Best Tangerine Credit Cards in Canada

Who are Tangerine and how do their credit cards work?

Tangerine is a Canadian direct bank and a subsidiary of Scotiabank. Established in 1997 as ING Direct Canada, it was rebranded as Tangerine in 2014 after Scotiabank acquired it. Tangerine is known for its innovative approach to banking, offering a range of financial products and services, including savings accounts, chequing accounts, mortgages, investment products, and credit cards.

Tangerine credit cards operate on the Mastercard network, providing cardholders with worldwide acceptance and access to a wide range of benefits and features. These credit cards are designed to cater to different spending habits and financial goals, offering rewards in the form of cash back or travel rewards.

The way Tangerine credit cards work is relatively straightforward. Cardholders can use their Tangerine credit card to make purchases at millions of locations worldwide where Mastercard is accepted. Each purchase made using the credit card accrues rewards based on the card’s specific rewards structure, whether it’s cash back on everyday purchases or points towards travel rewards.

Cardholders are typically required to make monthly payments on their credit card balances, either in full or at least the minimum payment specified by Tangerine. Failure to make timely payments may result in interest charges and potentially affect the cardholder’s credit score.

Additionally, Tangerine credit cards may come with other features such as purchase protection, extended warranty coverage, and travel insurance benefits, depending on the specific card and its terms and conditions.

Overall, Tangerine credit cards offer a convenient and flexible way to manage everyday expenses while earning rewards or benefits tailored to the cardholder’s preferences and lifestyle.

Pros and cons of Tangerine credit cards

Pros:

1. Flexible Rewards Categories: One of the standout features of Tangerine credit cards is the ability to customize your cash back rewards by selecting up to three spending categories where you earn higher cash back rates. This flexibility allows cardholders to maximize rewards based on their individual spending habits and preferences.

2. No Annual Fee: Many Tangerine credit cards come with no annual fee, making them a cost-effective option for cardholders who want to enjoy the benefits of a credit card without having to pay an annual fee.

3. Generous Cash Back Rewards: Tangerine credit cards offer competitive cash back rewards on everyday purchases, allowing cardholders to earn money back on their spending. Depending on the card, cash back rates can range from 1% to 2% on eligible purchases.

4. Introductory Promotions: Tangerine often runs introductory promotions for new cardholders, such as bonus cash back or waived balance transfer fees. These promotions can provide added value to cardholders, especially in the early months of card ownership.

5. Additional Benefits: Depending on the specific Tangerine credit card, cardholders may have access to additional perks such as purchase protection, extended warranty coverage, and complimentary rental car insurance, enhancing the overall value proposition of the card.

Cons:

1. Foreign Transaction Fees: While Tangerine credit cards offer competitive rewards and benefits, they typically come with foreign transaction fees, making them less ideal for international travelers or online purchases in foreign currencies.

2. Qualification Requirements: Some Tangerine credit cards may have specific qualification requirements, such as minimum income or credit score thresholds. Cardholders who do not meet these requirements may not be eligible for certain cards or may receive lower credit limits.

3. Limited Travel Rewards: While Tangerine credit cards offer cash back rewards that can be used towards travel expenses, they may not be the best option for frequent travelers seeking travel-specific rewards such as airline miles or hotel points.

4. Cash Back Redemption Restrictions: Tangerine credit cards typically require cardholders to accumulate a minimum cash back balance before they can redeem their rewards, which may limit the frequency of redemption for some users.

5. Variable Cash Back Categories: While the ability to customize cash back categories is a pro for many, it can also be a con for those who prefer a simpler rewards structure. Keeping track of rotating categories and adjusting spending habits accordingly may require more effort for some cardholders.

Overall, Tangerine credit cards offer compelling benefits and rewards for everyday spending, but potential cardholders should carefully consider their individual needs and spending habits to determine if a Tangerine credit card is the right fit for them.

Types of Tangerine credit cards

Tangerine offers a variety of credit cards tailored to different spending habits and financial goals. As of my last update, the following types of Tangerine credit cards are available in Canada:

1. Tangerine Money-Back Credit Card: This card is one of Tangerine’s flagship products, offering cash back rewards on everyday purchases. Cardholders can customize their cash back categories and earn up to 2% cash back on purchases in selected categories. It typically comes with no annual fee and offers additional perks such as purchase protection and extended warranty coverage.

2. Tangerine World Mastercard: The Tangerine World Mastercard is designed for frequent travelers and offers enhanced benefits compared to the standard Tangerine Money-Back Credit Card. In addition to cash back rewards, cardholders receive travel insurance benefits, including rental car collision/loss damage insurance and mobile device insurance. This card may have an annual fee, but it also offers additional perks and rewards.

3. Tangerine World Elite Mastercard: The Tangerine World Elite Mastercard is Tangerine’s premium credit card offering, providing cardholders with top-tier benefits and rewards. In addition to cash back rewards and travel insurance benefits, this card offers perks such as airport lounge access, concierge service, and accelerated rewards on certain purchases. It typically comes with a higher annual fee but may offer greater rewards and benefits for frequent travelers and high spenders.

4. Tangerine Money-Back Business Credit Card: Tangerine also offers a credit card specifically designed for small business owners. The Tangerine Money-Back Business Credit Card allows businesses to earn cash back on their everyday business expenses, with customizable spending categories and no annual fee. It also provides additional benefits such as purchase assurance and extended warranty coverage.

These are the main types of Tangerine credit cards available in Canada, each catering to different needs and preferences. Potential cardholders should carefully review the features, benefits, and fees of each card to determine which one aligns best with their financial goals and lifestyle.

How to find and choose the best Tangerine credit cards in Canada

Finding and choosing the best Tangerine credit card in Canada involves considering various factors such as your spending habits, financial goals, and preferences. Here’s a step-by-step guide to help you navigate the process:

1. Assess Your Spending Habits: Take a close look at your monthly spending patterns to determine where you allocate the most money. Are you primarily spending on groceries, gas, dining out, or other categories? Understanding your spending habits will help you choose a credit card with rewards categories that align with your expenses.

2. Consider Your Financial Goals: Determine what you aim to achieve with a credit card. Are you looking to earn cash back on everyday purchases, accumulate travel rewards for future trips, or build credit history responsibly? Your financial goals will influence the type of Tangerine credit card that best suits your needs.

3. Review Card Features and Benefits: Take the time to review the features, benefits, and terms of each Tangerine credit card option. Compare factors such as cash back rates, annual fees (if any), introductory offers, additional perks (e.g., travel insurance, purchase protection), and eligibility requirements. Pay close attention to any limitations or restrictions associated with each card.

4. Customize Your Rewards Preferences: If you opt for a Tangerine Money-Back Credit Card, consider customizing your cash back categories to maximize your rewards. Select up to three spending categories where you spend the most and earn higher cash back rates. Ensure that the available categories align with your spending habits.

5. Evaluate Annual Fees vs. Benefits: Determine whether the benefits offered by a credit card justify any associated annual fees. While some Tangerine credit cards come with no annual fee, others may offer enhanced rewards and perks for a fee. Assess whether the value you receive from the card’s benefits outweighs the cost of the annual fee.

6. Check Eligibility Requirements: Review the eligibility criteria for each Tangerine credit card to ensure you meet the necessary requirements. Factors such as minimum income, credit score, and residency status may impact your eligibility for certain cards or affect the credit limit you receive.

7. Read Reviews and Compare Options: Take advantage of online resources, reviews, and comparison tools to gather insights into each Tangerine credit card’s performance and customer satisfaction. Consider feedback from current cardholders and compare Tangerine credit cards with similar offerings from other financial institutions.

8. Apply for Your Preferred Card: Once you’ve identified the best Tangerine credit card for your needs, proceed with the application process. You can apply online through the Tangerine website or by contacting customer service for assistance. Provide accurate information and documentation as required to complete the application.

By following these steps and carefully evaluating your options, you can find and choose the best Tangerine credit card in Canada that aligns with your financial preferences and helps you achieve your goals.

How to apply for a Tangerine credit card in Canada

Applying for a Tangerine credit card in Canada is a straightforward process that can typically be completed online. Here’s a step-by-step guide to help you through the application process:

1. Visit the Tangerine Website: Start by visiting the official website of Tangerine using your web browser.

2. Navigate to Credit Cards Section: Once on the Tangerine website, navigate to the “Credit Cards” section. You can usually find this in the main menu or by clicking on a designated tab or link.

3. Select Your Preferred Card: Browse through the available Tangerine credit card options and select the card that best fits your needs and preferences. Consider factors such as rewards structure, benefits, and fees when making your selection.

4. Click on “Apply Now”: Once you’ve chosen a credit card, click on the “Apply Now” button or link associated with that card. This will typically direct you to the online application form.

5. Complete the Application Form: Fill out the online application form with accurate and up-to-date information. You’ll be asked to provide personal details such as your name, address, contact information, employment status, income, and social insurance number (SIN). Make sure to double-check your information for accuracy before submitting the form.

6. Agree to Terms and Conditions: Read through the terms and conditions associated with the credit card you’re applying for. Make sure you understand the card’s features, benefits, fees, and any applicable interest rates. Once you’ve reviewed the terms and conditions, agree to them by checking the appropriate box or selecting an option provided.

7. Consent to Credit Check: As part of the application process, Tangerine will conduct a credit check to assess your creditworthiness. You’ll need to provide consent for this credit check to proceed with your application.

8. Submit Your Application: After completing all required fields and reviewing your information, submit your credit card application electronically. Some Tangerine credit cards may offer instant approval, while others may require additional processing time.

9. Wait for Approval: Once you’ve submitted your application, wait for Tangerine to review and process it. You may receive an immediate decision in some cases, while others may require further verification or review. You can typically check the status of your application online or by contacting Tangerine’s customer service.

10. Receive Your Card: If your application is approved, Tangerine will issue your credit card and mail it to the address you provided during the application process. Once you receive your card, activate it according to the instructions provided and start using it for your purchases.

By following these steps, you can apply for a Tangerine credit card in Canada conveniently and efficiently through the online application process.

What is credit score and how much do I need for a Tangerine credit card?

Your credit score is a numerical representation of your creditworthiness, indicating to lenders how likely you are to repay borrowed money responsibly. In Canada, credit scores typically range from 300 to 900, with higher scores indicating lower credit risk. Credit scores are calculated based on various factors, including your payment history, credit utilization, length of credit history, types of credit accounts, and recent credit inquiries.

Here’s a breakdown of the key factors that contribute to your credit score:

1. Payment History (35%): Your history of making on-time payments on credit accounts, such as credit cards, loans, and mortgages, is the most significant factor influencing your credit score. Late payments, defaults, and accounts in collections can have a negative impact on your score.

2. Credit Utilization (30%): This refers to the percentage of your available credit that you’re currently using. Keeping your credit card balances low relative to your credit limits can positively impact your credit score.

3. Length of Credit History (15%): The length of time you’ve been using credit accounts plays a role in determining your credit score. Generally, a longer credit history demonstrates greater financial responsibility and stability.

4. Types of Credit (10%): Having a mix of different types of credit accounts, such as credit cards, installment loans, and mortgages, can positively impact your credit score. Lenders like to see that you can manage various types of credit responsibly.

5. Recent Credit Inquiries (10%): Each time you apply for new credit, a hard inquiry is recorded on your credit report. Too many recent inquiries can indicate higher credit risk and may lower your credit score.

As for the credit score required to qualify for a Tangerine credit card in Canada, Tangerine typically considers applicants with fair to good credit scores. While specific credit score requirements may vary depending on the card and other factors, a credit score of around 650 or higher is generally considered to be in the fair to good range and may increase your chances of approval for a Tangerine credit card.

However, it’s essential to note that credit score is just one factor that lenders consider when evaluating credit card applications. Other factors, such as income, employment status, and existing debt obligations, also play a role in the approval decision.

If you’re unsure about your credit score or whether you meet the eligibility requirements for a Tangerine credit card, you can check your credit score for free through various credit monitoring services or by requesting a copy of your credit report from one of Canada’s credit bureaus, such as Equifax or TransUnion. This can help you assess your creditworthiness and determine whether you’re likely to qualify for a Tangerine credit card before applying.

Common interest rates, fees and costs for Tangerine credit cards

Interest rates, fees, and costs associated with Tangerine credit cards in Canada can vary depending on the specific card you choose and your individual financial circumstances. Here’s an overview of the common interest rates, fees, and costs you may encounter with Tangerine credit cards:

1. Annual Percentage Rate (APR):

   • Tangerine credit cards typically offer a standard purchase APR for regular purchases made using the card. This APR may vary depending on factors such as the card type, the cardholder’s creditworthiness, and prevailing market conditions.
   • Additionally, Tangerine credit cards may have different APRs for balance transfers and cash advances. These rates may be higher than the standard purchase APR and may also vary depending on the card and individual factors.

2. Annual Fees:

   • Many Tangerine credit cards come with no annual fee, making them an attractive option for cardholders who want to avoid recurring costs. However, Tangerine also offers premium credit cards with enhanced benefits and rewards that may come with an annual fee. The annual fee for these premium cards can vary depending on the card type and the level of benefits provided.

3. Foreign Transaction Fees:

   • Tangerine credit cards typically charge a foreign transaction fee for purchases made in foreign currencies. This fee is usually a percentage of the transaction amount and is applied to purchases made outside of Canada. It’s essential to consider this fee if you frequently travel internationally or make purchases from foreign merchants.

4. Balance Transfer Fees:

   • If you choose to transfer a balance from another credit card to your Tangerine credit card, you may incur a balance transfer fee. This fee is typically calculated as a percentage of the amount being transferred and is subject to a minimum fee. Some Tangerine credit cards may offer promotional balance transfer offers with reduced or waived fees for a limited time.

5. Cash Advance Fees:

   • Tangerine credit cards may charge a fee for cash advances, which are cash withdrawals made using the credit card. This fee is usually calculated as a percentage of the cash advance amount and may also be subject to a minimum fee. Cash advances typically accrue interest from the date of the transaction at a higher APR than regular purchases.

6. Late Payment Fees:

   • If you fail to make at least the minimum payment by the due date on your Tangerine credit card statement, you may incur a late payment fee. This fee is typically a flat amount and is charged in addition to any interest that accrues on the outstanding balance.

It’s important to review the terms and conditions, as well as the fee schedule, for the specific Tangerine credit card you’re considering to understand the applicable interest rates, fees, and costs associated with the card. Additionally, keep in mind that maintaining good credit habits, such as paying your bills on time and avoiding carrying high balances, can help minimize fees and costs associated with credit card use.

Alternatives to Tangerine credit cards

While Tangerine credit cards offer competitive rewards and benefits, there are several alternatives available in the Canadian market that cater to different preferences and financial needs. Here are some alternatives to consider:

1. Scotiabank Credit Cards: As Tangerine is a subsidiary of Scotiabank, you may want to explore credit card options offered directly by Scotiabank. Scotiabank offers a variety of credit cards, including cash back cards, travel rewards cards, and premium cards with exclusive perks.

2. American Express Credit Cards: American Express offers a range of credit cards in Canada, including cash back cards, travel rewards cards, and premium cards with luxury benefits. American Express cards are known for their generous rewards programs and excellent customer service.

3. BMO Credit Cards: Bank of Montreal (BMO) offers a diverse selection of credit cards, including cash back cards, travel rewards cards, and cards tailored to specific interests such as air miles or rewards for groceries and gas purchases.

4. CIBC Credit Cards: Canadian Imperial Bank of Commerce (CIBC) provides various credit card options, including cash back cards, travel rewards cards, and cards with additional benefits such as insurance coverage and concierge services.

5. RBC Credit Cards: Royal Bank of Canada (RBC) offers a range of credit cards with rewards programs, including cash back, travel rewards, and points-based rewards. RBC also offers co-branded credit cards affiliated with major airlines and retail partners.

6. TD Credit Cards: Toronto-Dominion Bank (TD) provides credit cards with diverse rewards programs, including cash back, travel rewards, and points-based rewards. TD also offers specialized cards for students, small businesses, and frequent travelers.

7. National Bank Credit Cards: National Bank of Canada offers credit cards with cash back rewards, travel rewards, and other benefits such as roadside assistance and purchase protection.

8. Credit Union Credit Cards: Many credit unions across Canada offer credit cards with competitive rewards and benefits. Credit union cards may be particularly appealing for individuals who prefer to bank with a local institution and support their community.

When comparing alternatives to Tangerine credit cards, consider factors such as rewards structure, annual fees, interest rates, additional benefits, and eligibility requirements. Choose a credit card that aligns with your spending habits, financial goals, and preferences to maximize the value you receive from your card.

FAQs about the best Tangerine credit cards in Canada