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CIBC Dividend Visa Card Review
19 Dec 2018

CIBC Dividend Visa Card | Credit Card Review

While there are plenty of low-tier cash back cards available to Canadians, the CIBC Dividend Visa Card stands apart from the pack in a major way. Keep reading to learn more about this credit card option that makes it incredibly easy for anyone to earn a respectable amount of cash back each year.

Get this free credit card with $120 of near-guaranteed cash back rewards.

 

General Information

You Are Interested If You want a cash back card that you can get good use out of without having to charge a huge amount of purchases to it each month.
Brief Description The CIBC Dividend Visa Card front-loads its rewards into your first chunk of yearly spending, meaning that you never have to feel like you’re missing out by sticking to controlled spending habits.
Main Requirements As a card geared toward low spenders, this card doesn’t ask for much from its applicants. A little bit of income and fair credit will do for most people.

Card Details

Network Visa.
Provider CIBC.
Card Type This is a cash back card, but not one that follows the typical structure.

Fees and Interest

Purchase Interest Rate Standard balances incur the usual 19.99% interest on this card.
Cash Advance The cash advance interest rate for this card is 22.99%.
Balance Transfer Balances that were transferred from a different card are also charged 22.99% outside of the promotional period (see the rest of this CIBC Dividend Visa Card review for more details).

Eligibility

Income Requirements This is a basic card with basic $15,000-income requirements.
Household Income Requirements The very low individual income requirement means that CIBC will not consider household incomes for those who do not meet that first benchmark.
Annual Fee This card will cost you nothing in annual fees.

Rewards

Welcome Bonus If you sign up for this card right now, you could benefit from 0% interest for 10 months on any balance transfer you make while applying.
How To Earn Points With this card, you’ll get 2% cash back on groceries up to $6,000 in spending, then 0.5% cash back on everything else for your next $6,000 in spending. Past that, you’ll earn 1% on everything else.
Benefits This card comes with just $100,000 of Common Carrier Accident Insurance as a bonus on top of the usual extended warranties and purchase protection.

About CIBC Dividend Visa Card

Main Features

Our CIBC Dividend Visa Card review will start off by covering the interest rates that holders of this card are responsible for paying. The rates on this card don’t diverge too drastically from what you would get from any other providers. The standard interest rate you’ll see being applied on most of your statements is set at the usual 19.99%. The interest rates on cash advances and balance transfers are identical to each other and, at 22.99%, a little higher than what many cards charge.

However, there is something else to be aware of with this card that actually makes balance transfers a much more appealing option than that high interest rate would suggest: the welcome bonus, which we’re about to cover for this CIBC Dividend Visa Card review. If you’re just signing up with this card, you’ll get a chance to make a balance transfer that you’ll be paying 0% interest on for up to 10 months (the offer will be cut short if you fail to make any payments due on your card on time). Since you would usually expect to pay upwards of about 20% in interest on such a balance on another card, this can obviously add up to a significant amount of savings – about $100’s worth on a balance of $1,000, to be more precise. This offer is only available on balance transfers made during your initial application, though; if you’re at all interested in this option, don’t hold off on putting things into action or you’ll miss your chance altogether.

This is a great way to switch most of your business to this card without taking too much of a risk if you already have existing debt obligations on other cards, and you’ll probably save a lot of money while you do it. You can also use this opportunity to try to relieve yourself of this debt entirely; whatever you would normally spend on interest can safely be put toward paying down your debt instead, hopefully greatly reducing what you owe. Be sure to finish it off as soon as possible, because when this introductory period is over, you’ll be back to paying the same high interest you used to before.

Why should you be interested in switching, though? Simply put, the rewards on this free card are phenomenal. Unlike other cards, your earnings rate will not stay flat over time – instead, you’ll get 2% cash back on the first $6,000 you spend on groceries, followed by 0.5% on the next $6,000 spent on anything at all, then 1% on any money you spend after that. This reward structure is far-removed from the usual scheme, which typically either keeps reward rates flat throughout any spending you do or cuts rewards off altogether past a certain point. By increasing the earnings rate right from the start on the one purchase category that virtually everyone will buy from, this card ensures that you won’t need to spend very much to get a nice chunk of cash.

Something we really want to make clear in this CIBC Dividend Visa Card review is just how easy it will be for most people to max out that boosted initial cash back period. The average Canadian household’s grocery budget is just over the $6,000 limit at $6,176, so if you’re buying for at least two people, you should have no problem maxing out the double cash back allotment. Even if you’re single, you may still be able to reach that amount or come close to it, especially if you enjoy eating organic or high-end food. After that, your rewards will come more slowly, but you will have already amassed an incredible $120 with practically zero effort. If we assume a modest budget of $1,000 a month in total (with $500 of that being the grocery budget we already discussed), you’ll add another $30 to that for a total of $150 in rewards. For a free card and a humble budget, that’s nearly unheard of.

In terms of benefits, this card is much less exceptional, but that’s only to be expected – it’s already giving you far more than most free cards do, after all. You’ll get your purchase protection and extended warranty options like you would with any card, and an extra $100,000 in Common Carrier Accident Insurance. Since the rewards covered in this CIBC Dividend Visa Card review alone are more than enough reason to consider getting this card, these things are just icing on the cake.

As this is an entry-level card, it almost goes without saying that there are also upgraded versions you can choose to apply for, though none of them are free and all have more extensive requirements than this card. Even so, staying at this level should not feel like a compromise regardless of the existence of better options. You’ll still get more than enough out of this card to come away satisfied.

Conclusions

Now that we’re finishing up our CIBC Dividend Visa Card review, it should be clear that it’s hard to overstate how great this card is. Unlike many cards that target their rewards to big spenders and leave Canadians of modest means out in the cold, this one prioritizes bringing rewards to the people for whom they’ll matter most. Very normal, predictable amounts of spending are more than enough to get the bulk of the rewards being offered. If you want an upgrade to this card, those are available, but what is available here is more than generous by conventional standards.

About CIBC

CIBC is a household name in Canada, and for good reason. They currently serve more than 11 million clients (including both individuals and commercial institutions) spread across their four major banking divisions in both Canada and the US. They offer customer service assistance by email or telephone at all hours and on every day of the week, with additional support available from customer service agents during extended business hours via live chat. They even offer Teletype services to better accommodate their clients who are hearing-impaired. No matter what your needs, you will never have to worry about having them met when you use credit cards from this provider.

What We Think

Our final position in our CIBC Dividend Visa Card review is that this is a standout cash back credit card. The reward system might be a bit too complicated for some people’s tastes, but it is actually slanted in the consumer’s favour, particularly in the case of light spenders. This is one of the best low-end cash back cards that Canadians can get in that respect, so we think it’s probably something you’ll want to look into.