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Picking the right rewards credit card

May 29, 2023

Written by Pira Kumarasamy

Key takeaways

  • Consider the annual fee and interest rate when selecting a rewards credit card.

  • Compare rates and redemptions offered by different cards.

  • Take advantage of multiple loyalty programs and other card perks to maximize your rewards.

Picking the right rewards credit card

One way to get the most out of your credit card purchases and add a bit of wiggle room back into your budget is to have a card that offers a rewards program. Using that card on everyday eligible purchases could help your savings add up. Whether it's cash back into your account, or rewards points that you can redeem for travel, groceries or something else, there is a card for everyone. It just takes a bit of homework to understand which credit card might be appropriate for your circumstances, including your goals and financial needs. 

Here are a few things to consider when selecting a rewards credit card. 

A boy looking at prizes at an amusement park.

Annual fees and interest rate 

Before settling on a credit card, be sure to review and compare the annual fee, which can range from $0 to hundreds of dollars. Though one card might offer better loyalty rewards, the annual fee might not be worth the added savings. If you can't pay your balance in full each month, the interest rate will be important to consider too. 

Also make sure that you make your payments on time and keep your budget in mind. Don't just use a credit card solely for the rewards but make sure it aligns with your financial needs and budget. 

Redemption rate 

Arguably the most important criteria when looking for a rewards credit card is the redemption value. This simply refers to how much cash back or points value you're getting back from each dollar spent. For instance, a straightforward cash-back credit card like the Tangerine Money-Back Credit Card or the Tangerine World Mastercard might offer up to 2% on certain purchases, while a loyalty points card may offer a set number of points per dollar spent. This return stretches even further when there's a accelerator applied – meaning that certain purchases like gas or groceries may offer double or even triple the points. 

To compare and analyze cards, determine the value of your points. For instance, if 10,000 points is worth $10, and each dollar spent gives you 10 points, then for every dollar you spend, you get back $0.01, or a 1% return. This might compare to a 1% cash-back credit card, but now what if three times the points are offered on certain purchases like gas? The 3% return might then look favourable compared to 1% on all purchases. 

Types of redemption 

Beyond the earnings rate, it's important to review the available types of redemption. For instance, during periods of economic uncertainty when consumers may be traveling less and trying to manage their budgets, a cash back rewards card is one way to earn money back. 

If travel is a priority, a travel rewards card could help you save on trips. Look into whether travel rewards are offered through credits to travel-related statement line items or if you must book tickets through pre-selected providers. Also keep in mind that some travel cards include commuter costs like bus passes as travel expenses, enabling holders to offset those costs through credits. 

If rewards are in the form of products or services, it becomes less straightforward to compare rewards. If, for instance, the redemption options for a certain points level clearly vary in value, the obvious choice is to choose the item of highest value. 

Loyalty “double dipping" 

Double dipping is the holy grail for some credit card rewards. In other words, using a rewards credit card that is linked to a pre-existing loyalty program allows you to “double dip" and earn points at an even faster rate, although you should check with the credit card provider first to make sure it's allowed. 

For example, if you're part of a loyalty program for your local grocery chain which provides you with points on your grocery purchases, then if you have a rewards credit or debit card linked to the program that provides a multiplier (e.g. 3X the points) on groceries from that chain, you'll receive points through the loyalty program itself plus the credit card. Before you know it, you can start getting free groceries when you redeem your rewards every few trips. 

Card consolidation 

By "putting your eggs in one basket," or consolidating all your spending onto one or two cards, you may be able to get to higher redemption levels more quickly — rather than spreading yourself thin on several different credit cards. 

Credit cards may help you save on your purchases through loyalty programs and help you track your spending. No matter what card you choose, spend responsibly, pay off your balance in full each month, and watch the rewards accumulate. 

Other card benefits 

Many credit cards offer benefits beyond loyalty rewards. Be sure to do a deep-dive and review all the additional perks, which could include things like car and/or travel insurance, purchase price protection, additional warranties, and more. 

Looking for a new Credit Card?

Our Credit Cards are designed with you in mind, offering cash back to suit your spending and unlimited Rewards on all your purchases.

Learn More
  Money-Back Credit Card World Mastercard
No annual fee
2% unlimited cash back (x2)
Unlock a third 2% category
0.5% on everything else
Additional Benefits    
    FlexiRoam14 -
    Booking.com13
    Dragon Pass16 -
    H&R Block 15% off 20% off
    Fubo TV15 -
Mobile device insurance -
Extended warranty5
Purchase protection5
Rental car insurance5 -
Free Authorized Users (x5)
Eligibility $12,000 personal income $50,000 personal income or $80,000 household†

This article or video (the “Content”), as applicable, is provided for information purposes only. It is not to be relied upon as financial, tax or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this content, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and Tangerine Bank is not responsible to update this information. References to any third party product or service, opinion or statement, or the use of any trade, firm or corporation name does not constitute endorsement, recommendation, or approval by Tangerine Bank of any of the products, services or opinions of the third party. All third party sources are believed to be accurate and reliable as of the date of publication and Tangerine Bank does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific financial, investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.

Tangerine Investment Funds are managed by 1832 Asset Management L.P. Tangerine Investment Funds Limited is the principal distributor of Tangerine Investment Funds. Tangerine Investment Funds Limited and 1832 Asset Management L.P. are wholly owned subsidiaries of The Bank of Nova Scotia. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

General Terms:

Applicants must apply for the Card and must consent to a credit check. Accounts must be in Good Standing in order to receive Money-Back Rewards.
See the Tangerine Money-Back Rewards Program Terms & Conditions for full details.

Balance Transfers are treated as Cash Advances and interest applies from the transaction date that appears on your monthly statement to the date you repay the balance in full. There is no interest-free grace period on Cash Advances or Balance Transfers.

Annual Interest Rates: The annual interest rate on Purchases is 20.95% and Cash Advances (including Balance Transfers) is 22.95%. Rates are subject to change. If you don't make 2 consecutive monthly Minimum Payments, or at any time thereafter, an interest rate of 25.95% will apply to your Account on Purchases and 27.95% on Cash Advances (including Balance Transfers).

Other Fees and Rates: These fees are charged on the day the transaction occurs (unless otherwise indicated): Cash Advance: $3.50 within Canada, $5 outside of Canada; Balance Transfer: 3% or minimum of $5 (unless reduced or waived) of the amount transferred when it is posted to your Account. Dishonoured Payment: $25; Rush Card: $25; Over-Limit: $25 (maximum one Over-Limit charge per monthly statement period); Past Statement Reprint: $5 per past statement. There is no charge for a reprint of your current monthly statement. Foreign Currency Conversion: When the converted transaction amount gets posted to your Account, we'll add a foreign currency conversion fee of 2.50% to the converted transaction amount.

See your Information Box in the application for full details or visit Tangerine.ca/CreditCardLegal. Rates and fees are subject to change.

Cash Advances (including Balance Transfers) do not earn Tangerine Money-Back Rewards. See the terms and conditions of the Tangerine Money-Back Rewards Program at Tangerine.ca/CreditCardLegal for full details on other items that do not earn Tangerine Money-Back Rewards.

5 Benefits include:

Rental Car Collision/ Loss Damage Insurance: Damage and theft protection for your car rental when you rent for up to 31 consecutive days and charge the full cost of your rental to your Card.

Mobile Device Insurance: Protection on new cell phones, smartphones or tablets when you charge the full cost to your Card, or when you purchase it through a plan and charge all of your wireless bill payments to your Card. Covers up to $1,000 if your mobile device is lost, stolen, accidentally damaged or experiences mechanical failure.

Purchase Assurance and Extended Warranty: For most new purchases made anywhere in the world using your Tangerine Credit Card, you may receive a lifetime maximum of up to $60,000 for the following insurance coverage:

• Purchase Assurance to automatically cover loss, theft or damage on most new insured items for 90 days from the date of purchase
• Extended Warranty which may double the period of repair services to a maximum of one year

Insurance coverage is underwritten by American Bankers Insurance Company of Florida (ABIC). ABIC, its subsidiaries, and affiliates carry on business in Canada under the name of Assurant®. ®Assurant is a registered trademark of Assurant, Inc. Coverage is subject to eligibility, limitations and exclusions. For details of the coverage, including definitions and benefits, refer to the Certificate of Insurance provided with the card.

See the Credit Card Cardholder Agreement for complete benefits and terms.

†In addition to Tangerine’s credit approval criteria, new applicants for the Tangerine World Mastercard® Credit Card Account must meet one of the following minimum criteria: $50,000 gross annual income, $80,000 gross household income, or $250,000 in Tangerine Savings Accounts(s) and/or Investment Fund Accounts(s).

13Booking.com: Mastercard cardholders will receive up to 7% off when booking accommodations marked with the Mastercard label and prepaying for such accommodations using an eligible Canada-issued consumer or small business Mastercard credit card, excluding any such cards that are used through a mobile wallet solution (e.g. Apple Pay, Google Pay, etc.), at booking.com/mastercardCanada.

Offer Period: April 1, 2024 – September 30, 2025, subject to early termination. Mastercard reserves the right to modify or cancel this offer at any time without notice. Neither Mastercard nor any participating financial institution card issuer has any involvement in or responsibility for Booking.com products or services and are not responsible for any claims or damages arising from the use of the Booking.com products or services.

Eligibility: This offer is available to Canadian residents who are holders of consumer credit and small business Mastercard credit cards issued in Canada.

Exclusions: Reservations booked but not prepaid are excluded from the promotion. Must select “Pay now” on the checkout page to receive the offer.

14FlexiRoam: Valid from 10/01/2024 and can be redeemed once per calendar year. Eligible World Mastercard cardholders can redeem a FlexiRoam eSIM and a 1GB of global** data roaming, and Mastercard World Elite cardholders can redeem a FlexiRoam eSIM and a 3GB of global** data roaming plan at no additional cost by using your eligible Mastercard payment card (the "Program Benefit"). Eligible cardholders will need to register by creating a FlexiRoam account. To determine eligibility, enter your full 16-digit Mastercard card number when prompted in the FlexiRoam Mobile Application or on the FlexiRoam website. Upon verification of your eligibility, you must complete the full enrollment process to utilize the Program Benefit.

The FlexiRoam eSIM and the 1GB or 3x1GB global data roaming plans must be activated within the calendar year following enrollment and each will be valid for 5 days from the date of activation.

Benefit can only be redeemed once. For subsequent purchases, a 15% discount will be automatically applied.

Terms, conditions, pricing, special features, and service and support options subject to change or cancellation without notice. Mastercard reserves the right to modify or cancel this Program Benefit at any time without notice. In order to redeem the Program Benefit, you acknowledge that you are entering into an agreement with FlexiRoam. By agreeing to the terms thereof, you acknowledge and agree that neither Mastercard nor any participating financial institution card issuer has any involvement or responsibility for the provision of any FlexiRoam benefit, subscription, products or services and are not responsible for any claims or damages arising from their use thereof.

This Program Benefit is non-transferable and may be terminated for any breach of the FlexiRoam terms and conditions. The offer cannot be combined with any other FlexiRoam offer. Your use of the Program Benefit is subject to FlexiRoam’s terms and conditions and other applicable legal terms and conditions available at https://www.flexiroam.com/terms-and-conditions/. Additional eligibility restrictions, exclusions and terms apply. See full terms and conditions.

The following cards issued in Canada: World Mastercard and World Elite Mastercard, if eligible. Check here for eligibility: mastercard.flexiroam.com/canada.

Cardholders cannot data roam using FlexiRoam in North Korea, Ukraine, Western Sahara & Tanzania.

15 Fubo TV: Eligible Mastercard* cardholders who are new subscribers** of Fubo will receive a C$30 discount on Fubo Canada Sports quarterly plan when they pay with their Eligible Mastercard. Offer not available to Quebec-based cardholders. The offer is valid one time only. Each eligible World and World Elite cardholder will receive the C$30 discount on his or her first payment only (total first quarterly payment with discount applied will be equal to C$49.97*** + applicable taxes) and thereafter, the quarterly subscription will automatically renew at a cost of C$79.97*** per quarter + applicable taxes until cancellation. To access the offer and subscribe to a Fubo Sports Quarterly plan, you must register at https://fubo.tv/stream/ca/mastercard. The $30 discount on the Sports Quarterly plan will be deducted from the cost of the plan at the time of checkout. Additional taxes may be applied.

Additional terms and conditions apply. Your subscription is subject to Fubo’s Terms of Service and Privacy Policy available at: Fubo Terms of Service. Terms, conditions, subscription pricing, features, programming, and service and support options subject to change without notice. You can cancel your subscription through your Account Page at any time before renewal, visit Fubo TV website (My Account). In the event of cancellation, no credits or refunds will be provided for subscription fees already paid. Mastercard and Fubo reserve the rights to modify or end this offer at any time and for any reason, without notice.

Neither Mastercard or any participating financial institution card issuer has any involvement in or responsibility for the provision of any Fubo subscriptions, products, or services, and are not responsible for any arising claims or damages. 

*The following cards issued in Canada: World Mastercard, World Elite Mastercard, and Muse by Mastercard if eligible. Check here for eligibility: https://fubo.tv/stream/ca/mastercard. Offer not available to Quebec-based cardholders.

**A “new subscriber” eligible for the one-time C$30 discount is someone who has not registered for Fubo services previously as determined solely by Fubo. Subscribers who have a subscription to Fubo services would not be eligible to redeem this offer.

*** Price subject to change. Visit checkout page or My Account page for current subscription price.

16 Mastercard Travel Pass: Certain terms, conditions and exclusions apply. For full details, please visit: https://mastercardtravelpass.dragonpass.com/terms-and-conditions.