In big cities across North America, renting has become the norm as the price of real estate continues to rise. Luckily, with services such as RentMoola, you can earn rewards for your rental payments. Paying your rent via credit card not only gives you the opportunity to save with MoolaPerks, but also to earn some serious cash back with the right credit card.
Choosing the right cash-back credit card is critical to maximizing your rewards. When looking for the right card, there are a few things to keep in mind. First, understanding the eligibility requirements will increase your chances of getting approved. Many cards have minimum income and credit score requirements, so make sure you only apply for cards you know you qualify for. Otherwise, your credit score can be negatively impacted if you are declined. Second, understanding your spending habits will go a long way to making sure you find a card that best fits your needs. To start, you need to make sure that you can justify paying an annual fee if you’re looking at a premium card. Second, many cards will offer more cash back on certain purchases, such as 4% back on gas, groceries, entertainment and restaurants and 1% back on everything else. Therefore, it’s important to understand how you spend your money so that you can maximize your rewards with the card that best fits your spending patterns. For example, if you’re only using your credit card for online shopping and rental payments, your card choice will be very different from someone who uses it for groceries and restaurants.
One or two per cent doesn’t sound like a lot, but paying rent every month using the right credit card can add up to serious rewards. For example, the average monthly rent for a one-bedroom condo in Vancouver is $1,900. In Toronto, it’s $1,620. One of the best cash-back credit cards in Canada is the SimplyCash Preferred card from American Express, giving you 2% cash back on everything. As a welcome bonus, you’ll get 5% cash back for the first six months (up to $6,000 in purchases). In the first year, this card would net you $537 in cash back living in Vancouver, and $469.80 cash back living in Toronto.
If you prefer a no fee cash-back card, the Tangerine Money-Back Credit Card is a great choice. Assuming your rent is set as a recurring bill payment, you would net $456 in Vancouver and $388.80 in Toronto. These rewards assume that the only thing you are putting on your credit card is rent. If we add a typical spending profile, you would earn an additional $360 with the SimplyCash Preferred card for a total of $829.80 in Toronto and $897 in Vancouver. With the Tangerine Money-Back Credit Card, you would get an additional $304 for a total of $692.80 in Toronto and $760 in Vancouver.
By combining a powerful cash-back credit card with RentMoola, you can earn two weeks of free rent every year on spending you already do. Although 1% or 2% may not seem like a lot, with the right credit card and RentMoola, you can earn back some serious cash. Happy earning!