Best Cash Back Credit Cards for Canadians in 2022

What are Cash Back Credit Cards?

Cash back credit cards allow you to earn a specific percentage of money spent for each eligible purchase that you make with your card. Each card will offer a different percentage of cash back to the cardholder. This means that the higher the percentage the more money that you will get back.

The best cash back credit cards are either general cash back cards where you receive a fixed rate on all purchases and there are special cash back cards where you earn more for certain types of purchases, such as gas, groceries, office supplies, or brand name items.

Cash back is essentially a rebate. Since reward points often come with restrictions in terms of how they can be redeemed, some people prefer to just get a cash back rewards card and they can spend the cash however they choose. This makes it the most flexible type of credit card reward.

Good to Know
To explain how this works, here is a example; if you have a cash back card that earns 2% earn on all purchases and earns 3% earn on groceries. Every $100 you spend on non grocery purchases, you will get $2 back. For every $100 that you spend on groceries, you will get $3 back.

What are the Best Cash Back Credit Cards for Canadians in 2022?

  1. TD Cash Back Visa Infinite Card

    This is our Best Overall Cash Back Card. If you are looking for generous cash back rewards on all purchases, this is the first card to consider. Check their limited time offer good until September 5, 2022.
    For more information read our TD Cash Back Visa Infinite Card Review.

Cash Back Rewards

The cash back rewards that you earn can be deposited as cash to your bank account, applied to your credit card statement balance or redeemed for a gift card. You will need to read the fine print as there are usually certain purchases that won’t earn cash back. These generally include balance transfers, cash advances, gift card purchases and lottery tickets.

Each credit card provider has their own rules for redeeming your cash. It may be monthly, annually or when you hit a specific target. Make sure to check this to make sure that it fits with your expectations.

What We Like and Dislike about Cash Back Credit Cards

  • Earning and redeeming rewards are straightforward
  • Many cards have low fees or no fees
  • Great sign up bonuses with low spending requirements
  • High APRs if you carry a balance
  • Value may be less than other cards like travel rewards
  • Welcome bonuses may be less than other cards

Pro Tips to Maximize the Cash You Get

There are simple rules that you can follow to make the most of your cash back card. They may not all be applicable to your situation, but as long as you know about them you are in a better position to increase the cash that you get back from your credit card.

  • Know your spending habits – if you know where you spend money each month then you can make a more informed choice on your cash back card. For example, if your biggest expense is groceries then you should choose a card that gives you the biggest reward for this category.
  • Use more than one card – You will never find the perfect card that gives you all the cash rewards that you want. It is often advisable to carry a general cash back card as well as one or more cards that offer other benefits. This could make a huge difference in the total returns that you receive.
  • Pay your full balance every month – If you carry a balance, you will end up losing the cash back that you have earned and even more to the interest that you pay. We advise you to do this no matter what credit card you use, but cash back credit cards carry a higher APR so this is even more important.
  • Take advantage of welcome bonuses – Many cash back credit cards offer a sign-up bonus. You can receive extra rewards if you spend a certain dollar amount in a given amount of time. If you find a very generous offer, make sure you take full advantage.
  • Apply for a new card before major expenses – In conjunction with the welcome bonuses above, it is often beneficial apply for a new card before you make a major purchase. You could get as much as 10% cash back by utilizing some of the offers above in our best credit cards section.

Cash Back Cards Summary

Cash back rewards are like getting paid every time you make a purchase. Choose the right card for your spending habits and start getting cash back today.