Almost everyone needs a credit card, but if you’re not a big luxury spender, you might be wondering if there’s a reward card out there that you can actually use. Unlike many other cards, the MNBA Smart Cash World MasterCard provides extra cash rewards to cardholders who use it to purchase essential items.
Get this card and get rewarded in cash for your usual household spending.
|You Are Interested If||You need a credit card with fair rates and cash back offers for the necessities you buy every day.|
|Brief Description||The MBNA Smart Cash World MasterCard is a mid-range credit card that balances good rates and good rewards and caters to the spending habits of real Canadians.|
|Main Requirements||You must have good credit and a reasonably large income ($60,000+ when applying alone or $100,000+ as a household).|
|Provider||MBNA, or TD Bank to be more precise.|
|Card Type||This is a cash back card.|
Fees and Interest
|Purchase Interest Rate||Regular purchases accrue interest at 19.99%.|
|Cash Advance||Cash advance interest rates are slightly higher than the rest at 24.99%.|
|Balance Transfer||Balance transfers are charged 22.99% annual interest.|
|Income Requirements||You must make over $60,000 a year as a single individual to apply.|
|Household Income Requirements||If you don’t meet the requirement above, you may still get this card with a household income of over $100,000 a year.|
|Annual Fee||There is a $39 annual fee associated with this card.|
|Welcome Bonus||If you apply for this card now, you’ll receive 5% cash back on grocery and gas charges during the first six months or until you earn $500 this way – whichever comes first.|
|How To Earn Points||You’ll get 2% cash back on your first $500 of gas and grocery charges each month, as well as 1% cash back on all other purchases.|
|Benefits||The MBNA Smart Cash World MasterCard comes with complimentary rental car insurance, some forms of travel insurance, and purchase protection coverage.|
About MBNA Smart Cash World MasterCard
The MBNA Smart Cash World MasterCard is a serviceable mid-market credit card that, while not easy to get by any means, should be within reach for many Canadian consumers. Its general 19.99% annual interest rate is more than fair in comparison to most lenders for non-elite income brackets, and the rates on their other credit categories are also in line with overall market trends. These terms aren’t exceptional, but they’re standard fare and won’t cause any undue stress on financially responsible users.
This card is also worthwhile in terms of the rewards you can accrue. Instead of reward points, this card gives you cash back directly, providing you the ultimate freedom and utility. It’s more generous with that offer than you might expect, too. The reward structure MBNA has set up provides incentives for the exact sort of spending that makes up the bulk of expenses for most middle class people – daily living necessities. At a middle income tier, you might not be eating out very often, buying all kinds of gadgets or traveling the world, but you’ll almost definitely still be buying a lot of gas to get around in your car. You’ll also be spending even more on groceries than those with higher incomes due to the necessity of saving a little money by cooking at home more often. In other words, the highest reward categories for the MBNA Smart Cash World MasterCard are tailored specifically to give you the highest cash yield on a modest lifestyle.
How high can that yield get? While the monthly limits ensure that it will never amount to all that much even with the initial 5% cash back rate, it can certainly generate a little extra cash that you can use for the occasional splurge. Almost everyone will spend more than $500 in 6 months on gas and groceries unless they consistently misplace their card at the time of purchase, so you can count on receiving $25 just for that introductory bonus offer.
After that, you’ll still have $500 a month in spending eligible for the 2% reward tier. Most people who take care to always charge these kinds of items to their card will probably max this out every month unless they are single and living very frugally, which means you can probably count on getting an easy $10 every month. This will wipe out the expense of the annual fee in less than a quarter of a year, making the rest of the cash pure profit to go back in your pocket. On top of that, you’ll also be getting the 1% cash back rewards on anything else you buy, potentially increasing your yearly reward yield a little more. It won’t pay for an international trip anytime soon, but it might pay for some small luxuries like a few home-cooked steak dinners or a year’s subscription to Netflix. Having the freedom to spend on little things like this without any guilt can do a lot for your happiness and quality of life.
As we’ve already stated, the MBNA Smart Cash MasterCard likely won’t cost you anything in the long run and can even give you a little extra money, but there are other reasons you might want to have this card even if you don’t think the small monetary gains are worth it. Holding this card gives you access to free travel accident and trip interruption insurance, as well as car insurance and purchase protection. While not all card holders might make much use of these things, almost everyone will take a trip or rent a car at some point, and who knows what purchases you might have to dispute in the future. These little extra provide a bit more value for a card that was already had a lot of upsides in terms of rates and rewards.
As a primary cash-back card, the MBNA Smart Cash World MasterCard already has a lot going for it on that basis alone. Cash is always the best reward, as it is completely liquid and can be used in any way you please. You also don’t need to save it up in order to make use of it, so you can enjoy the payoff of having your card even before you’ve had the time to build up a balance. It might not seem as exciting as building up points toward a vacation, but you’ll see some tangible benefits from your reward system a lot sooner than you would in that scenario, even if they are smaller.
As mentioned above, the way the reward percentages are allocated is very much in the customer’s favor. Getting extra cash for shopping for things you need anyway, such as gas and groceries, effectively gives you access to a permanent discount on those items and permanently higher budget margins because of it. Even the rewards on other purchases can reach rather impressive levels – 1% isn’t a lot, but it isn’t nothing either! You might be surprised at how quickly that little bit extra can add up. This reward system was designed to help you get the most out of it without having to alter your purchasing habits, as long as you use your card consistently, getting your hands on this extra cash should be practically effortless.
MBNA is a subsidiary of the Toronto-Dominion (or TD) Bank that focuses mainly on providing credit cards for consumers. They are headquartered in Ottawa and also keep offices in Regina, but serve the entire country with their range of financial products. As part of TD, they are committed to promoting sustainability and diversity and are part of the umbrella company’s initiative to provide over $1 million in grants to businesses who are working on solutions for a more stable future. They offer a range of customer support services including email support and a fully staffed call center that in many cases can be reached at any time of day, any day of the week.
What We Think
The MBNA Smart Cash World MasterCard might not be the most glamorous card out there, but it’s a good middle-of-the-road option that should provide significant and consistent rewards for most users. As long as you make sure to make full use of it, it should pay for itself and then some, and the extra insurance it provides is nothing to sneeze at either. While there are cards out there with more to offer, they also tend to be significantly harder to get, so anyone who isn’t in a stellar financial situation will have to pass those up anyway. For those who are just comfortable and looking for a credit card to make their life a little easier, you could do much worse than the MBNA Smart Cash World MasterCard; give it some thought before you pass it by.