There isn’t much that rings sweeter than cash in your pocket, which is precisely the allure of the cash back credit card. Canada’s Big Five banks (and many smaller ones too) offer a wide range of credit cards that allow you to accumulate cash rewards simply by using them. And to maximize those rewards, you’ll want to choose a card based on spending habits. If you’re new to the world of cash-back credit cards, TD’s Cash Back Visa Card is a simple and reliable introductory option with no annual fee, no minimum income requirement and a no-frills approach.
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6 Things to know about the TD Cash Back Visa Card
1. Earn cash back rewards
TD Cash Back Visa cardholders will earn 1% cash back on three bonus categories (grocery, gas and recurring bill payments) and 0.5% on everything else. There’s an imposed yearly spend cap of $5,000 within each bonus category. Once you hit the cap, your earn rate in that specific bonus category will drop from 1% to 0.5% for the rest of the year. This may or may not be a limitation for you, depending on how often you use your credit card. For instance, if you spend well over $450 per month on groceries, the spending caps will put a ceiling on your earning potential in that category. But the spending caps reset every year.
It’s worth noting that the TD Cash Back Visa Card doesn’t pretend to be anything other than an entry-level card. If it’s big dollar rewards you’re after, there are more lucrative options: The Tangerine Money Back Card, for example, offers up to 2% back in three spending categories and isn’t limited by an annual spend cap.
2. Flexible cash back redemptions
Most cash back cards have a specific time and date (e.g. once per year or month) to redeem your rewards. The big advantage of the TD Cash Back Visa card is that you can redeem right away, any time of the year, as long as the minimum redemption is $25. Keep your account open and make the minimum payments by your billing due date, and your cash rewards will never expire.
3. No annual fees or income requirements
Accessibility is another perk of the TD Cash Back Visa card. Since it requires no minimum income level, it’s a great option as a student credit card or anyone who’s a credit card beginner looking to establish their credit history. Like most entry-level cards, it’s free to carry and doesn’t charge annual fees.
4. Get basic credit card perks
You can shop with confidence, thanks to the security and extended warranty protection. And you can save on car rentals, too. Card users save a minimum of 10% off the lowest available base rates in Canada and the U.S., and a minimum of 5% off the lowest available base rates internationally on qualifying rentals at Avis and Budget.