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Credit Card Battle: Tangerine Money-Back vs. SimplyCash from American Express

As more Canadians reach for their credit cards for everyday spending, rewards credit cards have surged in popularity. In the past, if you wanted to earn rewards for daily spending on your credit card, travel was your main choice. But recently, an alternative has emerged: cash-back credit cards.

Cash back credit cards allow you to earn a percentage of your spending in different categories back as a rebate reward. This option is ideal for anyone who wants to benefit from spending on their credit card but doesn’t travel often.

Here’s a quick comparison of two of the best cash-back credit cards in Canada: the Tangerine Money-Back Credit Card and the SimplyCash Card from American Express.

1If you choose to have your rewards deposited back onto your credit card.
2If you choose to have your rewards deposited into your Tangerine Savings Account.

Both of these credit cards are good options if you are looking for a no-fee credit card with a low annual income requirement. The Tangerine Money-Back Credit Card allows you to earn 2% cash back rewards on several spending categories of your choice and 0.5% on everything else. The SimplyCash Card from American Express is simpler and rewards your spending with 1.25% cash back on all spending, except for the first three months when a 2.5% promotional rate applies (up to $150).

Both credit cards have a low annual income requirement, a competitive interest rate, and free cards for extra cardholders. The SimplyCash Card from American Express gives you additional insurance coverage in the form of travel accident insurance, car rental/collision insurance, zero liability coverage and extended warranty coverage.

Since the Tangerine Money-Back Credit Card requires you to pick your rewards spending categories, the amount of cash back you earn with this credit card will depend on your unique spending habits. Here, we’ll take a look at how much you’ll earn with both credit cards using a monthly spending profile of $1,500:

  • Featured

    Tangerine Money-Back Credit Card

    Earn an extra 10% back on up to $1,000 in everyday purchases within the first 2 months. Must apply by January 31, 2025.

Card details

  • No annual fee
  • Earn 2% cash back on purchases in two categories of your choice, and 0.5% cash back on everything else
  • Get a third category earning 2% cash back when you deposit your rewards into a Tangerine Savings Account
  • No limit on how much cash back you can earn

The Tangerine Money-Back Credit Card allows you to maximize your rewards based on how much you spend in different categories. You can choose two categories or three categories to maximize your spending depending on how you claim your rewards. The categories are groceries, furniture, restaurants, hotels, gas, recurring bill payments, drug store, home improvement, entertainment, and public transportation and parking.

With the spending profile above you would do best if you chose groceries, gas and bill payments as your three categories. These categories will help you earn $243 in rewards every year.

  • Featured

    SimplyCash® Card from American Express

    In your first 3 months as a new SimplyCash® Card from American Express Cardmember, you can earn a bonus 5% cash back on all purchases (up to $2,000 in purchases). That’s on top of your everyday cash back earn rates. That’s up to $100 in bonus cash back.

Card details

  • No annual fee
  • Earn 2.5% cash back on purchases for the first 3 months (up to $150)
  • Earn 1.25% cash back on all other purchases once welcome rate ends
  • No limit on the amount of cash back you can earn

The SimplyCash Card from American Express lets you earn 1.25% on all of your spending. There is no need to choose categories. In the first three months, there is a promotional rate that allows you to earn 1.5% cash-back on purchases up to a maximum of $150. With this promotion, you’ll earn $281 in the first year, which is more than the Tangerine credit card.

However, in subsequent years you’ll earn $225, less than the Tangerine credit card. So while it may at first seem like the SimplyCash Card from American Express is the better rewards credit card, with this spending profile, the Tangerine Money-Back Credit Card wins in the long run.

Of course, this is dependent on your unique spending profile. Compare multiple credit cards side-by-side with Ratehub.ca’s rewards credit card calculator to determine which card is right for you.

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Flickr: KMR Photography