Tangerine is a well known name in Canada when it comes to Direct Banking. They entered into the Canadian Credit Card market since the beginning of 2016 with their Money/Cash Back Credit Card. It’s been a year since they started the journey and today. Today, Tangerine is on top of Canadian, No Annual Fee Cash Back Credit Cards category. That growth was unexpected and unbelievable but, they made it. Today, they are Canadian’s one of the favourite Credit Cards. People call it just Tangerine Credit Card because Tangerine only have one Credit Card so far.
Review : Is the Tangerine Credit Card a good value?
Today’s article is to answer a question that has been asked several times in different places on the Internet which is, Is Tangerine Credit Card worth getting?
A couple of things I need to show you before I answer that question and I’m sure that it will make you understand things easier.
In order to measure the value that Tangerine Credit Card offers, first of all you need to understand;
What are the Tangerine Credit Card Benefits, Features, and Perks?
No Annual Fee: This is the coolest thing about Tangerine Credit Card that you will not be paying any fees and you will get unlimited cash back forever. You can keep your Tangerine Credit Card in your wallet as long as you are an on time payer.
Unlimited Cash Back: Like I mentioned above, you can earn unlimited cash backs with Tangerine Credit Card. The reason why I mentioned the term “unlimited”, some credit cards offer cash back in many different categories but there might be limits on cash back that you could earn.
Cash Back Rates: Tangerine offers 2% cash back on every $1 you spend in the chosen categories and 1% cash back on every $1 you spend anywhere else.
A Hidden truth
What most people don’t know about Tangerine Credit Card Cash Back Categories is that it offers 2% cash back in only 2 categories.
If you choose to redeem your cash back rewards into your Tangerine Savings account, you will get another category to choose – Total of 3 categories where you can earn 2% cash back.
That is a clear business idea that Tangerine wants you to have a Banking account too. But, you don’t have to worry, Tangerine Direct Bank accounts are absolutely free and you will get great sign-up bonuses as well.
Another thing which I for got to mention is that you can change your 2% cash back category selection any time. That means, you can do some experiments with the selection and find where you can save more.
Sign-up Bonus – Cash Back Rates:
Before, Tangerine Credit Card offered with a promotional rate of 4% cash back on the chosen category for 90 days but Currently no promotional rates are offered.
Foreign Transaction Fees: Tangerine Credit Card offers 1.5% Foreign Transaction Fee which is not that great when it is compared to the 0% fee credit cards but still, it is not bad from such a cash back credit card.
These are the benefits, features and perks offered by Tangerine Credit Card.
I know, this is not good enough to answer all your questions as I just explained what you can see on the Tangerine’s official website.
Okay, here is the real deal.
What are the Pros and Cons of Tangerine Money Back Credit Card?
This is exactly what you need to know, in order to value a Credit Card – it’s pros and cons.
Tangerine Credit Card offers 2% Cash Back on 3 different chosen categories
Of course, this is a great thing about a Cash Back Credit Card as you can choose the categories where you spend more and you want to save more as well. In the chosen categories you can earn as much as 2% that is even unlimited.
When I said unlimited, I mean it in all means. Many Credit Cards out there offer great Cash Back Rates, for a certain period and then the rates will go back to the normal rates or you can earn Cash Back within a monthly limit.
I can show you an example here.
Let’s have a look at the Simply Cash Card from AMEX® which is a competitor of Tangerine Credit Card in the No-Annual Fee Cash Back Category.
Simply Cash Card offers 5% cash back for the purchases made at Gas stations, grocery stores and restaurants in Canada for the first 6 months.
5% is a huge number when it comes to No Annual Fee Cash Back Category. But, if you look at the screenshot, you will see a hack which says “up to $250”.
That means, you will get 5% cash back for the first 6 months but you can earn only up to $250 within that 6 months – that may not be a concern as many of you might not be spending that much money.
But still, after that 6 months, your cash back rates will be as low as 1.25% and that is not the end. In a SimplyCash Card, you will not be able to make any changes to the category selection – that is where Tangerine Credit Card scores up.
In short, when you compare a Tangerine Credit Card with SimplyCash Card, you can see;
- You can earn 2% cash back on all your chosen categories, unless or until you make changes in the category selection or stop using your Tangerine Credit Card.
- You can change the selection of 2% cash back categories any time.
- There is no limits on earning cash backs – where SimplyCash offers only up to $250 for the first six months.
With Tangerine Credit Card, you can change the 2% category selection anytime you want
I know that I have already mentioned it in the above section. But still I thought, it is relevant to be considered as a main point. That way, I can give you some additional information which helps you choose your 2% categories.
2% Money-Back Categories
- Drug Store
- Recurring Bill Payments
- Home Improvement
- Public Transportation and Parking
As you can see, there is a total of 10 different categories are available and you can choose any 3 categories for 2% cash back (Only if you redeem your cash back rewards to your Tangerine Savings account, otherwise you can choose only 2 categories) which is something that no other Canadian Credit Cards offer.
Now, let me show you some hacks with your Tangerine Credit Card.
Walmart is considered as a Grocery Store, but the coolest thing is that you can get pretty much anything from Walmart, right?
Let’s think about Shoppers Drug Mart which is considered as Drug Store but you can get even grocery from some Shoppers Drug Mart Stores. Still, that purchase come under the Drug Store category.
Let me tell you what I did. I used to shop things such as milk, egg, bread and potato chips from Shoppers DrugMart and I get 2% cash Back for that.
Even if you buy some gift cards, magazines, beauty products or anything you buy form Shoppers DrugMart, you will get 2% cash back if you have chosen Drug Store category in your list.
See, this is a great way to extend the value of that 2% categories. Do some experiments and find where you can save more.
Credit Limit offered and eligibility criteria
With Tangerine you may get a Credit limit of minimum $500 and maximum $25000. But, it depends on your current income, debt-income ratio, Credit Score and outstanding lines of credit etc.
The coolest thing is that Tangerine Credit Card is also considered as an easy approval Credit Card, here is why.
Tangerine doesn’t say that it is a Student Credit Card. But, according to a study that I did, most of the students who have applied, got approval. Remember, Students without an established Credit.
No 2% category available for wholesale/Costco
This is a sad thing about Tangerine Credit Card. There is no categories allow you to earn 2% cash back from wholesale/Costco purchases. I know it is a bad news for you as most of you often shop at Costco.
But, that is only in the case of 2% cash back. You will get 1% cash back on all other eligible purchases, including wholesale/Costco etc.
Currently, Pre-Authorized automatic bill pay is not available
You can make online bill payments to Tangerine Credit Card from any Canadian Bank accounts. For that you just have to select Tangerine as a payee from the other Bank account.
But, you can setup pre-authorized auto pay options to your Tangerine Credit Card only from your Tangerine Bank accounts. I mean, you can’t setup pre-authorized auto pay from any other Bank accounts.
I’m a Tangerine Credit Card user for that last 8 months. I’m satisfied with their service and cash back rates so far.
And I can tell you this undoubtedly. Tangerine Credit Card adds more value in your life, in terms of savings from cash backs, selection of categories, etc.
If you still don’t know whether you need to get one or not, I will show you a list next.
Tangerine Credit Card is perfect, if you;
- Don’t want to pay Annual Fee for a Cash Back Credit Card.
- Already have another 1% cash back Credit Card. If you already have another Credit Card which offers 1% Cash Back, better you get a Tangerine Credit Card as it add more value to your Cash Back Savings.
- Want unlimited Cash Backs. As I mentioned somewhere above, it is a nice to have Credit Card always in your wallet as it provides an opportunity to earn unlimited cash backs with out any annual fee.
- Like to combine it with another Card that cover a different category. I have an example here, Amazon Rewards Visa Credit Card offers 2% cash back if you purchase form Amazon store and 1% anywhere else and 0% Foreign Transaction Fee which is pretty cool. These Cards could be a great combination to enhance your cash back savings.
- Are a Student who have no established Credit.
- Like Monthly Cash Back to your Savings account.
Feel Free to comment any questions or feedbacks.