TD Cash Rewards Visa credit card review

TD Cash Rewards Visa credit card review

Published: November 16, 2017
Ratings Policy
Balance Transfer Rating:
1.5 rating
1.5 rating
1.5 / 5
Introductory Offer: 0.8
Net Value: 4.2
Features: 3.0

In a nutshell:

This modest cash back card charges a hefty fee for transferring a balance and only gives cardholders 12 months to take advantage of the card’s interest-free promotion.

0% Introductory Period
12 months

Transfer Fee
$10 or 4% (whichever is higher)

Introductory Purchase APR
None

APR
13.99-23.99% (variable)

Annual Fee
$0

Other Notable Features: Free Vantage credit score, car rental insurance, lost baggage insurance, roadside assistance, concierge service, hotel upgrades, extended warranty, purchase security, travel and shopping discounts

Cash Back Rating:
2.4 rating
2.4 rating
2.4 / 5
Rewards Value: 1.1
Annual Percentage Rate: 2.4
Rewards Flexibility: 3.9
Features: 3.0

In a nutshell:

The sign-up bonus of $150 may get a lot of customers in the door, but the cash back rate on the TD Cash Rewards Visa card is pretty disappointing.

Rewards Rate

  • 2% cash back on restaurant purchases
  • 1% cash back on general purchases

Sign-up Bonus
$150 if you spend $500 in first 90 days

Annual Fee
$0

Average Yearly Rewards Value ($1,325 monthly spend)
$231

APR
13.74-23.74% (variable)

Rewards Redemption
Pros

  • Redeem rewards for more than 400 options, including cash back, electronics, gift cards, travel rewards and more

Cons

  • 5% bonus rate only available for a limited time

Other Notable Features: Free Vantage credit score, car rental insurance, lost baggage insurance, roadside assistance, concierge service, hotel upgrades, extended warranty, purchase security, travel and shopping discounts

No Annual Fee Rating:
2.8 rating
2.8 rating
2.8 / 5
Rewards Value: 1.5
Annual Percentage Rate: 2.2
Rewards Flexibility: 4.2
Features: 3.0

In a nutshell:

The TD Cash Rewards Visa credit card offers a large $150 sign-up bonus, but also a pretty mediocre rewards rate, even for a no-annual-fee card.

Rewards Rate

  • 2% cash back on restaurant purchases
  • 1% cash back on general purchases

Sign-up Bonus
$150 if you spend $500 in first 90 days

Annual Fee
$0

Average Yearly Rewards Value ($1,325 monthly spend)
$231

APR
13.99-23.99% (variable)

Rewards Redemption
Pros

  • Redeem rewards for more than 400 options, including cash back, electronics, gift cards, travel rewards and more

Cons

  • 5% bonus rate only available for a limited time

Other Notable Features: Free Vantage credit score, car rental insurance, lost baggage insurance, roadside assistance, concierge service, hotel upgrades, extended warranty, purchase security, travel and shopping discounts

Rewards Rating:
2.8 rating
2.8 rating
2.8 / 5
Rewards Value: 1.5
Annual Percentage Rate: 2.9
Rewards Flexibility: 4.2
Features: 3.0

In a nutshell:

With a middling sign-up bonus and a meager rewards rate, the TD Cash Rewards Visa card fails to impress against other rewards cards.

Rewards Rate

  • 2% cash back on restaurant purchases
  • 1% cash back on general purchases

Sign-up Bonus
$150 if you spend $500 in first 90 days

Annual Fee
$0

Average Yearly Rewards Value ($1,325 monthly spend)
$231

APR
13.99-23.99% (variable)

Rewards Redemption
Pros

  • Redeem rewards for more than 400 options, including cash back, electronics, gift cards, travel rewards and more

Cons

  • 5% bonus rate only available for a limited time

Other Notable Features: Free Vantage credit score, car rental insurance, lost baggage insurance, roadside assistance, concierge service, hotel upgrades, extended warranty, purchase security, travel and shopping discounts

Though patrons of TD Bank may be attracted to the $150 sign-up bonus on the TD Cash Rewards Visa card, shoppers searching for a great cash rewards card are better off searching elsewhere. You can currently find many cards that offer 1.5 to 2 percent cash back on general purchases, and the TD Cash Rewards card’s modest 2 percent back on restaurant purchases pales in comparison.

As a balance transfer card, the TD Cash Rewards card is even less enticing. Its balance transfer fee is one of the most expensive on the market and it doesn’t offer an interest-free APR on purchases.

A slim bonus for frequent diners

The card offers a 2 percent bonus back on restaurant purchases and 1 percent back on all other purchases. While restaurant purchases are a significant category of spending, you would have to devote an exceptionally large portion of your budget to dining out in order to surpass the 1.5 percent cash back rate available on many other cards. And the $150 sign-up bonus that you receive for spending $500 in the card’s first 90 days is not enough of an incentive. You can find cards with similar or better rewards rates with larger sign-up bonuses.

Note, if you are searching for a card with a bonus rate on restaurant spending that you can juggle with other cards, you will also find better options than the TD Cash Rewards card. Many cards extend a 2 percent bonus rate to multiple categories of spending, including restaurants. Plus, there are a few cash back cards with very versatile rewards that you can pool and transfer to other rewards cards with the same issuer. Cardholders who are keenly interested in maximizing the value of their rewards would be better off searching for a cash back card with transferable rewards points.

Redemption limitations

While there are tons of options to redeem your cash back, the minimum redemption is $25. And if you want to redeem your cash back for travel, the minimum amounts are even higher: $250 for a round trip flight and $150 for a hotel room.

Mediocre balance transfer offer

The interest-free balance transfer offer on the TD Cash Rewards Visa card only lasts for 12 months, so you might want to hold off on transferring a lot of debt to this card. If you transfer more than a few thousand dollars, for example, you can have a hard time paying off your debt by the end of the promotion – especially if you plan on using the card for new purchases. Even a $3,000 balance transfer would require a minimum $250 monthly payment. Because the TD card doesn’t offer a zero percent APR on purchases, you’ll also want to pay off your new balance in full to avoid undermining your transfer.

Above-average balance transfer fee

The TD Cash Rewards card charges a higher fee than most balance transfer cards to transfer old debt, so you might also want to think twice if you have multiple balances to combine. TD Bank charges up to 4 percent to transfer a balance, which can add up quickly if you transfer a significant amount. Even a $3,000 balance transfer on the TD Cash Rewards card can cost up to $120 in fees – $30 more than you’d spend on a card that charges a more typical 3 percent fee. The TD Cash Rewards card is also strict about how much you can transfer. Cardholders are only allowed to transfer a minimum of $250.

High APR

Like most rewards credit cards, the APR on the TD Cash Rewards card is fairly steep, especially if you have less-than-perfect credit. The lowest APR cardholders can qualify for is 13.99 percent, which is cheaper than the average balance transfer card, but higher than many competitors. If you have excellent credit and plan to continue carrying a balance, you might be better off choosing a less expensive card. At 23.99 percent, the card’s maximum interest rate is also on the high side for a balance transfer card.

Why get the TD Cash Rewards Visa card?

  • You spend a lot on gas, groceries, dining and utilities and can earn enough cash back in the card’s first six months to earn $450 back.
  • You want a decent cash back card and hate annual fees.
  • You only have a small amount of debt to transfer and can repay the debt in less than a year.
  • You want Visa Signature benefits that come at no cost to you.You prefer a multitude of redemption options, including deals that can be found on the TD website.

How to use the TD Cash Rewards Visa card:

  • Use your card for all your everyday purchases in order to cash in on the card’s sign-up bonus.
  • Don’t forget to spend $1,500 in the first 90 days in order to get the sign-up bonus.
  • Since bonus cash back is capped at $75 – $1,500 in spending – each billing cycle, consider switching to credit cards with better cash back offers once you hit the cap on this card.
  • To avoid undermining your interest-free balance transfer, pay off all your new purchases in full.
  • Be sure to use this card’s purchase security feature on big-ticket items such as cellphones, laptops, etc., especially if you take those items on trips.

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