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Performance test results

At DollarWise, for each credit card we test 7 different factors including the rewards, value for money, perks, insurance, strengths and weaknesses of the card.

You can see our full testing methodology here to learn why we're the most trusted source for credit card reviews.

The {{card.name}} has earned a {{ranking}} DollarWise Rating out of 5. This score is based on a weighted average of the two highest scoring factors (excluding acceptance and approval).

The highest scoring categories for the {{card.name}} are {{score_1}} and {{score_2}}.

These factors are weighted 70% to the highest scoring factor and 30% to the second highest score to get an overall review score.

This weighting allows us to judge cards on their merits and the customers they are designed for.

For the {{card.name}} the most important factors for scoring this card are its {{score_1}} and {{score_2}}.

Rewards

With the {{card.name}}, here's the rates at which you earn rewards for different spending categories per dollar you spend:

Calculating your annual rewards

We estimate that spending {{monthlyspend}} per month with the {{card.name}} would earn {{card.rewards}} in rewards over the year.

Our performance testing research uses an accurate estimation of the average Canadian households spending patterns to predict the rewards a card will earn.

We found that you'd earn this per category:

Our study investigating the value found that each dollar spent on the {{card.name}} is worth up to {{card.max_reward}}, depending on how you redeem.

This {{card.rewards}} in rewards value puts the {{card.name}} in the {{decile.annual_rewards}} of credit cards in Canada based on rewards earned.

The average credit card in our database earns {{averages.mean_annual_rewards}} in rewards for the same spend that the {{card.name}} earns {{card.rewards}} in rewards value.

We can compare this card to other options by looking at the earn rate by category.

This earn rate is the percentage return that you would get when you spend on this card, assuming you redeem at the predicted maximum value.

For example, if a card earned 5 points per dollar on gas and each point is worth up to $0.02, then the earn rate is 5 points multiplied by $0.02 each, divided by the dollar you spent.

In this example, that's a 10% earn rate on gas.

For an annual spend of {{annualspend}}, we estimated annual rewards value at up to {{total_net_rewards}}.

That's equivalent to a {{total_earn_rate}} return on spending.

The {{card.name}} has an annual fee of {{card.annualFee}}. After deducting this, we predicted net annual rewards of {{net_after_fee}}.

This puts it in the {{decile.net_annual_rewards}} of credit cards for net rewards after fees.

In comparison, the average card earns net annual rewards of {{averages.mean_net_annual_rewards}}.

Fees

The {{card.name}} has a {{card.annualFee}} annual fee.

The average card charges {{averages.mean_annual_fee}}. So, the {{card.name}} is in the {{decile.annual_fee}} of cards based on the cost of the annual fee.

Perks

We manually review the perks of each credit card to determine how they compare to other cards.

The {{card.name}} scored a {{factor_score_perks}} out of 5 for perks, putting it in the {{decile.factor_score_perks}} of cards.

The average card scores {{averages.mean_factor_score_perks}} out of 5 for perks.

Interest Rates

The average (median) credit card has a purchase interest rate of {{averages.median_purchase_interest_rate}} and so the {{card.name}} charges {{purchase_interest_diff}} than the average.

For cash advances it costs {{cash_advance_interest_rate}}% compared to the average of {{averages.mean_cash_advance_interest_rate}}.

Testing the {{card.name}} with a $2,000 starting balance, you can see in the graph how the {{purchase_interest_diff}} in interest rates impacts the interest over a year, compared to the average card.

Insurance coverage

We scored it {{factor_score_insurance}} out of 5 for insurance.

It offers {{insurance_count}} types of insurance, whereas the average card has {{averages.insurance_count}} types of coverage.

Approval and qualifying

We scored it {{factor_score_approval}} out of 5 for approval.

We predict that you will require a credit score of at least {{credit_score_low}} to qualify for the {{card.name}}, while the average card requires {{averages.mean_credit_score_low}} to qualify.

This puts it in the top {{decile.credit_score_low}} of cards by approval difficulty.

The personal income requirements are {{personal_income}}, while the average card requires {{averages.mean_personal_income}}.

This puts it in the {{decile.personal_income}} of cards by the income required to qualify.

The BMO Cashback MasterCard is a popular credit card choice among those looking to earn cash back on their everyday purchases. In this review, we will analyze the earning potential of this card, detail four notable benefits, and discuss two major drawbacks that consumers should consider before applying.

Finally, we will provide additional information to give a comprehensive outlook on the card.

Earning potential

The BMO Cashback MasterCard allows cardholders to earn unlimited cash back on every purchase with no cap on the total amount earned. The reward rates for different spending categories are as follows:

• 3% cash back on grocery purchases





• 1% cash back on recurring bill payments





• 0.5% cash back on all other purchases

Benefits

1. Simplicity in Rewards: The first major advantage of this card is its simplicity, as cardholders will not have to deal with a complicated rewards program or carefully track their spending in specific categories.





2. High Grocery Cash Back: The second advantage is the impressive 3% cash back rate on groceries, which is one of the highest in the Canadian market for this category and a major selling point for families or individuals who frequently cook at home.





3. No Annual Fee: The third advantage is that there is no annual fee for the card, making it suitable for individuals who prefer not to pay for a credit card membership.





4. Global Acceptance: The fourth advantage is the card’s wide acceptability, as it can be used anywhere MasterCard is accepted – making it ideal for both domestic and international purchases.

Drawbacks

1. Low Non-category Cash Back: A significant drawback of this card is the relatively low 0.5% cash back rate for purchases outside of grocery and recurring bills. Those with diverse spending habits may not be able to maximize their cash back rewards within these limited categories.





2. Limited Card Perks: Another drawback is the lack of additional perks, such as travel benefits or extended warranty coverage, which are commonly offered by other cash back cards with annual fees.

Additional information

The BMO Cashback MasterCard offers new applicants a welcome bonus of 5% cash back in the first three months, up to a maximum of $100. Cardholders will also have access to basic security features such as purchase protection and zero liability for unauthorized use.

In conclusion, the BMO Cashback MasterCard is a solid choice for those who prioritize earnings on grocery purchases and prefer a simple, no-annual-fee card. However, individuals with varied spending habits or those seeking additional card perks may want to explore other options within the Canadian credit card market.

Not the right fit? You could consider the BMO Preferred Rate MasterCard. Or, if you’re looking for other options check out the BMO Rewards MasterCard, and the BMO Cashback World Elite MasterCard.

FAQ

Key benefits

• Issued by Bank of Montreal (BMO)





• MasterCard network





• Credit limit determined by income and credit score





• $0 annual fee





• Interest rate: 19.99% on purchases





• Cash advance rate: 22.99%





• Balance transfer rate: 22.99%





• Grace period: 21 days





• Automatic cashback redemption every January





• Card customization options available





• Contactless payment (tap-and-go) enabled