# Rewards or Cashback Credit Cards?



## Waterman (Feb 24, 2015)

A quick little survey for the members here; Which do you prefer in a credit card?

Straight money back from a card like this:
http://www.scotiabank.com/ca/en/0,,86,00.html

or

points that you can use to redeem for flights and merchandise like this:
http://www.tdcanadatrust.com/produc...l-cards/td-first-class-visa-infinite-card.jsp

I'm trying to decide myself.


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## AltaRed (Jun 8, 2009)

I stick with cards that give me cash back. That way, I can make my own purchase choices in an infinite number of ways.


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## uptoolate (Oct 9, 2011)

Show me the money!


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## indexxx (Oct 31, 2011)

I found that rewards cards are too restrictive, meaning great if you want the specific things they offer. With cash back you can invest that bonus or pay off your card faster, etc.


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## cainvest (May 1, 2013)

cash back only.


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## LBCfan (Jan 13, 2011)

*well, which*



Waterman said:


> A quick little survey for the members here; Which do you prefer in a credit card?
> 
> Straight money back from a card like this:
> http://www.scotiabank.com/ca/en/0,,86,00.html
> ...


Read the quoted part of the fine print. Where do we get 4%? Do you know, I don't. All things equal, gimme da money.


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## Echo (Apr 1, 2011)

LBCfan - here's the list of merchants where you'll receive 4% and 2% - http://www.scotiabank.com/ca/common/pdf/credit_card/visa_infinite_popular_merchants.pdf


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## LBCfan (Jan 13, 2011)

Many thanks.


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## Compounding1 (May 13, 2012)

I always used my mbna smart card but ever since TD bought them out the cash back has been lacking. Might be time for a new card.


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## Ponderling (Mar 1, 2013)

CTC MasterCard - I spend my 'rewards' on things I have to buy anyways , so no upsell to claim the points. Things like dish wash detergent, laundry detergent, Kleenex, toilet paper, garbage bags, cleaning and yard maintenance products.


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## Mechanic (Oct 29, 2013)

Cash back for me. Those reward cards are brutal. Absolute top retail value on everything and then some. Air miles are a rip-off too IMO. My wife and I saved them for years so we could get a really worthwhile trip/vacation, then, when we check they have disappeared. They timed out but we can buy them back, what a joke. I hate being taken advantage of.


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## Jagas (Feb 11, 2013)

Cash back please.


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## Waterman (Feb 24, 2015)

I figured it would be a landslide towards cash-back. My family swears by the TD rewards program for flights saying they save 800$ a year despite the horrible service offered by Expedia. On a 2000$ spending month with 1% back that's 20$; with TD rewards you would receive 6000 points which could be redeemed for 15$.


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## brad (May 22, 2009)

Cash back for me too. I donate my cash-back rewards to charities that save/improve lives in developing countries. That generates a tax rebate, which I use to increase my donations in the following year. It's a painless way for me to do a little more good than I already do via my regular donations, and even a few hundred dollars can make a big difference to people who live on less than $1.25/day.


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## mf4361 (Apr 11, 2015)

I do cashback cards only, as I don't spend enough to make those travel reward points worthwhile. In many cases, those travel reward offers better percentage of return than the 1% cash back. But you'd have to plan ahead to spend those points and most of them have annual fees which, for me, wipes out the saving.

E.g. Assume an Aeroplan card that pays 1 point per dollar spend and cost $120/year. You can get a Toronto-Vancouver flight with 25000 Aeroplan points which normally cost $600+. $600/$25000 = 2.4% saving rate. If you can spend $25k in 1 year, then saving rate after fee is 1.92%. $25k in 2 years -> 1.44%. More than that you might as well use no-fee cashback card.

The Amazon.ca card does 1% cash back (Or 2% on amazon.ca) and rebates in statement credits when it reaches $20. No application or time lag to claim the rewards so I'm happy with it. Plus no foreign exchange fee (I do a lot of eBay shopping which many transactions were done in USD) so that's instant 2.5% rebate over all other cards


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## indexxx (Oct 31, 2011)

I like getting a surprise $50 check in the mail every few months!


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## My Own Advisor (Sep 24, 2012)

Cash back all the way!!!


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## rikk (May 28, 2012)

MBNA cash back ... I too like that $50 "surprise contribution" to my account every now and then ... nice.


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## Ag Driver (Dec 13, 2012)

No annual fee and cashback only.


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## Hiitsme (Jun 14, 2012)

Echo said:


> LBCfan - here's the list of merchants where you'll receive 4% and 2% - http://www.scotiabank.com/ca/common/pdf/credit_card/visa_infinite_popular_merchants.pdf


One vote for this card. 4% gas and groceries is impossible to beat. Add 2% for recurring bill payments and 1% on everything else, it's gravy. Looking at easily over a $1000 this year.

Here are some exceptions to merchants not participating in the 4% gas/groceries:
No Frills
Oceans/Seasons
Costco
XTR gas
(also: City of Brampton does not allow Visa for property tax payments...would be a nice recurring 2% item)


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## Charlie (May 20, 2011)

I'm finding I'm still marginally better with the rewards. It's getting tougher though....and I'm almost at the break point.

At a $0.25+ value for airmiles redemptions I'm better off...and I've been getting that on certain airfares (compared to cheapest comparable flight) and other items. The gift cards and cash options are really poor. And some flights are terrible value.


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## gaspr (Mar 24, 2014)

I am also a fan of the Scotiabank Visa. You can even get 4% cash back on cigarettes and booze if you can find a grocery store or supermarket that sells them. Everything we purchase at Superstore for example, qualifies for the 4%.


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## CalgaryPotato (Mar 7, 2015)

I hate that Costco is an exception to the grocery store cash back programs. I buy the majority of my groceries there. (judging by lines @ Costco vs. other stores, I'm sure I'm not the only one)

I'm using the Costco cash back MasterCard right now, but I might switch to the WestJet mastercard for some things, just for the perks that come with it.


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## lb71 (Apr 3, 2009)

Depending on your spend levels, the reward cards could be a better proposition due to the sign up bonus. Churn them over every year to maximize the bonuses.


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## OnlyMyOpinion (Sep 1, 2013)

Got better things to do than chase deals, open, cancel cards, etc... One cash back credit card covers it all. Costco & Co-op memberships add two more refund cheques each year.


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## Xoron (Jun 22, 2010)

Cash in your hand is better than 2x the Airmiles in the bush.


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## atrp2biz (Sep 22, 2010)

I still think the Capital One Aspire Travel card is the best card on the market. Points valued at 2% of spend can be used to credit travel expenses or you can simply get 1.5% cash back.


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## Butters (Apr 20, 2012)

Costco card is tiered its actually not the greatest


MBNA Smart cash is a straight 1% and 2% on some additional stores (superstore)
60k income required

PC Financial is 1% on their points... good for low incomers
everyone gotta buy food, so pretty much 1% cash


There are better cards if you are willing to pay an annual fee


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## fraser (May 15, 2010)

We use both.

But so far our rewards Marriott Visa card is by far the best we have. 

In the past 12 months we have saved just approx. $500. in Visa foreign exchange fees and exchange fees on our bank ATM withdrawals that we would have otherwise paid to CIBC Visa/CIBC bank. We had a two 'free" nights in Marriot hotels valued at $150. and $300. respectively with another free night booked for early May that has a value of $125. PLUS, because these three nights are free, there were NO taxes to pay. 

The card costs us $100. year.


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## edarte (Jan 28, 2014)

SheaButters said:


> Costco card is tiered its actually not the greatest


I agree. I think, at best, at Costco their MasterCard will give you 1% (and starts out at .5%). I do use the Costco Mastercard at restaurants but actually use my Capital One Aspire Travel card to pay at Costco. It at least gives me 2%.


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## Westerncanada (Nov 11, 2013)

My card of choice is the TD Infinite Visa First Class.. and mainly due to the redemption on any booking site and that is free from annual fee with my unlimited account (which is free with a $5000 balance). 

I am a very high user of my credit card due to work and work related travel/cost etc.

The only exception to the rule is I have thought a lot about getting the West jet card only due to the free companion flight. I fly 10-25 times per year between work/pleasure... but the $99 dollar' fee is well worth the flight!


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## indexxx (Oct 31, 2011)

Just got a $50 check from MBNA today!


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## jerryhung (Mar 28, 2011)

don't know if RFD is banned here as a competitor, but here's my thread

It's for anyone who wants a GREAT welcome bonus for free/cheap. Churning!!

List of Credit Cards with Great Welcome bonuses [4/27 updated] - RedFlagDeals.com Forums


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