Putting Together a Cash Back Credit Card Portfolio
Collecting points may not be for everyone, especially considering that it does require a little bit of research, work and constantly attention.
Furthermore, you are fighting against expiry policies, devaluations and many other negative challenges. So some people prefer having cash back credit cards for much less hassle and a fixed return. Today, I am going to put together two cash back portfolios.
Spend at least $2,000 or more per month:
Scotia Momentum Visa Infinite Card
- $99 annual fee (fee waived if you apply before October 31, 2014)
- $30 for supplementary cardholders
- Earn 4% cash back for every $1 spent on gas and grocery purchases
- Earn 2% cash back for every $1 spent on drug store purchases and recurring bill payments
- Earn 1% cash back for every $1 spent on all other purchases
Chase Amazon.ca Rewards Visa Card
- No annual fee
- Earn $20 Amazon.ca bonus sign up gift certificate
- Earn 2% cash back on Amazon.ca purchases
- Earn 1% cash back on all other purchases
- No foreign transaction fees
- No annual fee
- Earn 5% cash back on purchases made at the Target store with certain restrictions
Canadian Tire Cash Advantage MasterCard
- No annual fee
- Earn 3% cash back at Canadian Tire stores, Canadian Tire gas bars and Mark’s Work Wearhouse/L’Équipeur stores
I would say the two most valuable cash back credit cards to get are the Scotia Momentum Visa Infinite Card and Chase Amazon.ca Rewards Visa Card. They pretty much cover all the big expenses. The Chase Aamazon one is really to use when you are travelling or when you make purchases online from non-Canadian sites, so that you can save on the foreign transaction fees.
The cash back on the Scotia Momentum card is automatically credited on your November statement and the Chase Amazon one automatically credits your account every time you reach $20 worth of cash back. So these two card have minimal hassle in terms of keeping track of your cash back.
I would only consider getting the Target and Canadian Tire credit cards if you shop at those two places. I would only use those two respective credit cards at those two specific stores. They are good because they do not have an annual fee.
If you spend less than $2,000 a month, then I suggest a different approach:
MBNA Smart Cash Platinum Plus MasterCard
- No annual fee
- Earn 5% cash back (on the first 6 months) on gas and grocery purchases on $400 worth of monthly (calendar month) purchases
- Earn 2% cash back (after the first 6 months) on gas and grocery purchases on $400 worth of monthly (calendar month) purchases
- Earn 1% cash back for all other purchases on $1,250 worth of monthly (calendar month) purchases
- No annual fee
- Earn 2% cash back on grocery store purchases
Chase Amazon.ca Rewards Visa Card, RBC Target MasterCard, Canadian Tire Cash Advantage MasterCard
(see explanation above)
I am essentially just replacing the Scotia Momentum Visa Infinite Card with no annual fee credit cards. The MBNA Smart Cash Platinum Plus MasterCard can be used as the primary card, to a maximum of $400 a month on gas and groceries, then you can switch to the RBC Cash Back MasterCard for excess groceries.
Or you can just put all grocery purchases on the RBC Cash Back.
The MBNA Smart Cash Platinum Plus MasterCard sends you a cheque in the mail every time you reach $50 worth of cash back. The RBC Cash Back MasterCard credits your account whenever you ask for it, once you reach $25 worth of cash back. Otherwise, it automatically credits your January statement.