🎁 Earn 10% cash back on all purchases for the first 3 months
The Scotiabank Momentum Visa Infinite credit card stands out in Canada, especially for renters looking to maximize their cashback benefits.
Understanding Chexy: A Game Changer for Renters
Before we delve into the specifics of the Scotiabank Momentum Visa Infinite, it’s essential to understand how Chexy works. Chexy is a fintech service that allows renters to pay their rent using a credit card. This is particularly beneficial because it enables users to earn cashback on what is often their largest monthly expense.
Here’s how Chexy operates: when you pay your rent through Chexy, they charge your credit card and then e-transfer the rent amount to your landlord. To the landlord, it appears as a standard e-transfer, but you’re earning cashback on your rent payments. This is significant because many credit cards offer higher cashback rates for recurring bills.
Chexy charges a small fee of 1.75% to process these transactions. Therefore, to make this service worthwhile, you need a credit card that offers more than 1.75% cashback. This is where the Scotiabank Momentum Visa Infinite excels.
Benefits of the Scotiabank Momentum Visa Infinite
The Scotiabank Momentum Visa Infinite offers impressive cashback rates that cater specifically to the needs of renters. Here are the main benefits:
- 4% Cash Back on Groceries and Recurring Bills: This is the highest cashback rate for recurring bills among Canadian credit cards. This feature is particularly valuable for renters who can maximize their cashback by paying their rent through Chexy.
- 2.25% Cash Back on Rent: When paired with Chexy, renters can earn 2.25% cashback on their rent payments, significantly offsetting the high costs of living in Canada.
- Promotional Offers: If you sign up for Chexy and apply for the Momentum card before June 30th, you can benefit from three months without the 1.75% service charge, making it an even more attractive option.
Calculating Your Potential Savings
Let’s break down the potential savings with an example. If your monthly rent is $2,000, using Chexy with the Momentum card means you could earn about $45 in cashback over three months. Specifically, the service fee of 1.75% would be waived during the promotional period, maximizing your rewards.
Drawbacks of the Scotiabank Momentum Visa Infinite
While the benefits are compelling, there are some drawbacks to consider:
- Annual Spending Limit: The 4% cashback on groceries and recurring bills is capped at $25,000 per year. After reaching this limit, the cashback rate drops to 1%, which may not be ideal for those with higher expenses.
- Annual Cashback Payout: Unlike some cards that pay out cashback monthly, the Scotiabank Momentum Visa Infinite pays out once a year, typically in November. This means you cannot reinvest your cashback throughout the year.
Adjusting Your Spending Strategy
To maximize your cashback potential, it’s crucial to adjust your spending habits. For instance, if your rent is $2,000 a month, that totals $24,000 annually. This leaves you with only $1,000 for groceries and other recurring bills if you want to stay within the limit for the higher cashback rate.
Consider supplementing your spending with another card for groceries or other expenses. Cards like the Tangerine Money Back Mastercard can offer 2% cashback on recurring bills. This strategy can help you maintain higher cashback rates across your spending categories.
Insurance Benefits
The Scotiabank Momentum Visa Infinite also comes with a solid insurance package, featuring eleven different insurance coverages. While these coverages are standard and do not exceed those found in travel-focused cards, the sheer number of coverages provides peace of mind for users.
For context, a comparable card like the CIBC Dividend Visa Infinite only offers seven coverages, making the Momentum Visa Infinite a stronger contender in this regard.
Scoring the Scotiabank Momentum Visa Infinite
Now, let’s assign scores to various aspects of the Scotiabank Momentum Visa Infinite:
- Cash Back and Rewards: With 4% cashback on groceries and recurring bills, this card earns an 8 out of 10.
- Insurance: The eleven insurance coverages earn a 9 out of 10, providing excellent value.
- Perks: The ability to earn 2.25% cashback on rent through Chexy deserves a perfect 10 out of 10.
Overall, this brings the average score for the Scotiabank Momentum Visa Infinite to a commendable 9 out of 10, solidifying its status as an S-tier card.
Who Is This Card For?
The Scotiabank Momentum Visa Infinite is ideal for renters in Canada who want to maximize their cashback rewards on essential spending. If you pay rent, this card can help you offset the rising costs of living by providing significant cashback opportunities. Additionally, if you frequently spend on groceries and recurring bills, the 4% cashback rate is hard to beat.king it a well-rounded choice for various needs.
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