The Scotia Momentum Visa Infinite has been one of the best cash back credit card available to Canadians for the past couple of years after the MBNA Smart Cash was slightly devalued, but there were two big things stopping many Canadians, including myself, from applying for one.
- The $99 annual fee.
- No sign up bonus for applying, so why switch?
For the first time ever, and for a limited time, both of those things have changed! The $99 annual fee has been waived for the first year AND RateSupermarket has teamed up with Scotiabank to offer a $100 gift card of your choice to one of over 50 popular Canadian retailers for applying and being approved (gift card offer ended).
Why It's One Of The Best Cash Back Cards In Canada
It's all in the numbers. This card from Scotia offers 4% cash back on gas and groceries and gives you 2% cash back on drug store purchases and recurring bills. Then you earn 1% cash back on all other purchases with no spending caps or limits on that 1% at all. There are no tiers or other nonsense to deal with either.
This card is the only card that I know of to offer any sort of bonus for recurring bill payments like phone bills, utility bills, insurance, gym membership, subscriptions, etc. Essentially anything that is charged to your card on a monthly basis. This is a huge perk that no other card can compete with.
The only minor downside to the card that I can think of is there is a very reasonable spending cap of $25,000 on both the 4% and 2% bonus categories for a combined total of $50,000 in spending across those two categories. I don't know many people who spend $25,000 on gas and groceries and another $25,000 on drug store and recurring bill payments. If you do, you're definitely not an average Canadian!
Scotia Momentum Visa Infinite vs. MBNA Smart Cash MasterCard
One of its competitors is the MBNA Smart Cash World MasterCard that offers 2% cash back on gas and groceries and 1% cash back on all other purchases after the initial 5% bonus on gas and groceries for 6 months has expired (this is the Smart Cash sign up bonus). However, the big drawback with MBNA is that there is now a $400 per month spending cap on the gas and groceries bonus equating to only $4800 in spending that qualifies for the 2% bonus per year, which is pretty low. There's also a $1250 monthly spending cap on regular purchases that don't qualify for a bonus.
So not only do you earn twice as much with the Momentum Visa at 4%, you can earn the full 4% on up to $25,000 in spending instead of $4800. Quite a difference. Even without the $99 annual fee being waived for the first year, it still usually makes more financial sense for most people to choose the Momentum over the Smart Cash.
Example Of The Cash Back Potential
When I do credit card comparisons, I like to run examples that involve $25,000 in annual spending applied to the card. The reason I choose this number is because I feel that it is a number that most middle income families in Canada can easily achieve if they funnel all their purchases and expenses through the card. It isn't that hard when you use one primary credit card for everything you buy.
The other parameters I usually apply are 30% of the annual spending allocated to the gas and grocery bonus category and, for this card, I'm going to say that 20% of the spending would go towards recurring bills and drug store purchases. Those percentages could in reality be even higher, but I think they are fair enough estimates to give a decent picture of cash back earning potential.
|Spending Category||Annual spending||Momentum Visa Cash Back||Smart Cash MasterCard Cash Back|
|Gas & Groceries||$7500||$300||$123 (over cap)|
|Drugstore & Recurring Bills||$5000||$100||$50|
|Other Purchases||$12,500||$125||$73 (over cap)|
So you can see the Momentum is the clear winner with $279 more cash back earned every year . Even if you account for the $99 annual fee from year 2 onward you're still $180 ahead each year. Also, $7500 isn't actually that much in terms of gas and groceries. It equates to about $310 per month if it is split evenly across both gas and groceries. Many families would spend much more than that in both categories, so the cash back numbers get significantly better for the Momentum Visa if that is the case.
How To Get Your First Year Annual Fee Waived
All you have to do is click over to the offer page here:
You will be directed to Scotiabank's website to complete the credit card application.
After you finish your application, you should be approved either immediately or a short while after you apply and you will receive your new card in the mail within a few weeks. It's that simple.
What If I Don't Meet the Minimum Income Requirements?
Some people see the minimum income requirements of an Infinite card and are turned off from applying because of that. These requirements are more guidelines that hard lines in the sand from my experience. I've actually applied and been approved for several cards where I didn't meet the minimum income requirements.
They look at more than your income when determining if they will approve you and as long as your credit rating is good and you have a decent income, there shouldn't be a problem. Be sure to include any and all income from all sources when you fill out the income field. You usually are encouraged to specify your entire household income, not just your personal income as well.
Who Is RateSupermarket?
RateSupermarket is a Canadian company that advises Canadians on how to get the best rates on their financial products by quickly comparing all the available products on the market side by side.
I've had lots of dealings with them personally and met several people from their team at the Canadian Personal Finance Bloggers Conference last year. They're doing a great job educating consumers on their choices and helping them make better financial decisions.
Is The $100 Gift Card Legitimate?
Yes, it is. I've taken advantage of similar RateSupermarket offers in the past along with my wife and my father and we've all received our $100 gift cards just fine. I've also had many readers take advantage of these promos too and I only ever had one complaint which we were able to resolve.
For that one issue, I think there was a problem with the application process not being done 100% correctly so that the gift card didn't register. After contacting RateSupermarket about the problem, we were able to get the gift card delivered in the end plus and small extra bonus because of the trouble this person encountered in receiving it.
What Are Some Example Stores For The Gift Card?
There are over 50 to choose from, so I won't list them all, but some popular choices are as follows:
- Home Depot
- Home Hardware
- Best Buy
- Toys R Us
- Old Navy
- Boston Pizza
- The Keg
Let Me Know In The Comments If You Go For It
If I hadn't just signed up for the American Express Platinum card a little while ago , I would be all over this deal like white on rice (yes, I just used that old tired joke!). The only thing that has held me back in the past was the annual fee and the fact that I already have a 2% cash back credit card with no annual fee that is no longer available for new applications. I am grandfathered in.