Tangerine Money-Back Credit Card vs. BMO CashBack Mastercard
money.ca / BMO/Tangerine
A good cashback credit card offers low-maintenance gratification. Unlike with travel or loyalty reward cards, you don’t have to worry about figuring out how much a point is worth or go through a complicated redemption process. You just spend as you normally would, and voila: Your cash back appears as a statement credit or is deposited into your bank account either once a month or once a year.
Two of the most coveted cashback cards in Canada are the Tangerine Money-Back Credit Card and BMO CashBack® Mastercard®*. Neither card has an annual fee, and they offer appealing but distinct cashback benefits. So how should you choose between them? We compare the two cards head to head to make the choice easier.
At a glance
†Based on a comparison of the non-promotional grocery rewards earn rate on cash back credit cards with no annual fee as of January 4, 2023.
Welcome bonuses
New BMO CashBack® Mastercard®* cardholders get 5% cash back on all spending they charge to the card in the first few months and more:
- Get up to 5% cash back in your first 3 months‡‡ and a 0.99% introductory interest rate on Balance Transfers for 9 months with a 2% transfer fee.§§
The 3% (up to a monthly max of $500) cash back on groceries (i.e. up to a maximum spend of $2,500) at which point the earn rate drops to the regular 0.50% on all eligible spending*. There is a relatively low fee charged to the balance amount transferred, which is competitive with the best balance transfer cards in Canada.
Like the BMO CashBack® Mastercard®*, the Tangerine Money-Back Credit Card also currently offers several different promotions. The cash back and balance transfer promos works as follows: Get 10% cash back on up to $1,000 in everyday purchases made within 2 months. Pay only 1.95% balance transfer interest for the first 6 months.
Winner: BMO CashBack® Mastercard®*. The two cards’ cash back promos offer comparable value; but the BMO card has the edge in the balance transfer promo. Most people will benefit from the longer low-interest balance transfer promotion length, and you can use it anytime within your first 9 statement credits. In contrast, new Tangerine cardholders must make their balance transfers during the first 30 days to qualify for the promotional interest rate.
Apply NowRegular and accelerated cashback rates
After its intro bonus period ends, the BMO CashBack® Mastercard®* offers solid earn rates on everyday expenses:
- Earn 3% (up to a monthly max of $500) cash back on groceries.
- Earn 1% (up to $500 per month) on any recurring bill payments*.
- Cardholders can earn 0.5% (no monthly max) on all other eligible purchases*
- Get up to seven cents off per litre on Shell fuel®.
The BMO card also offers lots of choice as to how you use your cash back: You can have it deposited into a BMO chequing, savings, or Investorline account; or you can put it toward your BMO credit card statement. Cash back can be redeemed as a statement credit annually or whenever you reach a specific sum of your choice (minimum $50).
The Tangerine Money-Back Credit Card has one of the most customizable cashback systems of any credit card in Canada. The cardholder gets to choose 2% back on 2 categories of your choice(from a selection of 10, including groceries, restaurants and gas) with no earning cap. Get a Tangerine Savings account and add a 3rd 2% cash back category.. All other spending earns 0.50% cash back, likewise with no earning limits. If you don’t have the money deposited into a Tangerine account, it will be applied as a monthly statement credit.
Accelerated earning categories with the Tangerine Money-Back Credit Card can be changed every 3 months, which can make a significant difference in the amount you earn as long as you pay attention to your spending habits. When I first bought a home, I changed two of my categories from gas and recurring payments to furniture and home improvement, upping my earn rates to better align with my new lifestyle. Furthermore, because you can choose your own categories, you could maximize your cash back opportunities by using the Tangerine Money-Back Credit Card to supplement earnings from another cash back card.
Below is an example comparison of how much can be earned after spending $5,000 on each card in a 3-month period, without factoring in welcome bonuses.
*Rates calculated above are based on 3 maximum accelerated cashback categories for the Tangerine cardholder.
Winner: Tangerine Money-Back Credit Card. The BMO card’s 3% rate on groceries* stands out, but its monthly spending cap is a bit of a letdown. The Tangerine card’s flexibility and unlimited cash back, even at its enhanced rates, will be more appealing for most people.
Apply NowValue-added features
The BMO CashBack® Mastercard®* comes with some attractive extras:
- Save up to 20% on National Car Rental®††and Alamo Rent A Car®††and up to 5% on Enterprise Rent-A-Car®††at locations worldwide using BMO's Car Rental Booking tool.
- 15% off Cirque du Soleil shows in Canada and 20% off eligible Las Vegas shows*
- Purchase protection: items charged to your card are automatically protected for 90 days from theft or damage*
- Extended warranty: A product’s original warranty is doubled for up to a year for items charged to the card*
The Tangerine Money-Back Credit Card’s benefits are somewhat lackluster by comparison:
- Purchase protection against theft or damage for 90 days
- Extended warranty: As long as you charge an item to your card, its warranty will be automatically doubled up to a year
Winner: BMO CashBack® MasterCard®*. The BMO card clearly has more enticing value-added features than the Tangerine Money-Back Credit Card. However, the potential value of these extras really depends on how frequently you’re going to rent a car or see a Cirque du Soleil performance.
Eligibility requirements and application process
The online application for a BMO CashBack® Mastercard®* can be completed in a few minutes, and the application may be processed in as little as 60 seconds. You’ll be prompted to input personal info like your monthly housing payments, annual income, SIN, etc., and before applying you should make sure that you meet the below eligibility criteria:
- Have a gross annual income of at least $15000.00
- Have a credit score of Good
- Be the provincial age of majority
- Be a permanent resident of Canada with a Canadian address
- Haven’t declared bankruptcy in the last 7 years
Applying online for a Tangerine Money-Back Credit Card entails a similar process to the BMO CashBack® MasterCard®* application, and is similarly speedy. Eligibility requirements are as follows:
- Have a gross annual income of at least $12000.00
- Have a credit score of Good
- Be the provincial age of majority
- Be a permanent resident of Canada with a Canadian address
- Have no bankruptcies on record for the past 7 years
Winner: This is basically a draw. While the BMO CashBack® Mastercard®* has a lower credit score requirement, the Tangerine Money-Back Credit Card has a lower minimum income requirement. In the end, it’s your income and credit history that will dictate whether one card is easier to apply for than the other.
Which card wins overall?
Drum roll please…
Pound for pound the Tangerine Money-Back Credit Card clearly outclasses the BMO CashBack® Mastercard®*, and is so impressive that its place is also justified among the top cashback cards in Canada. The fact that it features a 2.00% cashback rate for up to 3 categories and lets customers choose and re-choose the categories where they want to earn at that rate, all for no annual fee, gives it a lot of long-term value.
If, however, you need to first get your credit card debt under control before you shift focus to earning as much cash back as possible, the BMO CashBack® Mastercard®*’s longer and more flexible promotional balance transfer might make it a better choice in some circumstances.
*Terms and Conditions apply.
BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.
Read more:
- BMO vs. MBNA: Which one truly offers best rewards?
Sandra MacGregor has been writing about finance and travel for nearly a decade. Her work has appeared in a variety of publications like the New York Times, the UK Telegraph, the Washington Post, Forbes.com and the Toronto Star.
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