- Oct 25, 2017
If it was my $500 math example that spooked you, consider this.
The Scotia Momentum annual fee cashback (the smaller one) offers 2% cashback on gas, groceries, prescriptions, and regular bill payments. 1% cashback on everything else. But it only costs $39 per-year. If your $500 monthly credit card bill is mostly made up of those basic essentials, then you're probably getting around $120 annual cashback, rather than the $60 I would get with my unremarkable no-fee 1% card. And $120 in annual cashback for $500 in monthly spending is an easy win, regardless of the $39 per-year cost of the card.
And then there's the Scotia Momentum Visa Infinite cashback (the bigger one), which offers 4% on gas and groceries (with 2% on prescriptions and regular bills, 1% on everything else), for an annual fee of $99. If your $500 per-month is mostly spent on gas and groceries, then you could be looking at $240 in annual cashback. Again, that earns it's money back very quickly, and goes on to totally crush the basic no-fee 1% card.
Some of these perks really complicate the math (because you have to figure out your monthly/yearly food bills and/or your monthly/yearly fuel bills, rather than simply looking at your monthly credit card statement), but if you game the system you can totally take advantage of the perks to score big wins.