Tangerine Money-Back Credit Card review

Quick overview of the Tangerine Money-Back Card

With its max 2% cash back rate and an unlimited, choose-your-own cash back policy, the Tangerine Money-Back Credit Card has become one of the most popular no annual fee credit cards in Canada.

But is the hype really justified? Read on as I break down the card’s pros, cons, benefits, and drawbacks in this Tangerine Money-Back Credit Card review.

Who is the Tangerine Money-Back credit card for?

The Tangerine Money-Back credit card is consistently ranked as one of the best cash back credit cards, especially when there is no annual fee. If you're someone who doesn't want to pay for a credit card, but likes cash back on everyday spending, this card is a great fit. 

It also has a sweet promotional balance transfer interest rate of 1.95% for the for the first 6 months, so if you're hurting with a bit of credit card debt, there's no better time to switch to this Tangerine credit card. 

The income requirement on this card is only $12,000, so if you're a student, recent grad, or a senior on a fixed-income, there's good reason to apply for it. 

Pros and cons

How to earn cash back with the Tangerine Money-Back Credit Card

The Tangerine Money-Back Credit Card’s marquee feature is its bespoke cash back policy. Usually the card issuer dictates a card’s earn rates to the cardholder; with the Tangerine card you pick two spending categories from the below 10, and in those two categories you’ll earn at the card’s highest 2% cash back rate. Here are the Tangerine credit card categories to choose from:

• Groceries
• Gas
• Restaurants
• Recurring Bills
• Drug Stores

• Hotels
• Furniture
• Home Improvement
• Entertainment
• Public Transit and Parking

This policy makes the Tangerine card the most customizable card on the market; you can tailor your cash back to wherever you spend the most dough. It also makes Tangerine a great fit for putting together lucrative credit card combinations, as you can cherry-pick cash back categories to fill in areas where your other credit card doesn’t earn cash back. The card comes with rudimentary budgeting/spend tracking features that will help you see if your spending habits are shifting over time, and chosen cash back categories can be switched every 90 days.

Unlock a third cash back category

Cardholders who elect to deposit their rewards directly into a Tangerine Savings account will get to choose an extra category for the higher cash back rate, permitting up to 3 categories at 2% cash back. Any purchases outside your chosen 2-3 categories earn 0.5% cash back.

Note that there are some caveats to these accelerated cash back categories. Purchases at wholesale clubs or big-box merchants such as Costco or Walmart will be counted under the general 0.5% rate, not under the 2% ‘groceries’ category (so it’s not a great card for those who do a lot of shopping at these kinds of warehouse clubs). Similarly, dining within a retail store or hotel bar/restaurant may not be categorized as a ‘restaurant.’ In short the Tangerine card is like other credit cards, in that despite its customizability it still identifies a purchase based on a store’s Merchant Category Code (MCC); not based on the individual items you buy. Make sure to read the details for each category to better understand these exemptions.

Finally, one of the biggest perks about the Tangerine Money-Back Credit Card is that there is no limit on the amount of cash back you can earn, in any category. Oftentimes, cash back cards will have a maximum spend on their highest (or all) cash back categories, but that’s not the case with the Tangerine Money Back card. You’ll earn money back on every dollar you spend, whether it’s $300 a year or $30,000 a year; on dental floss or a luxurious night at the Four Seasons in Whistler. 

How to redeem your cash back from Tangerine

There are two ways to redeem the cash back earned with the Tangerine Money-Back Credit Card:

1. 1 Have your cash back deposited into your Tangerine Savings account. This, as mentioned above, has the added bonus of allowing you to then choose a third category for earning 2%.
2. 2 Have your cash back applied to your credit card balance. One of the features that I love about the Tangerine Money-Back Credit Card is that your cash back is redeemed automatically every month; many credit cards allow you to redeem cash back only manually, and only once a year.

Tangerine Money-Back key credit card benefits

• 2% cash back on 2 everyday spending categories (unlock a third when you open a savings account), plus 0.5% cash back on everything else. 
• Essential insurance coverage
• Up to 5 additional users at no extra charge
  

Tangerine Money-Back credit card insurance coverage

Insurance type

Coverage

Purchase protections

90 days

Extended warranty

1 year

• Purchase assurance: Covers you for any repairs of a replacement for the first 90 days. 
• Extended warranty: Your manufacturer's warranty is automatically doubled (up to one additional year) with this benefit for most items purchased with your credit card.

Other features and perks of this Tangerine cash back credit card

As a no annual fee credit card with a low minimum annual income requirement ($12,000), the Tangerine Money-Back Credit Card doesn’t really have any ‘wow’ features and benefits aside from its cash back.

Usually extra benefits like insurance or airport lounge access are offered by cards with higher annual fees and income requirements. That said, the Tangerine Money-Back Credit Card does offer a few basic perks for cardholders, such as:

• Extra Cards: You can get 5 free cards for authorized users on your account.
• Mastercard Zero Liability protects you against fraud.
  
• Pause My Card: In case you've misplaced your card or someone has taken it, you can quickly pause it in the app. 
• Orange Alerts: Customize your preferences to receive notifications about your spending, credit limits and more. 

What people of the internet are saying about this card

There's a lot of talk about cash back categories. 

Yes, you can change categories. For example, you're doing a home renovation, you can switch your recurring bill category to the home reno category for the month. It's about the monthly cycle that's tied to your statement date. Within each statement date, you can swap for the upcoming month. (Thank you to Reddit user, niuzki)

Also speaking of categories, many Reddit users expressed frustration that Costco was not counted as a grocery category. Thank you to RedFlagDeals user, FrugalFrites, for putting together a full list of vendors for each category. Walmart Supercentre and its pharmacy both fall under the grocery category (not the case with all credit cards). ChefsPlate is a recurring bill, not a grocery, but Playstation Network is not a recurring bill. Check out the full list of categories and stores here. 

How does this Tangerine cash back credit card compare?

Tangerine vs. EQ Bank

EQ Bank has a prepaid Mastercard where you earn 0.5% cash back on all your purchases. To load funds onto the EQ Bank card, you'll need a EQ Bank personal account, but that savings comes with a bonus:  Earn 1.25%* interest on savings until you spend plus an additional 2.25% interest when you set up recurring direct deposit to your Personal Account. 

Both banks are known for the no-fee accounts. The bonus with EQ Bank is it goes the extra mile with no foreign exchange fees and any fees you get charged at an ATM for withdrawing money, well, EQ Bank will reimburse you, so you can withdraw from any ATM you want. 

If you're looking for a credit card with cash back, Tangerine is the winner. If you're looking for a whole new banking experience, it's hard to beat EQ Bank. 

Tangerine vs KOHO Essential

KOHO Essential (formerly Easy) is $4 per month - $0 when you set up a recurring Direct Deposit or deposit $1,000 each month. KOHO is also a prepaid credit card where you can earn cash back, with rates depending on the tier you choose. The Essential plan offers 1% cash back on groceries, eating & drinking, and transportation. Plus, you'll earn 2.5% interest on both your spending and savings account. KOHO isn't a bank like EQ, so you can load the card from any bank you like. 

Tangerine vs. Scotia Momentum Visa Card

Scotiabank owns Tangerine, so let's have a look at how these 2 cash back credit cards differ. 

Tangerine is no-fee, while Scotia will charge you $39 a year. Is it worth the fee? Well, Scotia forgoes the category restrictions and gives you 2% cash back on gas, groceries, drug store purchases and recurring bills. They'll also give you 1% cash back on all other purchases. Does the math work out? 

Let's assume you're spending $500 a month on groceries, $200 on gas, $100 at the pharmacy, and $50 on recurring bills. Let's throw in another $150 for various "other" purchases to get out 0.5% cash back from Tangerine and 1% cash back from Scotia. 

That'll give you up to $214 in cash back from Scotia and $186 from Tangerine. If I subtract the $39 annual fee from the $214 cash back. I end up with $175 from Scotia Momentum Visa. 

I'd get the Tangerine card. 

Disclosures:

• ‡, ††, ✪, Terms and Conditions apply
• Conditions Apply. Visit here for the Scotia Momentum® Visa Card to learn more.

Should you get the Tangerine Money-Back Credit Card?

The Tangerine Money-Back Credit Card is by far the most flexible among no annual fee credit cards, and the low minimum income requirement makes it a great option for young adults and those just starting out in their careers. I do like that you earn cash back on all purchases and get to choose the highest-earning categories to best suit your lifestyle, but the earn rates nonetheless can’t compete with the top cash back cards that charge annual fees in the $100+ range. If you make about a $60,000 or higher annual income, it’s probably worth investing in a credit card with an annual fee that offers higher cash back rewards (along with added perks and benefits). The rewards will outperform the annual fee and still allow you to come out ahead, provided you make the majority of your purchases on credit.

Tangerine Money-Back credit card Eligibility requirements

One of the biggest draws of the Tangerine Money-Back Credit Card is that it’s very accessible. In order to be eligible you must meet the following requirements:

• Have a gross annual income of at least $12,000
• Be the age of majority in your home province or territory
• Be a permanent resident of Canada
• Have no bankruptcies over the past 7 years

How to apply for the Tangerine Money-Back Credit Card

You can apply for the Tangerine Money-Back Credit Card online in a matter of minutes. Here’s how it works:

1. 1 1.Visit the Tangerine Money-Back Credit Card page and click the orange ‘Apply Now’ button on the right side of your computer screen.
2. 2 2.A pop-up will appear. If you are already a Tangerine client, you can choose to log in. If you are not a client, click ‘No, sign me up’ to start the application process.
3. 3 3.Once you are in you will be presented with a disclosure statement about the Tangerine Money-Back Credit Card. Read it over and click ‘accept’ to continue.
4. 4 4.Complete the application form. You will be asked personal questions such as your name, email address, and birthdate. You will also be asked about your employment and some personal financial information. Note that you will need to know your social insurance number (SIN) to fill out this application, so make sure to have it on hand.
5. 5 5.Review and submit your application.

It usually takes between 5-14 days for your credit card to arrive by mail if you are approved.