Tangerine Money-Back Credit Card Review 2021
You may have heard of Tangerine as the official bank of the Toronto Raptors. In fact, during the 2020 season, the digital bank gave Canadians a chance to win $200 if they opened a new account within 24 hours of any Raptors win.
Previously known as ING Direct, Tangerine’s made its name as a pioneer of branchless, online banking. It’s an ideal banking option if you spend a lot of time online or haven’t physically stepped inside a bank branch since you were a kid.
But whether or not the Raptors claimed yet another a victory, opening an account with Tangerine is a great idea.
In short, they’re a no-fee banking service that exists entirely online. They offer almost every financial product that a major bank does, including an impeccable credit card line featuring one of the best credit cards in Canada: the Tangerine Money-Back Credit Card.
In this Wealth Rocket review of Tangerine’s Money-Back credit card, we’ll fervently access that same digital banking footprint to help millennial cardholders save when they spend.
A review of the Tangerine Money-Back Credit Card for 2021
The Tangerine Money-Back Credit Card is a credit card with no annual fees while paying you to use it.
The Tangerine Money-Back Credit Card gives customers a 2% cash back for two out of ten possible spending categories.
These purchase categories can include home improvement, entertainment, groceries, gas, restaurants, furniture, recurring bill payments, and more.
There is an additional 0.50% cash back on top of the 2% on all purchases outside of eligible categories.
There’s no limit to the amount of cash back you’re eligible for, and you can either redeem it as a statement credit or as money that goes into a Tangerine savings account.
If you choose the savings account option, you get to pick a third spending category to give you an additional 2% cash back.
All of that could spell out a total of 6% of cash back on the three main areas where you spend most of your money anyway.
The Tangerine Money-Back Credit Card, which helps you save when you spend, also helps you track your spending by showing you exactly where your money is going and how much you have left to spend at the end of each month.
It’s a perfect feature in an environment where it’s so easy to spend money with a simple tap, swipe, or click and lose track of your disposable income.
This is not the only way the Tangerine Money-Back Credit Card embraces technology to make your financial life easier.
The cash back credit card is also compatible with leading mobile wallets, including Google Pay, Samsung Pay, and Apple Pay.
Finally, the Tangerine Money-Back Credit Card is great if you already carry a little credit card debt. That’s because it carries a low promotional interest rate on balance transfers of 1.95% in the first six months, allowing cardholders to pay down their debt at a much lower interest rate as soon as they open the account.
Hopefully, that will help you clear the decks or at least put a big dent in your outstanding balance before the balance transfer interest rate reverts to the more standard annual interest rate of 19.95%.
How the Tangerine Money-Back Credit Card works
As far as the Tangerine Money-Back Credit Card goes, cash back is awarded automatically and paid out monthly.
You can choose to put it toward your credit card account for the month or into a new or existing Tangerine Savings Account when you open your credit card account.
If you change your mind, update your money back destination on your account.
To reiterate, you get 2% cash back rewards in two spending categories of your choosing (three if you redeem your cash back into a Tangerine Savings Account) and 0.50% cash back on all other purchases.
Be aware that missing two consecutive minimum payments cancels your cash back eligibility until your account is in good standing.
If you’re getting this credit card for the promotional balance transfer rate of 1.95% for the first six months, know that to qualify, you must transfer the balance in the first 30 days, and the balance transfer fee is 3% of the balance transferred. After the first six months, interest on balance transfers reverts to 19.95% annually, equal to the card’s annual interest rate on both purchases and cash advances.
Meanwhile, download the Tangerine app, and you’ll be able to track and categorize your expenses on the card. Just confirm your monthly income, input your fixed expenses like bills and car payments, tell the app how much you’d like to save every month and it will use the information you provide along with your credit card transactions to tell you how much you have left to spend each month.
Other key features on this card include purchase insurance, which covers you against theft or damage on most new purchases for up to 90 days at up to $60,000.
The card also comes with an extended warranty that extends a manufacturer’s warranty to a maximum of one year. It’s also important to note that unlike other credit cards on the market, there are no fees for adding additional credit cards to the account. Of course, that does not mean any fees at all. You will find a $25 fee for dishonored payments, a rush card, and when you creep over your limit.
Cash advances cost $3.00 in Canada and $5.00 outside of Canada, in addition to the 19.95% interest rate.
If you happen to make a purchase outside of Canada, you will pay a 2.5% foreign currency conversion fee on top of the exchange rate.
Tangerine Pros & Cons
Fortunately for Tangerine customers, the advantages of the Tangerine Money-Back credit card far outweight its drawbacks. Learn more about the pros and cons of the Tangerine Money-Back credit card below.
Pros: The Good Stuff
No limit to the amount of cash back you can collect
Cash back can be redeemed toward your monthly statement or invested in a Tangerine Savings Account
The Tangerine app uses your Money-Back Credit Card data to track and categorize your spending, telling you how much you have left to spend at the end of each month
You can choose two 2% cash back categories that best fit your spending
You get a third 2% cash back spending category when the cash back you earn is put into a Tangerine Savings Account
No annual fee
1.95% interest on balance transfers for the first six months
$60,000 in purchase protection on new purchases for the first 90 days
An extended warranty for one year on new purchases
No cost to any additional Tangerine card or credit cards on the account
Mobile wallet compatible
Cons: The Not So Good Stuff
The most cash back one can collect on any given spending category is 2%
Only 0.50% cash back can be collected on all other purchases
Cash back cannot be given as cash or cheques
Regular interest rates on purchases, cash advances and balance transfers are no less than standards
Purchase protection is only available for the first 90 days of purchase and only totals $60,000
Extended warranty only extends the manufacturer’s warranty for a years
Card offers a relatively small number of benefits
Our final thoughts
The Tangerine Money-Back Credit Card is a great starter card, especially since it comes with no annual fee, or if you want to perform a balance transfer and pay it off quickly.
The card's use of technology to make tracking spending easier is a huge plus. The cash back offers are competitive and comes with the ability to save it. However, the 2% maximum earn rate is very modest and not market competitive.
Frequently Asked Questions
Well, outside of a drink coaster, throwing star, or bookmark, you can use the Tangerine Money-Back card to buy whatever your little heart (and your credit limit) desires. Seriously though, we recommend using the card for those things you buy most that fit within those eligible purchase categories that give you 2% money back.
All Wealthsimple products guide new investors through the entire process. While this primarily pertains to their robo-advisor, Wealthsimple Invest takes care of portfolio building and management.
Yes. Many of the purchase categories are eligible for 2% cash back, already fit into a student’s lifestyle.
With no annual fee, an average purchase interest rate, and an incentive to put the money you get back into a savings account, it is a good starter card for those using credit for the first time.
Additionally, its ability to track spending and its compatibility with leading mobile wallets is something that can benefit any student.
You can apply for a Tangerine credit card online. However, you will need to be the age of majority in your province or territory, a Canadian resident and a minimum annual income requirement of $12,0000.