, the better). She’s looking to build one while also earning rewards—be it cash back (“to make the most of my spending”) or travel points (she’s an Aeroplan member). 

    Kinsey is an avid traveller—she recently visited Greece and Japan, where she has family. “I’ve been down south to Cuba and Florida. I went to Halifax, because I have some friends out there. I’ll travel within Canada, but I’m definitely more interested in visiting places in Europe,” she says. 

    Photo courtesy of Aya Kinsey

    What credit card features does she need? 

    Like many university students, Kinsey’s ambitious, eager to travel and just wants to find her financial footing. Given her existing ties to Alterna, it’s no surprise she ended up with an Alterna Savings Cash Back Visa—most Canadians stick with the same financial institutions for a good part of their lives. But, Kinsey can find a credit card better suited to her needs by expanding her horizons. 

    Her Alterna card is associated with Collabria rewards, a loyalty program that works with some Canadian credit unions. She gets 1 Collabria reward point per $1 spent on groceries, gas, public transit, select recurring bills and digital streaming purchases, and 0.5 points on all other purchases. The value of a Collabria point fluctuates based on what you’re redeeming for: cash back offers the best value, at $0.01 per point, but you must redeem in increments of 3,000 points (for $30), 5,000 points ($50) and 10,000 points (for $100), depending on the Collabria card you have. And when redeeming for travel, merchandise or gift cards, a point can be worth anywhere from $0.002 and $0.008. This means cardholders earn a maximum return of 1% in rewards ($0.01) for every dollar they spend. Often, the return is less than that. 

    For Kinsdey, it’s clear travelling is a priority. She needs a credit card that can cheapen the costs of flying to visit family and friends. At the same time, she’s just getting familiar with paying for life on her own, tuition being her biggest expense, and her income this year will be modest at best—she hopes to freelance as a content marketer. 

    So, right now, Kinsey’s primary goals should be building a credit score and increasing her income potential by completing her studies. Later in life, she will likely have access to plenty of premium travel credit cards to match her desired lifestyle—for example, she’ll need a personal annual income of $60,000 for Visa Infinite cards and $80,000 for World Elite Mastercards. 

    Which credit card should she get?

    Credit card pick #1: CIBC Aeroplan Visa Card for Students

    For her current situation, the CIBC Aeroplan Visa Card for Students would tick a lot of boxes. It’s a no-fee, no-income-required card. Kinsey’s already an Aeroplan points collector, and the CIBC Aeroplan Visa would add 1 Aeroplan point to her account per $1 spent on Air Canada purchases (such as future flights) and on groceries—she has a campus meal plan but expects it won’t cover all her food expenses. That’s in addition to points already earned as an Aeroplan member, through the “earn points twice” feature of Aeroplan credit cards. 

    Justin Dallaire

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  • SimplyCash from American Express review – MoneySense

    SimplyCash from American Express review – MoneySense

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    SimplyCash from American Express

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    • Annual fee: $0
    • Earn rate: 2% cash back on eligible gas and grocery purchases up to $300 annually; 1.25% cash back on everything else
    • Welcome offer: You can earn a $10 statement credit for each monthly billing period in which you make at least $300 in purchases (for a total value of up to $100).
    • Annual income requirement: None

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    Amex SimplyCash benefits: 9 things to know

    1. An impressive base earn rate

    With the SimplyCash, you earn rewards on every purchase. What’s even more impressive is the minimum earn rate of 1.25%. This means you’ll earn on purchases in categories that often don’t get much love with other cards, like online shopping, clothing and electronics. And by comparison, most no fee cards typically only earn you 0.5% cash back on those same purchases. The boosted earn rate of 4% on groceries and gas (on the first $15,000 spent annually) sweetens the pot, making this one of the best cash back and best no-fee cards in Canada.

    2. No limit on the cash back you can earn

    There’s no cap on your annual rewards—something that can’t be said for all no-fee credit cards. So, regardless of how much you spend per year, your earn rate will remain at 1.25% (assuming your account is in good standing). The boosted rates of 4% on groceries and gas apply to the first $15,000 spent annually. After that, you’ll earn an unlimited amount of cash back at 1.25%. .

    3. Cash back is rewarded once per year 

    The one small catch with the SimplyCash from Amex is that the cash rewards are granted once per year, on your September statement. This is a slight drawback compared to other cash-back cards, like the BMO CashBack Mastercard or TD CashBack Visa, that allow you to redeem rewards any time you like. 

    4. There’s no annual fee or income requirement

    One of the biggest draws of the SimplyCash from American Express is the fact that there’s no annual fee. That means it’s completely free to use (provided you pay off your balance in full every month, of course). So, all the rewards go right into your pocket instead of offsetting an annual fee. As well, there’s no strict income requirement to be eligible for the card, making SimplyCash from Amex accessible to the majority of Canadians.

    5. You’ll get access to American Express Experiences

    As you might expect with a no-fee card, SimplyCash from American Express doesn’t have the most impressive suite of benefits. But it does offer something you won’t get with other no-fee cards from Visa or Mastercard: American Express Experiences. This is a serious entertainment perk that gives you access to presale tickets to major events, shows and concerts, as well as early bookings to some of the country’s hottest restaurants and even specially curated private shopping experiences.

    5. It comes with insurance

    The SimplyCash offers up to $100,000 in travel accident insurance when you charge your plane, train, ship or bus tickets to your card. You’ll also get purchase protection and automatic extended warranties for up to one year (which is the norm for most credit cards).

    6. The SimplyCash is a credit card, not a charge card

    It’s commonly thought that all American Express cards are charge cards, meaning it must be paid off every month no matter what. But that’s not actually the case; SimplyCash from Amex is a conventional credit card, just like any Visa or Mastercard. Once you apply, you’ll be approved for a set credit limit, and as long as you pay off your balance in full every month, you won’t owe any interest. The card does allow you to carry a balance from month to month, but an interest rate of 20.99% will kick in if you do that. Again, that is just like any other credit card.

    7. More places are now accepting Amex

    While it’s true that American Express isn’t as widely accepted as Visa and Mastercard, the difference is not as significant as you might think—depending on your shopping habits. It’s accepted at more than 90,000 locations across Canada, including most major department stores and restaurant chains, many prominent grocery stores and virtually all online-delivery and ride-share apps. That said, it’s true Amex isn’t accepted at several places, such as Loblaws, discount grocers and many smaller local stores, restaurants and cafes. A common strategy among Amex cardholders is to carry a debit card or a second credit card from Visa or Mastercard in case a retailer doesn’t accept Amex. You can always check out American Express Maps to see if a business accepts Amex, too.

    Ciara Rickard

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  • SimplyCash Preferred card from American Express review – MoneySense

    SimplyCash Preferred card from American Express review – MoneySense

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    SimplyCash Preferred from American Express

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    • Annual fee: $120
    • Earn rate: 4% cash back on eligible gas and grocery purchases; 2% cash back on everything else
    • Welcome offer: You can earn a $40 statement credit for each monthly billing period in which you spend $750 in purchases on your card.
    • Annual income requirement: None

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    6 things to know about the SimplyCash Preferred Card from American Express

    1. The base earn rate

    Most cash back credit cards offer boosted earn rates in one or two spending categories and only 0.5% or 1% back on everything else. The SimplyCash Preferred Card from American Express offers an excellent earn rate of 4% cash back on gas and groceries (on your first $30,000 in purchases annually) and an impressive base rate of 2% on every other dollar spent, regardless of the spending category. This means cardholders get double or quadruple the return on spending on a host of everyday purchases (like clothes, electronics, and more) when compared to other cash back cards.

    2. The welcome offer

    New cardholders can earn a $40 statement credit for each monthly billing period in which you spend $750 in purchases on your card.

    3. Free supplementary cards

    You can add up to nine additional users (aged 13 or older) for no extra fee—an effective, no-cost way to harness other household members’ spends to boost your cash back—which helps make up for the fact that the welcome bonus doesn’t include a first-year fee waiver. In comparison, some premium cards charge an extra annual fee of $29 or $50 for every authorized user you add. The benefit of free authorized users don’t come at the expense of perks or benefits, either.

    4. The side perks

    SimplyCash Preferred comes with some American Express benefits, including American Express Experiences, such as Front of The Line, which lets you access pre-sale tickets to major live events like concerts and plays. Through Amex Offers, you can get exclusive discounts on certain purchases. Refer friends and family to sign up for the card and earn $50 for each one who’s approved, up to $750 per calendar year.

    5. Travel insurance

    Travel insurance is a hot benefit for many credit card shoppers, but not all policies are created equal. The good news here is that the SimplyCash Preferred comes with a package that rivals the insurance offerings of most full-fledged travel credit cards. The SimplyCash Preferred covers your for up to $5 million in travel emergency medical insurance for 15 days (for cardholders under the age of 65), up to $500 in lost or delayed baggage insurance, car rental theft and damage insurance for vehicles up to MSRP of $85K (a full $20,000 more than most cards offer), and hotel motel burglary insurance.

    6. American Express acceptance

    American Express is accepted at tens of thousands of locations across Canada, including most major retail chains and dining establishments. It is important to note, though, that American Express is not as widely accepted as Visa or Mastercard. In addition to not being accepted at some mom-and-pop stores, American Express can’t be used at retailers under the Loblaws banner (except for Shoppers Drug Mart) or at Costco.

    Are there any drawbacks to the American Express SimplyCash Preferred Card?

    As mentioned above, American Express isn’t as widely accepted as Visa or Mastercard, but you can cover your bases by carrying a second no-fee credit card as a backup. Another downside is that your rewards are only redeemed once annually, in September. Many other cards give you greater flexibility by allowing you to redeem when you want. For example, with the CIBC Dividend Visa Infinite, you can redeem your cash back at any time, as you as you have banked $25 in rewards.

    Bottom line

    When it comes to cash back cards, the earn rate is arguably the most important metric to consider—and, with a 2% base rate and a 4% bonus rate on gas and groceries, the SimplyCash Preferred card easily climbs the ranks as one the best cash back credit cards in Canada.

    Keph Senett

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