MasterCard No Fee Cash Back and Costco Purchases | Page 2 | Credit card reward programs | Discussion forum

GICinvestor said

So who is the winner Capital One or you???? Time to reassess and look for a no fee cash back?  

best no fee cash back I see is around 1% which is not attractive in my opinion.

Capital One is the winner for all non groceries purchase and the $20 annual fee is basically $1k purchase a year to break even, which isnt too hard (Car and house insurance alone) pays for that and I am ahead already compared to a no fee 1%.

GICinvestor said

Didn't you say: A grandfather Capital One which is 2% everything. $120 fee a year but gives me $100 back in rebate each year. Oops I guess I do pay $20 a year fee haha

You pay $120, get back $100, leaves Capital One $20 ahead. Did I miss something?
A no fee any cash back % would leave you ahead compared to what you said, wouldn't it?  

This is not true, if you spend enough money, and if you spend your money in "other" category most of the time, you can still come out way ahead of any no fee card compare with this grandfathered card.

There isn't a no fee CC that give 2% cashback reward universally in Canada at the moment. I don't even think we have a CC with fees that can give this type of reward.

However, if you tend to spend your money is certain things, like grocery for example, it maybe worthwhile to look for card that give the best reward in this category. In my case, a 5% reward from food (grocery included) from my Amex cobalt, along my 2% reward from RBC cashback in grocery do the job. When I am able to work full time again, I am switching my Amex Cobalt to Scotia Gold Amex , as it give me better reward on gas (3% v.s 2%) while keeping the same reward on grocery. I am also switching my RBC card (back) to BMO cashback as it give better reward on grocery (3% v.s 2%) due to recent change in BMO cashback's reward scheme.

Like many people here say, this is a personal thing that depends on your spending habit.

Correction: The Amex cashback Preferred, and Brim World Elite does give 2% universally, but it cost 99 dollars, and 199 dollars (after first year) a year respectively.

GICinvestor said
Excuse me.......wwhhaatt did I say that was not true?  

"A no fee any cash back % would leave you ahead compared to what you said, wouldn't it?" - This statement is decisively false, as I had explained.

GICinvestor said
If you actually read what I said and what it pertained to....I am NOT incorrect or making an untrue statement.  

With all due respect, your statement is incorrect.
A 1 % cash back CC in math equation is 0.01X, where X is the amount spend
A 2% cash back CC in math equation is 0.02X - 20.

Assuming you spend $5000 (X = 5000) a year, a 1% cash back give you 50 dollars, while a 2% cash back with 20 dollars fee give you 80 dollars.

Compare with 1% cashback. Spend $12,000 annually. Get 2% $240 back. Pay $120 annual fee. You need to spend $12,000 on both cards to be the same. I generally considered spending $24,000 plus to make it worthwhile to pay an annual fee. Not the solution for many people.

I refuse to pay fees.. Ive had the same setup for years and rarely look for changes.. Find something that works.. and religiously stick to it and you will maxamize your savings / earnigs..

1. Tangerine No Fee (2% - 3 Categories (Drug Store/Gas/Bill Payment) used for any big Canna Purchases / Gas and Recurring Bills (Aslong as they show up as such under Tangerines' System). This card is paying me out monthly to Savings. #TRBB

2. Amex No Fee 1.5% on all. Use where I can etc. You cannot redeem rewards manually.. It happens automatically annually..

3. Capital One No-Fee Travel Version (1000-2000 pts per year) Redeem it via cheque wherever you want.. Or Credit etc.. Backup / Once in blue moon stuff.. This card pays out so I use it occasionally for fun stuff etc..

4. Old TD Card got converted to cashback I think (Never really ever use it - just keep it active)..

Spread the joy out. Alternate due dates for the cards for best and easiest cycling.. EZ!

GICinvestor said

Didn't you say: A grandfather Capital One which is 2% everything. $120 fee a year but gives me $100 back in rebate each year. Oops I guess I do pay $20 a year fee haha

You pay $120, get back $100, leaves Capital One $20 ahead. Did I miss something?
A no fee any cash back % would leave you ahead compared to what you said, wouldn't it?  

What you said is only true if I spend less than $2000 a year on my capital one card. $2k is the break even point compare 2% less $20 vs 1% no fee.
From your statement, you seem to think I am worse off $20. That is only true if I don't use the card at all, but then why even worry about which card to get to begin with....

Others have replied to you as well and point out the flaws in your statement. I did also mentioned I charged my auto and home insurance to the card and you can rest assure its more than $2k a year.

If you can find me a true no fee card that pays 2% on all purchases, I will switch in a heart beat

cruzinalong said

I can see how juggling credit cards get you MORE. Depends how confusing it is. I am happy using one CC. Enjoy the summer.  

Yes, it gets confusing but now I only use TD or Rogers. TD for Grocery / Gas. Rogers for everything else. When I cancel my TD, I will have to make a decision and get another card.

For me, it is NOT just about $$ it is about the benefits. For example, my Canadian Tire World Elite MC once saved me from a dead battery in a freezing cold winter day. Basically that's included for free in the card.
Rogers World Elite I use for Rental Car CDW insurance outside Canada. Also because they had the great 4% return (not anymore) on FX, it was great to have it.
MBNA is my oldest CC now. I got mad at Scotiabank years ago and cancelled my first ever CC. Who cares! So this CC was the 2nd card about 8 years ago and I don't want to cancel it.
I usually don't keep more than 5 cards at a time. I cancelled a card 3 months ago and then got both Brim and TD at the same time.

You too 🙂 Stay Safe.

youngAndhungry said
hi all, was just curious. I also have the BMO 1% cashback on everything no annual fees and spoke with a representative that told me the only way I can get the 5% welcome bonus was if I opened up a new account with them. so my question goes how many credit cards is too many? I only have the one currently and do not have any outstanding debt nor do I plan on it. My question is if I hold, let's say, 5 cards will that affect my credit score at all?  

If you always pay your bills on time, having 5 cards (your example) will actually enlarge your credit history and eventually improve your score. Just don't apply for all 5 at once -- we're talking over a few years, not weeks

Londonguy said

If you always pay your bills on time, having 5 cards (your example) will actually enlarge your credit history and eventually improve your score. Just don't apply for all 5 at once -- we're talking over a few years, not weeks  

perfect! then my next question after reading this discussion is does anyone have the American Express simply cashback credit card with no annual fees? it gives 3% cashback for the first 3 months (up to $150) then goes down to 1.25% after.

The only reason I prefer a cashback credit card with the highest percentage is because most of my purchases are online. I am a big amazon, ebay, aliexpress purchaser so I'm basically looking for a card that just gives the most percentage back for all purchases. My goal is to eventually build up my CCs after a couple of years to hold a different card for whatever situation.

I appreciate the advice everyone!

P.S I'm in Canada so I dont know if the American Express is best here since I've been to some establishments that dont except it