While giving you more choice on how much cash back you can earn is definitely a huge advantage, that’s not something you should rely on alone when picking a credit card. Read my Tangerine money-back credit card review now to find out how much cash back you can earn, what other benefits are included, and how the card compares to others.

Tangerine Money-Back Card

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• No annual fee
• 10% cash back up to $1,000 in spending ($100 cash back) for the first 2 months
• 2% cash back on up to 3 categories
• 0.5% cash back on all other purchases

Welcome bonus and earn rate

The Tangerine Money-Back Credit Card often has a welcome bonus where you can earn 10% cash back in the first two months. This amount is usually capped between $100 and $200 in cash back.

As for the earn rate, you’ll earn 2% cash back on two categories of your choice. However, if you select to have your cash-back deposited right to your Tangerine savings account, you can choose a third bonus category that gives you 2% cash back. All other everyday purchases earn you 0.5% in cash-back.

Picking your categories is unique since every other cash back credit card out there has defined multipliers for each category. With this card, you get to choose the categories that will earn you the most cash back. One thing I don’t like is how travel doesn’t have its own category. Yes, there’s “hotel/motel,” but that’s just part of your travel expenses. Flights don’t fall under any cash-back categories, which means you can’t earn any bonus cash back with them. You’ll earn the base earn rate.

Tangerine Money-Back Credit Card categories

As mentioned, the Tangerine Money-Back Credit card allows you to choose up to three categories where you’ll earn 2% cash back. There are ten categories to choose from, which are as follows:

• Grocery
• Furniture
• Restaurants
• Hotel/motel
• Gas
• Recurring bill payments
• Drug store
• Home improvement
• Entertainment
• Public transportation and parking
• E-Games
• Fitness
• Foreign currency spend

The money-back rewards categories are diverse, so it shouldn’t be hard to find the three you spend the most on. That said, there are a few quirks. Walmart Superstores fall under the grocery category, so any purchase you make there could earn you 2% cash back. Unfortunately, regular Walmarts and Costco don’t count as grocery transactions.

Gas at Costco does count towards the gas category since you pay for that directly at the pump. Recurring bill payments need to be automatic bill payments that are charged directly to your credit card. That means purchases like new hardware at your mobile provider wouldn’t count for the extra cash back.

Entertainment purchases refer to sports venues, theatres, amusement parks, tourist attractions, zoos and more. Finally, there’s public transportation which includes things such as buses, trains, taxis and even road tolls.

You can change your categories whenever you want to, but they don’t come into effect until the start of your next billing cycle. This is to prevent abusing categories or trying to game the system. This unique feature is the main reason why the Tangerine Money-Back credit card is considered one of the best cash back credit cards in Canada.

Benefits and perks

Since the Tangerine Money-Back credit card is an entry-level card with no fee, it comes with limited benefits. You get the following as a cardholder:

Purchase insurance

The Tangerine Money-Back Card provides you with the following insurance:

• Purchase assurance – This covers your purchases from theft, loss and damage for 90 days from the date of purchase.
• Extended warranty – Purchases charged to your card get the manufacturer’s warranty doubled, up to one extra year.

Balance transfer

With this card, you can make a balance transfer request that gives you a 1.95% interest rate for six months. This is a decent rate if you have an existing credit card balance you want to pay down. A 1% balance transfer fee applies, and you must do it within 30 days of account approval. Even though the interest rate goes up to 19.95% after the promotional rate period ends, the card is still one of the best balance transfer credit cards in Canada. 

How to redeem your cash back

The cash back you earn with your Tangerine Money-Back Credit Card is paid monthly. It can be redeemed into your Tangerine Savings Account or applied directly to your credit card balance. There is no minimum balance requirement for your cash back redemptions.

Purchase protection covers your purchases in the event of loss, theft or damage for 90 days from the date of purchase. As for the extended warranty, any purchases charged to your Tangerine Money-Back Card see its manufacturer’s warranty doubled by up to one additional year. Both benefits are often overlooked and not usually offered with a no-fee credit card, so cardholders of the Tangerine Money-Back credit card should consider this a win.

Tangerine Money-Back Card eligibility

To qualify for the Tangerine Money-Back Card, you must meet the following conditions:

• The age of majority in the province or territory in which you reside
• Be a permanent resident of Canada
• Have a gross annual income of $12,000 or more
• Have not declared bankruptcy over the past seven years

Although there’s no mention of the credit score required, it’s safe to assume that you need to be at least in good standing, so about 670+.

How the Tangerine Money-Back Card compares

Tangerine Money-Back Card vs. American Express SimplyCash Card

As a cash-back card, the Tangerine Money-Back card is comparable to other market leaders to a certain extent. For example, the American Express SimplyCash Card also has no annual fee and gives you 1.25% cash-back on all purchases. The Tangerine card gives you a higher earn rate on up to three categories, so it depends on what categories you spend the most on. That said, since both credit cards offer no fees, you could use your Tangerine card on three categories and then use the American Express SimplyCash card on all other categories to maximize your return.

Tangerine Money-Back Card vs. Tangerine World Mastercard

Another card worth considering is the Tangerine World Mastercard, a higher-tier version of the Money-Back Card that comes with mobile device and rental car insurance. It also has no annual fee, but one of the eligibility requirements is to have a gross annual income of at least $60,000 or a household income of $100,000.

If you prefer something that allows you to earn travel rewards or gives you comprehensive travel insurance, then you should consider one of the best travel credit cards in Canada over the Tangerine card.

Final thoughts

Overall, my Tangerine Money-Back Credit Card review is positive. The card is ideal for people in the following situations:

• You want customization – You get to choose up to three categories where you earn 2% cash back. All other purchases earn you 0.5% cash back.
• You don’t have a high income – The income requirement for this card is just $12,000.
• You don’t want to pay an annual fee – This is one of the best no fee credit cards in Canada.

The Tangerine Money-Back Credit Card keeps things simple by offering straightforward cash back that is paid out monthly. Although it may not have many additional benefits, the card will still be very attractive to many people, including students.

That said, some people are concerned that having multiple credit cards will encourage them to spend which is a valid point. It’s also not a good idea to apply for multiple cards if you plan on getting a mortgage or major loan in the near future. Knowing how your credit score is affected when applying for a credit score will help you decide if getting that new card is worth it.

What is a credit score?

In case you didn’t know, your credit score shows how creditworthy you are. Your score is a number that falls between 300 and 900. The higher your credit score is, the more creditworthy you are.

For those who have a credit score below 660, there’s a good chance that you’ll be denied if you’re seeking additional credit. Ironically, when used responsibly, a credit card will help you improve your credit score. If you find yourself being denied whenever you apply for a new credit card, you may want to take steps to improve your credit score. Once you’ve rebuilt your credit, you can apply for a traditional credit card.

Generally speaking, anything above 660 is good, but you should aim for a number over 750 as you likely won’t have any issues securing additional credit if you need it.

Hard vs. soft credit inquiries

When applying for any type of credit, including credit cards, a hard inquiry is requested against your credit history which results in a drop in your credit score. In the past, Equifax stated that it was a drop of 10 points, but they’ve recently changed their language so it says a “few” points. In my personal experience, my credit score drops 5 – 10 points when I apply for a new credit card.

Many people freak out about this point drop and think it’ll hurt them, but overall, it doesn’t matter much. Yes, your credit score will go down, but if you make your payments on time, it’ll go back up after a few months. In other words, applying for another credit card probably won’t be a big deal in the grand scheme of things as long as you pay your bills on time.

Soft inquiries are also performed by banks, but it’s usually used just to qualify people. For example, financial institutions will often perform soft inquiries to figure out who they should target as part of their next marketing campaigns. If you have a good credit score, they may send you an email saying you may qualify for a new credit card or a line of credit.

When banks do a soft check, all they’re really doing is looking at your credit score. When it comes to actually applying for a product, they’ll likely perform a hard check as final due diligence.

Some people assume that a credit check isn’t required when they’re pre-approved for a credit product, but that’s not always the case. There’s always a chance that the lender will do a final hard check before approving you.

Applying for multiple credit cards

Does applying for a credit card affect your credit score is usually asked by people who are interested in churning credit cards. Obviously, the hard inquiries have an immediate impact on your credit score. Applying for multiple cards can also have some unintended consequences as many providers are clamping down on people who have been abusing bonuses.

Regardless of your intentions, applying for multiple cards in a short period of time will appear as if you’re trying to access money fast. This can hurt you if you plan on applying for a mortgage or a line of credit in the near future. Lenders will look at your activity and wonder why you’re trying to access so much credit. It’s a serious flag and it’s enough for them to reject your application.

It’s perfectly fine to apply for a few new credit cards a year, but I really wouldn’t recommend applying for multiple cards in a short period of time. I like to spread my applications apart by at least two months to give myself time to rebuild my credit score. That said, whenever the best credit cards in Canada have a good promotion, I’ll sign up regardless of when I last applied for a card.

Credit utilization

Another consideration when applying for new credit cards is your credit utilization ratio. Credit utilization is the amount of credit you’re using relative to what you have access to. 

Let’s say you have a credit limit of $5,000, and you currently have a balance of $4,000, that’s an 80% utilization ratio which is quite high. If you applied for another credit card and are approved with a limit of $5,000, your utilization ratio would drop right away to 40%.

This is relevant because your utilization ratio is one of the factors used to determine your credit score. It’s pretty common for people to cancel credit cards they no longer use, but keep in mind that this will actually increase your credit utilization ratio.

Keeping an older credit card active can also benefit you since your credit length is another factor when determining your credit score. Generally speaking, I recommend keeping your credit utilization ratio below 30%, but I have no idea if that makes a difference to Equifax and Transunion.

Final thoughts

So does applying for a credit card affect your credit score? Yes! Anytime you apply for credit, you take a hard hit on your credit score. While the drop in your credit score is something worth considering, it will go back up over time so it’s not a big deal. Whether you’re looking to get a backup card, or

Years ago, the Canadian dollar was on par with the U.S. dollar but now the exchange has devalued our dollars. What many people don’t realize is that the exchange rate you see on xe.com is never the rate you’ll pay. Bank, currency exchange offices and ATMs add their own markup to make a profit. In addition, most credit cards add a fee of 2.5% on top of their rates for even more profit. Despite these additional fees, there are ways to reduce your currency exchange fees.

Avoid fees completely with credit cards

Although it’s not technically cash, using a credit card with no foreign exchange fees is the cheapest way to pay for things. Not every card waives the foreign transaction fee so if you don’t have one of the following cards, you’ll be charged an extra 2.5% whenever you make a purchase in a foreign currency.

Scotiabank Passport Visa Infinite* Card

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• $150 annual fee
• 40,000 Scene+ points when spending $2,000 in the first 3 months
• 10,000 points when spending $10,000 in the first six months
• Earn 3 Scene+ points per $1 spent at Empire owned supermarkets
• Earn 2 Scene+ points per $1 spent on eligible grocery stores, dining, entertainment, and daily transit purchases
• Earn 1 Scene+ point per $1 spent on all other eligible purchases
• Visa Airport Companion Program membership + 6 passes per year
• No foreign transaction fees

The Scotiabank Passport Visa Infinite has an annual fee of $139, but you get a Priority Pass Membership and six free passes a year and a sign up bonus that’s usually worth $250 – $350 so there’s a lot of value with this card. I personally think it’s the best all-in-one travel card since it has no forex fees and you get a good earn rate. You earn Scene+ points with this card which can help you lower the cost of your travels. If you’re the type of person who doesn’t like to carry multiple credit cards, then this is the one for you.

Home Trust Preferred Visa Card

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• No annual fee
• No foreign transaction fees
• 1% cash back on Canadian purchases
• Purchase protection

The Home Trust Preferred Visa is a pretty basic no-fee card since it only gives you 1% cash-back, but for some people, that’s all they’re looking for. That said, the 1% cash back only applies to purchases made in Canadian dollars. I used to use this card all the time while travelling, but I’ve switched to the Scotiabank Passport Visa Infinite since I like the additional benefits included.

Check out my post about Canadian credit cards without foreign transaction fees for an in-depth analysis of each card. If you’re looking for ways to earn points for free travel, then you’ll want to read my guide to the best travel credit cards in Canada.

One other thing about using credit cards when travelling. When given the choice, always choose to be charged in the local currency as opposed to your home currency. The reason for this is that merchants set their own rates which can be much higher than the rate Visa and MasterCard use when you pay in the local currency. This is known as dynamic currency conversion and is a common practice in many parts of the world. 

Exchange options when you need cash

Although credit cards are widely accepted around the world, there are still many merchants and countries that prefer to do business with cash. There have been multiple trips I’ve taken where I’ve ended up using cash more than credit. This wasn’t by choice, it’s just how the local economy works. Since exchanging money also comes with fees, you’ll want to consider the following to lower your costs.

Wealthsimple Cash Card

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• No annual fee
• Up to $3,000 welcome bouns
• 1% back in cash, stocks, or crypto on all purchases
• 4% interest on deposited funds
• No foreign transaction fees on purchases or ATM withdrawals
• CDIC insurance protection

The Wealthsimple Cash Card is your solution if you need cash in any destination. This prepaid credit card doesn’t charge foreign exchange fees on ATM withdrawals or foreign transactions. That said, the ATM may charge a one-time user fee of around $3. Even when you factor that fee in, the Wealthsimple Cash Card is the cheapest way to get cash while on the go. Plus, you get $10 for free when you sign up with my referral link.

ATMs

Using local ATMs is one of the cheapest way to exchange money. Generally speaking, ATMs charge the spot rate plus about 2.5% -3.5%. This extra charge is known as a foreign transaction fee and can’t be avoided (check with your debit card provider for the exact fee). Your home bank and the specific machine you’re using may also charge you a one-time fee of up to $5 so that’s something to consider with your overall costs. The best way to exchange money while minimizing costs is to simply withdraw your daily limit or use an ATM that’s a partner with your bank.

Foreign exchange offices

This gets a bit tricky since every exchange office has different rates. Foreign exchange offices found in airports and malls usually don’t have good rates. Any “no-fee” exchange office also tends to have higher rates since they need to make a commission. Despite all of this, some exchange bureaus offer competitive rates. The key is to know what the exchange rates are so you can do the math to see if the rates are fair. If the premium is 2.5% or less then you’re getting a decent rate.

Banks

This may come as a surprise but exchanging money at any of the big banks in Canada is usually not a good idea. Unless you’re getting USD, banks charge a pretty premium when exchanging money. Their overall rates really aren’t that good and often you’ll need to order the currency in advance.

For a more detailed look at the above and why travellers cheques are pretty much useless these days, check out my post about the best foreign exchange options for travellers.

When to exchange money for travel

When to exchange money is a question that’s asked by many travellers but it’s a game best not played since you’re essentially trying to time the market. The reason it’s become a bigger issue as of late is because of Brexit. Once the vote was confirmed to separate, the British Pound dropped 10% overnight. Let’s be clear, such shifts in the value of currencies are quite rare. If you were planning to travel to England soon, this worked in your favour but in general, you shouldn’t try to time the market.

If you still insist on trying to get the best rate on cash but you don’t know when to exchange money, I suggest dollar cost averaging. That means you would purchase a set amount of cash a few times leading up to your trip. So let’s say you exchanged $1000 worth of cash 3 different times at the rate you got each time was .90, .85, .95. In this example, your average cost would end up being .90. You didn’t buy at the lowest rate nor did you buy at its peak – you paid the average.

The problem with this strategy is that you’re exchanging money in advance at home where rates aren’t very good. As you’ve read, the best way to exchange money is a combination of using credit cards and local ATMs so why bother trying to time the markets?

Check out other parts of the series below

Part 1: Budgeting for a trip
Part 2: How to pick a vacation destination
Part 3: How to find cheap flights
Part 4: How to save money on hotels
Part 5: How to eat cheap when travelling
Part 6: The best way to exchange money
Part 7: The basics of travel insurance
Part 8: Sticking to your travel budget

American Express Personal Platinum

The American Express Personal Platinum card is the main credit card I use. Yes, it comes with a high annual fee of $699, but I fully utilize all the benefits that it offers. I travel a lot, so the lounge access comes in handy and the hotel status upgrades have given me a lot of free additional perks over the years. Another reason I love the American Express Personal Platinum card is the flexibility of the American Express Membership Rewards points that I earn with the card. Membership Rewards points are worth a minimum of 1% in travel but they can be transferred to Aeroplan at a 1:1 ratio or Marriott at a 1:1.2 ratio which can offer even better value depending on what I’m booking. 

American Express Platinum Business

The American Express Platinum Business is very similar to the American Express Personal Platinum but it comes with a lower annual fee and some reduced benefits. As the name implies, it’s a business card so I only use this card for my business expenses. Interestingly enough, if you’re looking to ride the Amex train where you can earn enough points for a free flight around the world, the Amex Platinum Business card is the one you would start with since it comes with a monster 60,000 point sign up bonus when you spend $5,000 in the first three months. However, if you use my referral link, you get 75,000 points on a $7,000 spend.

WestJet RBC World Elite Mastercard

As stated above, I was originally going to product switch to this card but once I decided to keep my Avion card, I applied for the WestJet RBC World Elite Mastercard. I’ve been flying WestJet on a pretty regular basis for a while now so the included companion voucher and free checked baggage were very appealing. I also have gold status with WestJet so when I use this card on WestJet flights, I’m earning an incredible 10% cash back in WestJet dollars.

PC Financial World Elite MasterCard

I do the majority of my shopping at No Frills which is owned by Loblaws and with the President’s Choice Financial MasterCard, I basically earn triple the PC Optimum points or 3% in cash back equivalent. Another advantage of this credit card is that it’s a Mastercard. Some of the merchants I shop at don’t accept American Express so I use this card instead. Although I don’t shop much at Shopper’s Drug Mart, you earn 45 PC Optimum points per $1 spent there which is essentially a 4.5% return. Shoppers Drug Mart often has some great promotions e.g. spend $75 and get 25,000 PC Optimum points so having this card is essential to fully maximize your return. Here’s my full PC Financial World Elite Mastercard review.

Home Trust Preferred Visa

Last year, CHASE decided to pull all of their cards out of Canada which meant I needed a replacement credit card without foreign exchange fees. At the time, the Home Trust Preferred Visa was a natural choice since it had no annual fee and had no forex fees. To be honest, I don’t love this card and I’m hoping a better card comes along. I have considered switching my no forex card to the Scotiabank Passport Visa Infinite card or the Rogers World Elite Mastercard, but I don’t see a real need to make the switch yet. Read my Home Trust Preferred Visa card review now to find why this card is great if you’re looking for something simple.

Marriott Bonvoy American Express

Previously know as the Starwood Preferred Guest from American Express, the card has now been rebranded to Marriott Bonvoy to lineup with the reward program’s new name. With the Marriott Bonvoy American Express, you earn 5 points per $1 spend at Marriott properties which is an incredible earn rate. The sign up bonus 50,000 points is good enough for 5 free nights at a category 4 property when you take advantage of their book 4, get the 5th-night free promotion. I also love how this card gives you an annual free night certificate that can be used for a room worth up to 35,000 points. You get a sign up bonus of 51,000 points when using my referral link as long as you charge $3,000 to your card in the first three months of cardmembership.  The regular offer is 50,000 points on a $1,500 spend.

KOHO credit card

With KOHO, you preload your funds which essentially makes it a prepaid card that uses the Visa network for transactions. It’s a handy card if you’re looking to manage your spending while earning cash-back rewards on your purchases. Now you’re probably wondering why I’m carrying a pre-paid card when I have so many credit cards, well it’s mainly because of the referrals. When you sign up for KOHO using my KOHO referral code CASHMONEY, you get an extra 1% in cash back and I get a $20 commission. Want to learn more about KOHO? Read my KOHO review now and find out how you can earn up to $60 for free.

STACK Mastercard

When STACK Mastercard was first launched, I didn’t pay much attention to it since I already had a no foreign transaction fee credit card. However, once I started reading the benefits of the card, I realized that it’s the best credit card for travel. Not only do you not pay any foreign exchange fees on purchases, but you also don’t pay any exchange fees when using local ATMs. The ATM may charge you a one time use fee, but in the end, there is no cheaper way to get cash when you’re travelling. I basically try to use this card exclusively whenever I travel outside of Canada as it’s more convenient than a US credit card.

RBC Visa Infinite Avion

I originally signed up for the RBC Visa Infinite Avion Card because it had a nice 25,000 points sign up bonus and the annual fee was free for the first year. My intention to transfer those points over to WestJet Rewards later and then product switch from this card to the WestJet RBC World Elite Mastercard, but then I realized that RBC Rewards is pretty flexible since they have multiple transfer partners such as British Airways Avios and a fixed travel program. I ended up keeping this card just to diversify my points.

TD First Class Travel Visa Infinite Card

This credit card is a joint card that my wife and I use. In the last year, we’ve barely used this card since I prefer to maximize our points individually on one of our American Express cards. My wife and I communicate on a regular basis about our finances so there’s no real need to have a joint card anymore, but we’ll keep this card active since we a TD All-inclusive banking plan which waives the annual fee for this card.

MBNA Smart Cash Platinum Plus MasterCard

I used this cash back MasterCard before picking up my PC Financial card but since then I’ve stopped using this card completely. Although I don’t charge anything to this card anymore, I decided to keep this card active since it’s my oldest credit card. My keeping this credit card active, it helps increase my credit score.

Best Credit Cards Canada

When it comes to credit card charges, we won’t be able to eliminate them completely. But with some simple adjustments to our spending, we can come pretty close to paying next to nothing, when paying with plastic.

Credit card fees to be aware of

I don’t think I need to explain why paying 19.99% interest is a bad thing. It’s the other credit card charges that aren’t always obvious that we need to worry about.

Annual fees – Credit card annual fees are pretty common with premium cards but that doesn’t mean we need to pay it. When signing up for a new credit card, many companies will waive the fee for the first year. Once approved, make a note in your calendar and cancel it before the fee kicks in the following year.

If you prefer not to cancel your card every year, check with your bank to see what you need to do to qualify for a free premium credit card. The bank will usually just waive the yearly fee if you have a certain type of account with them. The account may require you to keep a minimum balance, but it’s probably worth it if you’re getting the fees waived on a premium credit card.

Cash advance fees – Credit card providers make easy to borrow cash with “convenience” cheques, and the ability to withdraw money right from an ATM. However, the credit card charges are so high, it’s never worth it.

Credit card cash advances will almost always have a higher interest rate than if you made a purchase directly with your card. There’s also the cash advance fee that’s charged based on how much you’re taking out. Sure it’s only 1% in Canada, and there’s a cap, but why use cash advances at all? Finally, there’s no grace period with cash advances– you’re charged interest on the amount you borrower immediately.

The only time a cash advance should be considered is if you have a positive (credit) balance currently on your account. Many travellers do this as a way to get money abroad, but since most debit cards now use the VISA Plus network, there’s no real reason to do this anymore.

Paper statements – If your bank or credit card provider charges for paper statements, then the obvious thing to do is to go paperless. Statements will always be available free online, and you can set up your account to email you when the statement is ready. Paper statements might only be a few dollars, but it’s a waste of money no matter how you look at it?

Foreign transactions – Foreign transaction fees are sneaky since they don’t show up separately on your statements. Whenever you make a purchase in a foreign currency, VISA adds 2.5% right into the exchange rate. So you’re basically paying the spot rate + 2.5%. If you’re getting a refund in a foreign currency, do you think you’re getting that 2.5% back too? Nope.

To avoid this fee, simply pick up one of the Canadian credit cards with no foreign transaction fees.

Final thoughts

If you want to avoid credit card charges completely, then stop using credit. Okay, so that’s probably not a realistic solution, but it does work. The best solution is to simply pay off your full balance every month, and to not treat your credit card like “cash”. You also want to avoid any additional services that your credit card provider might try to sell you. Some fees are unavoidable, but you should be able to minimize them.