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[ANALYSIS] CIBC Dividend Unlimited World Elite MasterCard vs. American Express Gold Cash Back Credit Card

American Express recently came out with a new cash back credit card. Below is a comparison with the CIBC cash credit card. The highlights of each respect credit card are as follows:

American Express Gold Cash Back Credit Card

  • $99 annual fee
  • No fee for additional cardholders
  • Earn 0.5% cash back on your first $2,500 in purchases ($12.50 cash back)
  • Earn 1.0% cash back on purchases between $2,500 and $5,000 ($25 cash back)
  • Earn 2.0% cash back on purchases between $5,000 and $100,000 ($1,900 cash back)
  • Earn 1.0% cash back on purchases exceeding $100,000

CIBC Dividend Unlimited World Elite MasterCard

  • $79 annual fee
  • $30 for additional cardholders (up to 3)
  • Earn 0.5% cash back on your first $3,000 in purchases ($15 cash back)
  • Earn 1.0% cash back on purchases between $3,000 and $15,000 ($120 cash back)
  • Earn 1.5% cash back on purchases between $15,000 and $35,000 ($300 cash back)
  • Earn 2.0% cash back on purchases between $35,000 and $50,000 ($300 cash back)
  • Earn 1.0% cash back on purchases exceeding $50,000

If you spend $50,000 a year:

American Express = $12.50 (0.5% x $2,500) + $25 (1% x $2,500) + $900 (2% x 45,000) = $937.50
$937.50 – $99 (annual fee) = $838.50

CIBC = $15 + $120 + $300 + $300 = $735
$735 – $79 (annual fee) = $656

If you compare the spending with the Capital One Aspire Cash Platinum. You earn 1% cash back flat with no annual fee. So that means $50,000 in spending equals $500 in cash back ($50,000 x 1%).

Based on the calculations above, the more you spend, the better the AMEX card looks. I’m not a fan of either of the cards above because the annual fee is a killer and we would be receiving too little cash back before reaching the 2% cash back threshold.

You’re better off with a credit card like the Capital One Aspire World Travel or the Scotiabank Momentum Visa.

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Pointshogger aims to provide analysis and updates on earning loyalty reward points and maximizing the value of your points. We hope to inspire our readers to experience the joy of travel and make the most out of what they've already got!

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