Best Credit Cards in Canada for Moving Expenses
Moving is a lot more expensive than most people think. It’s not just the actual move that costs money. During the months before and even after the move, there are a lot of moving-related expenses that have to be taken into consideration.
Using the right credit cards is a crucial step in managing your finances while moving. Why? Because you will be spending a lot of money in a short period of time, might as well make the most of it! There are two kinds of credit cards that are very valuable for a move. The first kind is the credit cards with high cash back rewards to help you make the most out of each purchase. The second kind is the store credit cards from establishments selling moving-related merchandise, like Home Depot, Canadian Tire or The Bay.
MovingWaldo’s list of the best credit cards to use when moving.
Benefits of Using High Cash Back Credit Cards
Cash back credit cards essentially let you earn some money for every purchase that you make with the card. In order words, they give you rebates that accumulate on your credit card statement until you decide to redeem them. Some companies also convert the rewards into cash and credit these into your bank account, typically at the end of each monthly cycle.
In general, cash back credit cards can be highly beneficial. But different cards come with different reward systems. Some offer higher cash back percentages on certain types of purchases. Some have fixed rates of rebates, which usually range from 1-3% of the purchase amount. A few cards will give you back as high as 5-6% of the value of a transaction. Because of the wide variety of cash back offers, you really have to shop very carefully in order to find the most lucrative option.
What to Look for in Cash Back Credit Cards
When shopping for cash back credit cards, there are several things you need to take into consideration. As mentioned, these cards have varying cash back percentages and also come with different eligible categories. There are also those that offer special welcome offers that you have to examine closely especially if you are planning to use your cash back card for your impending move.
Cash Back Percentage
This is the percentage of the purchase amount that the card provider will give back to as rebates. Percentages usually fall within the 1-3% range. If you find a cash back credit card that offers higher rates of return, then those are certainly worth considering. Some cards can give back as much as 5 or 6% for regular purchases. However, these cards typically have stricter requirements, like higher credit rating or higher income.
Not all purchases are always eligible for cash backs. Sometimes, only specific products or categories count towards the rewards. Some categories may also give higher rates of cash backs than others. In the context of moving, you would want to find a card that gives considerable returns for moving-related purchases like renovation or hardware supplies. Cards that give higher grocery cash backs are certainly useful as well but may not be the best choice if you are looking for a credit card to use with your move.
Many credit card providers offer special cash back percentages during the first few months. This is a great way to entice new cardholders to sign up, and it is also a great way for you to save even more money on your moving expenses. A huge bulk of the spending on a new house happens within the few months before and after a move. Thus you should find credit cards that have lucrative welcome offers and time your application such that the validity of the offers would align with the schedule of your relocation.
Best Cash Back Credit Cards for Moving
In Canada, cash back credit cards are now very popular and many of them offer attractive terms. Here are some of the best options that can help you make the most of your moving expenses.
The Scotiabank Momentum Visa Infinite Card is very popular among Canadians and has received the most awards in 2020. It has also been named the Best Cashback Card with a fee by MoneySense in 2019.
The annual fee is $120, with the first year’s fee automatically waived, including the first year’s fee on supplementary cards. There is a welcome offer value of $350, plus you can earn an extra 10% cash back on all your purchases for the first 3 months. This applies for purchases not exceeding $2000. This credit card is a great choice to get 10% off your movers bill, for example.
In order to qualify for this card, you should have a minimum annual income of $60,000 or the minimum household income of $100,000 or a minimum assets under management of $250,000.
Cash-back per moving expense
- Groceries and recurring payments – 4% for every 1$
- Gas and daily transit – 2% for every 1$
- Other expenses – 1%
Why should I choose the Scotiabank Momentum Visa Infinite credit card?
If you are moving within the next 3 months, applying for a Scotiabank Momentum Visa Infinite would be perfect because of the 10% cash back that you can get on all your purchases for the first 3 months. You will surely incur a lot of expenses during the actual move and in the few weeks before and after, and the 10% cash back will give you considerable savings in time.
In addition to its competitive cash back rates, the Scotiabank Momentum Visa Infinite also comes with comprehensive travel insurance. You can also enjoy one-of-a-kind dining and entertainment experiences with the exclusive perks that come with owning this card.
One of the standout benefits of the Desjardins Cash Back Visa Card is that it has no annual fees. Supplementary cards are also available for free. When it comes to cash back rewards, the rates are rather low at only 1% for recurring payments and 0.5% for everything else. Also, it will only earn you rewards for contactless payments and preauthorized payments of bills for service providers. This is interesting if you plan to upgrade your internet or home security plan at your new home. However, they do have a competitive annual interest rate at only 19.90% as compared to the usual 20% of other cards.
Cash-back per moving expense
- Recurring payments – 1%
- Groceries – 0.5%
- Transportation, gas, storage – 0.5%
- Hardware, painting, renovation – 0.5%
- Furniture, home décor, appliances – 0.5%
Why should I choose the Desjardins Cash Back Visa credit card?
Although the cash back rewards are not that promising, Desjardins Cash Back Visa card is a very useful financial tool for recurring payments because there are no annual fees. It is suggested that you use this card for the recurring fees and another card for your other purchases.
Desjardins Cash Back Visa is the only card that lets you purchase a new mobile device on instalments with no interest on the monthly fees. Also, the card will give you a mobile device insurance for purchase values of up to $1000.
This cash back reward is very useful for travel as it gives you free travel insurance for the first three days of your vacation. This is inclusive of trip cancellation or interruption, baggage insurance, emergency medical insurance and others. You can also enjoy up to 10% discount when you rent a Hertz car, plus you get free travel assistance at any time.
The redemption of rewards from the Desjardins Cash Back Visa card is very convenient because they automatically deposit your earned cash into the primary cardholder’s bank account. This transfer is done for every time you earn $25 in cash back rewards.
Compared to other credit cards, the Tangerine Money-Back Credit Card has no limit on the money you can earn back with each purchase that you make, and you don’t even have to pay an annual fee.
The regular cash back rate is 2% for your daily purchases in 2 eligible categories, which you will select. All other purchases from other categories will give you a 0.50% in rebates. If you choose to have your accumulated rewards deposited into your Tangerine savings account, you can choose a third category from which you will also earn 2% cash back.
Cash-back per moving expense
- Purchases in 2 categories – 2%
- The categories are : Grocery, Furniture, Restaurants, Hotel-Motel, Gas, Recurring Bill Payments, Drug Store, Home Improvement, Entertainment, Public Transportation and Parking.
- For moving purposes, we recommend choosing the Furniture or Home Improvement category if you are planning on doing renovations and/or buying new furniture for your new home.
- Purchases in all other categories – 0.05%
Why should I choose the Tangerine Money-Back credit card?
This card is great for when you are moving because you can control which categories you can get the 2% cash back from. If you pick home improvement and furniture, for instance, that would essentially give you a 2% savings from all your purchases in those categories, which can add up to a substantial amount.
TD Cash Back Visa Infinite Card is a premium credit card that will give you up to 3% in cash back from various purchases. It is considered one of the best Canadian credit cards for basics like gas, groceries, and recurring bill payments.
There is a $120 annual fee that is automatically waived for the first year. In addition to the decent 3% in rewards, the TD Cash Back Visa Infinite card also entitles the holder to free roadside assistance and travel insurance benefits which is great if you are moving long distance.
During the first 3 months, the cash back percentage is a substantial 10% for up to a total of $2000. This already adds up to a whopping $200 savings during the first 3 months, which you can take advantage of for making your moving-related purchases.
In order to qualify for this card, your annual income should be at least $60,000 or your combined annual household income should be at least $100,000.
Cash-back per moving expense
- Groceries – 3%
- Recurring bills – 3%
- Transportation, gas, storage – 1%
- Hardware, painting, renovation – 1%
- Furniture, home décor, appliances – 1%
- All other purchases – 1%
Why should I choose the TD Cash Back Visa Infinite credit card?
The welcome offer alone is already an appealing feature of this card, and the regular 3% just makes it even more attractive. In addition to the cash back offers, the TD Cash Back Visa Infinite card also comes with the complimentary Visa Infinite concierge service, as well as car rental insurance for up to 48 consecutive days.
The BMO Cash Back Mastercard is another great card that lets you rack up your savings even while you spend. There is no annual fee, also you can earn back up to 5% of all your purchases on the card during the first 3 months.
The BMO Cash Back Mastercard is very practical for shopping for groceries because it gives a 3% cash back for grocery purchases. For recurring bill payments, the rate of return is 1% and for all other purchases, the cash back is at 0.05%.
Cash-back per moving expense
- Groceries – 3%
- Recurring bill payments – 1%
- Transportation, gas, storage – 0.05%
- Hardware, painting, renovation – 0.05%
- Furniture, home décor, appliances – 0.05%
- Other expenses – 0.05%
Why should I choose the BMO Cash Back Mastercard credit card?
The BMO Cash Back Mastercard would be a big financial help during your move because of the good cash back rates that it gives. Redemption is also very fast as you don’t need to wait for your points to build up. As soon as you earn $1 in rewards, you can spend it right away. Of course, you can also let the rewards accumulate, in which case you have the option of having it deposited to your bank account when it reaches a certain amount.
Best Store Credit Cards for Moving
For the purpose of moving, the best store credit cards are those that sell items or services that you will need for your move, like furniture stores, appliance stores, hardware stores, home decor shops, transportation, gas and storage services. If you are planning to move, you might want to consider getting store credit cards from the following establishments.
Benefits of Using Store Credit Cards
Using store credit cards, on top of your regular major credit cards, has a lot of advantages. For starters, they give you access to several discounts exclusive to the cardholder. These discounts can be significant, sometimes amounting to as much as 50% off on regular prices. Other times, the discounts may just be a lure to get customers to sign up for the card in the first place. You have to be very selective in choosing the store credit cards you sign up for.
For the purpose of moving, the best store credit cards are those that sell items or services that you will need for your move. Furniture stores, appliance stores, hardware stores, home décor shops, transportation, gas and storage services are some of the common stores you will frequent around the time of your move, so it would be wise to get store credit cards from these establishments.
Canadian Tire sells a lot of home items, moving supplies as well as car accessories and equipment. There are several items here that you might need for your move so getting the Canadian Tire Triangle Credit Card is very practical.
There is no annual fee and as a welcome offer, you have the chance to earn as much as 15% of your purchase value in certain affiliated stores, such as Atmosphere, Canadian Tire, Sport Chek and many more during the first months. The interest rate is 19,99-27.99% depending on your income level.
Regular earn rates are 4% for affiliated stores, 1.5% on the first $120,000 of groceries you buy for each year except from Walmart and Costco, $0.05 for every litre of gas you buy at Gas+ and certain Husky gas stations, and 0.5% on other establishments, which makes this credit card interesting if you plan to hit the road for a cross country move in Canada.
The Home Depot is the go-to establishment for practically anything you need for the house. Chances are that you will drop by this store for a visit more than just a couple of times as you prepare for your move and after you settle in your new home.
The Home Depot Consumer Credit Card is a store credit card that offers special financing on purchases of at least $299. For items worth $5000 or more, financing can be up to 24 months, which will certainly give you a lot of breathing room in the midst of all the expenses during your move or home renovation.
There is no annual fee on the Home Depot Consumer Credit Card. The APR on this card ranges from 17.99% to 26.99%. It is issued by Citibank and comes with a few flexible options when it comes to financing.
We all know that prices at Walmart are already very budget-friendly but you can make your spending at Walmart even more practical by applying for the Walmart Rewards World Mastercard.
When you shop online at Walmart.ca you get to earn 3% back for every purchase. The cash back percentage at their actual stores is lower at 1.25%. In addition, this card also gets you 1.25% back when you purchase gas from any gas station. All other purchases from any other store will give you a 1% cash back. As for interest rate, it ranges between 19.89-25.99% depending if you are approved for the Prefered Rate Card* or have the Standard Rate Card.
*Not available for Quebec residents
One of the great things with the Walmart card is the quick payback. As soon as you have $5 in cash back rewards, you can already spend the money.
Online shopping is really the way to do things right now. For this reason, you can definitely maximize the use of the Amazon.ca Rewards Mastercard. All Amazon purchases can earn points with this card, with Prime members earning more at 2.5% and regular members at 1.5%.
The rewards that you accumulate on your Amazon card are automatically added to your account every time you build up 2,000 points, which is equal to $20. As with other store credit cards, the Amazon card has no annual fee. For their welcome offer, you can earn as much as $150 during the first 6 months from the 5% cash back that they give for all purchases from Amazon.ca, Whole Foods Stores, grocery stores and restaurants. The interest rate for Purchases is 19.99% and 20.99% for Balance Transfer & Access Cheques.
PC Financial World Elite MasterCard is considered by many to be the best credit card for groceries in Canada that does not come with any fees. You accumulate points quickly with this card especially when you shop at No Frills, Fortinos, Superstore and any of the other Loblaws banner stores. It also gives you more points when you gas up at Mobil and Esso.
In order to qualify for this card, you need to be earning at least $80,000 or your combined household income should be at least $150,000 annually. The standard interest rate for Purchases is 20.97% and 22.97% for Cash Advance (Quebec – 21.97%). The earn rate is 30 points per $1 at the Loblaws stores and Esso, 45 points per $1 at Shoppers Drug Mart, and a decent 10 points for every dollar at the other partner establishments. Even though grocery is not a moving related expense, all Loblaws stores sell cleaning supplies and other conveniences that you might need before or after a move. It is convenient too since Loblaws have stores available in every Canadian neighborhood.
At first, you might be hesitant to sign up for yet another credit card on top of your existing cards, and just when the bills and expenses from moving are starting to accumulate. After all, this is going to be another bill that you will have to pay. But when you consider the benefits of both cash back credit cards and store credit cards, it is easy to see that they can indeed be very beneficial if you choose the right ones and if you use them in the right way. Before you make any purchases with regards to your move, do make sure that you have a few cash back cards and store credit cards as these will help you save money in the end.
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