Tangerine Money-Back Credit Card review

How the Money-Back card earns

You choose the categories that earn 2% cash back, such as groceries, gas or recurring bills, and everything else earns 0.5%. If you have your rewards deposited into a Tangerine Savings Account, you get a third 2% category on top of your first two.

Here’s an example. A household picks groceries and gas, spends $500 and $200 a month on them, and spends $850 on everything else, including $250 of recurring bills. That earns $14 from the 2% categories and $4.25 on the rest, or $219 a year. Adding recurring bills as a third category raises that to $22 a month, or $264 a year.

The choice is what makes the card work. Pick the categories where your household spends the most, since everything outside them earns only a quarter of the bonus rate.

The welcome offer

New cardholders earn an extra 10% cash back on everyday purchases in the first 2 months, up to $100. You’d reach the $100 maximum with $1,000 of eligible purchases, or about $500 a month over those two months.

In the example budget above, the household would hit the cap in its first month, since it spends $1,550 a month on the card.

How cash back is paid

Cash back is paid every month, with no minimum to reach first. By comparison, the Scotia Momentum No-Fee Visa needs a $25 balance before you can redeem.

Sending your cash back to a Tangerine Savings Account is what earns the third 2% category, so it’s worth doing if you’re happy to save the money rather than spend it. For many households, that turns the card’s rewards into a small automatic savings plan.

Fees, interest and the fine print

There is no annual fee. Purchases are charged 20.95% interest and cash advances 22.95%, so pay your statement in full to keep interest from erasing your cash back. With no annual fee, there’s also no break-even point to work out: every dollar of cash back is yours to keep.

Foreign currency purchases carry a 2.5% fee, so $1,000 spent abroad costs about $25, five times the $5 you’d earn back at 0.5%. Keep a card without that fee for trips and US online orders.

Insurance coverage

Insurance is basic and covers only things you buy with the card. Check the certificate for limits and exclusions.

• Purchase assurance (90 days)
• Extended warranty

Who it suits, and who should look elsewhere

The Money-Back card suits people whose spending is concentrated in two or three categories and who want cash back without a fee. Tangerine customers get the most from it, thanks to the third category. It also works well as a no-fee companion to a travel card.

If your spending is spread evenly across many categories, the 0.5% base rate will pull down your overall return, and a card with a higher flat rate might suit you better.

How it compares

The SimplyCash Card from American Express has no annual fee, earns 2% on groceries and offers up to $100 cash back. Its bonus category is fixed rather than chosen, and American Express isn’t accepted everywhere.

The Scotia Momentum No-Fee Visa Card has no annual fee and offers 5% cash back for the first 3 months on up to $2,000 of purchases. Its ongoing rate is 1% in five categories, half the Tangerine card’s 2%.

Before you apply

The recommended credit score is 660 or higher, and Tangerine makes the final decision based on your full credit profile. Check the list of available 2% categories and the current welcome offer on Tangerine’s website before you apply.