Tim Hortons launches new credit card: Is it worth it?

Tim Hortons Credit Card benefits

The Tim Hortons Credit Card is a no-annual-fee Mastercard offered in partnership with Neo Financial. Two options will be available:

1. The main Tim Hortons credit card, meant for those who have an established credit history
2. The secured option, for those who have limited credit history

Both options will allow you to earn points on most purchases at Tims, or elsewhere. However, the best return per dollar will come, no surprise, from spending on Tims products. Whereas the newly revamped rewards programs offers members 10 points for every $1 spent at Tim Hortons restaurants, those who use a Tim Hortons credit card will get 15 points per dollar on the same purchases.

Otherwise, Tim Hortons credit card holders will earn at the following rates:

• 5 points per $1 spent on eligible grocery purchases
• 5 points for every $1 spent on eligible gas and EV charging purchases
• 5 points for every $1 spent on eligible taxi, rideshare and transit purchases
• 1 point for every $2 spent elsewhere on qualifying purchases

Those who apply by Sept. 24 can get a sign-up bonus of up to 5,000 Tims Rewards points:

• 2,000 points if you make a purchase within 30 days of opening your Tims credit card account
• 1,000 points per month when you spend at least $200 in the second, third and fourth month after opening your account

Wherever you earn your points, they can be redeemed for Tims menu items after you’ve collected beyond various thresholds, starting at 300 points.

To apply, you need to download the Tims app, which lets you track your points and purchases, as well as keep an eye on your credit card balance.

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Is the Tim Hortons credit card worth it?

While the extra points might be a draw to the Tim Hortons lovers out there, overall this credit card isn’t very exciting. The available rewards are limited and the earn rates are low compared to other points credit cards on the market.

Take the welcome bonus, for example. While 5,000 might seem like a lot, it’s not so great when you consider that it takes 300 points (the equivalent of at least $20 worth of qualifying purchases) to get a single doughnut or hashbrown.

Even if you are a die-hard Tims fan, there are better credit cards out there that can help you earn points faster and use them for more lucrative rewards such as travel and cash back.

More lucrative credit cards for Canadians who love to dine out

There are many Canadian credit cards that have higher earn rates and more lucrative rewards options. If you love Tims or other Canadian restaurants, these are worth checking out:

American Express Cobalt Card

The American Express Cobalt Card offers five points for every $1 spent on food and drink at eligible restaurants and food delivery in Canada, up to $2,500 per month. The points won’t necessarily come any faster than with a Tims card, but the upside is that they can be redeemed for a greater number of options, including flights, hotels, merchandise, gift cards and more. This card does have a monthly fee of $12.99, but if you spend a lot on eating out, it’s worth it.

Tangerine Money-Back Card

If you would prefer a no-fee card, the Tangerine Money-Back Card is a great option. It’s also very easy to quality for. You will earn up to 2% cash back on your purchases in select categories (your choice) and there’s no limit to how much cash back you can earn. Cash back is paid out monthly.

And don’t forget, you can use these cards to pay for your Tim Hortons purchases and still earn Tims Rewards at the normal rate of 10 points per $1.