--> --> Category Vs. Flat Rate Cash Back Credit Cards: Which Is Better? | creditcardGenius --> --> -->   App Exclusive: $150 GeniusCash on a card with unreal cash back! Download Now × 5 Hello! Sign In $150 Cash Back Compare Credit Cards Compare Credit Cards Compare Credit Cards Find Your Credit Card Quick Compare Top Credit Card Deals No Fee First Year Free Credit Card Quiz By Type Rewards Low Interest Balance Transfer Business Student Prepaid By Rewards Cash Back Travel Air Miles Aeroplan Store Grocery Reviews American Express Cobalt: Award-Winning. Limit-Pushing. Unmatched. BMO Ascend World Elite: Travel Rewards Reach New High American Express Gold Rewards: Your Ticket to Luxury TD® Aeroplan® Visa Infinite: Your Best Card for Air Canada Perks MBNA Rewards World Elite: Canada's Best Kept Secret BMO AIR MILES®† Mastercard: Groceries today. Getaways tomorrow. GeniusCash credit cards = more cash in your pocket! 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When it comes to earning cash back , is it better to get bonus rewards (based on your specific spending habits), or… …get a steady stream of cash no matter where you spend? The best flat rate cash back credit card in Canada: Brim World Elite Mastercard Learn More This rule of thumb can help you decide when a flat rate cash back card will earn you more ‒ or if a category cash back card is better. In this article What is flat rate cash back General rule of thumb when a flat rate card is better Ways to determine when a flat rate card is better Best flat rate cash back cards Never miss an amazing deal again + get our bonus 250+ page eBook for FREE . Join 50,000 other Canadians who receive our weekly newsletter – learn more . What is flat rate cash back? A flat rate cash back card gives you one earn rate for every purchase you make. There are no categories to consider or play around with. They’re straightforward cards – no matter where you shop, you’ll know how much you’re earning. Flat rate vs. category cash backs So where are flat rate cards better than ones with categories? Overall, here are a few times when having a flat rate card may be better for you: you don’t frequently shop at traditional grocery stores like Sobeys or Loblaws, your gas purchases are relatively small, you’re a big online shopper , or your spending is varied overall (no 2 or 3 basic categories dominate your spending). If any of these scenarios sound like you, a flat rate card may actually earn you more rewards. Category cash back cards In contrast to flat rate cards, what are category cards? Category cards give you bonus rewards on certain categories, such as gas or groceries. These categories generally have higher earn rate than what a flat rate card provides. However, any purchases outside of those categories will have a lower earn rate. So, if 2 or 3 categories tend to dominate your spending, you’ll see more rewards as those purchases will have a higher earn rate than a flat rate cash back card, even though you’ll be earning a lower rate on every other purchase. Flat rate cards with tiers One thing to keep in mind with flat rate cards is that some of them have different overall spending tiers. That means after you spend a certain amount per year, the flat rate you’re earning will change, and can go either up or down. Most flat rate cards don’t have tiers, but there are some out there you should be aware of. An example of a tiered card is the Brim World Elite Mastercard. On your first $25,000 in annual spend, you’ll earn 2% back on every purchase. Then once you’ve hit $25K in annual spend, you’ll only be earning 1% back on all purchases. There’s also one extreme example of a tiered card with the Canadian Tire Cash Advantage Mastercard. It advertises up to 1.5% cash back on your purchases, but it’s a long road to getting to that earn rate every year: 0.25% cash back on your first $2,500 in purchases, 0.5% cash back on your next $1,500 in purchases, 1% cash back on the next $21,000 in purchases, and 1.5% cash back on all purchases after that. It seems great on paper, but in practice it’s really lacking in rewards, especially on your first $4,000 in purchases. How can you tell if a card is potentially tiered ? Look for the “up to” language in card marketing. If you see that, it’s a good indication that it might be tiered, or at least have categories to worry about. General rule of thumb to max your cash back So how can you determine when it’s best to use a flat-rate card, or one that hands out bonuses on select purchases? A simple way? If at least 40% of your total spending falls inside 3 categories (i.e. gas, groceries, and restaurants), then a category card may be better for you. If your spending is more varied than that, a flat cash back rate could end up earning you more. As an example, let’s take a look at our default $2,000 monthly spend we use for estimating credit card rewards: The gas, groceries, and recurring bills category makes up 42.5% of our total monthly spending in this example. According to our rule of thumb, this means someone with this type of budget should be using a category card with bonus rewards on their 3 main categories. Let’s compare this spend to someone who has extremely varied spending – $250 per month in each of the 8 categories listed above. How will the rewards differ for the same cards? Cash back credit card Categories Yearly rewards (Default spend) Yearly rewards (Varied spending) Scotia Momentum ® Visa Infinite * Card * 4% on groceries and bills * 2% gas and transit * 1% on all other purchases $498 $450 TD Cash Back Visa Infinite * Card * 3% on gas, groceries, and recurring bills * 1% on all other purchases $444 $420 They’re grouped closely together in terms of annual rewards, but the category spending of the Scotia Momentum Visa Infinite gives more cash back on the same amount of money spent. But if you have a varied spend, the flat rate of the SimplyCash Preferred gave you the most rewards. Other ways to figure out if a flat cash back card is better for you Now, this is just a rough rule. Everyone’s monthly spending situation is unique. Here’s how you can figure out what works best for your specific situation. Determine how much money you spend on your credit cards First, you’ll need to know how much you’re spending, and what you’re spending it on. You can do it yourself with a spreadsheet, and go through your spending one item at a time. You can also use an online tool like Mint.com or youneedabudget.com , which will connect to your bank accounts and do everything automatically for you. Of course, you can always just estimate your spending habits instead, putting a rough percentage and monthly spend together. Use our compare cards page Once you have this info, you can use our compare cards page . Enter your monthly spending on the left, and adjust the sliders to the type of rewards you’d like. You can sort cards by either Genius Rating , annual fee, welcome bonus, or total rewards. You’ll be shown the top credit cards for you. To tell which cards are flat or category based, simply make a large change to the “General” spend category – the flat rate cards will rise to the top. Here’s an example, based on our default spending: You can also click on each card, and on the next page you’ll get the card details, including what it earns on purchases. Use your dashboard If there are 2 specific cards in mind you’d like to compare side-by-side, your dashboard can help you check them out. Log in , head to your dashboard , then add the cards you want to compare. You can customize the spending for each one, and see how they match up to each other. Using our default spending, here’s what this looks like: Related : No Fee Vs. Low Fee Credit Cards The best flat rate cash back cards So what are the best flat rate cash back cards available? Here are our favourites, with a range of fees – from none all the way to $199. Credit card Flat rate cash back % Annual Fee, Income Requirements Apply Brim Mastercard 1% * $0 * $15K personal Apply Now Brim World Elite Mastercard 2% (up to $25,000 spent) * $89 * $80K personal or $150K household Apply Now Related : Category Vs. Flat Rate Cash Back Credit Cards: Which Is Better? Brim Mastercards Brim Financial has a great lineup of flat rate cash back cards. Before getting into the cards themselves, there are a few features that all of them have, regardless of the annual fee you pay. The first is no foreign exchange fees . You’ll save yourself the standard 2.5% fee other credit cards charge for making purchases that aren’t in Canadian dollars. These cards also have 2 of the rarest insurances available – mobile device and event ticket insurance. Get your cell phone some coverage in case it breaks, and never have to worry about whether or not any future tickets you buy will go to waste because you can’t attend the show (for a covered reason). And finally, Brim has partnered with over 150+ retailers, to help you earn bonus cash back with them above your standard earn rate. How much ? You could earn anywhere from 3% to 30% back, depending on the retailer. Just note you won’t earn your card’s regular earn rate when shopping with Brim’s partners. Brim Mastercard 2.5 Genius Rating 2.0 (84) User reviews Annual fee $0.00 Learn more Welcome bonus $0 ◊ Learn more Annual rewards $198 ◊ Learn more Learn More Brim Mastercard 2.5 Genius Rating 2.0 (84) User reviews Annual fee $0.00 Learn more Welcome bonus $0 ◊ Learn more Annual rewards $198 ◊ Learn more Credit estimate:  (760 - 900) Learn More Instant approval: No Rewards Details & Eligibility Genius Rating User Reviews Pros & Cons Show More Rewards Details & Eligibility Genius Rating User Reviews Pros & Cons Brim’s no fee offering, the Brim Mastercard will earn you 0.5% back on all purchases. And you can receive up to $200 after your first purchases with select Brim retail partners. Brim World Elite Mastercard 2.2 Genius Rating 2.6 (27) User reviews Annual fee $89.00 Learn more Welcome bonus $0 ◊ Learn more Annual rewards $312 ◊ Learn more Learn More Brim World Elite Mastercard 2.2 Genius Rating 2.6 (27) User reviews Annual fee $89.00 Learn more Welcome bonus $0 ◊ Learn more Annual rewards $312 ◊ Learn more Credit estimate:  (760 - 900) Learn More Instant approval: No Rewards Details & Eligibility Genius Rating User Reviews Pros & Cons Show More Rewards Details & Eligibility Genius Rating User Reviews Pros & Cons Finally, we have Brim’s premium offering – the Brim World Elite Mastercard. Earn 1% cash back on everything you buy. It also comes with a monster sign-up bonus – up to $500 in rewards after your first purchases with select Brim retail partners. It does have the highest annual fee on our list here – $89. In summary Flat rate cash back cards keep it simple. And in the right hands, they can actually provide more cash back than one with different category boosts. What are your thoughts on flat rate cards? Let us know in the comments below. creditcardGenius is the only tool that compares 126+ features of 227 Canadian credit cards using math-based ratings and rankings that respond to your needs, instantly. Take our quiz and see which of Canada's 227 cards is for you. Did you find this article helpful? Yes No Editorial Disclaimer : The content here reflects the author's opinion alone. No bank, credit card issuer, rewards program, or other entity has reviewed, approved, or endorsed this content. For complete and updated product information please visit the product issuer's website. Our credit card scores and rankings are based on our Rating Methodology that takes into account 126+ features for each of 227 Canadian credit cards. Hot Credit Card Deals This Month Hot Credit Card Deals This Month: Get even more cash back with exclusive offers only available on the GeniusCash app Explore bigger GeniusCash offers that you won't find anywhere else. Connect your credit cards and unlock bonus cash on your spending that you won't get anywhere else. Explore customized recommendations to help you find the best products to level up your rewards. Be the first to know about new, limited-time GeniusCash offers so that you never miss a deal. Refer your friends and family to earn bonus levels and extra cash back. Up to 90,000 100,000 bonus points + 4 free lounge passes per year + $125 GeniusCash Earn up to 5x the points on purchases. 90,000 100,000 point welcome bonus worth up to $670. Includes a Mastercard Travel Pass membership with 4 free passes.. Annual fee of $150, which is waived for the first year. $125 GeniusCash on approval ‒ offer ends Dec 31, 2025. * Earn up to 165,000 bonus points + First year annual fee rebate + $20 GeniusCash Earn up 165,000 TD Rewards points as a welcome bonus. Earn 8 points per $1 spent on travel through Expedia For TD. Earn 6 points per $1 spent on groceries and restaurants. Annual $100 travel credit for use at Expedia For TD. $20 GeniusCash on approval ‒ offer ends Nov 30, 2025. * 0% interest for 12 months with Canada's #1 balance transfer promotion + $20 GeniusCash Best balance transfer rate in Canada. You can get a 0% promotional balance transfer rate for 12 months to help you pay off pre-existing credit card debt. Permanent low interest rates of 12.99% on purchases and 17.99% on balance transfers (24.99% on cash advances). No annual fee. $20 GeniusCash on approval ‒ offer ends Nov 30, 2025. * $20 GeniusCash on approval ‒ offer ends Nov 30, 2025. * Bonus : Finally earn rewards on your biggest expense by paying for your rent and other bills with Chexy. Related Posts Top 5 No Fee Mastercards In Canada Compare Capital One Credit Cards The Rogers Red World Elite Mastercard Vs. Rogers Red Mastercard Walmart Mastercard Rewards Updates: Earn 3% at Walmart Comments Leave a comment Required fields are marked with *. Your email address will not be published. Post Comment Showing 4 comments Barry Hennick May 13, 2020 Why is the Rogers world elite Mastercard not considered? It was last year's leader. Reply creditcardGenius Team May 14, 2020 With the upcoming changes to the Rogers World Elite Mastercard, it was not included in this post. While it will still earn good cash back rates for no annual fee, the fact that cardholders will need to spend $15,000 per year to keep from potentially being downgraded is the reason it wasn't included. Reply Vishal May 1, 2020 I guess you deliberately forget Rogers MasterCard when you talk about flat-rate cards. Even if it's cashback rate is going down to 1.5 from 1.75, there is still no annual fee and there will be no FX fee for transactions in the USA. Reply creditcardGenius Team May 5, 2020 Our reason for not including the Rogers World Elite doesn't have to do with rewards. Starting June 2nd, cardholders will have to spend $15,000 annually on the card, otherwise Rogers reserves the right to downgrade the card. No other card currently has this kind of requirement. 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Best Credit Cards For Public Transit In Canada What’s important to you? 1 Cash Travel+ 1 Low Fees Insurance 1 Low Interest Perks 38 / 227 best cards Genius Search What's this? You'll also get our hot credit card tips, news, reviews, and exclusive offers directly to your inbox. Free Instant Access It only takes one click to unsubscribe so give it a try. About creditcardGenius creditcardGenius is a smart credit card matchmaker that compares 126+ features of 227+ credit cards, with objective ratings, rankings and reviews. Built in 2017, for Canadians by Canadians, creditcardGenius is trusted by more than 200,000 people every month, 50,000 newsletter subscribers, and 15M people since launch. Read more about creditcardGenius About creditcardGenius About creditcardGenius Team The creditcardGenius team of writers is dedicated to bringing factual, helpful, and thorough information to Canadian consumers. 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Resources Review Your Card Credit Card FAQ Sliders Credit Card Quiz Company About Careers Scholarship Disclosure Help Contact GeniusCash Report Bug   Privacy Policy | Terms | Security Province: Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Nunavut Northwest Territories Nova Scotia Ontario Prince Edward Island Quebec Saskatchewan Yukon Copyright © 2025 WeyMedia Inc. 200 Champlain St. Suite 210, Dieppe, NB E1A 1P1 ◊ The creditcardGenius algorithm, based on our Rating Methodology , calculates an estimated dollar value for all rewards and bonuses by combining typical monthly spending with well-researched reward point value estimates . "Annual Rewards" is calculated by combining our default $2,000 in monthly spending ($24,000 annually) spread across 8 different spending categories (gas, groceries, travel, etc) with our point value estimates. "Welcome Bonus" is calculated by combining all one-time bonuses available to new cardholders within the first year with our point value estimates. To qualify for the full bonus you may need to make purchases, meet minimum spending requirements, or complete special actions. "Annual Interest Savings" is based on a credit card balance of $8,000 and a standard credit card interest rate of 19.99%. Annual Rewards, Welcome Bonus, and Annual Interest Savings values will change if the person adjusts their monthly spending away from the $2,000 monthly default or changes their reward preferences. *, † Terms and conditions apply. Your feedback matters What do you think of creditcardGenius? Needs work It's ok It's great! Disclosure creditcardGenius receives a referral fee for some credit cards listed; however, our comprehensive and math-based algorithm solely dictates the results of our rating system. Our ratings and rankings are strictly independent of compensation. Read our detailed disclosure about how CCG makes money. Never miss a deal Unlock VIP-access to exclusive GeniusCash deals, credit card offers, and the biggest money news. Bonus : Get our 250+ page money-saving eBook for free. We promise to keep your email safe. We hate spam too. Unlock my deals Glad we could help you choose the right credit card for you. Never Miss A Deal Want to get hot credit card news and offers directly to your inbox? Bonus : Get our free 250+ page eBook that will save you $1000s per year Keep Me Updated No thanks, I don’t want credit card deals. Glad we could help you choose the right credit card for you. Before you continue your application ... Never Miss A Deal Want to get hot credit card news and offers directly to your inbox? Bonus : Get our free 250+ page eBook that will save you $1000s per year Keep Me Updated No thanks, I don’t want credit card deals. 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