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Cash back credit cards are one of the most popular types of rewards credit cards in Canada, but if you don’t want to pay an annual fee for the benefits of cash back, you’ll need to choose from a smaller pool of available options. That said, there are several strong no-fee cash back credit cards on the market today, including the CIBC Dividend® Visa* Card.
About the card
The CIBC Dividend® Visa* Card is a no-fee cash back credit card that after the Welcome Offer ends gets you get 2% cash back on eligible grocery purchases and up to 1% cash back on eligible gas, EV charging, transportation and dining, as well as recurring payments†, and, 0.5% cash back on all other purchases†, for free since there’s no annual fee. The CIBC Dividend® Visa* Card has a reasonable Purchase Annual Interest Rate of 20.99%†, a Cash Advance Annual Interest Rate of 22.99%† (for non-Quebec residents only), and a Balance Transfer Annual Interest Rate of 22.99%† (for non-Quebec residents only). You need a household income of at least $15,000 per year to qualify.†
Beyond the cash back rewards, this credit card also offers some insurance coverage, including doubling the manufacturer’s warranty on new purchases up to 1 year, and $100,000 in common carrier insurance.† Cash back can now be redeemed at any time when users have a minimum of $25 through CIBC Online and Mobile Banking®.†
Pros and cons of the CIBC dividend® Visa* card
Pros
- No annual fee
- High earn rates on popular spending categories
- Up to three additional cards at no extra cost
- Low required household annual income of $15,000†
- No limit on the cash back you can earn†
Cons
- Low earn rates on everyday spending
- Only option to redeem cash back rewards is statement credit
Main benefits and features
The CIBC Dividend® Visa* Card is an affordable way to earn cash back rewards on your everyday spending. Here’s everything you need to know about this credit card.
Earning cash back
The CIBC Dividend® Visa* Card is a cash back credit card. That means when you make purchases with this credit card, a small percentage of your spending accumulates as cash back. After the Welcome Offer ends, this credit card lets you earn 2% cash back on eligible grocery purchases and up to 1% on everyday purchases like gas, EV charging, recurring payments such as streaming subscriptions, transit, food and more!† (An eligible grocery store is classified by the credit card network as a grocery store. Costco and Walmart, for example, are not classified as grocery stores, but Loblaws, Sobeys, and No Frills are classified as grocery stores.) For all gas, EV charging, transportation, dining purchases and recurring payments, you’ll earn 1%† and then 0.5% cash back on all other purchases†.
Redeeming cash back
Cash back can be redeemed on demand by cardmembers at any time they have a minimum of $25 through CIBC Online and Mobile Banking®.† This is a huge benefit because it is much more convenient to use cash back towards purchases or paying down the balance of your credit card.
Applying for the CIBC Dividend® Visa* card
You can apply for the CIBC Dividend® Visa* Card online, over the phone, or at your local branch. You must be a Canadian resident and the age of majority in your province. If you aren’t a CIBC customer already, you’ll need to provide information like your address and income. The entire process of applying takes about 5 minutes and you will get a response in as little as 60 seconds. There is no annual fee for the CIBC Dividend® Visa* Card, so applying is free.
Eligibility requirements
Most credit cards require you to earn a minimum income to qualify as a cardholder, and in the case of the CIBC Dividend® Visa* Card, you’ll need a household annual income of at least $15,000.† You’ll also need a credit score of >640 to qualify.
Apply for the CIBC dividend® Visa* cardSpending with the CIBC Dividend® Visa* card
The CIBC Dividend® Visa* Card has a Purchase Annual Interest Rate of 20.99%†, which is well within the normal range for a cash back credit card. If you were to take a cash advance from this credit card, the money you withdraw would be subject to a 22.99%† (for non-Quebec residents only) Cash Advance Annual Interest Rate. The Balance Transfer Annual Interest Rate is 22.99%† (for non-Quebec residents only). Shopping with this credit card is extremely easy because VISA is widely accepted across Canada and globally.
Extra perks and features
The CIBC Dividend® Visa* Card doesn’t have the robust suite of insurance you’ll find with many fee-based cash back credit cards, but it does offer several additional perks and features beyond cash back rewards:
- Extended warranty protection insurance, which doubles the manufacturer’s warranty on items purchased with this credit card up to 1 year.†
- Purchase protection insurance, which insures most new items purchased on this credit card from theft, loss, or damage for 90 days after purchase.†
- Common carrier accident insurance, which covers you if you travel by plane, ferry, train, or bus. You, your spouse, and your children are covered with up to $100,000 in insurance. Just make sure you book your fare with this credit card and are the primary cardholder.†
How the CIBC Dividend® Visa* card compares
As we mentioned above, your possibilities for a no-fee cash back credit card in Canada are not endless. That said, there are several good competitors in the market. Here’s how the CIBC Dividend® Visa* Card compares:
| Category | CIBC Dividend® Visa* Card | Tangerine Money-Back Credit Card | SimplyCash® Card from American Express |
|---|---|---|---|
| Annual fee | $0 | $0 | $0 |
| Cash back rewards | After the Welcome Offer ends get 2% cash back on eligible grocery purchases and up to 1% cash back on gas, EV charging, transportation, dining purchases, and recurring payments,† 0.5% on all other purchases† | 2% in two categories, 0.5% on everything else | Earn 2% cash back on eligible gas purchases in Canada, 2% cash back on eligible grocery purchases in Canada (up to $300 cash back annually), and 1.25% cash back on all other eligible purchases. |
| Welcome offer | Get 5% cash back for the first 4 statements on net purchases of up to $2,000 (up to $100 cash back)† | Special 10% extra cash back rate on the first $1,000 spent with the card on everyday purchases (max. $100 cash back) in the first two months if you're approved, apply by July 5, 2023.* | In your first 10 months as a new SimplyCash® Card from American Express Cardmember, you can earn a $10 statement credit for each monthly billing period in which you spend $300 in purchases on your Card. This could add up to $100 in statement credits in the first 10 months. Conditions apply. |
| Insurance coverage | Extended warranty, common carrier insurance† | Extended warranty, purchase assurance | Travel accident, buyer’s assurance, purchase protection, car rental & theft damage |
| Purchase annual interest rate | 20.99%†(22.99%† (for non-Quebec residents only) Balance Transfer Annual Interest Rate and 22.99%† (for non-Quebec residents only) Cash Advance Annual Interest Rate) | 19.95% | 20.99% |
| Minimum income requirement | $15,000 | $12,000 | N/A |
| Free supplementary cards? | Yes, up to 3 | Yes | Yes |
| Apply now | Apply Now | Apply Now | Apply Now |
*Terms and conditions apply
The CIBC Dividend® Visa* Card has a relatively standard base cash back earn rate of 0.5% on all purchases†, although it is low. It’s main earn rate is highest for eligible groceries. As a result, this card is best suited for someone who spends enough money on groceries to enjoy the 2% cash back†.
If you don’t see yourself spending enough to benefit from the CIBC Dividend® Visa* Card, the SimplyCash® Card from American Expressimply, might be more appealing to you. Earn 2% cash back on eligible gas purchases in Canada, 2% cash back on eligible grocery purchases in Canada (up to $300 cash back annually), and 1.25% cash back on all other eligible purchases. Plus, the card’s welcome bonus is notable:In your first 10 months as a new SimplyCash® Card from American Express Cardmember, you can earn a $10 statement credit for each monthly billing period in which you spend $300 in purchases on your Card. This could add up to $100 in statement credits in the first 10 months. Conditions apply.
Though the Tangerine Money-Back may only offer 0.5% cash back on all purchases, it still gives you 2% cash back on two spending categories of your choice and also offers a reduced rate balance transfer, which is helpful in case you need to consolidate your credit balances.
Our recommendation
If the CIBC Dividend® Visa* Card regular earn rate was a bit higher, and new cardholders were offered a welcome bonus that would allow them to accelerate their cash back earned, this card would be perfect. While extended warranty and purchase protection are great tools, some extra travel insurance would also go a long way toward making this credit card top of its class.
Overall, the fact that there is no limit on the cash back that you can earn and the free supplementary cards mean this credit card could end up being a good choice, depending on your unique spending habits.
Apply for the CIBC dividend® Visa* cardThis is a digital-exclusive offer.†
To be eligible for this offer:
1) this offer must have been directly communicated to you from CIBC or from a partner/affiliate; and
2) you must apply for the eligible card through the link provided in the CIBC or partner/affiliate communication to you.†
This offer is reserved for you. Please do not forward it to anyone else. If you have opened, transferred or cancelled another eligible card within the last 12 months, we may approve your application, but you may not receive this offer.†
† Conditions apply
Quebec residents – Learn more about this CIBC product here
Résidents du Québec : Pour en savoir plus sur ce produit CIBC, suivez ce lien
American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information click the Apply now link. Conditions apply.
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